Dear Friends,

The computing landscape has changed dramatically as businesses and consumers alike increase their dependency upon cloud computing. There are still some who are reluctant to trust another party with their data, but the economies of cloud computing cannot be denied. The efficiency and potential cost savings for customers, whether monetarily or the result of other factors, has created a hosting opportunity large enough to support industry giants Google™, Amazon™, and Microsoft®. Microsoft is late to the party, but that doesn’t mean they aren’t a viable competitor, as evidenced by the recent earnings report. Microsoft has a competitive advantage the others lack in that they have existing relationships with customers of their commercial software. Microsoft can present a strong case that Azure™ works particularly well with Windows Server™, SQL Server™, and Active Directory®. They are also attempting to address the needs of private cloud customers wishing to host within their own datacenter with the recently announced “Cloud Platform System”. The Cloud Platform System is a Dell® server capable of running the same Azure™ APIs, services, hypervisor, and everything else which is available in the Azure™ public cloud. 


Microsoft had another record first quarter and exceeded Wall Street’s expectations. The software giant reported revenue of $23.20 billion, compared with $18.53 billion from the same quarter a year ago. Diluted Earnings-Per-Share were 54 cents, compared to 62 cents a year ago. Analysts were expecting EPS of 49 to 50 cents and revenue of $22.02 billion. 


Commercial Licensing revenue increased 3% or $262 million. This was primarily the result of increased revenue from Windows® Commercial and server products, but offset by a decline in Office Commercial revenue. Server products (primarily SQL®) grew by $406 million or 11%. Somewhat surprisingly, Windows Commercial revenue grew $80 million (10%) thanks to increased renewals and new customers. Office Commercial revenue declined $322 million (7%) as many VL customers transition to Office 365™.


Commercial Other revenue increased $805 million, or an impressive 50%, thanks to a $662 increase (128%) from Commercial Cloud revenue. Azure™ revenue was also up by 121%. Enterprise Services increased $142 million or 13%, which was primarily due to Premier Support Services. 



Microsoft’s 1st Quarter FY 2015 Earnings Analysis- licensing


By: Daryl Ullman

Microsoft® reports revenue by “Devices and Consumer” and “Commercial” divisions, and reports in the following six segments.

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Sneak Peek: Mistakes to Avoid when Negotiating With Microsoft®

Mistakes in negotiations can be costly - in fact, they could cost you hundreds of thousands of dollars over time, which is part of what makes it so important to avoid the critical mistakes when dealing with Microsoft®.

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Will Microsoft® offer Volume Licensing in their retail stores?

There have been unconfirmed reports that Microsoft® may soon begin offering small businesses the opportunity to purchase Volume Licenses directly from the company itself, rather than being referred to channel partners as they are today. 

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Microsoft® Licensing Audit

Software is a pretty big expense for companies, and the Microsoft® Office suite is one package that most businesses cannot live without. 

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Changes to SQL Server® licensing


By: Staff Writer

It certainly wasn’t announced with (or even without) fanfare, but Microsoft® recently made some changes to their Standard and BI SQL Server® licensing, and it’s not good news for VL customers.

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When Is It Time to Start Negotiating

Negotiating the licensing agreement with Microsoft® can be an extremely challenging prospect for any company, even a company with a vendor management team dedicated to working in this area of the business. 

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Windows® 8.1 Enterprise is now available without Software Assurance


By: Staff Writer

It seems as though we have heard more news about Windows® than usual recently. Much of this has been the result of the end of support for XP, but Microsoft® recently made another important change to their Windows® lineup.

Read more >



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