Saturday, July 5th 2008

Microsoft to Offer Software on a Subscription Basis

Soon, among your usual utility bills of electricity, water, gas, telecom, could be a new addition, software. Microsoft has come up with a new subscription model, where instead of outright buying a license to use the software, consumers can subscribe to use it. A monthly or annual subscription charge has to be paid by the user (subscriber) to continue using the product.

This scheme for now covers products such as Microsoft Office and One Care security software. Analysts are already beginning to predict this will be Microsoft's next big business model which will fuel its growth in the years to come. There's much in store for both consumers and the company.

For the consumer it means value. Let's say I subscribe to Microsoft Office 2007 for this year at a charge of US $70, the next year, if Microsoft comes up with a new version of the software, say Office 2009, I can simply unsubscribe to this and switch over to that, a lot more convenient than if I were to buy a $350 copy of an Office 2007 variant at the store, and next year Microsoft comes up with the new version, I end up spending a lot more to be able to use that software.

For the company it means higher income, since each legitimate subscriber will have his own usage account and illegal copies of the software won't run since the user still needs a subscription account with Microsoft to even run the software or end up using the pirated product disc as paper-weight. While it's only limited to Office and One Care now, it wouldn't be too far-sighted to think other Microsoft products, even Windows for that matter, could come with subscription plans.With inputs from Newser
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27 Comments on Microsoft to Offer Software on a Subscription Basis

#1
flashstar
Assuming that it takes 5 years to come out with a new OS... You will pay $600 for a copy of Windows if it costs $10 per month. Seems a bit more expensive than just getting the OEM version of Vista Ultimate for $200 forever...
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#2
Mussels
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flashstar said:
Assuming that it takes 5 years to come out with a new OS... You will pay $600 for a copy of Windows if it costs $10 per month. Seems a bit more expensive than just getting the OEM version of Vista Ultimate for $200 forever...
it was meant to be 2-3 years, XP was a screwup on their part.
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