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Microsoft's Hidden Price Spike

Recession -- what do you do? If you are Microsoft, you raise prices for your most loyal customers by some 43 percent.  

Loyal customers buy volume licenses, one of which is the Enterprise Agreement (EA). These agreements are purposely confusing because if Microsoft is the only one to understand them, it gives Microsoft control. This is the same technique that lets lawyers charge $300 an hour.

Fortunately some folks, like analyst Paul DeGroot, understand licensing, and by DeGroot's calculations, EA Windows three-year-renewals could cost up to 43 percent more.

That's because when customers renew, they renew not at the EA rate but at the Select or Select Plus rate (which is higher).

What is your experience with Microsoft licensing and is it better or worse than other vendors?

Posted by Doug Barney on 09/17/2012 at 1:19 PM


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