Comment: Higgs Bussom? (Score 5, Funny) 2008-07-21 09:03
Attached to: One of the Coolest Places In the Universe
Yeah yeah, but if you think about it, software used to have a tangible monetary value before the internet, when distribution was costly and the major determinant of market spread was the company's investment in stamping CD's, packaging and delivery. But now the price of shipping software is close to zero. Is this reflected in the price of Microsoft licenses?
If the market were free to determine the price of software, it would be a very low price. People at large don't see tangible value in something that can be copied at the cost of a couple of joules of electrical energy. They see value in things they just can't get another way, or quality they can't get elsewhere. That's where Apple's business model is somewhat viable, since they go to the effort to make a package that works as advertised that you can't really get anywhere else (OS X is basically inferior on non-Apple hardware and not really worth mass-piracy).
The Linux vendors survive on providing service and support. There gets a point (mostly for corporations) when it's cheaper to pay the Linux vendor to do things for you than to do it all yourself. That's fair trade.
Microsoft should be doing the same. Provide Vista free, unencumbered. Let it spread naturally. Sell boxes, sure, but sell them essentially at-cost. Let Microsoft's specialist abilities (software support, live updates etc) be the thing people pay for. The price point should be that at which it's cheaper to pay Microsoft to help you than to go it alone.
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