technology
by ed van buskirk.

Pay Now . . . or Pay Even More Later

I recently attended a software-licensing meeting at Microsoft’s office in Overland Park expecting to learn the legal dos and don’ts of software. Instead, the meeting (inadvertently) focused on Microsoft’s latest way to make us all feel like we are being taken to the cleaners…AGAIN.

As an IT consultant who supports the network and server operations for my clients, I became very concerned about the additional software expense my clients will pay if they aren’t notified of Microsoft’s July 31st deadline. My thoughts then went beyond my clients to other small- and medium-size business owners who will be flabbergasted when they learn how much more they will have to pay.

For instance, in the past, and up through July 31, 2002, to upgrade Microsoft Office 2000 Professional to Microsoft Office XP Professional, you purchased an upgrade that costs about $268. Effective Aug. 1, 2002, you will no longer be able to purchase software upgrades from Microsoft. Instead, you will be forced to repurchase a full version. Therefore, instead of spending $268, you will be forced to purchase Microsoft Office XP for $460. Considering the number of copies of Microsoft Office you own, Microsoft’s new policy could cost you thousands of dollars. Worse, all Microsoft software is affected by this change.

Instead of allowing software upgrades, Microsoft is offering a Software Assurance program, which essentially is a software subscription. Through Software Assurance, you have the rights to use all future versions of a product during the "term" of your agreement. The catch is to get Software Assurance, you will first have to purchase the full version. Then, you have to pay an additional fee for the Software Assurance. Quite a deal, huh?

Microsoft is also offering Upgrade Advantage, which makes it less expensive for you to upgrade and have the rights to future versions. However, the Upgrade Advantage is only available until July 31st. Therefore, you must act now.

To understand the upcoming changes and their impact is much more involved than knowing about Software Assurance and Upgrade Advantage. The rules are different for operating system licenses than for desktop applications. There are yet other rules for OEM (Original Equipment Manufacturer) software that don’t apply to retail software.

Most people are totally unaware of these changes. Most who are aware are really not sure how these changes impact them. When my consulting firm hosted several information sessions during June, the audience seemed, how shall I put it, angry but resigned. But they’ve started to create true technology plans now, though, which every company should have.

With such a costly change and with such a close deadline, it is important that you have a solid inventory of your software and proof of software ownership. With an inventory, you can determine your best course of action. I find that most businesses are conscientious about properly licensing software, but they don’t have a software inventory. Reconciling your inventory with the proofs of ownership helps you make good business decisions regarding your software investments.

In short, if you have any intention of upgrading Microsoft software any time in the next three years, you need to take quick action. As the deadline approaches, I can only imagine the dumbfounded stare I will see when I am asked how much it will cost to "upgrade" and I deliver the sad reality. Please don’t shoot the messenger. Instead, make time to take steps now. It will save you money—and all of us some heartburn later.

Ed Van Buskirk is president of We Are IT, an information technology company. He may be reached by phone at 816.941.6800 or by e-mail at ed@we-are-it.com.