A key strategy for Microsoft is signing more customers to its software maintenance and upgrade program under SA. As customers take advantage of pending software releases such as Vista, Longhorn, Office 2007, and Exchange 2007 – and with no new versions on the horizon – Microsoft will see the value of SA upgrade benefits diminish.

Augmenting the non-upgrade benefits and add-ons is one way for Microsoft to increase the SA value proposition. Enterprises that purchase SA for Windows desktops will now have the option of adding on Microsoft's Desktop Optimization Pack (DOP). This helps guarantee a predictable revenue stream for the company and ensures that customers are committed to multi-year contracts (SA has a minimum three-year term).

DOP is designed to complement Windows Vista Enterprise (also Windows XP- and 2000-compatible), and is being released in a staged approach. The inaugural offering will include Microsoft SoftGrid desktop virtualization functionality and will launch in January 2007 at an annual cost of approximately $10 per desktop...