A new Microsoft program is giving out full versions of the company's development tools to startups making less
than $1 million, the company announced earlier this month.
Companies can use their servers for internal testing as well as hosting software as a service (SaaS), and there is no limitation on selling traditional client-server software built on tools acquired through BizSpark, said Don Dodge, director of business development at Microsoft's emerging business team. The program also connects SaaS startups with hosting partners that can host the startup's software for free for the duration of its BizSpark membership.
There is no up-front cost to joining the program, but companies have to pay a $100 program fee when they leave the program -- and purchase whatever products they still want to use. Startups that have already purchased Microsoft tools can get additional licenses through BizSpark as long as they are eligible for the program, Dodge said.
Microsoft is open about its motivation for BizSpark: the company knows that its success is largely dependent on new developers writing for its platforms, and it's seeking to encourage them by lowering the cost of entry, Dodge said.
In fact, BizSpark isn't an entirely new idea, he said. The company has been running a similar program, Empower, for years. But startups had to contact Microsoft directly to enroll in Empower, while BizSpark relies on Network Partners -- venture capitalists and similar firms -- for recruitment. Although documents on the program's website say startups have to sign up for BizSpark through a Network Partner, Dodge said they can also enroll directly through internal Microsoft employees, designated as BizSpark Champs.
Dodge said the impetus for BizSpark isn't increased competition from open source tools, although he acknowledged that "the trend is clear," and he said BizSpark fits within it. As of Monday, the program had signed up 1743 startups and 548 Network Partners, Dodge said. BizSpark was launched Nov. 6.