'U' to sign Microsoft deal

In a deal that could slash Microsoft prices for students, faculty and staff, and give the software giant a formidable edge over campus rivals, University officials are expected within days to sign an exclusive licensing agreement with the corporation.

The deal would allow the University's Information Technology Division to purchase a set of Microsoft products and distribute copies of the software to all University computers, and to students, faculty and staff for home use, for a fraction of the retail value, said ITD Executive Director Jose-Marie Griffiths.

SAM HOLLENSHEAD/Daily A University student looks at an iMac computer a the University's Computer Showcase in the Michigan Union yesterday.

Microsoft software prices at University outlets could drop by as much as 75 percent.

For example, the popular Microsoft Office 2000 package, which includes applications for word processing, data analysis and Internet publishing, could be sold for less than $40, down from $174, Griffiths said.

For the duration of the contract, users will have free access to Microsoft upgrades, Griffiths said. Today, students purchasing an upgrade of the ubiquitous Windows 98 operating system would pay $108, with an academic discount, at the University's Computer Showcase.

With the sharply reduced prices come two potential drawbacks for users: Unlike products currently on the market, the new software will come without manuals and other supplementary resources and, to prevent piracy, will allow only two installations.

Details of the agreement are confidential until a final deal is announced, but Griffiths confirmed that administrators will likely sign a three-year, $3.9 million contract with Microsoft. The price is based on the total potential users at the University.

The contract would give the University a special license to pass on copies of the software to students, faculty and staff, at a nominal per-person cost of around $5. Without a contract of that sort, federal law prohibits copying software for public distribution.

In the ongoing negotiations, funding remains a major roadblock. Griffiths said administrators are trying to spread costs across the University. An ITD director, William Aikman, said the program will most likely be funded by a mixture of University funds and revenues from future Microsoft product sales on campus.

ITD can expect a return on its investment in as early as one year, Aikman said, noting that his estimate was purely speculative. In a ballpark projection, he put the total savings to the University over the next three years in the millions of dollars.

The Microsoft contract is a Custom Enterprise Agreement, an initiative Microsoft extended from corporate America to educational institutions in a landmark deal with Indiana University last year.

Rumors of a contract have circulated the campus for weeks and drawn a mixed reaction from software customers.

In light of the pending antitrust suit against Microsoft, in which the company is accused of creating an unlawful monopoly, some customers had reservations about the company using a foothold at the University to drive out competitors.

Larry Debord, an Ann Arbor resident, said the University should not serve as "a tool in Microsoft's profit-making machine."

Business graduate student Nancy Sotomayor abruptly corrected him: "Their monopolization machine."

Other customers embraced the deal for the substantial savings it promises.

"I'm a student. I'm poor. I don't have $200," said Medical fourth-year student John Austin. "Ideally, I don't think the University should do this. But as a student, if I can get it for $40, I have no problems at all."

09-15-99