Technology Corridor

Microsoft's licensing practices push three utilities to re-evaluate their software needs.

The foundation of the Microsoft monopoly over operating systems and productivity applications may be developing hairline cracks, if the experiences of three utilities are any indicator.

Ironically, Microsoft's overly zealous attempts to sign up customers for a yearly licensing subscription program may have pushed these companies, and others, to look at options like Linux and IBM's Lotus SmartSuite.

The incipient revolt began in May 2001, when Microsoft announced a new approach to licensing its products to corporate users. Called Licensing 6.0, the program aimed to move business users to a yearly subscription fee to license software like the Office suite of products, or operating systems like Windows 2000 or Windows XP. Previously, Microsoft had discounted the cost of buying the upgrade version outright by 30 to 50 percent, so that Office, which retails for around $450, would cost businesses around $260 to upgrade-and they could upgrade at a time that suited business needs.

Under Licensing 6.0, yearly fees are due regardless of whether Microsoft releases an upgraded version during the license period. Those who did not sign up for a program under Licensing 6.0 have to pay the full cost of the new version when they do decide to upgrade.