IUR policy scrapped amid Microsoft channel partner feedback

Microsoft has dropped planned policy changes that would have compelled Microsoft channel partners to pay for software they have been using under internal use rights licenses.

Amid considerable partner dissent, Microsoft on July 12 rolled back its plan to cut  IUR licenses, a move that would have put partners on the hook for thousands of dollars in fees. The change in direction comes a few days after the new IUR policy surfaced and just before the upcoming Microsoft Inspire partner conference, which runs July 14 to 18 in Las Vegas. Microsoft revealed a number of investments in Microsoft channel partners ahead of the event.

Gavriella Schuster, corporate vice president, one commercial partner, Microsoft, discussed the company’s decision to rescind the planned policy changes in a blog post:

“Given your feedback, we have made the decision to roll back all planned changes related to internal use rights and competency timelines that were announced earlier this month. This means you will experience no material changes this coming fiscal year, and you will not be subject to reduced IUR licenses or increased costs related to those licenses next July as previously announced.”

The IUR change was to go into effect July 1, 2020.

In panning the software vendor’s proposed changes, Microsoft channel partners cited a combination of new licensing costs and a diminished ability to gain experience with products. Channel companies use vendor technology in-house to run their businesses and then deploy products for customers in a use-what-you-sell strategy.