The value of Microsoft's Software Assurance (SA) has always been tied to the promise of new version upgrades for covered software. So, how should enterprises assess the value of this maintenance subscription now that no new updates are on the horizon? The recent release of Windows Vista, Microsoft Office 2007, and Exchange Server 2007 will change the buying criteria for SA. Identify if ongoing coverage makes sense for the enterprise.

Why Pay for Software Assurance?

It makes sense for Microsoft to try to move enterprises away from large, one-time license purchases to a recurring software maintenance and service model under SA. For Microsoft, SA subscriptions mean guaranteed, predictable revenue from customers. However, SA is a significant cost to enterprises and can double the acquisition cost of software. Traditionally, the business value of SA has been based on three types of benefits:

• Upgrade to new versions. Microsoft Volume Licensing customers...