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On Mon, Jan 07, 2008 at 09:24:54PM +0000, Rob Beard wrote: > Grant Sewell wrote: > > On Mon, 2008-01-07 at 18:42 +0000, Ben Goodger wrote: > >> On 07/01/2008, Henry Bremridge <henry.bremridge@xxxxxxxxx> wrote: > >> - For MS there is an ongoing PERPETUAL license fee to be paid. > >> > >> Actually perpetual licensing means the direct opposite of this. A > >> perpetual license is purchased and continues to operate perpetually; > >> the model you are referring to is "software as a service" where a > >> subscription is paid perpetually and continues to operate for about > >> forty seconds. > > > > But if one purchases a "perpetual license" for MS Office 2003, let's > > say, does one automatically get to update to MS Office 2007 without > > charge? Or is the license *only* for MS Office 2003? If the case is > > the latter, then surely in order to "keep up to date" one must therefore > > continnually (or 'perpetually') purchase new licenses? > > > > Grant. > > > > According to Microsoft, a perpetual licence gives the council the option > to either purchase a small amount of licences and then purchase other > licences at the same price for a 2 year period (the more they buy on the > first purchase they get the discount, so if they only buy 10 copies to > start with then they pay a discount on the 10 copies, if they buy 1000 > copies at a later date they woudln't get the discount they would on 1000 > licences, just the discount on 10!), although the council will probably > be under a Select licence if they have purchased a perpetual licence. > Basically in this case the council makes an estimate of how many > licences they want for 3 years and get a discount on that, then they can > change the estimates on a yearly basis. > > Still not as cheap as OpenOffice though. > > I think you're right by the sounds of things Grant, they don't get any > free upgrades to the latest version on perpetual licences, they'd > probably get to keep the licences for the old machines but no doubt > after 3 years or so if they want to upgrade they'd have to buy new > licences for each machine they want to upgrade. > There is a fairly standard financial measure that is used to measure future payments. This is the discounted cash flow. The council should at the very least be prepared to state - What discount rate was used to derive the present value of future MS payments - What future payments are expected - The expected cost of a onetime conversion (on MS windows) to OpenOffice -- Henry Mon Jan 7 21:47:00 GMT 2008
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