Microsoft Introduces Pay-as-You-Go Computing 328
An anonymous reader writes "Geekzone is reporting that Microsoft is introducing a new business model for 'pay-as-you-go computing.' From the article: 'The pay-as-you-go computing model enabled by Microsoft's FlexGo technology allows customers to have a fully featured PC at home by paying only for the time as they use it through the purchase of prepaid activation cards or tokens. Microsoft has been running trials of the program in Brazil for more than a year and will soon be expanding to select markets in India, Russia, China and Mexico.'" This makes me giggle, because it's basically the return of time-sharing; in the past it was for for mainframe systems, but I suppose the same concept behind the mainframe idea would be true in developing countries today with PC systems.
On-demand computing (Score:4, Informative)
Re:On-demand computing (Score:2)
Why? (Score:5, Insightful)
Re:Why? (Score:5, Insightful)
Considering that they want 1/3 up front, and that the software is now the greatest part of the expense of owning a box, it would be cheaper to take that 1/3 and buy a lower-spec white box and throw linux or bsd on it, and pocket the difference.
After all, if they can't afford the box, they won't be able to afford the games and shite that require Windows either ...
With the mney they save, they can buy a Wii for their gaming fix.
Re:Why? (Score:2, Insightful)
Easy for us, tough for Joe Six-pack, who just wants to read his email.
Re:Why? (Score:3, Informative)
Why would it be hard for "Joe Sixpack who just wants to read his mail"? If that's all he wants to do, he can buy a used laptop for $50. Add in a new battery ($50) and a wifi card ($50) and he can read his email pretty much anywhere.
Re:Why? (Score:4, Informative)
In case you haven't noticed, its now a LOT easier and quicker to install linux on a box than Windows, so Joe Sixpack is more likely to have success with his email, word processor, browser, etc. with a bare box if he tries to install linux instead of windows.
Steps to install OS and a ton of apps under linux:
Steps to install OS and a ton of apps under windows:
Re:Why? (Score:2, Insightful)
Yes, i know it's no one's fault but the hardware vendors and for a lot of people it isnt even an issue but you cant discount this issue. I'm computer savvy and i couldn't run debian no matter how much i wanted to until ubuntu came out simply because it wouldnt drive my DSL modem.
I personally look forward to the day when i can give my frie
Re:Why? (Score:3, Insightful)
2. answer a few questions
3. when dvd tray opens, remove dvd and reboot
4. set all ap
Re:Why? (Score:3, Insightful)
1. run install cd
Also known as "boot off install CD", just like Linux.
2. answer a few questions
3. when cd tray opens, remove cd and reboot
Umm...haven't installed Windows lately, have you?
4. for driver_cd in driver_cds: cross fingers; GOTO 1
For drivers_not_on_linux_cd: cross fingers; goto internet; hope you find what you need.
5.
Re:Why? (Score:3, Informative)
After the reboot you're dropped straight into a slick gui. Tons of apps are accessible straight from the Gnome, KDE, or even "Start" men
Re:Why? (Score:3, Insightful)
Oh, I'm sorry, the installation CD with the configuration for Verizon's PPPoE network is Windows-only. I guess Grandma will have to sift through forums on how to enable PPPoE on Linux...once she comes to understand just what the hell PPPoE MEANS. If she could have used Windows, the Verizon setup CD would have taken care of all of this for her.
And once Grandma gets on the internet, and starts discoveri
Re:Why? (Score:3, Insightful)
Wow, I guess windows is much better in that regard.
My point is, Joe Six Pack doesn't know what to do if he can't find the app he's looking for. He can't walk into a store and buy it, and if it's not in the application list (for example, Synaptic? something like that) he's going to have a hard time finding it.
Linux is not wind
Re:Why? (Score:3, Informative)
Heck, you don't even have to do a real reboot with linux any more to upgrade the kernel. Just kexec into the new kernel http://www-128.ibm.com/developerworks/linux/libra r y/l-kexec.html [ibm.com]. No cold boot. Not even a warm boot. No POST, no hardware re-initialization.
Re:Why? (Score:3, Insightful)
I only know one person whose default browser is still IE.
Re:Why? (Score:2)
Re:Why? (Score:2)
Re:Why? (Score:2)
This is why mortgages exist. Mortgages allows people to make payments similar to rent, but they own the property and gain the benefits of ownership.
But thats not to say that it is cheaper. Generally owning is more expensive, but thats becuase it is, at least in part, a saving mechanism over time. So part of the money you write a check for each month becomes yours. And ideally, you also reap the benefits of the value of your house going up.
Renting is
Re:Why? (Score:2, Interesting)
Re:Why? (Score:2)
Wait...I've missed something here. You seem to be implying that Microsoft were previously overflowing with good ideas - what were those again?
Re:Why? (Score:3, Funny)
Re:Why? (Score:4, Funny)
*cough* Apple *cough*.
Oh you meant over time in installments... hehehe.
Re:Something to clear up that cough (Score:3, Informative)
When I bought my inspiron 630m it came with 1GB of ram, 100GB disk, 2Ghz Pentium M and the three year warranty for 2300$ [with taxes]. That was when the BASELINE Mac laptop was $2000 on its own, that is 1.5Ghz G4, 512MB of ram, 60GB disk, etc... Upgrading and warrantying the thing would have cost [iirc] about $2850 or so.
Granted they're not $5000 each they are routinely
Recent Macbook (Score:3, Insightful)
I'm not talking about the past, I'm talking about the present where the Macbook is actually a really good value - and you don't need to pay Apple to upgrade the HD since it's so easy to rep
Out of tokens? Re:Why? (Score:2)
Re:Why? (Score:2)
Why does it seem Microsoft is running out of good ideas?
So if my cousin, Jose Gonzalez, upgrades to this, he will be paying Microsoft when he uses the Firefox or the OpenOffice? And he will be paying Microsoft when SETI@home is running during his lunch break and siesta?
And he will also be paying Microsoft when he dual boots to Linux (which he has to do to participate in his classes in System Architecture at University)?
I do think that Jose will be using this "pay as you go" method of "ownership". I d
Re:Why? (Score:3, Insightful)
The financial "why" has several aspects. First, upgrade business isn't like it used to be. Not like it was in the early 1990s when we were still on the technology adoption curve and products were improving in ways that were significant to lots of people. Back in the day, you were constantly increasing the rate of computer adoption, which meant you were buying new software and upgrading old software to maintain compatibility. Now it's mostly replacement, and if you
Re:Why? (Score:3, Insightful)
It doesn't matter. What matters is whether people will pay for it. You gave a perfect example with Rent-a-center -- it doesn't matter that it's a bad idea to rent-to-own, what matters is that there are people who do it. Rent-a-center isn't stupid for offering rent-to-own, they're smart for taking advantage of the market and likewise, if there's enough demand for pay-as-you-go computing to make a good profit, th
Re:Why? (Score:3, Funny)
Incorrect.
ActiveX controls was a great idea.
Linking IE with Windows was another.
The question is not whether they had good ideas, the question is for whom.
With ActiveX(TM) and linking, they made it much easier for some to install helpful components, like those that display ads, on a dumb user's machine. If it wasn't for these technologies, would anyone have a network of 50,000 PCs controllable by a single person/entity in a land far, far away and sending emails for useful
Innovative strategy (Score:3, Interesting)
In many countries around the world, people face two main barriers to owning a PC: the entry cost of buying a computer is too high and the fixed monthly payments associated with traditional financing are beyond their ability to pay- if they can get financing at all. And even in countries where consumer credit is available, many people are reluctant to incur the obligation of fixed monthly payments because they have unpredictable or variable incomes.
All fair points.. it will be interesting others in the industry take up the idea.
Giggle giggle (Score:3, Insightful)
When you stop giggling you may as well notice both have nothing in common.
One is a payment model for using licensed software (but time is not limited by demand, just by your money), and the other is an early form of multitasking, allowing more efficient use of the mainframe resources.
Re:Giggle giggle (Score:5, Insightful)
Re:Giggle giggle (Score:5, Informative)
When I first started work, I had to log the time that I logged into my terminal and logged out again into a black book. This was so we could double check against the seemingly extortionate amount of money the time sharing bureau charged us for the time spent on the computer that was on the other end of the line from my terminal. This was around 1983, which will have been towards the end of a practice that had been going on since the 1960s.
Oh, and your comment about this latest scheme being about licensing software is wrong too. They're hiring the hardware as well as the software. Just as they were in the old time sharing days.
Re:Giggle giggle (Score:2)
With time sharing you divide the cost of expensive hardware over many users. The idea is that not everyone needs to use the computer at the same time.
With this program it is like a really dumb rent to own system.
No one else gets to use the hardware when you are not using it. You do not get to divide the cost of hardware over multiple users.
This seems like one very dumb business model.
Re:Giggle giggle (Score:2)
Under the old mainframe concept, YOUR meter isn't ticking if they're updating their machine.
Re:Giggle giggle (Score:2)
I didn't just read the article - I followed the links as to how it works. As long as the machine is on, you're running the meter, even if all you're doing is running a screensaver.
Takes "bit rot" to a whole new dimension.
This is just sub-prime financing (Score:5, Insightful)
It's the same tactic used to lease-to-own cars to people who can't really afford them
FTFA:
In other words, if you don't qualify for the loan as per item 1, you don't get to "long-ter lease" the box. So why not just borrow it outright and not be stuck paying per hour? Or take that 1/3 cash down and buy a used PC.
Re:This is just sub-prime financing (Score:5, Insightful)
FTFA: "Genuine Microsoft"
So you're going to have to pay for the time you use to download and install all those patches, updating antiviruses, as well as the time your box is being p0wned and sending out spam, etc.
Of course, if you can't afford to own your box, you can't afford a fast connection, so you're going to spend more overall just maintaining your box.
For the 1/3 they want up front, buy a plain beige box outright and run a free os. After all, its not like these people are going to be able to afford to blow big bux on games or other software that runs only on windows.
The Palladium Killer App (Score:5, Interesting)
* Imaging the drive
* Installing another OS of their choice
* Using the computer as much as they like
* When the agreement ends, replace the drive image.
Ok, if you sick a lawyer on the poor user, you can sting them for their minimum 800 hours fees. But the only way they could prevent the above is by locking the machine down at the BIOS level with TCPM support.
Re:The Palladium Killer App (Score:2)
Re:The Palladium Killer App (Score:4, Insightful)
obviously you have either never signed a contact before in your life, or you don't have much of an imagination.
Re:The Palladium Killer App (Score:5, Interesting)
Now, the question becomes whether you can extract 1/3 of the value of the PC in parts.
Question is only valid for the components that don't require TCPA to function at all.
What--TCPA required in individual components? I thought this was just a motherboard thing so we couldnt' run Linux and pirate CDs?
Guess again, Sunshine.
Wanna upgrade your monitor?
Sure. But don't bother trying to find a local source for that Lucky Goldstar monitor you found on that Korean website.
Only [Dell/Gateway/Microsoft/Walmart/Cosco/YouNameIt] monitors (rebranded LG monitors at three times the price, natch) will work, though.
Man, this is freakin' fantastic! Hardware compatability (no--hardware functionality--this keeps getting better!) will be strictly at the whim of the vendor.
Five years from now, "obsolete" won't mean "still does what it did when you bought it, but there's shinier stuff on the shelf this week"
"Obsolete" will mean: Vendor support for this version of hardware has ended:
DMCA already means you'd be insane to risk hacking your hardware to get it working again.
And recycling laws will mean the hardware has to go back to a licensed recycler
So, don't try to sell it to a guy what knows a guy what can get it workin' again...
Re:The Palladium Killer App (Score:2)
Ingenious (Score:3, Funny)
Re:Ingenious (Score:3, Funny)
Something I don't Understand (Score:2, Insightful)
Re:Something I don't Understand (Score:2)
Cell phones use DRM to lock you into a network while you are on contract.
Won't work (Score:5, Insightful)
The true is that "people with modest incomes in emerging markets" don't buy software. Even when buying a new computer, big retails shops bundle Linux, that is removed as soon as people see they can't play games or use Encarta or Word or any other well known software. On the newspapers in Argentina, you see there is a standard fee for "linux removing" (and Windows installing, not advertised). In small computers shops, they preinstall WindowsXP without even asking (without licence). Most software is available for u$2 on CD-R (is advertised on any newspaper and even phone booth).
Only big companies (mostly from overseas) can afford to buy software.
Re:Won't work (Score:2)
Agreed. Here at Brazil, the small shops stopped selling PCs with (ilegal) Windows, but anyone can get a pirate CD at any corner for less than $5.
I can't really imagine who would by this (paying 1/3 of the price up-front) instead of the normal version or a pirate one.
All of a sudden... (Score:4, Insightful)
Panic seizes Wall Street, Microsoft stock dives, NASDAQ tanks, Bill Gates become the 100th richest man in the world, and Congress introduces law designed to protect "American innovation and competitiveness against the evil, communist, terrorist-sponsored opensource software".
Hey, one can dream, right?
Re:All of a sudden... (Score:3, Insightful)
That or microsoft will spend all it's vast energy
a fully featured PC .... (Score:5, Interesting)
An office suite. [openoffice.org]
A standards compliant browswer [mozilla.com]
Maybe a simple image editor [sourceforge.net]
And maybe [7-zip.org] a couple [sourceforge.net] of small [utorrent.com] utility programs. [sourceforge.net]
Yeah, I guess that would be worth paying for....
I mean, it's not like people are giving it away for free.
Rewrite for simplicity (Score:3, Informative)
An office suite, a standards compliant browswer, maybe a simple image editor, and maybe a couple of small utility programs. [kde.org]
Yeah, I guess that would be worth paying for....
I mean, it's not like people are giving it away for free.
Re:Rewrite for simplicity (Score:2, Insightful)
But has KDE been ported to Windows, other than through the heavyweight Cygwin layer? Or have display technologies associated with *BSD and GNU/Linux been ported to any non-onboard 3D video cards?
Re:Rewrite for simplicity (Score:2)
I guess there's not much difference between the fact that better apps are available for free (my point), and the fact that they are renting out an expensive OS with less functionality than a free one (the OP's point).
The only difference between our posts was the focus, really.
Re:a fully featured PC .... (Score:2)
Oh that's right, when I switch to Linux and was running great until I hit THAT brick wall, the linux community told me, just use line editors.
Right, I'll just packup my ability to easily and graphically edit all my home movies because linux says so. I don't think so.
So now that I got your attention, help me switch BACK to linux by showing me a decent graphical video editor. (Please and thank you)
Yo Grark
Re:a fully featured PC .... (Score:4, Informative)
Filthy (Score:5, Insightful)
And cue the anti-Slashdot trolls bitching about how we see everything MS does as evil...
Re:Filthy (Score:2)
Re:Filthy (Score:4, Insightful)
This is about much more than an operating system -- it encompasses the entire hardware. The Windows OS is just a fraction of the cost, however maybe only Windows OS supports the pay-as-you-go integration with the hardware right now. The same model could be used to buy a machine that runs Mac OSX or Linux. It's a novel idea and an alternative to the $100 PC.
Re:Filthy (Score:2)
A "fraction" is very variable. For the sort of hardware people are buying in the target countries of this idea, the fraction is in the region of ½, and in Brazil at least, poor people are already starting to buy [businessweek.com]
Just wondering (Score:2, Insightful)
I guess it makes a lot of sense from Microsofts point of view.. instead of letting them have cheap home PCs and "free" Windows software (aka piracy), make them pay outlanding sums of money over the long-term without realizing i
Re:Just wondering (Score:2)
Re:Just wondering (Score:2)
I wonder if I can swap out the old hd for a new 80 gig ...
And of course, youll want a broadband connection.. (Score:3, Insightful)
Re:And of course, youll want a broadband connectio (Score:2)
It takes power, space, staff and equipment to run an ISP. It isn't like all the customers could just pay $29.95 once and have net for life.
On the other hand, a Windows install takes none of Microsofts time and shouldn't be forced into a renewable fee schedule.
Tom
You'll realize the difference to a _functional_ PC (Score:2)
This kind of "personal" computer only
- and one really has to wonder what happens to the data -and hardware- when poor people in hand-to-mouth economies can't afford unlocking their "own" PCs of this kind anymore.Seems to have all the hallmarks and ugly side-effects the former "self-destruct DVDs", and worse...
This is Microsoft's answer to the $100 computer (Score:3, Insightful)
So now you know... (Score:5, Insightful)
Re:So now you know... (Score:5, Insightful)
One of these projects is attempting to empower the 3rd world, and the other project is attempting to enslave the 3rd world.
Can you guess which is which?
Re:So now you know... (Score:2)
They're dismissive of it because as the physical hardware gets cheaper and cheaper, the prices they demand for software that is otherwise free (both senses) become more and more ridicolous.
It's one thing to have a $90 operating-system and a $500 office-suite on a modern developer-laptop costing in total maybe $3000. It's expensive.
But it's simply ridicolous to suggest people should buy a $100 computer, and then add $600 in software.
Hardware-prices are falling rapidly. This le
Re:So now you know... (Score:2)
Why? My DVD player cost $100, but I've spent many, many times over that in software. My portable CD player cost less than $50, but tally up what I've spent in music and it dwarfs that. Xbox cost $299, but the software cost is much higher.
When hardware is commodified, the software is naturally the most expensive part.
*cough* Get a Mac... *cough* (Score:2)
Re:*cough* Get a Mac... *cough* (Score:2)
Yes, that's what the poor in third world nations require, overpriced "premium" computers that run a commercial OS where upgrades cost money.
Well played poster, you are a tool.
Tom
Re:*cough* Get a Mac... *cough* (Score:2)
The cheapest Mac costs 3-4 times more than a cheap PC capable of internet browsing, Office and games that don't demand the latest hardware (Half-life 2 etc.)
Just like the "Jump to Conclusions Mat" (Score:2, Insightful)
Ms should do this with Starter Edition. (Score:2)
What they should be doing is something along the lines of the Xbox 360 micro-payments model. Basically, give away starter edition for free, and then sell prepaid cards if you want to upgrade it to home edition.
They can also have a system built into it where you can also buy software A la cart using the prepaid cards either over time or all at once. You can make it so you basicall
Re:Ms should do this with Starter Edition. (Score:2)
That's $400 and gonna be the very low end of the lowest.
Where do you shop?
Tom
Re:Ms should do this with Starter Edition. (Score:2, Interesting)
Many brand new laptops and desktops (check a Bes
Re:Ms should do this with Starter Edition. (Score:2)
Re:Ms should do this with Starter Edition. (Score:2)
Lots of sources for cheap PCs... check out TigerDirect for one source.
http://www.tigerdirect.com/applications/category/c ategory_tlc.asp?CatId=31 [tigerdirect.com]
Re:Ms should do this with Starter Edition. (Score:2)
Tom
Re:Ms should do this with Starter Edition. (Score:2)
Also known as
Every single case I've seen that combined with a PSU costs less than $100 is a total piece of shit I wouldn't trust in my house. Out of spec PSUs and really cheap case construction (re: flimsy) just doesn't make it worth it.
You'd be better off air boarding it.
Tom
Tamper proof hardware? (Score:2)
Is this a seperate sub system that is independent of the OS
and it removed/disabled then disables the whole PC? Or is it
integrated with windows in which case surely just installing
a new OS (assuming you can boot off a CD/floppy) would bypass it?
Anyone have any technical info?
Who does this really benefit? (Score:2, Interesting)
I may be ignorant, but what do low-income people need PCs for anyway? Do they really need sofware to balance their checkbooks, or file their taxes? Are they really cranking out a lot of documents? It seems to me that the real ne
Re:Who does this really benefit? (Score:2)
You think everyone had computers in their homes in 1960? 1970? hell even 1980 and 1990? I still remember going to a friends house in the early 90s because he had a Pentium.
The problem is we're violating the prime directive here. They wanna play catchup and have all the nice toys
Excellent Idea (Score:2, Funny)
Does it include? (Score:2)
As Office Space put it.... (Score:2, Funny)
Geek A: "Really Steve, what was it?"
Ballmer: "Well, allright! It was an idea for "pay-as-you-go"-computing! You see, there's this full-featured computer, but you have to buy these tokens in order to use it"
Geek A: "That is the worst idea I have ever heard in my life Steve"
Geek B: "Yes, this is horrible, this idea."
MS reaching for its dream (Score:3, Interesting)
That MS-Office can't "open" a document until it has loaded it entirely is a different matter. But in theory you can stream docs.
But back on topic. MS has been dreaming in this direction for a while now. After all, look at the advantages for them: First and foremost, full application control. It would even be possible to limit the capabilities later. Currently, you have the "problem" that, if something is possible to the user that the user deems beneficial but you don't enjoy in your software, you have a VERY hard time convincing him to upgrade to the next version, that has more features you want but less of what the user wants.
Then of course recurring revenue. Now, you buy Office and you use it. Forever. I'm pretty sure I'm not the only one who still has an Office97 running somewhere. Why upgrade? Newer versions don't offer any benefit. The only ones who do actually upgrade are companies that already fell for the "corporate agreement" bundle. But that doesn't offer ANY benefit for the average person.
This is just an attempt to force this kind of "agreement" down our throats. Since, after all, it's just a few cents every time you use your Word...
Less computing (Score:2)
Is Microsoft Jumping the Shark? (Score:3, Insightful)
And what about Total Cost of Ownership... Oh wait, that's Microsoft's TCO, not the users... ;-)
Follows the successful cell phone model (Score:2)
This technology supports two models today: a pay-as-you-go model enabled by prepaid cards or a subscription model with monthly payments.
Pay as you go is just like getting a free cell phone and paying for the minutes. Subscription is like getting a free phone and paying a flat fee for unlimited calling.
Now, with business models enabled by FlexGo, Microsoft is removing these [financial] barriers to PC ownership.
hrm (Score:2, Funny)
Re:First Post (Score:3, Insightful)
They can't do that now, how do you expect them to do that in the future?
Besides, if you look at how it works, you'll see that it really is the shits ... you get a 12-character code every time you want to "add minutes." How much you want to bet there'll be a keygen and spoofed add-time servers if this catches on?
Re:First Post (Score:4, Insightful)
I see from all the -1 Flamebait mods that Team99 is out in force this morning ...
The simple fact of the matter is that this whole plan shouldn't be called "Pay as you go" but "Pain as you go."
Its targeted to people who can't afford it and would be better off using a free OS on hardware they can buy outright for the 1/3 down that this thing goes for ... or they can buy a used box if the really really really want Windows.
Re:Obligatory joke (Score:2)
I'm old enough to remember working in the time-sharing model; yes I know time-sharing is a multitasking principle, but in the old days it was used to charge users *per cycle
Re:Obligatory joke (Score:3, Interesting)
Actually, if you follow the links in the article to read how it works, its obvious that booting from a linux DVD bypasses their time subscription/metering servers and all the software components they had to ad to Windows to lock out the user.
Actualy, booting from one of the hacked bootable Windows DVDs (yes, its possible to run Windows from a DVD - you can make your own bootable one by going here :http://www.nu2.nu/pebuilder/ [nu2.nu]) also bypasses their time metering system.
Time sharing beauracracy lasted too long (Score:2)
A guy in my fortran programming class on a slow terminal link to a MicroVax blew his budget in the first ten minutes of the class accidently writing and running an endless loop - the rest of the year he had to do everything on paper and wasn't allowed to touch a terminal or the teletype terminal we used for printouts. Lowly engineering undergrads were not allowed near PCs, macs or workstations. To make everything even more stupid - this was in 198
Re:Cool (Score:4, Informative)
It looks like Microsoft has chosen Transmeta to provide the processors, with some hardening features implemented within Transmeta's CMS (Code Morphing Software) technology I presume. They claim it's quite well-hardened against hack attempts.
http://biz.yahoo.com/bw/060522/20060521005028.htm
Let the arms war commence!