Microsoft
to introduce new licensing scheme for Office 2010,
Microsoft
is implementing a new sales strategy with the coming release of its Office 2010
it says should make it easier to sell and deploy for channel partners, but one
that could take away their opportunities to sell upgrades.
With
the launch of Microsoft
Office 2010, expected on June 15, the vendor wants to
pre-load a new Office image that includes all three versions of the application
on between 80 percent and 100 percent of all new systems sold, said Vic
Barakat, OEM distribution partner account manager at Microsoft.
That
image will include the Home and Student edition, which will include licenses
for use on up to three PCs, as well as the Home and Business and the
Professionals editions, which will include licenses that allow it to be
installed on one desktop PC and one portable PC used by the same user, Barakat
said.
Microsoft,
through its channel and retail partners, will also sell a new "product key
card" or PKC that will allow customers to unlock their preferred version
of the application. The PKC will include a code that causes the selected
version to automatically turn on in minutes without the need for further
installation, and customers can purchase keys at a later date to automatically
upgrade to other versions, Barakat said.
Barakat
unveiled the new licensing scheme during a presentation to solution providers
and system builders at the D&H 2010 West Coast Technology Show, held in
California.
The
single image containing all three versions is aimed at simplifying the number
of SKUs of the software that partners take to customers, and make it easier for
them to sell the product, Barakat said.
"So
instead of asking the customer, do you want Office with that, now you can ask,
'Which version do you want,'" he said.
Barakat
said the PKCs will be available in blister packs for sale to customers in a
variety of outlets, which means it is important for solution providers to make
the Office 2010 sale with the PC.
In
response to an audience member who asked about whether customers can purchase
the PKCs from places like Office Depot or eBay, Barakat responded, "You
should be able to compete."
Microsoft
is also introducing an "Upgrade Anywhere" program whereby customers
can upgrade the Home and Student edition or the Home and Business Edition to
other editions. Such an upgrade is done by customers contacting Microsoft
directly, and does not offer solution providers an opportunity to participate,
Barakat said.
"We're
trying to tell you right now, if there's a benefit to the customer for you to
sell the Professional edition, you should sell them," he said.
Audience
members responded immediately, asking why Microsoft
is taking them out of the
upgrade loop.
Barakat
answered by saying that Microsoft
does not have a retail system that would tie
back into the solution provider's original sale.
"We
think it's a good thing," he said, referring to the Upgrade Anywhere program.
"We understand the implication for the channel. We apologize for
that."
Microsoft
on Friday also launched its Microsoft
Technology Guarantee program under which
customers who purchase Microsoft
Office 2007 and activate it by September 30
get a free upgrade to Office 2010, as long as they activate the upgrade by
October 31.
Barakat
said that customers can download the Office 2010 upgrade starting in mid-June
when it is scheduled to be released, or they can order a DVD with the software
from Microsoft for $15.
Barakat
also said that Office 2010 will be available for downloading by channel
partners on about June 1, and that Microsoft
plans a media blitz over the new
software in July.
Patrick
Rayne, IT specialist and CEO of Rayne Technology Solutions, Calif.-based
solution provider, said he has been using the beta version of Office 2010 for
six months.
Rayne
said he likes the beta so much that he has been telling customers who wanted to
buy Office 2007 to wait until they can get the upgrade under the Microsoft
Technology Guarantee program.
Rayne
also said he likes how Microsoft is simplifying the availability of Office 2010
with the PKC, thereby eliminating the need for disks and electronic distribution.
Also, he said, it is nice to not have separate disks for different editions of
the software.
However,
Rayne said his is concerned about how Microsoft
plans to handle upgrade
requests from customers directly instead of going through partners.
"If
a customer upgrades Office later, they pay Microsoft," he said. "I
don't see what Microsoft doesn't handle it like it does Office 2007 and provide
an upgrade key through its distributors.
John
Vickers, president and CEO of Vickers Technology, a Calif.-based solution
provider, said he also appreciates how Microsoft
is moving all three versions
of Office 2010 into a single image.
"I
like how they're reducing the number of SKUs," Vickers said. "Even
when customers use Microsoft's online tools to purchase Office, it's still
confusing."
However,
Vickers said, the fact that Microsoft
is eliminating disks from the Office
sales process except for those who order the DVD when upgrading from Office
2007 to Office 2010 could lead to problems later.
"People
like disks," he said. "I like disks. Especially if a customer buys a
computer from Best Buy, or from anywhere. How can they recover if their
computer crashes? Microsoft
will ask them for their product number, but the
numbers are all on the system."
Michael
Schwab, co-president of D&H, said that the new PKC is a much more natural
way to sell and deploy Microsoft Office than in the past by offering a code
that unlocks the application without having to go through the entire
installation process.
However,
whether upgrading Office via PKC or volume licensing is the better solution is
one that solution providers can hash out with their distributors, Schwab said.
"At
D&H, we present a single face for Microsoft," he said. "Solution
providers can present OEM or packaged solutions or retail solutions. But behind
D&H, there are different groups at Microsoft who don't see the whole
picture. Our value is to present a unified voice for Microsoft
solutions."
By Joseph F. Kovar,
ChannelWeb, March 8, 2010
Synergetics India: IT consulting and Training services
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