Microsoft backs down over government software licences

Microsoft has offered new software licensing terms to IT directors in the public sector in the ongoing dispute over changes to licensing model.

Bob Griffith, national secretary for the Society of IT Managers (SOCITM), which represents local government IT workers, said the body had been offered new proposals, although it declined to detail the changes.

He said the issue was one of great concern to IT managers, and added: "The pressure's on to get this through within the next few weeks."

A posting on the SOCITM site invites members to review the document which Microsoft claims shows "some major changes/enhancements to the MS offer".

SOCITM will accept or reject the proposal in due course depending on feedback from members. The same offer has also been made simultaneously to the Office of Government Commerce (OGC), which looks after IT procurement for central government.

Microsoft introduced changes to its licensing last year, aimed at moving customers away from buying software licences and toward a rental model.

SOCITM has not been alone in complaining to Microsoft about the changes, which some say could double the amount of money spent on software by IT directors. Microsoft disputes these figures.

However government IT directors may have the upper hand over private firms in negotiating improved conditions, because of the massive combined buying power of government agencies.

Microsoft today confirmed it had tailored a special offer for SOCITM and the OGC, but also refused to make the details public. In a written statement it said: "We are in discussions with OGC and have submitted an initial proposal. We are expecting feedback on this from the OGC soon. We will not speculate until we have received a formal response to our proposal from OGC."