Posted on 05/21/2006 9:47:20 PM PDT by djf
SEATTLE - Microsoft Corp. has developed technology for people to pay by the hour to use a computer in their own homes, much like how many consumers use a pre-paid card for cell phone usage.
The technology, called FlexGo, will be used as part of efforts to sell computers to lower-income consumers in developing countries, where Microsoft is eager to find new money-making opportunities but is battling software piracy and other barriers.
Redmond-based Microsoft, working with computer maker Lenovo Group Ltd. and others, plans to launch a second trial of the FlexGo plan in Brazil beginning Monday. In the next 90 days, it will launch in Mexico, China, Russia and India.
The program will generally work like this: a user will pay for about half the cost of the computer upfront, and then will purchase pre-paid cards to get hourly access to the computer at home. If the pre-paid card runs out and the user doesn't buy more hours, the computer stops working until the user buys another card.
The pre-paid hours will go toward paying off the computer, said Will Poole, a senior vice president in charge of Microsoft's market expansion group. The financing models and interest rates will vary depending on the market, so he couldn't say how much more than the retail price the user will end up paying.
The users will need at least occasional dial-up Internet access to participate in the program. It will initially feature mid-range PCs running the consumer version of Microsoft's Windows operating system. But Poole said it also may eventually include other models, such as those using Microsoft's scaled-back Windows XP Starter Edition or higher-end ones running a media-centric version of Windows.
Microsoft also will work with telecommunication companies in several countries to offer computers via subscription.
Microsoft will make the same amount of money off these models as it does with traditional sales, Poole said.
FlexGo is one of several ways Microsoft has tried in recent years to make more money in emerging markets, where it sees potential to increase revenue as more developed markets for Windows grow saturated.
But they don't believe me!!
Most of us would be willing to pay for the incremental improvements --- without having to experience a new, bloated, improved operating system.
It is that easy. Is hundreds of millions in the revenue stream not good enough?
This is one of the funniest things I've ever read.
Let's mix a proprietary OS, a failed dotcom bubble business plan, coop the microloans idea with usury levels of interest, and wrap it in flowery "let' save the 3rd world brown people" marketing packaging. MS is desperate.
You can build a pc for the price of a retail copy of Windows XP.
Maybe that professor with the $100 laptop and the Ubuntu suite finally got them scared?
You gotta admit MS didn't do any favors for tinkerers when they pulled XP outa their hat.
I reformatted my HD and reinstalled XP and it blew my settings right out the door. Same hardware, same software, everything...
Cripes I'm skeered to add another 128MB of memory.
How can you attempt to get distribution for this scheme? Every Jose, Babatunde, and Akhmat who owns a corner store in the 3rd world will soon find out that just one single linux OS+app CD being passed around their town will end their Microsoft OS business.
I can purchase upwards of 100,000 used dell office pc's and have them delivered to any port in the world in less than 2 weeks. At an avg cost of about $45 per machine delivered. I'll throw in Ubuntu CD's for free.
MS most have lost out to Google in hiring the new crop of MBAs or something.
My guess is they will have some type of subscription service for maintenance.
Which is not uncommon at all in the industry.
MS will regret lobbying to increase visas for uni students and high tech workers to the US before this is through. A Brazilian is going to co-op this scheme and use Linux to lower their costs.
Also, planeloads of Chinese are going to fly into Brazil and tell local businesses they can do it cheaper and better with component hardware and red flag linux w/ Brasil language pack.
Trying to D/L anything in Brasil over landlines is a burden. Especially in residential areas down market enough to be customers to this service.
MS has just entered the arcade vending machine business.
a good laugh.
I think Windoze has Linux beat in terms of ease-of-use. (But I admit the only distro I know well is RH9).
Remember, ninety percent of PC users these days couldn't even tell you what an interrupt is. People want their PC's to work like their TV's and microwaves and cars. Simple and reliable.
So that is the biggest marketable edge that can be found. PNP type technology.
Download yourself a copy of Mepis 6 Beta3 from distrowatch.com and burn it to disk, you will be amazed. :) Mepis 6 distrubution release(final) will be out sometime in June.
King of Cars baby
Isn't this the Chinese company that IBM sold it's PC group to last year?
yup
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.