MS Licensing Costs on the Rise

[alan-d]

Just had an email from my current MS Licensing supplier about the price hikes for licences.

 

Microsoft has today released some important information regarding changes to their Academic Licensing pricing which will have an impact on your organisation, below is a summary of the changes:

 

Price increase effective from 01 August 2013

 

 

• Open Academic price - 0-3% price increase
  
• School Agreements and Open Value Subscription for Education Solutions (OVS-ES) - 21-27% price increase
  
• Campus Agreements - 24-27% price increase
  
• Enrolment for Education Solutions (EES) - 24-27% price increase
  
• Select 6/Select Plus - 18-21% price increase
  

 

Microsoft took action last year to establish and maintain price consistency between European countries due to sustained currency differences between the European countries. As a result the GBP Corporate license prices were increased. At that time, the increase did not extend to Microsoft’s Academic price lists, however, Microsoft is now implementing the increase to its Academic pricing.

[Gatt]

I'm confused..

 

Do Microsoft actually want people to buy their stuff?

 

I'm beginning to wonder about whether they do - what with Windows Hate, , XBoxVHS and TechNet's Retirement...

[localzuk]

A 25% increase is ridiculous. They really do like to upset people.

 

The idea that they'd need to do a 25% increase to make the prices line up with the EU is nonsense too. I suspect that if the £ increases in value, the prices won't drop...

[tmcd35]

Microsoft do seem to have an.....interesting....business plan for their, er, business products!

 

1) Get rid of the desktop and replace it with a touch interface

2) Make Office a cloud application

3) Retire Technet

4) Increase prices

 

As @Gatt rightly points out - their smartphone and gaming business plans don't seem to be any better thought out. Did someone at MS Towers hit the self destruct button?

[localzuk]

They seem to have forgotten that the vast majority of their profit comes from business and education. Focusing on consumers is not as profitable and is not as consistent with its income. You have a hot product 1 month, its crud the next. Whereas in the business market, they want something that lasts and lasts.

[CyberNerd]

It's actually a fairly good business model to convince schools they will get a 'saving' with EES while making it difficult to buy out of the scheme.

 

Looks like buying all my perpetual licenses for Win7 two yrs ago is starting to pay off. I shouldn't need to spend a penny with MS until something like 2017.

[teejay]

I believe it's bogus, same as what happened last year. There has already been a thread on this back in July and it was found to be false - http://www.edugeek.net/forums/general-chat/118867-ees-news-important.html

[teejay]

Just had it confirmed, there will be no changes to academic pricing.

[JamesDonkin]

Sauce?

[localzuk]

Where do theses MS suppliers keep getting this bogus information?!

[teejay]

Sauce?

 

From MS, via our licensing supplier. There have been some changes in internal pricing structures at MS, but it doesn't affect end user academic pricing.

[JamesDonkin]

It seems a bit odd for one supplier to distribute the above email. Wonder if they're just the first to hear of it, although I can't see that being very likely.

[teejay]

It's been going round for a couple of weeks apparently, same thing happened last year and again some 'helpful' (ie drooling at the commission) account managers sent it out trying to get people to panic buy.

[alan-d]

I have to take the email as read. My renewal is at the end of September and it would be a strange thing to do for a supplier to warn of price increases before they inform me of my renewal costs.

 

I'm doing the usual shopping around in August anyway but if the info is accurate I should be able to cover the cost thanks to some forward planning but as already stated above, 24 - 27% increase is horrendous!

 

edit - I forgot to add that my current supplier is a big global player.

Edited July 24, 2013 by alan-d

[teejay]

So is mine.

 

Exactly the same email went out last year, it's just doing the rounds again this year with the year changed. It gets emailed between the sales guys and they just see ££££ commission and send it out.

[Millgate]

It's been going round for a couple of weeks apparently, same thing happened last year and again some 'helpful' (ie drooling at the commission) account managers sent it out trying to get people to panic buy.

 

Morning guys,

 

I've also heard this as it was me that started the thread mentioned by teejay.

 

I was told the info by a Microsoft distributor who advised that they'd had a price list sent over to them with August pricing on. Now, I've know this person/ dealt with the company for years and years & they've never told porkies before which is why I jumped on here and "warned" you all.

 

However, I've since spoken to MS and they've confirmed that there will not be a price increase.

 

I guess we'll just wait until next week to find out.

 

Generally speaking though, there isn't any money in EES agreements so suppliers don't have much reason to make it up. From my point of view, my rep on here is far more important that the money we make from the agreements so the last thing I want to do is use though tactics with you guys

[KeithMPhoenix]

There is an awful lot that happened behind the scenes over the last few weeks however in essence this price increase only hits a tiny proportion of academic clients. It has come into effect and based on the percentages outlined but various existing MoU's and other caveats mean that the impact is not across the board.

[CyberNerd]

There is an awful lot that happened behind the scenes over the last few weeks however in essence this price increase only hits a tiny proportion of academic clients. It has come into effect and based on the percentages outlined but various existing MoU's and other caveats mean that the impact is not across the board.

 

So what has gone up then?

[KeithMPhoenix]

Without boring you with all the detail - the pricing announcement is correct in that the pricing is going up - however Academic Pricing actually covers a vast array of organisations and not just schools. Many of the types of organisations that qualify for it fall under Government MoU's and various existing agreed pricing models and so even though the price on the pricelist goes up the actual pricing people pay does not as it is covered by these MoU arrangements. With this in mind the issue may be with a few organisations who now fall out this scope - but for schools you are fine as you are covered.

[CyberNerd]

A minefield as usual then.

[KeithMPhoenix]

Indeed - itd be boring if it was simple

[AngryTechnician]

Well, I've just has a quote back for our EES renewal and we have seen an increase of the magnitude mentioned in the OP (around 25%). This is compared to the pricing we got on the exact same licences 1 year ago. Obviously I will be getting additional quotes but it's looking like this might have been an accurate warning.

[Hefferzzzz]

Well, I've just has a quote back for our EES renewal and we have seen an increase of the magnitude mentioned in the OP (around 25%). This is compared to the pricing we got on the exact same licences 1 year ago. Obviously I will be getting additional quotes but it's looking like this might have been an accurate warning.

 

We had a quote last week and although a slight increase on last year, it was nowhere near 25%. Definitely worth checking around.

[KeithMPhoenix]

If you are a school the price increase should not affect you. It maybe the case that the reseller is not understanding how the new pricing now works to ensure that schools do not get charged the increase.

[AngryTechnician]

Yeah, the reseller has banged some heads together at their distributor who admitted that an inexperienced account manager had quoted incorrectly. I've now had correct pricing through which does not have any significant increase on last year.