Analyst: Microsoft licensing key to cutting costs

 

Analysts say firms are missing a trick.

Companies are missing out on major cost cutting opportunities by paying scant attention to software licensing on Microsoft products, according to an analyst’s note.

Researchers at Directions on Microsoft have produced a note saying IT administrators could save large amounts by taking another look at their licensing deals with Microsoft over software.

"Making the wrong choice can cost you thousands of dollars, or worse, expose you to legal risk because of non-compliance," said to Rob Horwitz, chief executive of Directions on Microsoft.

"There are ways to save money if you know where to look."

A key problem is that the licensing system is self-policing and yet the penalties for not buying the correct licenses are severe, and board members are liable. As a result companies often overbuy on licenses to play it safe.

Part of the issue is the sheer size of the product offering from Microsoft. The licensing schemes are liable to lead to companies either buying the wrong licenses or sign up to all-you-can-eat Enterprise Agreements.

The note says that licensing terms were highly complex and were likely to remain that way since to simplify the existing system would mean Redmond loses cash in the short term and faces a complex task in changing the current system.

Copyright ©v3.co.uk


Analyst: Microsoft licensing key to cutting costs
 
 
 
Top Stories
Beyond ACORN: Cracking the infosec skills nut
[Blog post] Could the Government's cybercrime focus be a catalyst for change?
 
The iTnews Benchmark Awards
Meet the best of the best.
 
Telstra hands over copper, HFC in new $11bn NBN deal
Value of 2011 deal remains intact.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Xero prepares for key feature coming in 2015
Dec 19, 2014
Xero users will be able to track how their business is comparing to other Xero users.
More 4G from Optus in Darwin
Nov 21, 2014
Click to see where Optus has expanded coverage to the suburbs near Darwin.
Optus steps up regional 4G coverage
Nov 20, 2014
Once 700Mhz services are working, Optus claims regional users will have a "faster and more ...
This Huawei 4G phone costs $99
Nov 12, 2014
The $99 Huawei Ascend Y550, available through Vodafone, enters the budget market as one of the ...
4G smartphones: Microsoft's Lumia 830
Nov 7, 2014
Microsoft has announced its flagship Windows Phone, the Nokia Lumia 830 4G, will be available in ...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  39%
 
Your insurance company
  3%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  7%
 
A retailer (Coles, Woolworths et al)
  2%
 
A Federal Government agency (ATO, Centrelink etc)
  20%
 
An Australian law enforcement agency (AFP, ASIO et al)
  14%
 
A State Government agency (Health dept, etc)
  6%
TOTAL VOTES: 1787

Vote
Do you support the abolition of the Office of the Information Commissioner?