Many people don't know about some of programs Microsoft offers to give free software to start-up and small businesses - but if you are trying to keep costs down - they following programs are well worth a look!

Microsoft Empower Program -

• For ISVs (planning to develop a packaged product) and now also for custom web development agencies or anyone planning to develop software as a service). You can find a good overview here.
• Cost is 320 euros a year (maximum of 2 years) - but you get 5 free MSDN licenses, which includes development licenses for all Microsoft's server products, Visual Studio and 5 full licenses for Microsoft Office for business use. A nice deal (round about 10K worth of software).
• Terms and conditions? You have to work to develop a product/service using Microsoft technologies - but there is no penalty if you don't release the product within the term of the program.
• What happens after the 2 years? The ideal situation is that you move on to become a certified partners which gives you even more free licenses.

But if you're not interested in the development tools side of things - a really good option is the Microsoft Action Pack:

• For all registered parters (free to register) aimed at consultants, VARs, resellers, system integrators and builders and the like.
• Cost is also 320 euros a year - but you get licenses for most Microsoft Servers (Exchange, SQL, CRM etc.) and client licenses for 10 people (including Office Enterprise). More details on what you get is included here.

The cost for both of the these programs is just to cover the media charge because you get CDs and updates shipped to you regularly. If you are a development house - you could actually sign up to both and get coverage for a max of 15 people on applications like Office, Exchange etc.

To get more information on any of these or get started on signing up, just drop me a line at claredil@microsoft.com.