Microsoft Corp yesterday responded to criticism over the pricing and licensing policy of its Microsoft Terminal Server Edition yesterday, both simplifying and cutting the cost of the product. MTS, first launched last April, was intended to enable users to run terminal-based thin clients with an NT server, using older versions of Windows as the front-end. But by insisting on the requirement for a copy of NT 4.0 Workstation on every desktop, Microsoft effectively added a cost of $130 – $260 to each Windows thin client, a charge many users regarded as a tax. Now Microsoft says it will offer a new Terminal Server Client Access License that no longer requires the NT Workstation license, and will update its retailing packaging to include the CALs, enabling retail customers to buy complete five, 10 and 25-user packages. Microsoft also launched a new Internet Connector as an add-on to Terminal Server, enabling customers to publish Windows-based applications to non-employees on the internet. Citrix Systems Inc – Microsoft’s development partner on MTS – immediately announced plans for a new MetaFrame product called SKU, packaged for internet usage. By offering a service for companies who wish to publish enterprise applications over the Web to anonymous users, Citrix hopes to tap into the emerging market for Application Service Providers, offering application hosting services and IT management for companies and individuals. Technology marketing firm Thin Planet Inc said it estimated the changes would cut software deployment costs for MTS by around 50%. It also said that the Connector license would open up a massive new market for both Microsoft and Citrix. Before now, Application Service Providers and other corporations had no legal way of publishing NT 4.0-based applications to anonymous Internet users. Citrix originally negotiated such an agreement for its older WinFrame product used with NT 3.51, through its Application Launching and Embedding facility, but lost the rights to do so with its newer NT 4-compatible MetaFrame software.