Microsoft software change hits aged care
Microsoft Australia has accused aged-care services providers of illegitimately buying software through a discount licensing program, in a report in The Australian newspaper’s IT Section.
Aged care providers were shocked in October by the software giant’s decision to revoke their not-for-profit status and charge full commercial rates for using Microsoft’s Office, Sharepoint and SQL Server products.
The move will hike annual licensing fees by about 400%. Despite representations from the Aged Care Industry IT Council, Microsoft has not changed its decision.
An independent review by Connecting Up Australia found that a number of customers across a range of industries had been illegitimately buying software through a discounted licence program, called Academic Open, for which they did not qualify, a Microsoft spokeswoman said.
Most customers were unaware they were buying an illegitimate licence, but a small number were deliberately abusing the system to access discounted software.
In the past, customers and partners had self-qualified their use of this licence, with no independent vetting.
Microsoft said lack of oversight had contributed to the issue of licence misuse and isolated cases of abuse.
The Aged Care IT Council estimated full licences for installed software would cost the industry $70 million over the next 18 months, swallowing half of the sector’s annual technology budget at a time when it was being urged to improve uptake of technology systems.
The Microsoft spokeswoman denied the impost would be so large. “Microsoft views this as a grossly overstated estimate,” she said. “Our estimates indicate the figure to be many, many times smaller.
“That said, the ongoing satisfaction of our customers is a top priority and we will take financial factors into consideration as we move through the process of determining the best approach to helping our customers move to legitimate licensing arrangements.”
Federal Minister for Ageing Justine Elliot and federal Finance Minister Lindsay Tanner both said they were monitoring the issue.
Ms Elliot has launched a free, plain-English guide, called the Aged Care IT Implementation Kit, developed at a cost of $212,000 to promote the use of technology to reduce administrative burdens.
Reflecting the entrenched position of Microsoft’s products in the industry, the guide often refers to particular Microsoft products, without endorsing their adoption.
A spokeswoman for Mrs Elliot said it was up to individual aged care providers whether they used the free IT kit.
A national survey of Aged Care IT, conducted by Aged Care Direct, found that 78% of local providers planned to invest in new systems during 2009.
Meanwhile, Microsoft was working to move non-academic institutions from the Academic Open licence program and set clear guidelines for future use, the company spokeswoman said.
Microsoft would also establish a new licensing program, Charity Open, to help eligible organisations use its software at discounted prices.
