Licensing Matters

STEVEN BURKE

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Can be reached at (781) 839-1221 or via e-mail at [email protected].

The partner angst is going up an order of magnitude with the release of Windows Vista and Office 2007 later this year. Throw in the changes surrounding Microsoft Business Solutions and the whole Microsoft licensing matter becomes absolutely mind- numbing. Margo Day, vice president of Microsoft’s U.S. Partner Group, says the software giant has opted for flexibility for customers rather than simplicity. Furthermore, Day says Microsoft has decided to allow only a handful of Large Account Resellers, or LARs, to sell Enterprise and Select agreements because of the complexity of those deals. That said, she notes that Microsoft is looking at how to reward partner “influence” on those Select and Enterprise agreements.

Pete Busam, vice president and COO of Decisive Business Systems, a Pennsauken, N.J., Microsoft partner, is one of the solution providers that is none too pleased with the Microsoft licensing situation. Busam wants Microsoft to once and for all allow existing partners that have “built and nurtured” longtime accounts to sell Select and Enterprise agreements. “I want to see Microsoft make a change,” he said. “We have worked hard to build our annuity business and now we are being asked to give it away. It is disappointing.”

Busam says Microsoft has even called into his accounts without his team’s knowledge and pitched the Enterprise or Select agreement. At the very least, Microsoft’s regional office and reps should be working hand in hand with Decisive Business Systems, Busam said. “It’s up to us to look at what makes the most sense for our customer,” he added. “That shouldn’t be dictated by a Microsoft LAR or Microsoft itself.” Day, for her part, says partners should be investing in solution architects rather than licensing experts. “The [profit] margin they drive is far larger than what they would derive from the licensing business,” she said. What Day is missing is that when it comes to licensing, Microsoft is doing more to incent partners to look for alternatives than to get them to aggressively move their clients to Microsoft solutions.

What’s your take on the licensing issue? Let me know at (781) 839-1221 or via e-mail at [email protected].

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