Microsoft gears up for licensing facelift

Blackley: Select Plus has some of the core concepts we will adopt broadly

Microsoft’s global licensing chief has revealed the vendor is to “transform licensing” based on the principles of its pro-ration-free “evergreen” Select Plus contracts.

Select Licence, a volume offering for firms and public sector bodies with more than 250 PCs, is being phased out. Microsoft confirmed last month that no new Select deals will be sold after 30 June 2011.

Replacement programme Select Plus has been running since 2008 and Chris Black­ley, director of Microsoft worldwide licensing and pricing programmes management, told CRN he has been working to revamp Microsoft licensing for two years. Select Plus is “the first move in that direction”, he said.

“Our biggest barrier has been comfort (with Select),” he said. “Plus has some of the core concepts that we will adopt broadly. We are transforming volume licensing.”

Select Plus never expires, as opposed to Select, which covered three years. Under Select, software assurance could be added, with cost pro-rated from the contract’s most recent anniversary. Plus has scrapped pro-ration.

“(With Select) the customer is getting 25 months but we may be charging for 36,” explained Blackley.

Select Plus discount levels for private sector customers are automatically reviewed annually. Under Select, discounts were based on projections for spending over the entire three-year period.

Dave Simpson, commercial director at Large Account Reseller (LAR) Softcat, welcomed the move. “But some LARs may have preferred the discount level to be set at the beginning,” he added.

Mark O’Brien, European licensing executive at LAR SHI, admitted having mixed feelings. He said the announ­cement had been made before all partners’ questions had been answered.

O’Brien welcomed the evergreen contract and the scrapping of pro-ration, but added: “We are not pushing customers towards it, but we are not shying away from it.”