NET(net), Inc.


New Microsoft agreements: EAP “Enrollment for Application Platform” and EAI (“Infrastructure”) by scottbraden

Continuing its direction toward rental-based agreements, Microsoft has recently been ptiching EAP’s and EAI’s to some of its customers. 

Simply, these agreements are the “balloon payment, low interest mortgage loan” of the licensing world.  They look great right up until the time the balloon payment comes…

Visit http://www.netnetweb.com/blog/entry/new_microsoft_agreements_eap_enrollment_for_application_platform_and_e/ to read the full article.

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Microsoft offers true “rental” of Office, Windows by scottbraden

In an interesting development which may be useful for many of our Clients, Microsoft has announced the ability to rent its software. 

https://partner.microsoft.com/40104043

And some great commentary by Mary Jo Foley, here:
http://blogs.zdnet.com/microsoft/?p=4930&tag=col1;post-4930

This is a new offer, but it’s not really the first ‘rental” deal that Microsoft has offered.

Today, there are several ways to purchase and use Microsoft products:
 – “OEM preload” – the typical way that Windows is sold, preloaded by the manufacturer on new PC’s.  Microsoft also offers a few other products via OEM, notably the home and small business flavors of Office. This license is a perpetual license for a one-time cost (typically included in the cost of the PC).
 – Full package product (“FPP”) or shrinkwrap boxes. Traditional retail packaging, this is a perpetual license for a one-time cost.
 – Volume Licensing – via the Open, Select, Enterprise Agreement structures – Microsoft customers can get volume discounts for full, perpetual licenses, and also purchase Software Assurance to cover future upgrades, which then become perpetual rights to the new versions.
 – Subscription models – Microsoft offers several “rental” programs via the various contractual structures.
Enterprise Subscription Agreement (most commonly for enterprise customers) or Open Value Subscription for smaller enterprises.  These contracts are structured similar to normal volume licensing deals; the main difference is that there is no “perpetual” component to the licensing; when the agreement ends, all rights to the software expire and the customer must remove the code from all the machines covered.
 – Various hosted / SaaS options – Microsoft and a large partner community offer online solutions for most of the business products in Microsoft’s portfolio. Recently, Microsoft has made a big push into selling Exchange and SharePoint services via the cloud, under their BPOS (Business Productivity Online Suite) brand umbrella.  They have also announced plans to deliver Office and other products under this model.  Again, this is a true subscription approach, so no perpetual rights are transferred to the end customer and usage rights terminate with the contract.
 – and finally, the new Rental offer, which is interesting in that it allows an owner of a perpetual license to make a one-time purchase, which grants the right to rent the software to other customers. 

On first blush, the new Rental rights may be useful in cases where clients need to have temporary usage of a product set on seasonal or project-based needs, where the user count will increase then decrease in a period of less than a year.



MSFT is betting big chunks of cash on swaying customers to their hosted stuff. (Oracle, CRM, datacenter / cloud) by scottbraden

Microsoft is aggressively discounting its hosted / SaaS solutions in order to gain market share, and I suspect, to sway customers from the EA / Select / perpetual license model, onto the rental / cloud / SaaS model.

Microsoft cuts prices on BPOS, to issue refunds  – 
http://ct.zdnet.com/clicks?t=475224883-f5935ee3a0b078029592318f09b1ea8e-bf&brand=ZDNET&s=5

Microsoft seeks to lure Salesforce, Oracle users with six months free of CRM Online
Microsoft chops prices of its hosted enterprise cloud offerings

 But you’ll note that’s only on the hosted offerings.

Also of note, Microsoft’s huge new billion $ datacenters in Chicago and Dublin are now open for business. With more coming soon.
http://ct.zdnet.com/clicks?t=475224883-f5935ee3a0b078029592318f09b1ea8e-bf&brand=ZDNET&s=5

On the traditional licensing front, Microsoft just announced price increases for SQL Server.

So, clearly, MSFT is betting big chunks of cash on swaying customers to its hosted services, and as a consequence the traditional licensing models are becoming slightly less attractive.  I would advise Microsoft customers to consider the true costs and benefits of moving from a traditional licensing approach, to a model such as BPOS.  As in most things regarding Microsoft’s sales practices, there are hidden factors that may not come to light unless you ask the right questions.

-Scott Braden



Web 2.0 – What is all the hype? by garysa
September 14, 2009, 10:57 am
Filed under: Hardware, Microsoft, Oracle, SaaS, SAP, Software, Subscriptions

There appears to be a significant amount of buzz around Web 2.0, what it is and how do you get some…  If you do a Google search on Web 2.0, you are using Web 2.0 technology!  Just by the fact you are reviewing this blog post means you are using Web 2.0 technology. 

Why would a professional optimization firm write about Web 2.0?

The newest versions of applications, services and hardware touted by companies like IBM, Oracle, Microsoft and others are being sold as Web 2.0 necessities.

So what is Web 2.0?

If you click on some of the results from your “Web 2.0” Google search, many people say Web 2.0 is nothing more than a marketing spin on the natural progression of Internet technology.  So why then are Enterprises being encouraged to pay premiums based upon marketing and hype?  Continuing a tradition among technologists to buy the latest and alleged to be the greatest?  Beyond that, we have no clue!  But, we can try to put some context around what is Web 2.0?

Quite simply, one can look at a website or application as being Web 2.0 if it contains any of the following characteristics:

  1. A user centric customizable interface (i.e. use of widgets to customize pages)
  2. Community updates like those found in Blogs or Wiki pages
  3. Uses the Web as its delivery platform and is entirely browser accessible
  4. Allows for collaboration like that found in Instant Messenger or other Social Networking sites
  5. Utilizes user generated “Dynamic Content” for updates
  6. Software as a Service (SaaS) by definition, uses the Web as its delivery platform
  7. Provides for a rich use experience

Who can argue with those, almost like motherhood and apple pie (all good).  Those characteristics are so all encompassing, almost all software fits into at least one of the categories above.  Still, by using the latest buzz word and labeling products “Web 2.0”, technology companies are jumping at the opportunity to capitalize on the ambiguous definition of “Web 2.0”  and trying to use it to compel buyers to pay a premium to obtain it.  At NET(net), we consistently rally against hype and focus on business value received relative to financial investment expended.  This is where Web 2.0 falls flat (in our humble opinion).



This Week on The Web 2009-09-13 (my birthday edition) by jigordon

It happens to be my birthday weekend and between eating some great food, playing Guitar Hero with my wife and hanging with the family, these are the things that happened around the web this week – maybe you already read about them, maybe you need to again – there were some REALLY great discussions going on.  Come join the party on twitter (follow me here and you’ll join the conversation live.)

I also realized that many of you might have no idea what you’re seeing below.  Sorry.  These are “tweets”, 140 maximum character messages sent via Twitter.  Within the Twitterverse individual users follow others and have followers (think of it like overlapping Venn diagram circles).  To read a tweet, you have to wade through a bit of jargon used to make the most of the 140 character limitation.  “RT” for example, is shorthand for “Re-tweet” and the @____ is the username of some other individual on Twitter.  Combined together, then, “RT @_____” means that someone else wrote a tweet that I found important and I now want to forward along to my followers.  The URL’s are then also shortened by shortening services like bit.ly to make the most of the character limitation, too.  Lastly, you might see “hash” identifiers “#______” which are ways to tag tweets of a particular flavor for easy searching later and “<” which means that I am commenting on what came before it.



This Week on The Web 2009-09-06 by jigordon

The things that happened around the web this week – maybe you already read about them, maybe you need to again.

I also realized that many of you might have no idea what you’re seeing below.  Sorry.  These are “tweets”, 140 maximum character messages sent via Twitter.  Within the Twitterverse individual users follow others and have followers (think of it like overlapping Venn diagram circles).  To read a tweet, you have to wade through a bit of jargon used to make the most of the 140 character limitation.  “RT” for example, is shorthand for “Re-tweet” and the @____ is the username of some other individual on Twitter.  Combined together, then, “RT @_____” means that someone else wrote a tweet that I found important and I now want to forward along to my followers.  The URL’s are then also shortened by shortening services like bit.ly to make the most of the character limitation, too.  Lastly, you might see “hash” identifiers “#______” which are ways to tag tweets of a particular flavor for easy searching later and “<” which means that I am commenting on what came before it.



This Week on The Web 2009-08-16 by jigordon

The things that happened around the web this week – maybe you already read about them, maybe you need to again: