The Windows Observer--Microsoft Gives Customers a Break on New SMB Windows Packages

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Volume 6, Number 19 -- May 14, 2008

Microsoft Gives Customers a Break on New SMB Windows Packages

Published: May 14, 2008

by Alex Woodie

Microsoft yesterday revealed pricing details of Windows Small Business Server 2008 and Windows Essential Business Server 2008. With pricing starting at about $1,100 and $5,500, respectively, the products should give customers a decent break compared to purchasing the bundles' components individually. But more importantly, Microsoft is giving customers a break on client access licenses (CALs). Microsoft also announced a "public preview" of these products, but it's not clear how interested parties can participate.

In February, at the big Windows Server 2008 launch event, Microsoft announced Windows Essential Server, the formal family name given to "Centro" and "Cougar," which were the codenames for the new Windows Server 2008-based product bundles geared toward mid size and small companies, respectively.

The two bundles combine the latest releases of the Windows Server operating system along with a slew of messaging, middleware, management, and security tools. Specifically, the new mid size offering, Windows Server Essentials 2008, which is designed for organizations with 25 to 300 users, includes Windows Server 2008 Standard Edition, Exchange Server 2007 Standard Edition, SQL Server 2008 Standard Edition (with the Premium bundle), System Server Essentials 2007, Forefront Security for Exchange, and Forefront Threat Management Gateway, Medium Business Edition.

Similarly, Windows Small Business Server 2008, which is designed for organizations with five to 75 users, includes Windows Server 2008 Standard Edition, Exchange Server 2007, and SQL Server 2008. By pre-integrating the components and giving customers a break on price, the new offerings will, hopefully, simplify life for SMBs and cut costs at the same time.

Up to this point, prospective customers wouldn't know how much of a price break Microsoft would provide. With yesterday's announcement, the details become clearer.

Pricing for the standard edition of Windows Small Business Server 2008 will start at $1,089. This price includes five client access licenses (CALs). Users can buy additional CALs for $77 each. The premium edition of the product, which includes SQL Server 2008 Standard Edition, goes for $1,899, which includes five CALs. Additional CALs for the premium version cost $189 each.

Pricing for the standard edition of the new mid size business bundle, Windows Essential Business Server 2008, starts at $5,472, which includes five CALs; additional CALs are $81 each. The premium edition of Essential Business Server 2008, which adds SQL Server 2008 Standard Edition, costs $7,163, which includes the five CALs; addition CALs cost $195 each.

Customers gain more flexibility in applying their CALs with the new releases, compared to the last release of the Small Business Server. For starters, customers can purchase single CALs, so they will pay only for the exact number of employees using the product. Customers can also buy a mix of standard or premium CALs, to more closely fit the way their users use the software. Lastly, customers won't need additional CALs to access other implementations (non Windows Essential Server copies) of Windows Server, SQL Server, or Exchange Server. This should be a very well-received change compared to Microsoft's previous CAL licensing policies, which many customers considered overly restrictive.

Microsoft also announced rebates of up to $200 for solution provider partners configuring Windows Small Business Server 2003 R2 for their clients who acquire the software and purchase Software Assurance contracts within a certain time period.

Microsoft also announced a "public preview" of the new products, which are still in testing and are slated to become available later this year. Microsoft directs interested parties to a Web site, www.multiplyyourpower.com, that Tuesday was redirected to Microsoft's main Windows Essential Server Web page, where it's not readily apparent how to download a beta copy of one of the offerings.