Partner power prompts Microsoft IUR rethink

'We listened to you, and we have acted,' Gavriella Schuster tells partners

In the face of widespread opposition from its partners, Microsoft has rowed back on its decision to stop them using its software internally for free.

On the eve of Microsoft Inspire, Microsoft's global partner boss Gavriella Schuster confirmed that the vendor has rescinded a number of changes planned for the Microsoft Partner Network.

This includes controversial plans to withdraw internal use rights from its partners, a move that sparked a petition that has attracted over 6,000 signatures.

"We listened to you, and we have acted," Schuster wrote in a blog post addressed to partners.

"Given your feedback, we have made the decision to roll back all planned changes related to internal use rights and competency timelines that were announced earlier this month.

"This means you will experience no material changes this coming fiscal year, and you will not be subject to reduced IUR licenses or increased costs related to those licenses next July as previously announced."

The U-turn comes just two days after Schuster said in a Microsoft Inspire pre-brief that withdrawing IUR from partner was necessary because "we can't afford to run every single partner around the world for free any more".

Schuster concluded the blog by apologising for the "confusion this caused some members of our partner community, and look forward to growing our partnership with you in the months and years to come".

In a later editor's note clarifying the blog post, Microsoft stressed that today's announcement includes planned changes to on-premise support and new competency requirements.

"We can confirm those planned changes have also been rolled back," it said.

Kelvin Kirby, who is CEO of Technology Associates, a UK Microsoft partner that had been vocal in its opposition of the changes, welcomed the development.

"HUGE Round of Applause to Microsoft and to the lovely Gavriella Schuster for doing the right thing. We love you Gavriella (and always have) and you won't be disappointed with your decision. It's refreshing and encouraging to know that Microsoft listens and we thank you for that. This is what it's about - a partnership, a marriage - we all know we have ups and downs in any marriage but together we can win through in the end for our mutual benefit! Big cheers for Gavriella Schuster," he said.