Microsoft Offers Free Software, Cloud Platform To StartupsMicrosoft Offers Free Software, Cloud Platform To Startups

Microsoft today introduces a new program that gives startups no-cost access to its software, technical support, and marketing machine for three years. The initiative, called Microsoft BizSpark, makes it much easier for entrepreneurs to build new businesses using Microsoft software and services. It comes at a time when cash-strapped startups may be looking for help.Microsoft has helped startups in a variety of ways for nearly 10 years. Last year, its Emerging Business Team launched the Microsoft Startup Accelerator Program, which provides software and support to "high potential" startups on a one-on-one basis. With a lower threshold for engagement, BizSpark aims to pull more startups into the fold.

"One of the key things that we've learned in the early stage life cycle of a startup is that access to our technology has been an issue," says Dan'l Lewin, Microsoft VP of strategic and emerging business development.

Under BizSpark, startups get free, unlimited production licenses, via an MSDN subscription, to a stockpile of Microsoft software: Windows Server, SQL Server, Office SharePoint Portal Server, BizTalk Server, Systems Center, and Dynamics CRM. Microsoft also is making available its just-introduced cloud computing software -- including the Azure Services Platform and Live Framework -- though Microsoft-hosted cloud services aren't yet available. Microsoft has lined up other cloud service providers as an option for startups accepted into BizSpark.

Until now, Microsoft has engaged about 200 startups a year in some fashion, providing various levels of support to between 50 and 100 of those companies. It's throwing the doors open with BizSpark. Lewin expects thousands of startups to take part in the new program, which is available immediately to startups around the world.

To be considered, startups must be private companies less than three years old and with under $1 million in annual revenue. Startups must be nominated into the program by a venture capital firm, startup incubator, economic development group, Web hosting company, or other pre-screener that has been approved by Microsoft. Lewin says Microsoft has lined up 200 such partners, including the National Venture Capital Association and The Indus Entrepreneurs, otherwise known as TiE.

On the marketing side, Microsoft will list participating startups in a new online directory called the BizSparkDB and profile them on its Startup Zone site.

BizSpark is aimed at Web-oriented startups, companies that tend to make a technology platform decision early and be heavy users of software and Web services. Microsoft isn't the only game in town, of course. Sun Microsystems has its Startup Essentials program, and Amazon, Google, Salesforce, and others offer on-demand Web software and services that are a low-cost, no-hassle starting point for new companies.

What's the catch? After three years, startups graduating from BizSpark will be forced to pay the same licensing fees as other businesses going forward. And participants are obliged to pay a $100 program fee at conclusion or if they leave for any reason.

In other words, Microsoft's offer amounts to unlimited use of the Windows software stack over three years for a hundred bucks. This comes at a time when startups are finding it harder to get business loans, seed funding, and other financial help. It's a deal many entrepreneurs will find hard to refuse.