05/22: Pay-As-You-Go PCs
Posted by Patrick
Microsoft Unveils Pay-As-You-Go Personal Computing Designed for Emerging Market Consumers:
Mary Jo Foley has more info on how it will work:
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. ...
Microsoft’s innovative business approach brings together leading partners spanning the hardware, telecommunications, retail and financial services industries to make pay-as-you-go personal computing a reality for the first time, and expand subscription computing to a wider audience. The company recently completed a successful year-long market trial of pay-as-you-go offerings in Brazil with leading national retailer Magazine Luiza. Partners including Advanced Micro Devices Inc. (AMD), HSBC Bank Brasil S.A., Infineon Technologies AG, Intel Corporation, Lenovo, Phoenix Technologies Ltd., Transmeta Corp. and more, will join Microsoft for the next round of pay-as-you-go and subscription trials in Brazil, China, Hungary, India, Mexico, Russia, Slovenia and Vietnam. Together with the International Finance Corp. (the private-sector investment arm of the World Bank Group), Microsoft is exploring ways to enable its financial partners to underwrite PC purchases and prepaid cards on the most affordable terms for lower-income consumers. Microsoft’s FlexGo technology will create new and profitable opportunities for Microsoft’s global hardware partners as well as for local original equipment manufacturers (OEMs), banks, telecommunications providers and retailers in emerging markets.
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. ...
Microsoft’s innovative business approach brings together leading partners spanning the hardware, telecommunications, retail and financial services industries to make pay-as-you-go personal computing a reality for the first time, and expand subscription computing to a wider audience. The company recently completed a successful year-long market trial of pay-as-you-go offerings in Brazil with leading national retailer Magazine Luiza. Partners including Advanced Micro Devices Inc. (AMD), HSBC Bank Brasil S.A., Infineon Technologies AG, Intel Corporation, Lenovo, Phoenix Technologies Ltd., Transmeta Corp. and more, will join Microsoft for the next round of pay-as-you-go and subscription trials in Brazil, China, Hungary, India, Mexico, Russia, Slovenia and Vietnam. Together with the International Finance Corp. (the private-sector investment arm of the World Bank Group), Microsoft is exploring ways to enable its financial partners to underwrite PC purchases and prepaid cards on the most affordable terms for lower-income consumers. Microsoft’s FlexGo technology will create new and profitable opportunities for Microsoft’s global hardware partners as well as for local original equipment manufacturers (OEMs), banks, telecommunications providers and retailers in emerging markets.
Mary Jo Foley has more info on how it will work:
Via one set of trials, after making an initial down payment on a midrange PC, users will be able to buy time and make payments on their PC using prepaid cards, similar to those sold by cell-phone makers in various countries. Users will pay for the time they use their PCs, much the way individuals do now in Internet cafes. An alert on users' desktops will show them how much computing time they have available before they need to add more credit.
