Microsoft Announces Additional Licensing Options For Windows NT Server Terminal Server Edition

REDMOND, Wash., Jan. 18, 1999 — Microsoft Corp. today announced expanded licensing options and new retail packaging for the Microsoft® Windows NT® Server 4.0 Terminal Server Edition. The new licensing will provide simpler, more cost-effective options for customers to license Terminal Server Edition to run Windows® based applications on desktops that aren’t able to run the latest version of the Windows operating system.

Since its release in June 1998, Terminal Server Edition has been extremely well received by customers. However, feedback from customers and the channel indicated that that in some cases the Terminal Server access requirements were overly complicated. Because of this feedback, Microsoft will offer a new Terminal Server Client Access License (CAL) that no longer requires clients to have a license for Windows NT Workstation. In addition, Microsoft is updating the retail packaging of Terminal Server Edition to include the Terminal Server CALs along with Terminal Server to make it easier for retail customers to purchase a complete solution in five-user, 10-user and 25-user packages. Finally, Microsoft has created a new Internet Connector as an add-on to Terminal Server that allows customers to publish Windows-based applications to nonemployees on the Internet.

“We’re excited about the strong customer acceptance of Terminal Server Edition. It shows that customers are extending their use of Windows-based technologies to new users and applications,” said Mike Nash, director of marketing for Windows NT Server at Microsoft. “The new licensing options being introduced today for Terminal Server Edition are designed to respond directly to customer requirements for greater flexibility and more cost-effective ways to purchase Terminal Server licenses.”

About Windows NT Server 4.0 Terminal Server Edition

Announced in May 1997, Terminal Server Edition is a joint development effort between Microsoft and Citrix Systems Inc. that gives customers the ability to host multiple, simultaneous client sessions on the Windows NT Server 4.0 operating system and on future versions of Windows. By providing a thin-client solution in which applications are executed on the server and remotely displayed on the client, Terminal Server Edition enables a whole new segment of users to take advantage of the breadth of Windows-based applications available today.

Additional information can be found at .

Channel Partners Benefit From Growing Customer Demand

Channel partners, vendors of Windows-based terminals and server OEMs have seen strong demand for Terminal Server Edition.

“Windows Terminal Server has done very well at Tech Data,” said Jim Fish, director of Microsoft product marketing at Tech Data Corp. “The flexibility, security and total cost of ownership of this technology has generated substantial sales and service opportunities for the reseller channel.”

“Wyse has experienced considerable demand for our Winterm 3000 series line of Windows CE-based terminals that support Microsoft Terminal Server,” said Jeff McNaught, senior director and general manager at Wyse Technology Inc. “The success of this line has surpassed even our own expectations and is proof positive that organizations are recognizing that thin-client technology can help them rein in IT costs and more easily manage their enterprise.”

Pricing and Product Availability

The new Terminal Server CAL will be licensed on a per-desktop basis and still requires the purchase of a separate Windows NT Server CAL. Estimated retail price will be $109. The Terminal Server Internet Connector, designed to allow customers to publish Windows-based applications to Internet users, will support up to 200 concurrent anonymous Internet users who are not employees of the licensee. The Internet Connector will be licensed as an add-on to Terminal Server and will have an estimated retail price of $9,999. Starting Feb. 1, customers in Microsoft’s Select and Open Volume licensing programs will be able to purchase the new Terminal Server CAL and Internet Connector license. Localized versions of the new Terminal Server CAL and Internet Connector license are scheduled to be available March 1.

The new retail packaging is designed to provide small and medium-size business customers with Windows NT Server 4.0 Terminal Server Edition and the appropriate number of Terminal Server Client Access Licenses. The retail SKUs will come in five-user, 10-user and 25-user SKUs for $1,299, $1,899 and $3,999 respectively. New retail packaging for Terminal Server Edition is scheduled to be available through standard Microsoft channels in the second quarter of 1999.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Offers and/or prices valid in the United States only and may not be available in other countries.

Microsoft, Windows NT and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

Valued Microsoft Customers and Channel Partners

Quote Sheet

ASAP Software Express

“We’ve seen a lot of interest and steady sales growth with this product since it was introduced. There are a number of situations in which users need access only to line-of-business applications. Terminal Server lets organizations provide exactly the functionality that’s needed without the expense of a fully configured PC. And it does it in the familiar Windows environment, which means our customers don’t have to spend time and money retraining their users. They like that a lot.”

– Harry Zoberman
Vice President of Operations and Marketing
ASAP Software Express Inc.

Boundless Technologies

“The best-in-class features found in our new Capio and Viewpoint TC series Windows-based terminals provide compelling benefits to end users considering server-based computing and thin-client technology as the way to reduce the system administration burden and their total cost of ownership. For users in industries such as manufacturing, health care, retail, finance and education, Windows-based terminals in the Terminal Server computing environment are the most manageable, cost-effective, secure and reliable way to deliver applications throughout the enterprise and branch offices. Terminal Server helps us support our channel partners by opening new doors so we can provide end users with Windows-based terminals offering exceptional value.”

Mike Stebel
Senior Vice President of Sales and Marketing
Boundless Technologies Inc.


“Today’s announcement underscores Microsoft’s commitment to Terminal Server Edition and the thin-client computing market. Microsoft’s new licensing structure will provide customers with greater flexibility in their licensing decisions. Our MetaFrame server-based computing software, which complements and extends the functionality of Terminal Server Edition, has enjoyed strong acceptance and demand in the marketplace.”

David Weiss
Director of Product Management

Data General

“Customers are always looking for economical and easily deployable solutions for their enterprises. Terminal Server is a key element of Data General’s prepackaged TermServer-in-a-Box, which allows us to deliver the full functionality of Windows NT-based applications and meet these customer requirements.”

– Bob Guilbert
Director of Windows NT Product Marketing Data General


“HP’s Windows-based terminals and HP NetServers are an ideal solution for customers seeking to reap the benefits of Microsoft Windows NT 4.0 Terminal Server Edition. HP customers will find that the new, streamlined access to Terminal Server provides a multiuser Windows-based solution that is even easier to purchase, deploy and maintain.”

– David Fearnhead
General Manager of Thin Client Operations
Hewlett-Packard Co.


“Our clients ask us to help them decrease costs and increase manageability of their computing environment. At the same time, they want us to deliver a familiar Windows environment throughout an organization that has diverse desktop hardware. Inacom views Windows NT 4.0 Terminal Server Edition as a key part of our solution for many of these clients.”

– Chris Howard
Senior Vice President
Consulting & Engineering Services
Inacom Corp.

Ingram Micro

“We are quite pleased with the success we have had in the channel with Terminal Server. Since we began offering Terminal Server as a thin-client solution, demand for the product has surpassed our original expectations. We are excited to offer this solution to our customers.”

– Kellie Lehr
Director of Software Marketing
Ingram Micro


“Microsoft Terminal Server has allowed IXC to distribute applications to a wide range of users via dialup, LAN/WAN and Internet connectivity. Terminal Sever has brought our remote access solution full circle and allowed the IT department to provide applications to users in cases where conventional access methods were not viable. In addition to the increase in functionality for our remote users, we also found that we could support 50 percent more users on the same servers than with our previous solution, Citrix’s Winframe product.”

– Steve Vasilakos
Director of IT Network Services
IXC Communications


“At Komatsu, using Terminal Server has easily cut our desktop support costs in half. Users are happy because they are still working in the familiar Windows environment. This has also provided a cost-effective option to replace our aging ‘dumb’ terminals by providing users with access to Internet e-mail and Windows-based applications. Going forward, our policy is to deploy Terminal Server with NCD ThinSTAR widely throughout our organization.”

– William Bayer
IT Manager
Komatsu Canada Ltd.

Marathon Technologies

“Microsoft Terminal Server and Marathon’s Endurance 4000 nonstop array, the standard for assured availability, offer unparalleled capability and unbeatable value for thin-client computing. Terminal Server serves up the familiar, easy-to-use, rich library of Windows NT-based software to terminals and legacy desktops. Endurance provides nonstop processing, continuous data access, uninterrupted connectivity and disaster tolerance – all at constant performance – using standard server components and off-the-shelf Windows NT-based shrink-wrapped applications. In other words, the solution delivers low-cost, easy-to-manage, simple-to-deploy, nonstop thin-client computing.”

– Dr. Robert M. Glorioso
President and CEO
Marathon Technologies Corp.


“Merisel actively seeks out products that will help our resellers enter niche markets. Windows NT 4.0 Terminal Server Edition allows our resellers to provide their customers with Windows-based thin-client applications, significantly reducing their total cost of ownership. We recognize the importance of this product and have signed vendors with complementary offerings to support Terminal Server Edition and resellers in this segment.”

– Tracy Robbins
Vice President, Software
Merisel Inc.

Micro Visions

“Since Microsoft entered the thin-client segment with Terminal Server, our business has increased tremendously. In the past six months, we’ve increased our staff from 20 to 40 system engineers and have sold more thin-client solutions than in all of 1997. We expect 1999 to be a tremendous year and view rapid application deployment of client-server applications and fixing Y2K issues as incredible opportunities for Terminal Server.”

– Glen Holmes
Micro Visions

Moose Logic Inc.

“At Moose Logic, we’ve built our business on thin-client/server technology; a large portion of our revenue is directly or indirectly related to it. We’re excited about the contribution Terminal Server has made to the explosive growth of this arena. While our overall 1998 sales have doubled compared to those of 1997, our sales of Microsoft products have more than tripled, primarily because of the impact of Terminal Server. We’re seeing a great deal of interest from businesses of all sizes not only in remote access, which has been the traditional driving force behind thin-client/server implementations, but in using this technology to reduce total cost of ownership and streamline deployment and upgrades of business-critical applications. The best part is that we’re convinced that the growth we’ve seen so far is only the proverbial tip of the iceberg.”

– Scott Gorcester
Moose Logic Inc.


“Our NCD ThinSTAR Windows-based terminals and supporting software, coupled with the

Microsoft Windows Terminal Server, deliver the most cost-effective thin-client solution in the industry. Microsoft’s powerful Windows Terminal Server is a pivotal element in NCD’s thin-client strategy.”

– Lorraine Hariton
Senior Vice President
Development and Marketing
Network Computing Devices Inc.

Progressive Network Solution

“As a Microsoft Certified Solution Provider, we have experienced significant growth in our 1998 Microsoft sales over 1997 sales numbers. For the most part, this tremendous increase can be attributed to Windows NT Server 4.0 Terminal Server Edition. With all the benefits customers realize from new thin-client technologies, such as efficient application deployment, high-speed remote connectivity and lower cost of ownership, and with Microsoft leading the push into new technologies, it’s been easy to turn customer challenges and solutions into profits.”

– Gary Donaldson
Progressive Network Solutions Inc.

Siemens Nixdorf

“Siemens supports the future-oriented technology of Windows Terminal Server. Numerous projects in Germany and abroad have demonstrated our customers’ interest. For them the crucial argument is the TCO savings potential of this new technology. With its powerful Primergy Servers and thin-client terminals, Siemens is ideally prepared on the thin-client server front. As solutions provider and integrator, we supply the customer with everything from a single source: high-performance Windows NT-based Primergy Servers, a comprehensive range of thin-client terminals – with NetT and Scovery systems – and proven project expertise.”

– Bernd Puschendorf
Vice President of Marketing for Business Computer Systems
Siemens Nixdorf

The Taylor Group

“Microsoft Windows NT 4.0 Terminal Server Edition represents the best choice in managed solutions, improving the total cost of ownership for enterprises. This is especially true when groups of users are geographically separated, and when users can make use of roaming profiles to log in on different systems at different locations. In our experience with installation and configuration of Windows Terminal Server, we’ve found that a properly integrated solution can almost eliminate the need for desk-side administration. The configuration, performance and scalability testing done by The Taylor Center for Thin Client Computing is an essential component both for optimizing Windows Terminal Server-based sites and for preparing enterprises for the enhanced system management facilities coming with Windows 2000.”

– Jeff Gurrier
Chief Technology Officer
The Taylor Group

Unisys Corp.

“We expect thin-client computing based on Terminal Server to grow substantially and have made a multimillion-dollar investment in worldwide training, sales, implementation and support to ensure that we are positioned to seize the opportunity. We’ve seen an impressive increase in thin-client pilot programs on the part of our customers and expect that the benchmarking, sales training and related initiatives we conduct jointly with Microsoft will accelerate the acceptance of this technology.”

– George Koncikowski
Director of Thin Client Computing
Unisys Corp.

Zenon-MEI (A Canadian Consultancy)

“We have been implementing Terminal Server with great success for our customers. Terminal Server helps to address our customers’ concerns about total cost of ownership, and the move to client/server-based enterprise resource planning software is one of the key driving forces behind the success of Terminal Server. Our customers want the flexibility of a client/server solution with the centralized management capabilities of their older host-based systems. Terminal Server is the perfect fit to provide the best of both worlds in these new computing environments.”

– Chad Loeven

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