Microsoft Testing "Pay-As-You-Go" Software

Posted by ryuzaki0 on Friday February 23, 2007 @07:24AM from the not-unless-i-can-hit-level-70-in-office-newb dept.

seriouslywtf writes "Microsoft has quietly rolled out a pay-as-you-go software system in a few countries (South Africa, Mexico, and Romania) to test out how the public reacts to software rentals. Part of the current service includes a ~$15 fee per month to use Office 2003. If the service goes over well, Microsoft is considering extending the program to include other software or other countries. From the article: 'Are we moving towards a rental model for software? Despite the success of programs like Software Assurance, and the FlexGo program, it doesn't seem as if the traditional model of software sales is ever going to go away. Consumers still like the option of buying complete software packages. However, for places where the price of software keeps obtaining legitimate versions out of most people's reach, a rental program may be a useful alternative.'"

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And the poor get poorer by Baavgai · 2007-02-23 10:20 · Score: 3, Interesting

Consider, the areas in the US that support the rent to never own stores are those far below national average income levels. In those same areas, you can find light bulbs sold by the each. Cigarettes are also sold in singles, though it's technically illegal. Why is this bad?

In every case, the person pays what they can afford right now, but ultimately ends up paying more over time. It's interesting that such a strategy is being test marketed in countries seen as needing a financial "break". This is a tactic that essentially takes advantage of those who can't afford up front costs.