For Sourcing & Vendor Management Professionals (Length: 4 pages)

June 13, 2007

Economics And Alternatives To Microsoft's Software Assurance

by Julie Giera

with Eric G. Brown, Robert Muhlhausen

Executive Summary (This is a document excerpt)

An unprecedented number of Microsoft customers are facing licensing renewal decisions this year, and the decisions aren't proving easy. In particular, customers who have had Software Assurance (SA) when new releases were brought to market could install those releases any time they chose, but many are questioning the offering's future value. The economics of buying SA (at 29% of the licensing fee for desktops) for the next three years without any guarantee that they'll recoup their investment, make holding off and buying new licenses until actually needed an attractive option. Lengthening release schedules, uncertain product road maps, and the complexity, cost, and time associated with installing a new release make the value of this program even more uncertain. This document provides Microsoft customers with specific, practical advice about negotiating their next SA deals.

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Analyst: Julie Giera
Technology: Application Strategy & Selection, IT Management, IT Strategy, Planning, & Governance, Packaged Applications, Sourcing & Procurement, Sourcing Strategy & Execution
Geography: Asia Pacific, Europe, North America

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