Microsoft Revises Licenses To Support ERP App Hosting -- Enlists partners to counter SaaS plans of Salesforce.com, NetSuite

This week, Microsoft hopes to remove some roadblocks to partner-hosted ERP adoption with the introduction of expanded Service Provider Licensing Agreement (SPLA) options for its full business applications lineup. The plan aims to make it easier for solution providers to "rent" ERP software...

Full description

Saved in:
Bibliographic Details
Published in:CRN 2006-11 (1219), p.12
Main Author: Darrow, Barbara
Format: Article
Language:English
Subjects:
Alliances
Application service providers
Capital expenditures
Computer centers
Corporate planning
Customer services
Licenses
Licensing
Pricing policies
Service introduction
Software industry
Software services
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This week, Microsoft hopes to remove some roadblocks to partner-hosted ERP adoption with the introduction of expanded Service Provider Licensing Agreement (SPLA) options for its full business applications lineup. The plan aims to make it easier for solution providers to "rent" ERP software from Microsoft without paying fully up front and then host it for customers. Under the Software-as-a-Service model pioneered by companies like Salesforce.com and NetSuite, customers pay as they go for business applications hosted by vendors. Users typically pay a per-user, per-month fee of slightly more than $100 depending on the scope of the applications. That subscription model obviates the old big-bang up-front license sales approach that historically drove business for software giants such as Microsoft, Oracle and SAP. The trick for Microsoft will be to devise a way for its partners to play in this SaaS scenario while guaranteeing adequate service levels. Microsoft's latest response to the SaaS movement, to be delivered during the Convergence show, fits into its game plan of offering a range of delivery methods for its business applications.
ISSN:1539-7343