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BYOD fees for "user CAL" licenses of Sharepoint, Lync, etc. will jump 15 percent

Microsoft Corp. (MSFT) has announced a change that's good news for its investors and bottom line, but likely bad news for business clients.

The change affects Microsoft's so-called client-access license (CAL).  If you own a business, you purchase a CAL from Microsoft, which allows your on-site employees to use software such as:
  • Bing Maps Server
  • Core Suite
  • Enterprise Suite
  • Exchange Server Standard or Enterprise
  • Lync Server Standard or Enterprise
  • Project Server
  • SharePoint Server Standard or Enterprise
  • System Center 2012 Client Management Suite
  • System Center Configuration Manager
  • System Center Endpoint Protection
  • Visual Studio TFS
  • Windows Multipoint Server
  • Windows Server
  • Windows Server RDS, RMS, Terminal Services
There are two flavors of CALs -- User CALs, which allow a unique user to connect any device they own, and the Device CALs, which associate a per device license fee.  Previously Microsoft had set these two licensing options to the same price.  
User CALDevice CAL
User CALs (left) are the preferred solution for BYOD users, versus Device CALs (right).

That was great news for enterprise users, as one of the hottest trends right now in IT is the bring-your-own-device (BYOD) craze.  BYOD means that one user may not only connect from both a work machine (say a work laptop), but also personal machines they own (say their personal tablet and laptop).  If a business was to buy a Device CAL license, it'd have to buy three licenses for those devices, but with the User CAL, the employee had the flexibility to use any of those devices, while the employer was on the hook for only a single license fee.

But the deal is about to get a little less sweet, as Microsoft has announced that it will be bumping the price of its various User CALs by 15 percent.  The price change will take affect Dec. 1. However, large customers that have Enterprise Agreements, Enterprise Subscription, Open Value Subscription, and Open Value Perpetual will be able to hang on to their current pricing until the end of their contract.

Ultimately this seems like a smart move for Microsoft.  After all, a 15 percent premium User CAL is still the cheaper option for enterprise customers, if the average user connects with 2 or more devices.  But the move could also backfire, forcing some smaller clients to free, open source alternatives.  However, making such a switch can be costly and the end result may be inferior software, in some cases.  
 
For those reasons it seems unlikely that Microsoft will see mass defections, even if it may be offering up an irritating change to its business clients.

Sources: SoftCat, Microsoft, ZDNet



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RE: Typical
By Pirks on 11/27/2012 1:29:45 PM , Rating: 2
quote:
overly expensive tablet that's useless for actual work
Yeah, iPad is useless for actual work while Surface with its Office 2013 and nice attachable keyboards is pretty useful for it. You nailed it on the head man!
quote:
cellphone that no one would voluntarily touch with a ten foot pole
Exactly, those corporate Blackberry 7 phones are indeed very unpopular these days I agree, but WP8 is getting glowing reviews and highest customer satisfaction scores, so you have nailed it again, thanks!

Looks like mass corporate migration to Surface and WP8 is inevitable, seems like the best mix of corporate software support with easy to use consumer friendly touch interface, plus Office 2013 to boot. It's a nobrainer for any enterprise.


RE: Typical
By FITCamaro on 11/27/2012 1:38:00 PM , Rating: 3
I knew it was cold for a reason.....hell froze over.


RE: Typical
By Pirks on 11/27/2012 2:15:44 PM , Rating: 2
Ya I was surprised MS made such a nice tablet, talk about hell freezing indeed. I was 100% sure they'd make unusable crap again like they did with the previous Windows tablets but boy I was in for a big surprise this time.


RE: Typical
By jimbojimbo on 11/28/2012 11:17:40 AM , Rating: 2
What previous Windows tablet did Microsoft make?


RE: Typical
By Pirks on 11/28/2012 1:57:12 PM , Rating: 2
Some ugly tablets were made even back in WinXP days by some OEMs, MS was providing software tho


RE: Typical
By dgingerich on 11/28/2012 3:13:07 PM , Rating: 2
In the Windows XP days, they tried this:

http://msdn.microsoft.com/en-us/library/ms950406.a...

I got my hands on the CDs and tried it out on a regular laptop. It was basically XP with a couple additional tablet like things, like a virtual keyboard. It really wasn't anything special.

They even tried this before that, with Windows 98. "Tablets" were about 2 inches think back then, had a single core processor at 75 to 150Mhz, 4-8MB of memory, and a full desktop hard drive. Battery life was about 45 minutes. Touch screen was single touch, and lousy with accuracy. (Think Target check out lane card swiper level technology.) It had a calibration applet in the control panel that they recommended you run multiple times per day because temperature changes caused the screen to become less accurate. There wasn't such a thing as wireless networking back then, either. I had to actually set one up for someone as their corporate machine. He returned it within 2 months.

It's been a long, sordid history for MS and tablets. They had been trying to make workable tablets for almost 20 years, and then, when technology and the market finally make it viable, they missed the boat. It's kind of funny.


RE: Typical
By ResStellarum on 11/27/2012 2:23:41 PM , Rating: 2
quote:
Yeah, iPad is useless for actual work while Surface with its Office 2013 and nice attachable keyboards is pretty useful for it. You nailed it on the head man!


Actually the iPad has a lot of useful apps, as does Android. Windows RT (Surface) on the other hand has a non-commercial Office 2013 licence and that's about it. So on a scale of usefulness, Surface, and Windows RT are right at the bottom of the pile for businesses.

quote:
Exactly, those corporate Blackberry 7 phones are indeed very unpopular these days I agree, but WP8 is getting glowing reviews and highest customer satisfaction scores, so you have nailed it again, thanks!


Yet hardly anyone's buying WP. The ones that have, are mostly Microsoft fanboys, or employees directly and indirectly for Microsoft.

Then look at all the problems with WP8: randomly rebooting, lockups, poor battery, etc. Who on earth would be satisfied with that? Only fanboys or shills, no real customers.


RE: Typical
By Labotomizer on 11/27/2012 2:30:42 PM , Rating: 2
A very small percentage of users have had these issues. And unlike Apple, who would deny it was happening, MS is investigating the problem and will likely release a fix very shortly.

Of course I could point out the failure of Apple's iOS6, but it would clearly be lost on an "Apple fanboy".

Have you considered that people buy Windows Phones because they like them? Probably not.


RE: Typical
By TakinYourPoints on 11/27/2012 3:23:47 PM , Rating: 2
So you're saying that Apple doesn't issue fixes for iOS.

Ok.


RE: Typical
By Labotomizer on 11/27/2012 3:27:40 PM , Rating: 2
No, I'm saying they deny the issue and then quietly release a fix for it, pretending it never happened. Example: iOS6 Exchange issue. Randomly when accepting or declining an appointment on your phone, it would send out a deletion notice for everyone who was invited to the appointment. Apple would not admit to the issue. Yet a small footnote in the 6.0.1 update "Fixes Exchange calendar issues".

Meanwhile numerous Fortune 500 companies told people to either not update to 6 or to not use their smartphone for calendar management. And Apple never admitted to the issue.


RE: Typical
By TakinYourPoints on 11/27/2012 5:41:38 PM , Rating: 2
Thanks for the clarification. Yeah, I agree with that.


RE: Typical
By Pirks on 11/27/2012 3:42:40 PM , Rating: 2
quote:
Actually the iPad has a lot of useful fart apps, as does Android
I hear ya
quote:
Windows RT (Surface) on the other hand has a non-commercial Office 2013 licence
Which is non issue 'cause you can purchase commercial license for it.
quote:
Windows RT are right at the bottom of the pile for businesses
And the latest Angry Birds touting iPhone is of course the first on the list for businesses. Riiiight. Oh wait... but isn't it Infinity Blade on the iPad, actually? I forgot what kind of business was it very useful for, could you remind me please?
quote:
Then look at all the problems with WP8
Still minor compared to issues that plague iPhones, all these antennagates, crappy scratchy cases, etc etc. Internet is full of stories of iOS bugs and problems, if you stop being blind you realize that WP8 is actually better than iOS. The stale grid of static icons looks like crap compared to customizable start screen with live tiles of various sizes composed to match your personality and what you do on your mobile device. And tiny screen of iPhone is so ugly compared with wide selection of 4.3" - 4.8" screens on WP8 handsets that even those static iOS icons can't be seen properly without an effort. All in all, if you buy iPhone these days, you must be either dumb or an Apple fanboy. WP8 seems to be the best with Android 4.1 close second.


RE: Typical
By nikon133 on 11/27/2012 4:17:29 PM , Rating: 2
Pirks, I still cannot determine if you are sarcastic or not.

Or if you really are Pirks, matter of fact.

Well done.


RE: Typical
By Jeffk464 on 11/28/2012 10:28:03 AM , Rating: 2
quote:
Still minor compared to issues that plague iPhones, all these antennagates, crappy scratchy cases, etc etc. Internet is full of stories of iOS bugs and problems, if you stop being blind you realize that WP8 is actually better than iOS.


From everything I've read wp8 OS and now the hardware are actually really good. The problem is that its market share is so low that the app market stinks compared to iOS or android. Plus if you buy a wp8 device there is no guarantee that MS will grab more market share.


RE: Typical
By Pirks on 11/28/2012 2:03:17 PM , Rating: 1
quote:
if you buy a wp8 device there is no guarantee that MS will grab more market share
I buy Windows Phone not because I want MS share increased, I don't give a dock about that. I buy it because it pwns all the competition at the moment. Even with all its disadvantages like (OMG!!!) missing Instagram. How can we live without that moronic Instagram shit eh? :))) LOL


RE: Typical
By Labotomizer on 11/28/2012 6:06:19 PM , Rating: 2
Instagram = Twitter for people who can't put together 140 characters into a coherent thought.


"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad

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