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24th Sep 2001, 15:19
from news.bbc.co.uk
http://news.bbc.co.uk/olmedia/1560000/images/_1560267_logo-microsoft-300.jpg
A trade body representing some of Britain's largest companies has asked the UK government to investigate Microsoft's new software pricing policy, which could double costs over the next four years.
The Infrastructure Forum (tif), sent a letter on Friday to Patricia Hewitt, Secretary of State for Trade and Industry, asking the government to refer Microsoft to the Office of Fair Trading (OFT), a tif spokesman told Reuters on Sunday.
Tif represents the technology interests of companies like GlaxoSmithKline, BP, Shell and Marks & Spencer.
Microsoft's new pricing policy could cost tif's members an extra £880m over a typical four-year investment cycle, it said in a statement.
Microsoft is still under investigation by the EU for possible market abuses by Microsoft.
Moves to break up Microsoft ended in the US in September after Bush administration justice officials said they would not continue the action.
Double prices
The group said the new pricing structure will push up Microsoft licences by almost 100% by forcing them to buy new software each time they upgrade their systems.
The latest version of Microsoft's Windows operating system is due to be released next month.
"This money has not been budgeted for by organisations, so where will it be found...Does Microsoft realise the damaging impact its pricing policy could have on British business?" said David Roberts, chief executive of tif.
The group's 98 members collectively spend about £18bn on information technology every year.
No comment
No-one from Microsoft was immediately available for comment.
"We are disappointed customers have felt the need to take this action. I can't comment specifically about the OFT because we have not had an approach," Duncan Reid, Microsoft UK's licensing manager, was quoted by the Sunday Telegraph as saying.
The Sunday Telegraph said Mr Reid believed the new subscription pricing system being introduced by Microsoft was designed to simplify upgrades.
"This may represent a price increase over time for only 20% of users," Reid was quoted as saying.
http://news.bbc.co.uk/olmedia/1560000/images/_1560267_logo-microsoft-300.jpg
A trade body representing some of Britain's largest companies has asked the UK government to investigate Microsoft's new software pricing policy, which could double costs over the next four years.
The Infrastructure Forum (tif), sent a letter on Friday to Patricia Hewitt, Secretary of State for Trade and Industry, asking the government to refer Microsoft to the Office of Fair Trading (OFT), a tif spokesman told Reuters on Sunday.
Tif represents the technology interests of companies like GlaxoSmithKline, BP, Shell and Marks & Spencer.
Microsoft's new pricing policy could cost tif's members an extra £880m over a typical four-year investment cycle, it said in a statement.
Microsoft is still under investigation by the EU for possible market abuses by Microsoft.
Moves to break up Microsoft ended in the US in September after Bush administration justice officials said they would not continue the action.
Double prices
The group said the new pricing structure will push up Microsoft licences by almost 100% by forcing them to buy new software each time they upgrade their systems.
The latest version of Microsoft's Windows operating system is due to be released next month.
"This money has not been budgeted for by organisations, so where will it be found...Does Microsoft realise the damaging impact its pricing policy could have on British business?" said David Roberts, chief executive of tif.
The group's 98 members collectively spend about £18bn on information technology every year.
No comment
No-one from Microsoft was immediately available for comment.
"We are disappointed customers have felt the need to take this action. I can't comment specifically about the OFT because we have not had an approach," Duncan Reid, Microsoft UK's licensing manager, was quoted by the Sunday Telegraph as saying.
The Sunday Telegraph said Mr Reid believed the new subscription pricing system being introduced by Microsoft was designed to simplify upgrades.
"This may represent a price increase over time for only 20% of users," Reid was quoted as saying.