Open License Subscriptions Available

Small North American customers will be able to purchase subscription licenses for business desktop software in Mar. 2008. The subscription plan also introduces discounts for software upgrades and for “trued up” PCs that Microsoft might someday offer to other customers, notably large customers with Enterprise Agreements.

The Subscription Option

The new Open Value Subscription gives substantial discounts to customers who want to use Microsoft’s desktop software, such as Windows, Office, and Client Access Licenses (CALs) for Microsoft servers. However, customers are licensed to use the software only as long as they subscribe. At the end of their subscription, normally three years, they must renew the subscription, remove the software from their computers, or buy a perpetual license for the software for 175% of the annual subscription fee.

Annual subscription fees will be 37% of the normal license cost under Microsoft’s Open License volume plan, which already discounts software about 20% from retail prices.