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Microsoft cuts off deal

University students, staff, and faculty are shelling out more money at the Bookstore this year for their Microsoft software, including Windows XP Professional, Office 2003 Professional, and Visual Studio .NET 2003 Professional.

For the second year in a row, software prices have increased at the University as the result of a licensing agreement between Microsoft and Ohio’s 15 public universities.

The Bookstore’s price for each Microsoft software application is $39.99 plus tax, up from $29.99 a year ago.

The latest price is still heavily discounted from the average retail prices of Microsoft software applications. For example, Microsoft Office Professional Edition 2003 sells for $499 on the Microsoft Web site.

‘The price is moving up somewhat,’ said Chief Information Officer Bruce Petryshak. ‘But it is not expected to approach the academic price of $180.’

Before the agreement ended June 30, 2004, Microsoft software sold for $10 plus tax at the bookstore for more than six years.

This low price was the result of the special agreement Microsoft had with the 15 public universities in Ohio.

According to Dale Schroeder, budget analyst in the office of the Chief Information Officer, Microsoft decided to create standard agreements for all U.S. public universities to replace special agreements held by universities in different states.

‘The 15 four-year public universities got a real good deal with Microsoft,’ Schroeder said. ‘At some point, Microsoft said, ‘We’re not doing those special agreements anymore. We’re moving everyone over to standard agreements.’ The University said, ‘But the standard agreement is going to cost a lot more than what we’re paying right now.”

After nine months of negotiations, Microsoft and Ohio’s public universities reached a compromise.

Each university would be given a choice among three options. They could choose the Campus or Select Agreement, or they could opt for no agreement at all, which would force them to charge a set academic price well over $100 for each piece of software.

The University chose the Campus Agreement, which allows it to purchase Microsoft software licenses at an annual price increase of 23 percent.

The Campus Agreement was designed to ease students up to standard pricing for software, according to Dishon Bell, Mircrosoft spokeswoman.

‘Microsoft didn’t want to hit customers with the whole price increase all at once,’ said Bell, adding that with the Campus Agreement prices will continue to rise at the rate of 23 percent each year through 2010.

According to Schroeder, the Campus Agreement currently allows the University to sell software at a lower price than the Select Agreement, which allows students to buy their own software licenses.

Under the Campus Agreement, software licenses are owned by the University until students graduate, at which point full ownership of the licenses is handed over to students.

‘For students, what you buy at the bookstore is the media, the right to use the software as long as you are associated with BGSU, and once you graduate from BGSU, then the license becomes yours,’ Schroeder said.

While the Campus Agreement is currently less expensive, Schroeder warned that it could eventually surpass the pricing for the Select Agreement.

If this does occur, the University will switch to the Select Agreement to save students money, he said.

While disappointed by the rising cost of software at the Bookstore, Erin Vader, junior, likes still saving money by purchasing her software through the University.

‘I think the price increase is a little bit much,’ Vader said. ‘At the same time, I don’t think $40 is too much to pay for the software. It’s really expensive in stores. Being able to buy it for so little money is really a help for college students who are struggling to make ends meet.’

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