CyberTech Rambler

October 29, 2008

Microsoft rips Aussie Care Centres? A bit too dramatic

Filed under: Uncategorized — ctrambler @ 2:20 pm

DownUnder, there is a news trickling out that Microsoft raised the licensing fee for Aussie Care Centres but had since back-tracked. It is a good demonstration of the peril of vendor lock-in and I think Microsoft has the duty of care to its customer for not raising the prices so suddenly, if it exercieses its right to raise prices.

Personally, I think we will probably see a rise in licensing fee for them. If we do, it will not be so dramatic.

I don’t buy Microsoft’s reason for this rise. It says it “uncovers” organization that are “abusing” its “Academic Volume licensing”. First of all, at the minimum, it had not done its due-diligence when it sells them the license in the first place. Second, this “academic licensing” thing is usually a mud, not only with Microsoft but everywhere. A lot of companies, and I am not saying Microsoft did it, use this as a “discount” for certain segment of the industry in an effort to gain a foothold. What we do see later is the company then yank the “discount” when they feel secure in the industry. I see it at least once before. In that case, the company took on something bigger than they can chew. It backfired quite badly, though not catastrophically for the company.

It is still nice to see that Microsoft, despite its size, cannot take on any industry on its own. This is important because if Microsoft cannot, then others will not stand a chance. It is trying to manage this by re-segmenting the market by creating a new segment called non-profit.

Who’s right and who’s wrong in this saga? I don’t think we can draw a bright thin black line. It is going to be so grey and large that it is a judgement call and depends on the criteria you use.

In all, just like what happened to the company I allude to earlier, bad publicity for Microsoft.

Good publicity if you are an advocate of no vendor lock-in, like me.

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