PC World: Microsoft sued over unified communications deal

January 19 2009

Looking like the tough stretch for Redmond continues...

Microsoft has been sued by a small Wisconsin business for allegedly misrepresenting the capabilities of its Live Communications Server product, selling the company more licenses than it needed and not providing a refund or other products to solve its original problem. ... Imagineering alleges in its complaint that on Oct. 7, 2005, it purchased Microsoft's LCS software, 1,500 Client Access Licenses and 1,500 External Connector Licenses for a total of $70,776. At the time LCS was Microsoft's software for providing a unified communications system, which links a company's voicemail, telephone system, e-mail and other employee communications services on the same software infrastructure.  ... The number of licenses his company needed to purchase seemed high for a company with only 23 employees. However, Microsoft employees brokering the deal said Imagineering would need licenses not only for its own employees using the new system but also for any customers who wanted to access it.
Interesting sales approach.

Link: PC World: Microsoft sued over unified communications deal > (Thanks, Jeroen)

Ed Brill | Lotusphere 2009 Category:  Microsoft  Add/View Comments [6]

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  1. 1  Jeroen Jacobs  | 1/19/2009 5:51:20 AM

    You're welcome. I found the article by accident actually :-)

  1. 2  Mike Robinson http://www.invcs.com | 1/19/2009 10:50:11 AM

    Maybe they should sue the consultant or IT Director for allowing such a bad deal to go through. I would've used some combo of any of the free IMs (like yahoo which has nice VoIP integrated features) vs spending $70K for < 25 people. Jeez.

  1. 3  JP Liggett http://www.JPLiggett.com | 1/19/2009 11:12:20 AM

    Perhaps MS response papers might contain facts that could be useful for marketing ala MAC vs PC or Notes vs LCS

    If this reseller started selling notes, based upon their own personal experiences, it would be a great marketing coup.

  1. 4  Mark  | 1/19/2009 10:29:18 PM

    Something does not add up here with Imagineering Inc Of Wisconsin. They have no website and the profile shows one employee at $40,000.00 a year. I think there is more to the story here.

  1. 5  Paul Robichaux http://www.robichaux.net/blog | 1/20/2009 3:13:41 PM

    I echo Mark's comment: something doesn't smell right here. If Imagineering was really a 10-year MS partner, I would hope that they would have their own knowledge of what LCS can and cannot do, and how many licenses they would actually need. OCS licensing is complex (though there are no "processor value units" involved, thank goodness), and it's easy to make mistakes, but something about this story still seems fishy. I'd love to see the original court documents, so if anyone finds 'em feel free to send me a link directly.

  1. 6  JimS  | 1/21/2009 11:47:37 AM

    @5

    Here are a couple of places to start.

    Court filings -

    { Link }

    Corporate records -

    IMAGINEERING INTERNATIONAL, INC.

    { Link }