The Redmond-based software company seems to recognize a growth opportunity exists in mid-sized markets, not to mention open source competition.

Microsoft has announced a new promotion, where it will bundle three products and 50 client access licenses into a single offering.

No, it’s not Poppycock, it’s true. Windows Server 2003 Standard Edition, Exchange Server 2003 Standard Edition, and Microsoft Operations Manager 2005 Workgroup Edition will be in the package along with the aforementioned licenses.

Pricing for the promotion will be about 20 percent lower than standard Open License purchases would be. The offer will be available in the US and Europe beginning in August, with Asia scheduled for September availability. Additional promotional client access licenses for Windows Server and Exchange combined, up to an additional 200, will be offered.

William Schumacher, CFO and COO of Ubiquity Brands, which owns Fiddle Faddle and Poppycock, praised Microsoft products. “We replaced aging servers in the companies we acquired, and standardized on the Windows Server System to enable us to better communicate, collaborate and run the financial aspects of these businesses.”

Mr. Schumacher says his company has grown from five employees working with a POP-3 e-mail system to buying two companies and increasing to 800 employees. It’s that kind of growth that Microsoft finds very compelling.

Larger businesses tend to have a Microsoft presence, and they provide great value to the software company. But a business that grows from small or mid-sized to a large one can give the company a little bump in the revenue stream.

One must also consider the pressure Microsoft feels from Linux and the open source community in the smaller markets. Today, a prospective business can find productivity suites, customer relationship management tools, and operating systems available for the time it takes to download and install them.

David Utter is a staff writer for Murdok covering technology and business. Email him here.