For Sourcing & Vendor Management Professionals

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	January 14, 2010 Take A Fresh Look At Microsoft's Subscription Program Recent Price Cuts Could Make It Sourcing Managers' Best Licensing Option by Duncan Jones with Christine Ferrusi Ross, Sean Galvin

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Executive Summary

Many enterprises are considering upgrading to new Microsoft products, but they lack the capital budget and are worried about the double impact of software depreciation and Software Assurance (SA) on their P&L. Sourcing teams are also reluctant to commit to buying large license quantities while their firms' financial futures are uncertain. Microsoft's leasing option, Enterprise Subscription Agreement (Microsoft abbreviates it as EAS), might be a good choice for these companies now that Microsoft has reduced EAS prices to make the program much more cost-effective over a six- to eight-year evaluation time frame. IT sourcing managers that want a low initial outlay and long-term cost flexibility in these key technology areas, especially those managers considering Microsoft's hosted offerings, should take a fresh look at EAS, provided the price and terms are right. For example, buyers will need to avoid having to write off existing software assets and will want to protect themselves against future price hikes when initial agreements are due for renewal.

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