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Microsoft backtracks on plan to rescind IUR

By Dylan Bushell-Embling
Tuesday, 16 July, 2019

Microsoft backtracks on plan to rescind IUR

Microsoft has backtracked on plans to charge members of its partner program for access to Microsoft software to run their business after an outcry from the resellers.

In a blog post on 12 July, Microsoft Corporate Vice President for One Commercial Partner Gavriella Schuster said the company will roll back planned changes to internal use rights under the program.

Internal use rights allow qualified partners to use software internally without paying the typical licence fees. Microsoft announced earlier this month that it planned to eliminate these rights in July 2020.

According to reports, the provision of free internal Microsoft services to partners is costing the company around US$200 million ($140.7 million) per year. Microsoft had justified the planned changes as freeing up money to be invested elsewhere in the company’s incentive portfolio.

But the decision sparked a furore among Microsoft partners. These partners also reacted negatively to planned changes that would cut back on on-premise support benefits for partners.

After listening to this feedback, Microsoft has reversed course, Schuster said.

“We listened to you, and we have acted. Our decision to rescind these changes required a thorough review, and a key determining factor was the connection and trust we have with you, our partners — a valuable asset we do not take for granted,” she said.

“Each year we review how we engage with partners and evolve our approach to ensure we provide best-in-class support to you and stay ahead of market changes. As we move forward, we commit to providing even more advance notice and consultation with our partner community to mitigate concerns and address issues up front. We will continue to invest in our partner program to ensure we create opportunities for all our partners.”

Microsoft has separately given IT professionals the green light to start testing its new Chromium-based Edge browser via the Microsoft Edge Dev Channel.

The move signals that the new browser is passed its early beta stage and ready to be tested by more people than just enthusiasts and developers. But Microsoft has yet to deliver on its promise of a planned beta channel for the platform, which will involve updating the browser preview every six months.

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