by , 2:15 PM EDT, June 3rd, 2002
Apple is offering a deal that you may not be able to pass up, if you're an IT manager of a group of Macs running OS X that is. Apple has announced the Maintenance Program for Mac OS X. Similar in some regards to Microsoft's Software Assurance subscription plan, the Maintenance Program for OS X gives the subscriber access to all updates to OS X, including major releases, over a three year period. From Apple:
Apple is pleased to announce the Maintenance Program for Mac OS X!!!! This Program will give Mac OS X users the opportunity to receive major releases to Mac OS X over a three-year period.
Please note: This Program applies to Mac OS X only -- not Mac OS X Server.
Maintenance Program key points include:
- The Program period is three years, with payment at the beginning of the Program. Education accounts that are legally required to purchase software on an annual basis will be the exception.
- The Maintenance Program covers those major releases of Mac OS X that Apple includes in the Program during its three-year term. Apple, however, makes no guarantees that any releases will be issued over the three-year period.
- Customers who have not deployed the most recent Mac OS X reference release (currently Mac OS X v10.1) will be required to purchase a volume license for the most recent reference release to participate in the Maintenance Program.
- Minimum Maintenance Program purchase is 10 seats, whether purchased for new or existing hardware
- Customers cannot receive refunds if they cancel participation in the Maintenance Program before the end of the three-year term. Customers do have 14 days in which to cancel once they receive the agreement in the mail.
- The Maintenance Program purchase takes place on a transactional basis, like Apple's existing Volume License program.
- The Maintenance Program applies only to Mac OS X. It does not apply to Mac OS X Server. (See the Maintenance agreement for complete definition of what is included and excluded.)
When our customers enroll in the Maintenance Program, they will be sent a Maintenance agreement. Customers who have purchased the Maintenance agreement will be shipped upgrades that are included in the Program Maintenance Pricing
Number of Users, Retail price per seat, Education price per seat:
- 10-99: US$69 per year (Three-year total: US$207) - Education: US$49 per year (Three-year total: US$147)
- 100-999: US$59 per year (Three-year total: US$177) - Education: US$39 per year (Three-year total: US$117)
- 1000+: US$49 per year (Three-year total: US$147) - Education: US$29 per year (Three-year total: US$87)
Note: Orders of 1000 units or more must be made directly with Apple.
First: this maintenance program is not designed for the average home user. There is no pricing for 1-9 users, so it may be safe to assume that this program is intended for high volume corporate and institutional users. That said, the pricing for this program is not all that competitive, at least on the surface. Apple tends to release one full (i.e. not free) update every two or so years. Sometimes a bit longer, sometimes a bit less. With a retail price of US$129 (no volume discounting), that means that buying X off the shelf is only going to cost about US$193.50 every three years. At the 10-99 seat level, a corporate customer is looking at paying *more* for these releases than he or she might pay at CompUSA. If Apple moves to a more aggressive schedule of full version upgrades every 18 months, then the savings become more apparent.
Digging deeper into it, though, it seems as if Apple will be shipping included updates to customers on CD. In other words, even minor updates would be available via CD to Program members. There is a lot of value in that to many in the IT world, because it is easier for admins to organize and administer the updates. Also, with Apple's MUCH lower pricing for OS X than Windows and almost all non-free *nix flavors, there is less room for discounting. Apple had not answered our questions on this issue as of press time.
Second: OS X is a whole new ball game for Apple. It cannot be viewed as a provider of merely consumer hardware and software, it must create the image of stability while shoring up cash flow. A maintenance contract such as the one Apple is offering is common in the UNIX world. This program addresses the need of corporations who must have a cost effective way of maintaining software versions for the hundreds of systems they use. This program also makes Apple very cost competitive with other UNIXes, and much more competitive than Windows. In other words, this program is all about doing business with the corporate market on the customers' terms.
Third: It seems the average home user can't get this coverage. This information was made available to Apple corporate customers, and it seems that they must talk directly to Apple to order it.
Fourth: Now let's look at Microsoft's own Software Assurance program, in which Microsoft is essentially trying to move all of its corporate customers to a lifetime subscription service. In many ways Apple's own Maintenance Program is the same sort of deal. Microsoft's Software Assurance program has come under intense criticism from its own customers, with as many as 2/3 preferring to risk having to pay retail rather than subscribe for life (note that the 2/3 number is expected to go down as Microsoft's arbitrary deadline for joining the program approaches).
That's a key difference between these two programs. Apple's program is offering access to all (included) updates over a three year period; Microsoft is attempting to force its Software Assurance members into upgrading when and where Microsoft says they have to. Most IT departments dread upgrading their Windows installations due to the inherent problems associated with Windows networks (especially installation and user learning curve issues), and they tend to upgrade more slowly than Microsoft wants. Apple's terms seem to be much more oriented to providing a service to its users. Your mileage may vary with that assessment, so feel free to argue this point in the comments below. We would particularly like to hear from people in the IT world.