Microsoft Offers Startups Free Software, but Be Wary

Techwriter10 0 Tallied Votes 544 Views Share

Microsoft announced a new program the other day called , where they give away a boat load of software and services to young startups and presumably lock them into Microsoft long-term. For a small start-up with little capital, this has to be a very attractive offer.

Microsoft not only provides free software, it provides you with mentors and marketing help and other invaluable services. If your company is planning on building around Microsoft, say you are .net developer, this is great, but for many others it just means selling your soul for short-term gain without thinking about the future of your company. It's like that old ad from years ago: "You can pay me now or you can pay me later."

The Good

On the plus side if you are a privately held company, under 3 years old with less than a million dollars in revenue, Microsoft will give you:

* Microsoft Windows Server® (all versions up to and including Enterprise)
* Microsoft SQL Server® (all versions)
* Microsoft Office SharePoint® Portal Server
* Microsoft System Center
* Microsoft BizTalk® Server
* Microsoft Dynamics® CRM (coming soon)

But wait, don't answer yet. There's still more including access to the Microsoft Azure Services platform, a free subscription to MSDN and various other goodies. Sign-up is free, although strangely, you have to pay $100 to leave the program.

The Bad

Microsoft isn't stupid. They see younger companies flocking to free open source platforms where there are no start-up costs. I'm guessing Microsoft decided if they could offer Microsoft products and services for free, then startups would choose them over the lesser known free offerings. On the face it, it seems like a pretty sound strategy, but as Frederic Lardinois points out on ReadWriteWeb, it's not just the fact it's free (although that has to be a consideration for any cash-strapped start-up), it's also that it's open source. Microsoft is not and never will be open source.

They are offering to give you a free package of goodies now, but you have to realize that you are going to have pay dearly eventually to continue using all of that software. And that's the catch, and that's the plan, I would assume.

The Bottom Line

The way I see it, if you were planning on using Microsoft tools to build your company, this gives you a head start without making a huge up-front investment, and good for you. Otherwise, don't be drawn in by what is essentially an elaborate shell game under the guise of good will. Make no mistake about it, Microsoft is in the business of selling software, not giving it away, and their long-term goal is to make you a paying customer. If you go in with your eyes open, you won't be surprised when it's time to pay the piper.

Dani AI

Generated

This thread correctly flags the tradeoff between runway today and vendor dependence later. called out the lock-in risk and noticed the odd exit fee — both valid concerns. Microsoft launched the BizSpark startup program in 2008 to give qualifying startups free Microsoft tools and Azure access as an onboarding strategy. (news.microsoft.com)

Microsoft later retired BizSpark and folded its startup work into the Microsoft for Startups family; existing BizSpark enrollments were sunset and the company moved to new programs with different terms. If you ever participated, the program included a formal “graduation” process and there were specific deadlines and license-grant rules to capture what you could keep after the benefit window closed — check any admin portals or archived communications for the exact terms that applied to your organization. (geekwire.com)

Practical checklist (use before accepting any vendor startup offer):

  • Audit and document exactly which components (databases, backups, production endpoints) run under the program benefit.
  • Read the program terms for exit/graduation obligations and download any-license grants or entitlement PDFs while available.
  • Design for portability: keep business logic separate from platform-specific features, prefer standard SQL and API contracts, and isolate any proprietary services behind an abstraction layer.
  • Automate exports and backups (neutral formats like CSV/JSON) and validate restores regularly.
  • Containerize or package deployments and store infrastructure-as-code so environments can be recreated elsewhere quickly.
  • Estimate the post-benefit TCO (licenses + managed services + migration cost) before you rely on the free tier.

Today there are comparable startup offers but with different mixes (Microsoft for Startups / Founders Hub, AWS Activate, Google for Startups Cloud Program). Compare benefits, acceptance criteria, and — crucially — the exit or post-credit path before adopting a vendor stack. (blogs.microsoft.com)

Short version: freebies speed development, but treat them as temporary financing — design for escape and keep copies of everything.

Lisa Hoover 0 Junior Poster

"Sign-up is free, although strangely, you have to pay $100 to leave the program."

What? That's so bizarre that it would almost seem illegal. On the other hand, I wonder how many people sign up with the intent to leave anyway, just so they can get a $100 software bundle?

This is a really bizarre deal, if you ask me. It also reminds me of the way MS supplies software (and sometimes even hardware) to schools and libraries, then ties everyones hands into knots. Shameful.

Be a part of the DaniWeb community

We're a friendly, industry-focused community of developers, IT pros, digital marketers, and technology enthusiasts meeting, networking, learning, and sharing knowledge.