Licensing discounts on the cards as Redmond shows signs of cracking.
Microsoft customers could win big discounts as the software giant comes under increasing pressure to reduce licensing costs or lose deals to open source competitors. Several major public sector customers have negotiated better prices, and the government"s buying arm, the Office of Government Commerce (OGC), is in negotiations with Microsoft to obtain more favourable terms.
Microsoft signed a Memorandum of Understanding (MoU) with the OGC in 2000, which guaranteed discounts on software licences for public sector buyers. But Newham Borough Council in east London has already cut a new deal with Microsoft after looking at open source alternatives.