back to article Microsoft enterprise licensing partners heading for extinction

Microsoft is planning to shutter the classic enterprise licensing channel over the next three to four years, as indicated by the swingeing cuts to fees in recent times. This is according to Rune Syversen, CEO at Crayon Group, one of Microsoft’s top-ten biggest selling Licensing Solutions Partners (LSPs) worldwide, who is …

  1. Erik4872

    Not surprising

    Microsoft is shifting to the Adobe and Office 365 model for all of its products. Why pay fees to get companies to sell perpetual licenses, when you force all your customers to just pay you monthly forever to use the software? I don't see perpetual licenses being available much longer -- Microsoft's official policy so far is that there will not be a Windows 11, for example. They used Office 365 to start gaining the acceptance, next will be client OS, and finally the server and applications.

    The next huge shift will be the Oracles, CAs and SAPs of the world shifting to this model. There are companies out there that do nothing but resell licenses and attempt to clarify the licensing mess that is enterprise software.

    1. Michael Habel

      Re: Not surprising

      Thus enters Linux onto the Stage... I'll grant you Libre / Open - Office will need to kick it up a notch, But This has about as much of a chance at succeeding as flying porcines. The only reason Adobe can get away with this is, there really doesn't exist anything like their products outside of their products. Windows however, has MacOS, iOS, Android, and Linux to contend with. So the only neck MicroSoft will slit, besides their partners. Will be their own.

      And, we haven't even begun to discuss the currently waining levels of trust poruring out of Redmond. I guess MicroSoft are trying to morph into some EMC/AWS-esq Cloud purveyor. Cause they've clearly lost the plot on what made them great these nearly last Thirty Years.

      1. Anonymous Coward
        Anonymous Coward

        Re: Not surprising

        "£I'll grant you Libre / Open - Office will need to kick it up a notch, But This has about as much of a chance at succeeding as flying porcines"

        Quite - no way Open Office is ever going to take more than a tiny piece of Microsoft's market share. It's a very limited and crappy product in comparison with even more bugs and holes than Microsoft's Office!

      2. Tom 13

        Re: The only reason Adobe can get away with this is

        Actually it is because their market is so small and specialized. And frankly I don't see even them getting away with it for too much longer. Installing and updating their software is a nightmare in a controlled corporate/government environment.

  2. Steve Davies 3 Silver badge

    Where does this leave the likes of SoftCat?

    Bang goes their IPO?

  3. Mikel

    Don't worry hardware vendors

    Microsoft would never sunset your business now that they can sell own brand PCs, laptops, servers, switches, tablets and such directly to your customers without your assistance. They are generous like that.

  4. Vic

    Microsoft will pay fees based on clients’ consumption of software, not the straight sale of a license, be it in cloud on on-premise.

    Hmmm. That either leaves MS with a liability for the lifetime of that software, or it means they are expecting to charge clients for consumption - the subscription model that we have repeatedly been reassured isn't going to happen. And I can't see MS taking on a liability to pay per-use in return for a single initial licence fee...

    This will be based on customers’ monthly reports

    Is this the real reason for the Win10 spyware?

    Vic.

  5. phuzz Silver badge

    Remind me again, why was it good for me as a consumer to go through third parties for my licensing? Or were the endless sales calls some kind of value-add?

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