Microsoft aids Louisiana small businesses

This week at the yearly Summit for Hope and Recovery in Louisiana (re: on the anniversaries of hurricanes Katrina and Rita), Microsoft announced that it will give away the first of three years of business licensing for Microsoft software to affected small businesses.

http://www.microsoft.com/presspass/features/2007/aug07/08-27reliefefforts.mspx

Here is an exclusive interview on the topic with Eric Ligman, Microsoft's senior manager of community engagement for the US small business team.

1. What qualifications must small businesses meet to be eligible?

To participate in the program, Small Businesses must meet the following criteria:

-         Have been in business before August 29, 2005, the date of Hurricane Katrina's landfall, or September 24, 2005, the date of Hurricane Rita;

-         Be based in one of the 19 federal disaster-designated Louisiana parishes;

-         Have fewer than 200 employees;

-         Have applied for small business assistance through SBA or SBDC, though the application need not have been approved for aid;

-         Purchase a three-year Microsoft Open Value License for business software.

-         Submit first year invoice from software reseller to LSBDC (Microsoft pays for the first year upon verification of proof of qualifying purchase).

2. What are the full details on how to apply?

Qualifying small businesses would submit first year invoice from software reseller to Louisiana Small Business Development Center. (Microsoft pays for the first year upon verification of proof of qualifying purchase).

The Process

-         Business owner purchases a new Microsoft Open Value Agreement through any local or national reseller.

-         Business owner brings first year invoice and documentation of federal/state assistance application to LSBDC.

-         LSBDC enters agreement number and other pertinent information into Microsoft web-based application and faxes copy of invoice to Microsoft.

-         Business owner leaves SBDC with "receipt" for their application, printed off the Microsoft web app.

-         Microsoft processes the application to validate the agreement, etc.

-         If approved, Microsoft issues a check for the1^st year payment and sends it to reseller with SBDC cover letter.

-         Microsoft informs the SBDC that the check is cut or, if it's not approved, the reasons why not.

-         LSBDC informs small business that the process is complete.

3. How do you arrive at the savings figures?

For the typical small business with 50 employees and 25 PCs, licensing Microsoft Windows Vista and the Office 2007 suite of programs, the free year can result in savings of as much as $12,000 per year. 

Here's the math behind this figure:

If we assume 1 PC per employee, that would be 50 PCs.  Since Small Businesses could purchase the Windows Vista Business Upgrade + SA and Office Enterprise L+SA for each of the 50 PCs, the estimated retail prices of the 1^st year payment on each of those are: $365 + $117 = $482 per PC.  $482 X 50 = $24,100. 

If we work under the standard assumption that there is 1 PC per 2 employees; there would only be 25 PCs and the savings would be $12,050. 

*Note: All Microsoft products included in the Open Value Licensing Program are eligible for this offer, so savings could be larger or smaller depending on what products the small business acquires through this program.

4. How many small businesses have applied so far?

We will roll this program out in September, so we do not have those figures at this time.

5. How many small businesses exist in the area that could apply?

Hurricanes Katrina and Rita affected 125,000 small and medium-sized businesses across the Gulf Coast, and in Louisiana alone, more than 18,000 businesses were totally destroyed.

6. What else should I have asked and how do you answer it? 

One more Q&A for you:

Will local partners in the Louisiana area benefit from this program? If so how?

As a part of the program, small businesses can purchase their software through any reseller. Local resellers have an opportunity to benefit as well, as much of the purchases will go through local resellers, putting additional revenue into the local economy.

The channel model will remain unaffected. Businesses will go to their reseller to purchase their software. Once the business receives the invoice, they will bring it to the SBDC office along with their approved application.

The LSBDC will verify that the business qualifies and submit the invoice through the tool. Microsoft will pay the invoice. The process will remain the same for the reseller. 

In addition, small businesses that need installation or training assistance with the software licenses they acquire through this offer will most likely work with a local technology specialist, such as the Microsoft Small Business Specialist community located throughout Louisiana.  This will provide the local partners with an opportunity to assist these companies with their services. 

For small businesses looking for assistance, we provide a Microsoft Small Business Specialist locator on our Small Business Center website: http://www.microsoft.com/smallbusiness