[LINK] No deal with Yahoo! re Zimbra and Australian non-profits

Bernard Robertson-Dunn brd at iimetro.com.au
Tue Oct 28 16:48:50 EST 2008

Darrell Burkey wrote:
> We work in an environment where companies like MS now give away server
> software and Exchange software to non-profits.
And on the subject of Microsoft giving away software to non-profits - 
and then revoking their not for profit status once their software has 
been entrenched.....

Software slug for age care centres
Karen Dearne
October 28, 2008
Australian IT

MICROSOFT will rip an estimated $70 million out of the aged care 
sector's IT budget over the next 18 months as it forces users to pay 
full commercial rates for previously discounted software.

Aged care providers are shocked by Microsoft's decision to revoke their 
not-for-profit status, which gave them access to its products at a 
heavily discounted rate. As a result, Microsoft's Office, Sharepoint and 
SQL server products are firmly entrenched in the sector's IT infrastructure.

The Aged Care Industry IT Council says full commercial rates would hike 
annual licensing fees paid by users by about 400 per cent - and swallow 
half of the sector's annual technology budget.

"Like many other industry sectors, aged care has probably a 90 per 
cent-plus reliance on Microsoft infrastructure, so it's not difficult 
for the company to say the rules have changed, the fees will now be $X," 
IT Council spokesman Mark Barnett said.

"The difficulty for aged care providers is that they've bet the farm on 
a Microsoft strategy that they believed was consistent and reliable in 

The providers are saying they've spent millions on Microsoft products, 
and if they now need to pay additional fees their "whole strategy is 
pretty wobbly", he said.

Mr Barnett said the IT Council had been talking to Microsoft over the 
past six weeks to reach a resolution.

The software giant granted "a stay of execution" late last week ahead of 
an IT Council meeting. Mr Barnett said Microsoft had agreed to take no 
further action on the changes before Christmas.

At least three technology projects were put on hold last Friday pending 
the outcome of discussions.

A Microsoft spokesman said a recent review had uncovered "a number of 
ineligible entities, including a range of commercial organisations, that 
were using Academic Volume Licensing programs" under the belief they 

"As such, we are beginning the process of transitioning these customers 
to an appropriate licensing program," the spokesman said.

"Also, we are developing a charity-specific volume licensing program in 
an effort to support the important work undertaken by not-for-profit 

"However, we are not yet in a position to announce final details around 
this program."

The spokesman said Microsoft remained committed to supporting 
not-for-profit organisations and had donated more than $22 million worth 
of software to local charities last year.

According to a survey by Grant Thornton, there are some 1300 approved 
residential providers caring for more than 187,000 elderly Australians 
in 2900 homes.

Church, charitable and community organisations account for about 60 per 
cent of the residential aged care market.

The industry is consolidating, Grant Thornton says, but the largest 
operator only operates 6000 aged care beds - less than 5 per cent of the 
overall market share.

In contrast, Ramsey Health Care holds about 30 per cent of the private 
hospital bed market.

Minister for Ageing Justine Elliot has been pushing aged care providers 
to adopt IT systems for improved resident care and financial savings. 
One trial saved about $200,000 across 23 participating homes, she said 
earlier this year.

"If adopted by all nursing homes across Australia, this one program 
alone could result in savings in the order of $25 million," Mrs Elliot said.


Bernard Robertson-Dunn
Canberra Australia
brd at iimetro.com.au

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