Download the full whitepaper here
NEW YORK, September 29, 2022 /PRNewswire/ — Miro Consulting, a leading provider of software asset management, license management, audit consulting, negotiation tactics and support management services, announced today Today the launch of a new white paper titled “Microsoft’s Bundling Strategy: Amassing Market Share While Hindering Government IT.”
The new report answers the question that almost every IT professional must answer: should my organization buy a set of solutions from a single vendor or combine the best services from multiple vendors to meet our needs? Miro reviewed Microsoft, one of the most popular software vendors in the IT industry, and found that a state-of-the-art approach is superior, especially when it comes to cost savings and security. This is particularly the case for customers in the public sector (state agencies and ministries), a major purchaser of IT products and services.
Customers, regulators and the public often do not understand the implications of Microsoft’s aggregation practices. In fact, many – especially in the US public sector – are unaware that the costs of Microsoft bundled products are often much higher over time than going for a peaking approach with multiple vendors.
In Miro’s experience, the decision to purchase an IT bundle is usually driven by considerations of ease of procurement and IT capacity, rather than an organization’s actual technology needs. According to recent studies, Microsoft has 85% market share in the area of public sector workplace collaboration and communications technology. In large part, the company has achieved this dominant position in the market because:
- Conditions within public procurement systems favor award at the expense of safety, innovation and efficiency.
- Microsoft is taking very deliberate steps to limit competition and entrench its foreclosure in the public sector market.
Microsoft bundle limits
Miro’s report found that a bundled approach has significant drawbacks compared to a point-and-shoot approach of mixing and matching software solutions and individual products based on the specific environment and user needs.
- Higher total costs – Microsoft bundles can cost 3 times more than the best competitors.
- Security risks – Clustered deployments remain vulnerable to attackers by creating a single attack surface and requiring frequent patching.
- Unique size – A single solution limits the possibility of purchasing offers adapted to specific needs.
- Lack of innovation – Government IT departments may lack motivation or ability to change, resulting in less innovation overall.
Adopting a state-of-the-art approach enables migration to cloud-based solutions, which require less maintenance than traditional “patch and update”-based solutions. IT support staff currently spend up to 82% of their working time maintaining the solutions in place.
Growing Shadow IT
Miro’s report revealed that IT demands innovation, responsiveness and high availability. The report also found that if IT support staff spend most of their time outside of simply maintaining the solutions in place, users will be less efficient at their jobs or bring their own “shadow IT” solutions to work.
The report concludes that government agencies have an opportunity to create a system that promotes competition, security, and redundancy when it comes to multiple vendors. Newer and more innovative solutions can provide better services and better prices. And ultimately, government agencies, users, and US taxpayers will all benefit.
Download the full whitepaper here
This report was developed with support from Google LLC.
ABOUT MIRO CONSULTING
Miro is a leading global software asset management service provider, specializing in license management, audit consulting, negotiation tactics, support management and cloud services for Oracle, Microsoft, IBM, Salesforce and Amazon Web Services. The Miro Performance Guarantee promises that our long-standing, diverse and passionate team of expert analysts provide insightful and practical advice to help our clients achieve the best possible results.
Contact: Shawn Donohuevice president of marketing, [email protected]
SOURCE Miro Consulting