GRIDtoday Logo Hewlett-Packard

DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / MARCH 24, 2003: VOL. 2 NO. 12

( Previous Article )   ( Table of Contents )   ( Next Article )

Breaking News - Operating Systems & Software:

Microsoft Loosens Terms Of Server Licensing

Microsoft Corp. said it would change its licensing policy to allow customers to pay for fewer copies of a range of programs used on corporate servers.

The revised "Per Processor License" policy, along with other licensing changes that will go into effect from April 1, comes less than a year after the world's largest software maker introduced a new licensing plan that irked some customers and in some instances, raised the cost of software.

The new policy affects Microsoft software installed on servers, or computers that manage computer networks, that are built with multiple processors. Licensing terms for Windows, the operating software that provides about a third of Microsoft's revenues, were not affected by the change.

Harley Sitner, senior product manager, said that Microsoft had been approached by customers nine months ago asking why they had to pay for the entire number of processors on a server, even if Microsoft's software only ran on one or a few of those chips.

"The fair thing to do is to say that you only have to pay for the processors you need," Sitner said.

Under the new plan, Redmond, Washington-based Microsoft's customers pay only for the chips on a server that use the program.

Sitner said that Microsoft's licensing plan had not kept up with the pace of hardware innovation and the proliferation of multiple-processor server systems.

With budgets tight, corporations have been cutting costs by consolidating their server systems onto multiple-processor computers and adopting Linux (news - web sites), the open source operating system that can be freely copied and modified, unlike Microsoft software.

Sitner said the new server policies were not implemented in response to competition from Linux, but to fix outdated licensing practices.

Microsoft also said it would revise its licensing policy that charges customers for the number of devices that access a server.

Instead of paying for the number of devices connected to a server, customers can instead pay for the number of users accessing a server, regardless of the number of devices.

That way, an organization that has more devices than users can save by opting for the new licensing option. The new policy for device or user access licenses will go into effect later in April, when Microsoft ships the newest version of its server software.

( Top of Page )

( Previous Article )   ( Table of Contents )   ( Next Article )