Why Is Microsoft Licensing so Challenging?

Microsoft has a wider range of products than most tech companies, and with the growth of its cloud services Microsoft is capturing more and more IT budget. Microsoft also has a reputation for complex licensing rules that always favor Microsoft over the customer. While this is not a surprise to most executives and IT procurement staff, it does mean organizations need Microsoft-specific purchasing expertise and often require outside help to understand Microsoft licensing and negotiate new agreements.

Among the most challenging aspects of Microsoft licensing that add risk and complexity are the following:

Product diversity. Microsoft products and services are foundational tools that most organizations have been using to run parts of their businesses for decades. Microsoft products are on users’ desktops, in the datacenter, in Microsoft’s cloud, and in competitor clouds. Very few vendors have this range of offerings or touch so many users in an organization.

Inconsistent licensing rules. Microsoft licensing lacks consistency across its products and services. As a company, Microsoft consists of largely autonomous business units with no central authority to govern and unify licensing. Those dealing with licensing cannot assume the licensing rules for one product or service apply to other products and services.