Microsoft Introduces Pay-as-You-Go Computing

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.

Comments

This is just sub-prime financing

[tomhudson]

It's the same tactic used to lease-to-own cars to people who can't really afford them

FTFA:

1. An individual purchases a PC by making an initial payment equivalent to one-third of the total cost. A third party financial institution pays the retailer the remaining cost of the PC on the buyer's behalf.
2. The buyer agrees to purchase 800 hours of time on their PC at a low hourly rate - they can add time as frequently or as infrequently as they choose and take as long as they need to purchase the hours. The cost of the 800 hours covers the re-payment to the financial institution (including interest).
3. Hours of PC usage can be conveniently purchased over time through a variety of distribution channels, including convenience stores (scratch cards), ATMs, Point of Sale networks and the internet.
4. Once 800 hours of usage time is purchased, no additional payments are required to use the PC.

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:Giggle giggle

[realnowhereman]

It sounds like you aren't aware that time on mainframes was often leased in the past? Making the comparison reasonably valid.

So now you know...

[geoff lane]

...why Microsoft is so dismissive of the $100 PC.