Microsoft licensing primary concern for hosting providers

Dave Bailey, Computing, Thursday 21 January 2010 at 14:56:00

Many SMEs move to hosted services because of complex Microsoft software
licensing

A primary reason why end users outsource applications, is the complexity of
Microsoft's software licensing, according to attendees at a roundtable on SME
outsourcing held yesterday.

The software then becomes a major problem for the hosting providers
themselves.

At the roundtable, James Griffin head of hosting strategy for business
focused ISP, Star, said that navigating this licensing issue was a minefield and
that he expects it to get more complex. He said: "When we move to hosted
desktops, it will be a completely different ballgame."

He added: "The people who buy our service provider (SP) license agreements -
SPLARs (service provider license agreements resellers) - are among our most
valuable resources. I spend more time talking to them than I do any of the other
vendors and partners."

He added: "They're the secret medicine that we use to take end user's
licensing headaches away. I have someone dedicated to sorting out all our SPLAR
spend."

Freeform Dynamics research director Dale Vile said that one of the biggest
things affecting 'on premise' users licensing problems was virtualisation.

"This technology shows up licensing issues in a big way. These
issues make on premise rollouts for end users more difficult and moving to
hosted services takes away that pain," said Vile.

Problems with Microsoft's software licensing came up in October last year
when Microsoft chief executive Steve Ballmer addressed UK customers at the UK
launch of Windows 7.

One question put to Ballmer at the event was: "I would appreciate your
thoughts on simplifying the application licensing."

Ballmer replied, "if any of you have specific concerns regarding things you
think are just too complicated...I encourage you to email me."

Full story at http://www.computing.co.uk/computing/news/2256470/microsoft-licensing-primary