| Microsoft has announced substantial changes in the way it plans to charge large business customers for its software. The company will offer enterprise customers operating more than 250 personal computers the option of buying subscriptions for Windows, Office and its server software, rather than perpetual licenses.
According to Bill Henningsgaard, vice-president of worldwide licensing and pricing, the move was a first step towards Microsoft’s vision of software as a service. He also said the new licensing programs were optional.
Beginning in October, the company will offer three-year subscription-based licenses. These would initially be about 15 per cent cheaper, and would be easier to administer than traditional licenses, allowing customers to add and subtract users easily.
Microsoft was also offering software assurances which provide a cost-effective method of upgrading software. Finally, the company would provide better license-management tools and a streamlined sales process that made the cost of licenses more transparent.
Henningsgaard said the changes should be revenue neutral for the company. | 
