Analyst: Good Time to Plan Windows 7, Office 2010 Purchases
A research report details why Microsoft is vulnerable and what volume licenses users should buy to save money on software.
Users in that scenario may want to look at renewing with an EA Subscription license, where users count desktops every year. While EA Subscriptions are less expensive, they do not provide perpetual licenses so once users stop paying they must stop using the software.
"The pricing on the EA Subscription is really great and customers may look at it and say we want to keep this relationship going with Microsoft, we want to have access to the latest software," DeGroot says.
DeGroot says he would not recommend users switch from EA to EA Subscription, however, because they would be giving up perpetual licenses.
But down the road users who have chosen now not to renew their EA could get back into volume licensing with EA Subscription. "That could become an attractive option in the future," DeGroot says.
Besides thinking through EA, DeGroot says this is a smart time for users to buy Software Assurance (SA) maintenance contracts given the fact that Windows 7 is due to ship later this year. SA gives users access to new software that is released during the life of the contract.
"You will get an upgrade, so it is a good deal for this product this one time. I would not make buying SA a general rule. SA is not always a smart buy," he says.
DeGroot says one money-saving strategy would be to buy Windows 7 under a two-year Open plan, which could save 30% over a three-year plan with SA.
He also says users with good timing can tap Select volume licensing for cost savings.
"You can use timing of your purchases to get better discounts; in fact you can use Select to get a better discount than you are actually entitled to based on your volume," he says.
Users have to do some planning, including lumping a large volume of software purchases into the first year of the contract. "If you understand your options you can come to the table much better prepared to get the best deal," DeGroot says.
The "Microsoft Volume Licensing Programs" report is priced at $749. Directions on Microsoft also is hosting a series of licensing boot camps in Seattle and Chicago.
