Pay per use fact or fiction

The other day, I posted info on this forum and in short was told I “don’t know what I’m talking about, you can’t make claims without back-up”. True enough, I guess I can’t expect people in general to check the facts either. This is not a flaming it is written to open eyes with food for thought. I have a sense of humor too so I start with an exert from The Spoof : spoof news headlines, parody and political satire stories This is followed by what I remember from a keynote speach at the 1980 Texas Instruments Science and technology fair in Calgary Alberta. Then there’s Microsofts own news releases exerted from their site. Lastly, googles for “Microsoft pay per use”

Microsoft Gives Away Windows Written by hughster Story written: 07 November 2005

Redmond, WA, Saturday
In a press conference held at Microsoft headquarters in Redmond, Washington yesterday, Microsoft Corporation (MSFT) announced a new pricing scheme for its ubiquitous operating system, Windows XP, which will now be named Windows XFree.

“In future,” a spokesperson explained, “we will not be charging customers for Windows XFree, which will become a free 15GB download from the Microsoft Web site. In addition, computer makers will no longer pay licensing fees to Microsoft when pre-installing Windows XP on their computers.” The new system will apply to all computers to be manufactured after February, 2006.

New source of revenue
The presentation continued with an explanation of how Windows XFree will contribute to Microsoft’s revenues “in a new and exciting technologically revolutionary way”. All computers using Windows XFree must be fitted with a credit card reader. A pre-authorized credit card must be inserted into the reader when the machine is booted, and a micropayment is automatically deducted from the credit card over the Internet as the computer starts up. more->…

Industry Reactions
Jim McFurty, Chief Information Officer at Silverman Sacks, the major merchant bank, commented: “This is not the way we are going to move forward. We will continue to use our older Windows XP systems, and replace them with either Linux [the popular open-source operating system] or with Apple Macintoshes running OS X, both of which present extremely good price-performance factors, especially with regard to the total cost of ownership.”

A European Union trade representative stated that “Microsoft is almost certainly breaking EU regulations with this proposal. We’ll see them in court if they try introducing the system in Europe.”

A major Japanese computer maker put out a statement that “our customers will not be happy with this. We will seriously consider pre-installing the Japanese-Korean-Chinese OS currently under development”.

In the Third World, reactions were even more unfavorable. “99% of my customers don’t have a credit card”, said Mr. Dang Nguyen, a computer dealer in Ho Chi Minh City, Vietnam. “There’s no doubt that I’ll be selling Linux systems only from now on.”

An industry association spokesman, who declined to be named for fear of reprisals, commented that “this is probably a trial balloon. Microsoft has floated such far-fetched ideas in the past, and backed down after public pressure has forced them to rethink. But anyway, as a Mac user, it doesn’t affect me.”

Microsoft share prices fell $2.52 on NASDAQ following this announcement.

Although this was written as a spoof story see the whole story at…
The Spoof : Microsoft Gives Away Windows funny satire story

In 1980, Texas Instruments and IBM were vying for the predominant possition in the market place. Texas Instruments invited Microsoft to it’s enaugural debut of the TI-PC personal Computer based on an intel 8088 microprocessor with a whooping 128KB of ram expandable to 640KB and not one but two 5.25" floppies.
Everyone awed when the Microsoft rep came to stage to say “these are exciting times for people … Microsoft is committed to bringing down the costs of these PC’s” (which sold for $6000 to $8500) “so that every home in the world can have one. We are currently working with manufacturers to streamline the hardware to work exclusively with our product. We will be standard by which everyone will eventually work. To reach this important goal we foresee an eventual need to make sure all system come preloaded with our product and users will virutally get their PC on a pay per use or pay as you go basis.”

But look at this from Microsofts own new release site!
Microsoft Unveils Pay-As-You-Go Personal Computing Designed for Emerging Market Consumers
Broad range of partners supports Microsoft FlexGo technology.

REDMOND, Wash. — May 21, 2006 — Microsoft Corp. today announced the industry’s first pay-as-you-go personal computing offerings powered by Microsoft® FlexGo™ technology, enabling more-flexible Microsoft Windows®-based PC purchasing options for customers in emerging markets. Customers can get a full featured Windows-enabled PC with low entry costs that they can access using prepaid cards or through a monthly subscription.

The pay-as-you-go business model makes PCs more accessible by dramatically reducing the entry cost and enabling customers to pay for their computer as they use it, through the purchase of prepaid cards. Market trials are starting first in emerging markets where inadequate access to consumer credit, unpredictable income and high entry costs prevent many consumers from purchasing a computer. The FlexGo technology supports Microsoft’s global commitment to help people realize their potential through the benefits of personal computers.

“Today there are already more than 1 billion prepaid mobile phones used around the world, so we know FlexGo enables a familiar and comfortable pay-as-you-go model that works for people with variable or unpredictable income,” said Will Poole, senior vice president of the Market Expansion Group at Microsoft.
more->…
This was the 214th stab since 1995 at realizing a pay per use scheme.

Microsoft’s Pay-Per-Use PC
30 Dec 2008 … These pay-per-use computers, for this program to function as designed … I predict that Microsoft’s pay-per-use idea is also doomed for the …
Microsoft’s Pay-Per-Use PC

Microsoft Pay-Per-Use patent rejected - SlashGear
2 Jan 2009 … Microsoft’s pay-per-use computing patent application, uncovered at the end of December, has been rejected by the US Patent & Trademark …
Microsoft Pay-Per-Use patent rejected - SlashGear

Microsoft outlines pay-per-use PC vision | Business Tech - CNET News
In a patent application, Redmond argues that you would benefit from metered computing by having a PC with an extended ‘useful life.’ Read this blog post by …
news.cnet.com/8301-1001_3-10129438-92.html

Microsoft files pay-per-use PC patent | Tech News on ZDNet
A Microsoft patent application details a business model whereby the user gets a free or heavily subsidized PC but is charged for usage time, application and …
news.zdnet.com/2100-9595_22-256995.html

Microsoft pay-per-use PC Model rejected
Microsoft recently submitted a patent application for pay-per-use computing as previously reported on Neowin; that application has already been rejected by …
www.neowin.net/.../microsoft-pay-per-use-doesnt-get-the-green-light

Am I still wrong for stating Microsoft has had plans to force people to pay for their systems on a continual basis? If so I apologize to all. I’m old and have to admit I’ve forgotton way too much. For me Linux is a breath of fresh air and I really want it to suceed. You the little guy fights back ok.:X

They’ve been renting their stuff for years.
e.g. Microsoft Volume Licensing - Microsoft Enterprise Agreement and Enterprise Subscription Agreement

Renting is a non-purchase agreement, like you’re talking here.

So of course they’d like to do what you’re saying here. They have a responsibility to shareholders and would be negligent if they didn’t try it on. There’s nothing extra ordinary in this. It’s simply good business.

There is no doubt M$ are good at marketing their products, even though it’s OS’s have terrible security issues, probably the worst out there, to mention just one bad point! Yet it still manages to put a spin on things to make “Windows” look like the Bee’s Knees!

What’s even more surprising is that people fall for it ‘Hook, Line and Sinker’!

has anyone actually read the EULA

no body buys windows you lease it

  1. RESERVATION OF RIGHTS AND OWNERSHIP. Microsoft reserves all rights not expressly granted to you in this EULA. The Software is protected by copyright and other intellectual property laws and treaties. Microsoft or its suppliers own the title, copyright, and other intellectual property rights in the Software. The Software is licensed, not sold.

I guess what I am getting at is that while yes they own the software rights and license permission for it’s use, Their EULA as well as the manufacturer’s EUA say nothing about the software must be supplied by Microsoft and installed on the hardware. Further the EULA does state that you as the end user must agree to the EULA or you can’t have the software on Yourhardware. However as I was going thru the series of articles they suggested in several places that pay per use applies not only to the software but the hardware as well.