Is there a time when you felt like "Why do I have to pay for some extra feature in the software when actually I don't intend to use it?"? Like for instance, let's take the simple example of Microsoft Office - Where you may not need Publisher at all, but the price tag includes this extra feature.
Let's think this in a different perspective - From the concept of buying song! People don't want to hear all the songs in an album but they didn't have the choice before. Now the case is different because every single song can be bought! So, why not link this strategy into the computing world! Buy what you want, whenever you want and when you can!
That is the next stage for Microsoft to go ahead on after its Windows XP Starter - The ripped off version of Windows! If you have heard of FlexGo, then you sure know what I'm talking about! The working is simple - Buy a FlexGo PC for half of its cost. Then, pay as you use it - May be some timely rate for the hardware use and add the cost of specific softwares used within that whole hardware usage time - and eventually, you end up owning the PC for yourself after those small payments cross over the balance amount to be paid for the PC. The funny thing that immediately occurs to me is, people will try to work on as minimum number of windows and will close as many software applications/windows, as soon as possible :)!
This is just another 'On Demand' market - Like the prepaid minutes of Cell Phones where it is essential that the handset is bought but buy the minutes only if you want to talk! Use it if you want and only if you can! If you don't want to pay for the service, don't use it! There is no monthly fee assigned to it (Though this option too is worked out!). This is exactly what a middle class or lower middle class individual will look for. (S)He doesn't want a PC to be forced onto him/her without a choice! (S)He wants to use a PC of his/her own choice, with a decision to use it or not! Even today in India, I know people buy prepaid coupons to activate and continue using Internet in their houses. So, FlexGo is going to be pretty much similar.
Microsoft is trying to focus this product into the emerging markets of developing countries. The product & its associated business has already been trialed out in Brazil and the RIC out of BRIC countries & Mexico are the next set of testing grounds. It looks like the cost aspects are still being worked out based on the country's market, their currency value, inflation, interest rates etc.
So, where do we see issues? Processor & Chip – The clock inside should be tamper proof so that the time of use of hardware/software is billed as required. Well, the billing system should also be
part of the system so that if the payments are defaulted the user shouldn’t be able to use the system – Automatic Shutdown! Lol! Microsoft won’t have problem in that – Crash, Shutdown, Reboot and Blue Screen :))! So, is it going to be Intel or AMD? Rumors say AMD and its 50X15 Digital Inclusion Initiative! Can anyone shed light on this 50X15 model?
Likewise, the other issue is the telecommunications - The companies in different countries have to buy in and partner with this new service! I guess, it’s going to be VSNL in India!
Along with the new pay-as-you-go model, Microsoft has also been working with major telecommunication companies around the globe on subscription computing offerings that provide convenient and predictable monthly payments for a full-featured PC with broadband access and genuine software. With the availability of Microsoft FlexGo technology, it will be possible to expand the potential of the subscription model by enabling telecommunications providers to better secure the PC asset from default and offer this option to a broader range of customers.
--GeekZone
Well, I did already put a note that the Subscription based services are also in the mind of Microsoft – Like making payments every month! As I read, here are some countries for the subscription based services - Vietnam, Hungary, Slovenia, India and Brazil.
This is a very new initiative, a new era of working with computers and the right set of countries are selected as targets! But, somehow I'm not sure if people want this exactly! Computers are like something which should be owned or not owned. People may intend to use some service like Internet as pre-paid. But paying for use of computer itself - I'm not sure if people are going to buy this model!
The backing for this pre-paid model is - There is a variation in income for the target families. They need not use the computer if they don't have the money! Well, who would want a Computer - A big machine - to sit in one of the rooms idle for say 5 months! People would buy computers only when they feel it is something essential and they want to use it on a day to day basis - atleast on alternate days! If a computer can be started only if a code is keyed in and if a person can't afford to buy those codes, I guess the person won't even think about buying this computer!
I mean from an Indian middle class perspective, will someone throw like Rs.20,000/- and keep this computer sitting idle? No! But atleast, there may be some chance for subscription service though.
A new character comes into this story. It is Severstal (well, another LARGEST Russian steel maker) and Alexey Mordashov(Picture) - He has like 90% stake on Severstal! Severstal has been trying to make a statement to the world because it really wants to become big in the coming years by doing some acquisitions all over the world - Where else than the remaining BIC of BRIC & somewhat in US too. So, what is this character's role in this story? Acquisition - He is a strong competitor against Mittal Steel, in bidding & taking over Arcelor.
