InformationWeek
Defining The Business Value Of Technology
November 17, 1997
Sticker Shock
on
ventional wisdom says that Microsoft's Windows NT operating system is easier to use and less expensive than Unix, but not as scalable for heavy-duty transaction-based applications. Microsoft spent many months and marketing dollars trying to change that perception with its plans to release Enterprise editions of its Windows NT Server and SQL Server database software. What was also changing, however, was the price. In
June, our cover story laid out Microsoft's preliminary pricing plans, which revealed that entry-level licensing fees for the Enterprise editions of the software would be nearly five times higher than the existing Standard editions ($11,998 for a server running both products vs. $2,208). The news put a new spin on the Unix-vs.-NT debate, and generated more feedback from readers than any story this year. Suddenly, NT users and potential NT users would have to weigh even more carefully the value of NT vs. comparably equipped Unix servers and decide whether the increase in performance of the Enter prise products is worth the increase in price.
Some users, such as Aristotle Publishing in Washington and Neural Applications Corp. in San Francisco, said the increase was enough to make them look at other solutions. In June, Microsoft wouldn't confirm what final pricing would be, but one executive said NT Enterprise would be the "meal deal of the century."
As it turned out, when Microsoft released the Enterprise NT product in September, the pricing was the same as the preliminary pricing uncovered in June. With marketing just beginning, Microsoft has not said yet how well NT Server Enterprise Edition is selling. SQL Server Enterprise Edition, and its final pricing, is due by year's end, so it's not clear yet whether companies believe the value is worth the price.
Story's authors: Stuart J. Johnston and John Foley
Read it on the Web at: techweb.cmp.com/iw/635/35iu nt.htm
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