IT Forum 2004: Microsoft revises TechNet 2.0

By Alun Williams, Copenhagen

Posted on 18 Nov 2004 at 13:53

Microsoft has rejigged its TechNet support offering. While version 2.0 of TechNet Plus 2.0 sees three benefits for users, there is also a price increase.

First, the full-version software will no longer expire within a set period of time (previously 90 or 180 days). Note, however, that the licensing terms remain that it is for evaluation use only. Second, users will be entitled to two 'no-charge support incidents' per year, and a faster 'next business day' turnaround is also promised for the TechNet Managed Newsgroups (a two-day turn around was previously promised for the Microsoft- and MVP-monitored support newsgroups).

Pricing for the Standard and Plus versions of TechNet are increasing, however - to £536 and £852, respectively (they were £386 and £708).

On the question of CD-hell - the unrelenting delivery of unneeded CD sets in a variety of language versions - Scott Stout, a Senior Product Manger for TechNet, offered the short-term respite of DVD-based delivery. Of course this will inevitably over time turn into DVD-hell, but it will represent an 8:1 saving of optical discs. In the longer term, of course, the delivery of software will be radically changed, we all hope...

Interestingly, back in May the TechNet and MSDN group was split off as a separate business unit, which presents a dilemma for Microsoft in terms of charging for the service. If too much profit is recorded, surely this will be perceived as overcharging? Stout insisted that TechNet was not about generating profit for Microsoft, but delivering support.

Stout illustrated the potential conflict, however, when discussing the pricing for the service. Apparently, there have been many studies to find the 'sweet-spot' in terms of what users would expect and be happy to pay, as opposed to the true cost of providing the service. If it was free, Stout said, there was the danger that users would not value and respect the service and all the CDs that come with it. Effectively, TechNet is something of a Giffen good, where an increase in price can stimulate an increase demand...

Note that while similar in terms of the software delivered, MSDN is targeted at developers (and provides additional documentation for this) and TechNet is aimed at IT Professionals (and the additional documentation and support reflects this).

Are you a member of TechNet? What are your thoughts of the service and the price increase? Leave a comment via the link below.