Microsoft software to cost more?

Microsoft's new Server and Cloud Enrollment (SCE) licensing program could increase enterprise customers' costs by as much as 40%.

This week Microsoft debuted its new Server and Cloud Enrollment (SCE) licensing program, replacing the Enrollment for Core Infrastructure (ECI) and Enrollment for Application Platform (EAP) programs.

Designed for "highly committed" customers, SCE is intended to provide new cloud-optimized licensing options, simplified license management and the best pricing and terms. But that doesn't mean you'll be paying less, says Jeff Muscarella, executive VP, IT and telecom division, NPI.

SCE is a new three-year Microsoft Enterprise Agreement that allows customers to standardize on one or more Microsoft Server and Cloud technologies. The new program is designed to build a standardized and high-value licensing foundation for customers adopting its server and cloud technologies. It will provide new and more flexible Azure terms, better Azure pricing, application license mobility to the cloud through SA, new System Center benefits for managing Azure resources and new subscription options.

The negative cost impacts of SCE are in addition to Microsoft's recent price increases. NPI says customers may feel that SCE is adding insult to injury based on price hikes to a number of offerings: Pricing for Windows Server 2012 R2 Datacenter Edition is up 28%; SQL Server Client Access License (CAL) pricing is up about 25%; SharePoint Server costs have increased by 38%.

 

For its part, Microsoft says that customers that want to only partially cover their environments with CIS can easily do so through other volume licensing programs that have no dedicated contracts or unit minimums.

"EAP customers can continue their installed base-wide commitment to SQL Server, Visual Studio, BizTalk Server and SharePoint Server in the SCE. Customers will see some small pricing changes as we standardize and simplify discounts. Among these changes are a new five percent discount on Software Assurance, a slightly higher discount vs EAP standard products and a slightly lower discount vs EAP premium products. Unlike EAP, which provided discounts on only the license portion of L+SA SKUs, SCE provides a full 15% discount on the complete L+SA SKUs for key components," Microsoft says.