Microsoft allows Windows , Office Rental in License Worldwide

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There is a growing anticipation that software giant Microsoft is considering software renting as a viable business model. On January 1, the Redmond company added rental SKUs.  Microsoft’s various annuity licensing options such as Software Assurance, users pay for the right to use Windows, Office and Microsoft products. In chunks over the period of three years to be rental program. Rental Rights is used by organizations to get a waiver of these licensing restrictions through a one-time license transaction valid for the term of the underlying software license or life of the PC. As per the new rental program a customer will have to pay flat fee to use Windows or Office (Standard and Professional)2007 for one year.

The specifics of new rental rights provided on Microsoft’s Partner site.

Windows desktop operating system and Microsoft Office system licenses do not permit renting, leasing, or outsourcing the software to a third party. As a result, many organizations that rent, lease, or outsource desktop PCs to third parties (such as Internet cafés, hotel and airport kiosks, business service centers, and office equipment leasing companies) are not compliant with Microsoft license requirements.

Rental Rights are a simple way for organizations to get a waiver of these licensing restrictions through a one-time license transaction valid for the term of the underlying software license or life of the PC.

According to the norms, new rental rights SKUs are now on the Microsoft Product List for volume licenses. Those with Microsoft Open licenses, Microsoft Select/Select Plus and government licenses will have additive licenses. Customers must buy stand-alone licenses of Windows and Office copies. According to Microsoft’s Partner site, the new rental of virtual machines running Windows or Office. Instead of replacing the underlying Windows and Office copies, the new license modifies the licensing terms. Microsoft’s Partner site suggests that the new license also bans the rental of virtual machines  running Windows or Office.

Microsoft did not allow customers to rent software on their computers. This has been strictly forbidden in the  End User License Agreement. They started experimenting with it.

Microsoft has not allowed customers to rent software on their computers (it is forbidden in the End User License Agreement), but they began experimenting with this in some high-piracy, low-income markets last year. Suddenly on January 1, the geographic restrictions are gone, and rental prices are on the US price list.

Microsoft analyst, Paul DeGroot feels worldwide availability of licensing rights will be a big deal.

In order to attract interest the new rental program Microsoft would be offering a promotion through the rental version of Office Professional is available for $58. Office Standard rental is available for $45 per copy and not $64 per copy. Windows is available for $23 per copy and not $32 per copy.

According to DeGroot, it sounds quite attractive considering the annual prices and rental outfits. It can spread the cost across a lot of customers. Prices might also be different in other geographies. He adds Microsoft must try to convince users of older and illegal versions of its software to upgrade.

The idea of making software available under rental license suggests that Microsoft is trying to target the small companies and big companies involved in it. With the emerging markets and some outfits like Internet cafes and kioks the older versions might be the only ones that can run on older hardware.

In a recent outbreak Microsoft volume licensees showed up problems when accessing the company’s newly redesigned Volume Licensing Service Center. Microsoft officials publicly acknowledged the problem and apologized for it, in the company’s  SMB Community blog, attributing the difficulties to a new registration system.

In order to use rental license you would require a licensed Pro version. This seems a quaint idea when pirates in the third world have been renting any version of Windows for years. The cost of legal Windows Pro licenses are even more costly. It is important to note that the Office licenses that users will have to buy before the rental license add-ons will put the shop using legal licenses at a severe price disadvantage compared to the shop renting pirated versions.

Microsoft has been testing Office rental programs for more than two years. The company has been testing an Office pay as you go rental program for a pre-paid version of Office Professional in India, Indonesia, Bulgaria, Lithuania and Egypt, Romania and South Africa.