Microsoft Sweetens Enterprise Vista

August 15th, 2006: 'Microsoft Financing' - a wholly-owned subsidiary of the Seattle-based software giant - is extending its European and US 'buy now, pay in dribs and drabs' deal to Australia and New Zealand to encourage Vista take-up.

Microsoft is ramping up the pre-release strategy for its 'next generation' operating system, Vista (and is also including Office 2007) with a financing deal called "6/50". The deal, which has already rolled out in France and Switzerland, will also include purchase options on the hardware required to power the new system.

Microsoft's own 'Presspass' information conduit, in July, stated that the company had reduced, "the minimum transaction size for financing from US$10,000 to $3,000." So, this would provide a starting block in the region of AU$4,000. However, the Australian newspaper today reported that this figure was more likely to be in the region of AU$15,000.

The basics of the deal is that companies can take-up Vista and its accompanying Office suite - and, you'd assume, hardware - for AU$50 for the first six-months, with the residue being paid off in a fixed term of 36 months.

What this all means in terms of the take-up of what is the first major operating system release of this century for the Enterprise is that Microsoft is threefold:

1. The company realises that take-up requires more than a simple upgrade spend across all markets. Bear in mind that the deal includes more than simply switching to Vista; Office 7 and hardware are also included.
2. The fact that AU$15,000 is apparently the starting point for 6/50 means that Microsoft is aiming below the Enterprise line, and is aware that the SMBs will require more leveraging.
3. Microsoft is aware that it has a battle on its hands.

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