Did you sign up to Microsoft Licensing 6?

Early estimates suggest that as many as 40 per cent of Microsoft users did not buy into its controversial new licensing scheme, despite a last-minute rush.

Microsoft Licensing 6 was introduced on 1 August, abolishing the popular Upgrade Advantage option. Companies that failed to agree a contract in time will have to pay full price to upgrade to new software versions.

Microsoft reseller Ideal Hardware saw a six-fold increase in sales as the deadline approached.

But Rob Enderle, senior analyst at Giga Information Group, says that a survey of clients found around 40 per cent had not signed up, with half of those blaming the cost.

'About 20 per cent just couldn't afford it,' he said. 'A lot that did pulled money from other areas.'

A large manufacturing company, who wishes to remain anonymous, told Computing: 'We are not playing ball on the upgrade. We will negotiate through future upgrades on a needs basis only and do our utmost to investigate some of the open source solutions for the future.'

Energy and water group United Utilities upgraded four of its five divisions, but is also looking at alternatives.

'One of the businesses is looking at replacing Microsoft with Sun's Star Office but there are always the costs of moving away from Microsoft, such as re-training, to consider too,' said Sean Sullivan, IS strategy and assurance director at United Utilities.

Peter McCartney, Microsoft alliance manager at Computacenter, the vendor's largest UK reseller, says some companies had future upgrades planned but could not afford to bring funding forward.

'The changes came about after organisations had set their budgets. Some companies simply haven't been able to get the money whether they wanted to upgrade or not,' he said.

Microsoft UK licensing manager Sue Page says she is satisfied with the sales of Licensing 6.

'We were never expecting 100 per cent to sign up,' she said.