Microsoft U-turns on Office 97 OEM deals

Size doesn?t matter as OEM prices are extended to all Vars and SIs, but there is concern over delay

Microsoft has earned mixed reactions from the channel for its climb-down on OEM deals for Office 97.

The Office 97 Var edition is being made available to Vars and SIs, regardless of size, as an OEM product in the US and will be introduced to the UK in about three months? time.

Previously, Microsoft had awarded preferential OEM terms to Dell and Gateway only. But it now hopes the extension of OEM pricing to more resellers will go some way to quelling channel complaints about Dell and Gateway 2000 buying Office products at lower prices.

Harry Thuillier, chairman of Fraser Associates, welcomed the vendor?s U-turn. ?I think it?s good news that Microsoft has reviewed its OEM policy with regard to Office 97. I?ve never had a problem with the idea of people buying at lower prices when they buy in large quantities and now we have a situation where the playing field is more level.?

But Keith Warburton, head of the Personal Computer Association, said Microsoft had not gone far enough.

?Little progress would have been made if OEM pricing differentials remained in place. If Microsoft is truly going to give fair pricing opportunities then this will represent a major victory for us. It is important that they don?t then go and give further price reductions to the likes of Gateway,? he said.

Warburton expressed concerns over the delay in introducing the new product into the UK. ?Given that they?re having most trouble over this matter in Europe, why has Microsoft decided to wait so long before implementing the changes here?? he said.

?It sounds like they?re trying to spin things out for as long as possible.?

Another Microsoft dealer, said: ?The smaller OEMs are as loyal as the larger ones, but if they?re squeezed too far they cannot survive.?