Back Office licensing puts resellers on alert

Software Gartner Group report sparks channel worries over price.

Microsoft resellers are bracing themselves for changes to beice. implemented over the pricing structure for its Back Office products, as the vendor moves away from concurrent licensing.

The changes come at the same time as a forthcoming report by industry analysts Gartner Group, claimed that concurrent licensing - which allows corporate customers to purchase a smaller number of licences than its total number of users - will be eschewed in favour of a per seat licensing structure.

Concurrent licensing has already been removed for Exchange Server and Microsoft's thin client offering Windows Terminal Server - increasing speculation that Back Office applications will be next.

This could lead to cost increases of up to 200 per cent for some companies, provoking channel fears that customers may look for more cost-efficient alternatives to Microsoft's products.

One Microsoft reseller said: 'If Microsoft does replace concurrent licensing it will increase our revenue opportunities, but I think it would be a very contrived scenario where user costs doubled.'

Jonathan Downes, UK licensing manager at Microsoft, was adamant that the changes would not take place: 'We are confused and concerned that Gartner is speculating about our licensing policy. We have no intention of making any changes with regards to the licensing of Back Office.'

But Microsoft resellers remained sceptical. One source said: 'Microsoft has denied it was going to introduce licensing changes in the past and then gone ahead and done it. There's no reason to believe it won't mislead resellers again.'

Another said he would seek assurances about the pricing of Back Office from Steve Balmer, president of Microsoft, when he visits the UK on 5 October.