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Microsoft switches to subscriptions

Microsoft has confirmed it is to change its licensing model to a subscription-based model as reported by silicon.com on Tuesday.

By Suzanna Kerridge

Published: 11 May 2001 09:32 GMT

From 1 October 2001 enterprise users will be able to take out a subscription licence option allowing them to spread licence costs over multiple years.

Microsoft has also revamped its alphabet soup of upgrade options to make it more simplistic. The Microsoft Software Assurance product provides instant downloads via the internet of the latest fixes and patches.

Online licence management tools and a more streamlined sales process will help large organisations track software acquisitions more easily.

Pilot projects are already underway across Europe. Confectionary giant Nestlé has already changed its licensing model to a subscription basis claiming it offered a more flexible and cost-effective way for Microsoft upgrades.

The change is seen as part of the company's plans to start selling software as a service.

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