Microsoft’s new scheme

Microsoft Corp. today unveiled a new licensing scheme, which should be enough to draw the attention of anyone and everyone in the industry. (“What? Microsoft? Money? Sssh!”) The new model will use a per concurrent user pricing model across its multiple lines of Dynamics ERP applications. The pricing schedule known as Business Ready Licensing is set for the Microsoft Dynamics AX, GP, NAV and SL applications.

According to company calculations, typical ERP configurations in companies with fewer than 15 users figure to cost about ten to fifteen percent less than they do under the current payment model. Company execs promise that the new model offers flexibility for companies looking to gradually add seats, but one Microsoft customer summed up the obvious advantage nicely. Andy Vabulas, CEO of Norcross, Ga.-based systems integrator I.B.I.S. Inc. said, "It will make it easier for us to sell and our clients to buy [the software]," he said. "Anytime you can simplify pricing, it is good. Global consistency is easy to understand." The base price for the Business Ready offering starts at US $2,250 per user.

The Microsoft Dynamics Advanced Management Edition, which offers more complex financial and accounting applications along with software for manufacturing and project accounting, is priced at US $3,980 per concurrent user. Microsoft is also rolling out a new maintenance plan that includes unlimited training resources for a fee equal to sixteen percent of the price of the software license. Extent maintenance fees generally run between ten and twenty percent of the software licenses. The Business Ready licensing plan will take effect on August 1, with the new Business Ready enhancement maintenance pricing schedule to be fully effective by March 2007.