Microsoft is to offer SMEs a new licensing system which it says will allow them access to their products for a lower cost.

Computerworlduk.com reports that the Open Value Subscription programme is part of Microsoft's efforts to give SMEs more flexible software purchasing options.

Cindy Bates, Microsoft's general manager for small businesses, said that the plan would cost around a third of the current licensing programme for SMEs.

The new scheme is on offer to firms with up to 50 employees and will start from March, she added.

At the start of this month Microsoft launched its "Big Easy Project" which it says will allow its partner firms to "add value" to the products they were selling to SMEs. The scheme operates through a subsidy system.

It was recently announced that Microsoft has launched a bid for search engine firm Yahoo! as it seeks to expand its online presence.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent).