Microsoft Cuts Price Of Windows NT 4.0

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September 01, 1998 (12:00 AM EDT)

Microsoft is using new pricing incentives to hook customers on Windows NT 4.0 Workstation.

From now until the end of the year, Microsoft (company profile) has slashed the cost of Windows NT 4.0 Workstation. The move represents a bid to get customers to upgrade to Windows NT 5.0, which is currently in beta and due out next year.

The new price for Windows NT 4.0 is $99, down from $238, as long as the two-year upgrade agreement is also purchased, said Craig Beilinson, Windows product manager. The cost for getting the additional upgrade through Microsoft's long-standing Open License agreement is $177, for a total of $276.

"The interesting thing about that is that $276 dollars is just a few dollars more, $38 to be exact, than NT Workstation 4 was by itself yesterday," Beilinson said. "Windows NT Workstation 4.0 by itself was $238. Now, the whole package, Windows NT Workstation 4.0 and all upgrades for the next two years is $276."

Under the special offer, customers must purchase operating systems for at least five desktops.

The gambit also seems to be an effort to keep customers who may be tempted to jump on Novell's NetWare 5.0 bandwagon. The newest version of Novell's server OS is scheduled for final release on Sept. 14.

Dubbed the Windows NT Workstation License Advantage, the Redmond, Wash.-based software giant's promotion targets small and midsized businesses. Windows NT Workstation is being positioned by Microsoft as the business OS replacement for Windows 95.

The licensing program gives customers a current Windows NT 4.0 Workstation license and rights to Windows NT 5.0 upon its release.