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This is article four of a four part series of blog posts describing the many benefits of Software Assurance.
Following on our previous article about Software Assurance (SA), which described Microsoft’s more traditional SA benefits, we thought it would be a good timing to highlight one of the more specialized benefits within SA; the Spread Payment benefit.
Widely viewed as an essential ingredient for maximizing the value of Microsoft volume licensing purchases, Software Assurance has been a part of Microsoft’s licensing offerings since 2001. Over time the program has expanded significantly to encapsulate twenty different benefits. Complementary to other categories of SA benefits such as new version rights, deployment planning, training and support, the Spread Payment option has been an important and integral part of Software Assurance from the initial roll out of the program.
With Spread Payments customers can spread the cost of the software license and Software Assurance across three equal, annual sums. This allows a customer to reduce initial licensing costs with predictable payments, preserving cash and credit lines while still getting the latest Microsoft technologies.
A familiar and well leveraged option by customers leveraging either an Enterprise Agreement or a Select Agreement, Spread Payments is not so well known by small business customers who may have an Open Value (non company-wide) or Open Value (company-wide and subscription) Agreement (i.e., typically 5-250 devices).
We see increased value for this benefit for small business. By design, most small businesses are set up for growth, however to finance growth they are often faced with a choice between managing cash-flow or using credit line to get to cash. Consequently we view Spread Payments as a smart alternative for small businesses to help manage cash-flow by reducing up-front payments for IT technologies while increasing business efficiency and income.
To help break this down a bit let’s compare details between an approach using Spread Payments and traditional financing of a $75,000 technology investment. Across many emerging markets, if not all, small business activity is an important engine of growth. Moreover, interest rates on small business loans within these regions are typically higher; therefore the three-year Spread Payment Software Assurance benefit has potential to significantly decrease the cost of acquiring innovative technology to remain competitive.
How do you gain access to Spread Payments?
For more information on Software Assurance, please visit the Microsoft Software Assurance website where you’ll find handy reference tools such as this interactive SA Benefits chart.
If you have a question, join the conversation at www.twitter.com/MSFT_VL or leave a comment in the comments section below.
It is very good information.It is very helpful for me.You have done a great work.keep it up Thanks for shearing it.
who can afford to give interest free terms? Microsoft must increase the license fees to offset the economics of the spread payments ...the customer pays one way or another - right
If Software Assurance only lasts for 2 years on an open volume license - why is the Spread payment over 2 years? Does SA need to be renewed in year 3 still on top of the spread payment?