Consumer Watch: Upgrade That Application--or Else!

More software vendors are forcing users to buy upgrades they don't want.

Anne Kandra is a contributing editor for PC World. E-mail her at consumerwatch@pcworld.com. To read previously published Consumer Watch columns, click here.

Like all responsible computer users these days, Dennis McGuire is careful about keeping his PC virus-free. Until recently, the Minneapolis-based statistician used Norton AntiVirus to ward off cyberscourges, and he never had a problem.

But last spring, when McGuire tried to download the latest virus definitions from Symantec, he received a message saying that they couldn't be found. Perplexed, McGuire called Symantec's support department--and promptly ran into another brick wall.

The problem? McGuire was using Norton AntiVirus 2002, which Symantec no longer supports. "The rep I spoke with was polite but firm," McGuire says. "He told me that if I wanted my subscription to work, I'd have to buy a new version of Norton AntiVirus." The upgrade cost about $40, on top of the $20 he'd paid only six months earlier for a one-year renewal of his subscription for virus definition updates.

McGuire says that he respects the company's decision to discontinue support for its older products, a practice known as sunsetting. Nevertheless, he counters, "I did pay for my current subscription, and [Symantec] knew that I had an older version of NAV. They should live up to the terms of our original agreement, without requiring an additional purchase."

Upgrade Confusion

Symantec's senior director of product management Laura Garcia-Manrique explains that historically Symantec has provided only up to 12 months of support following each version release; after that, the company offers limited support, if any. She concedes that the difference between application upgrades and virus definition updates confuses many consumers.

This ambiguity is one reason, Garcia-Manrique says, that the company has moved away from traditional user licenses to a subscription-based model, in which customers pay an annual fee in return for continuous automatic updates. For example, Symantec sells its Norton AntiVirus 2006 two ways: for $40, including one year of protection, or for $60, with two years of coverage. "Now our customers who pay an annual fee can expect full protection all the time, without worrying about different levels of support," she says.

Of course, Symantec is hardly the only champion of planned obsolescence. We heard from dozens of unhappy Quicken users last year when Intuit phased out support for Quicken 2001 and 2002 and, by doing so, disabled those programs' online features (see "Intuit Cripples Older Quicken Versions"). A number of affronted Quicken users turned to Microsoft's rival product, Money, only to find themselves facing an even more stringent upgrade mandate. Microsoft requires users of its popular financial application to purchase an upgrade every two years to continue using key online features (see "First Look: Money 2006 Makes Very Small Improvements").

We have also received complaints about vendor-imposed limitations on older versions of Corel's Jasc Photo Album, Mathsoft's MathCAD, and other apps. Meanwhile, any Microsoft corporate customer that wants to upgrade to Windows Vista must sign up for the company's controversial Software Assurance licensing program, which entails paying an annual fee to use software rather than buying a user license.

Intuit representative Chris Repetto defends his company's decision to stop supporting older versions of Quicken: "Retirement of older versions allows us to focus our resources on supporting our more recent products, which are used by the vast majority of Quicken customers." Repetto also says that Intuit gave users of its software whose support was due to expire a full five months during which they could buy the upgrade for about $40--$20 less than the product's retail price.

Representatives I spoke to at different companies cited additional features and enhancements as other incentives for users to upgrade. For many upgraders the greater functionality may well be worth the additional cost. But too often, users say, they are being forced to pay for fripperies that they neither need nor want.

Pressure to Upgrade

Sheryl Clark, a financial advisor based in Tucson, Arizona, has used Quicken since 1991 and continues to recommend it to her clients--but even so, she is critical of the pressure to upgrade. "At first, I found the upgrades to be worth the time and money," she says. "But within a few years, it had all the features most people need. Now it's becoming cluttered and less intuitive. I don't know the economic answer for the software companies; but as a user, I find it frustrating."

For many software companies, the economic answer may be to follow Symantec's example and move to subscription-based services, in which customers agree to pay a recurring fee in exchange for a consistently up-to-date application.

Noel Kuriakos, a product manager at Macrovision, points out the advantage of this approach: Customers can choose the updates and features they want instead of having to purchase a whole new application simply because the vendor says it's time. "You can unbundle features and select the ones you need," he explains.

In fact, several vendors besides Symantec have already adopted the subscription model. Rhapsody and many other content services are subscription based, as are online bill-payment services such as Paytrust; security apps like Lavasoft's Ad-Aware and Webroot's Spy Sweeper; mobile applications like Intellisync Verichat; and some Web-based e-mail services such as SpamArrest. A study released last fall at the SoftSummit software industry trends conference reported that 60 percent of software vendors are likely to offer subscription-based applications by 2007.

Perpetual Payments

Of course, valid concerns about a subscription software world remain. For starters, you're likely to pay more in the long run, since payments are regular and ongoing. And some analysts predict that a subscription-based consumer software market could squelch innovation because small startup companies may not be able to afford the tools needed to develop and maintain such services. (However, others say subscription models might encourage experimentation since customers need commit only to a year's cost, as opposed to making a major purchase intended to work for several years.)

To avoid--or at least be prepared for--pricey forced upgrades the next time you need to buy a new software package, start by researching the product's life cycle. How often and how recently has the company released major upgrades? If you suspect that a product is nearing the end of an upgrade cycle, consider waiting for the new release or look into comparable products. Also, what is the company's history of support for older product versions?

Read the end user license agreement (EULA) before you decide, even if doing so means brewing an extra pot or two of coffee. Most reputable software companies post EULAs on their Web site so you can read them before buying; if you can't find one, ask the company for a copy.

Make sure you understand the details of the vendor's service and support policy, especially if the product is a security application. If you have questions, call the vendor and ask for clarification. Finally, check online user forums, help groups, and resources such as this magazine for other comments and user feedback.

After all, you're the customer. Software vendors' sunset policies shouldn't leave you in the dark.