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Microsoft extends software assurance to disasters

Ina Fried CNET News.com

Published: 20 May 2004 09:00 BST

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Microsoft said on Wednesday that some volume licensing customers will soon be able to store their software at no charge on an additional server used solely in the event of a disaster.

The software maker said that starting from 1 June, businesses in its Software Assurance programme will be able to make a duplicate copy for each server software product that they license.

There are two major caveats, however. The software must be stored on a "cold" server, that is, one turned off until a disaster occurs. Also, the rights to store the extra copy are good only as long as a Software Assurance agreement is in place.

Microsoft has been working to add benefits to the Software Assurance program amid criticisms that the primary benefit -- free upgrades -- is not justifying the cost. Microsoft has already added additional training, support and other perks to improve the programme.

The issues around Software Assurance have intensified as Microsoft has delayed several key products, including Yukon (the next version of SQL Server), Whidbey (the next version of Virtual Studio) and Longhorn (the next version of Windows).

The addition of the disaster recovery rights also comes as investors are keeping a close eye on Microsoft's renewal rates for its volume-licensing programs. The company has seen its balance of unearned revenue -- money taken in for licensing but not yet earned -- decline in recent quarters.

Microsoft also said on Wednesday that it has added two online services -- MapPoint Web Services and Microsoft Office Live Meeting -- to its July lineup of products available under volume licensing.

A spokesman for Microsoft in the UK confirmed that customers here will also be able to benefit from the new scheme.

"It's worldwide, it's a part of our software assurance programme, and it will enable customers to use server disaster technology in the workplace," said Mark Buckley, licensing marketing manager for the UK.

Buckley conceded that some customers did have issues with the amount of value they were getting from the software assurance programme, given the delays to key Microsoft products upgrades such as Longhorn.

"I wouldn't say the press is making this up, but I would say that the majority of customers who I have discussed Software Assurance with have seen its value. There is some discussion around what is the time we will need to purchase the software, and whether the deployment cycles are in tune with what they require," said Buckley.

"My offer here is that if customers wish to come to me to talk about licensing, I am happy to talk them. I would push for customers to come and talk to us. My email address is markbu@microsoft.com," said Buckley.

Additional reporting by Michael Parsons.

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