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Semiconductor industry

Microsoft to Price Software Based on Number of Processors, Not Cores

Strategic Insights

— 1 min read

Microsoft's decision aims to eliminate concerns from business customers about higher software prices on next-generation computers. The company will price its most popular business software based on the number of processors in a system, potentially saving buyers thousands of dollars on new computer systems. The move comes as Advanced Micro Devices Inc. and Intel Corp. prepare to introduce new multicore processor chips, which contain more than one processing engine.

Key Takeaways:

  • Microsoft will price its business software, including SQL Server, based on the number of processors in a system, not the number of cores on a processor.
  • This decision could save buyers of SQL Server thousands of dollars on new computer systems.
  • Microsoft's pricing on business versions of Windows remains unaffected.
  • The company made its decision after studying the pricing issue for a few months and discussing it with customers and partners, including AMD and Intel.
  • AMD praised Microsoft's decision, saying it clears up concerns about software pricing for the new computers.
  • Multicore designs will enable high-performance processors to divvy up tasks among multiple processing engines, saving electrical power and reducing heat.
  • AMD expects most of its server processors to be multicore chips by 2006, with some PC chips being in production by late 2005.
  • Microsoft's decision will enable businesses to make more accurate price forecasts on new computers.

Statistics:

  • Thousands of dollars: The potential savings for buyers of SQL Server on new computer systems.
  • 2006: The year by which AMD expects most of its server processors to be multicore chips.
  • Late 2005: The time frame by which some PC chips from AMD will be in production.
  • 2005: The year in which AMD and Intel will shift to multicore designs on their most advanced processors.
  • Multicore design: The approach that enables high-performance processors to divvy up tasks among multiple processing engines, saving electrical power and reducing heat.

Sources:

  • Microsoft Corp. statement
  • Advanced Micro Devices Inc. statement
  • Intel Corp. statement
  • Ben Williams, AMD's vice president for server chips
  • kladendorf@statesman.com (Email address of the author of the article)

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