Sadagopan has a great story about how Microsoft is attempting a new business model designed to help poorer nations get in on computing. The model is a novel variation of rent-to-buy with the overall cost moderated by removing features from Windows. Crucially, Sadagopan notes that Microsoft and others have figured out how to address the market from the market’s perspective and not an imposed Western perspective. Sadagopan says:
A combination of vision, guts, innovation, entrepreneurism, favourable policy regulations all are coming together to make this happen – the mission is nothing short of true revolution – the multiplier effect this can bring would be mind boggling.
I agree. But then I thought. PC and laptop costs in the UK are still high. TV ads promote Dell desktops at £379. Dabs has an HP laptop offer at £399.49 inc VAT. OK, so the UK average earnings are around £24,500 so you can argue that these prices have a relatively low impact on disposable income.
But what about people at the bottom end who languish on £14,300 pre-tax? What about startups who need all the cash flow they can muster? Why can’t Microsoft put out a version of its Windows operating system that would bring the price down here as well? After all, the way it’s being pitched, users could get internet access, which opens up a whole new world of services that have mass appeal. That would be innovative – IMO. Especially if Microsoft and the hardware vendors got together to offer customers a range of payment options that reflects the innovation they’re bringing to other nations.
How would your clients respond to that idea? I’m wondering what Microsoft/Dell’s response would be to say 50 x 3 partner firms who garnered say 200 clients each willing to approach the Redmond Giant. While it’s not a big number in Microsoft’s terms, that would be a way of establishing a rapport with customers. A start so to speak. All I’m proposing is the commoditisation of basic services everyone need, shanding the vendors 10K users in the process. A heck of a PR coup. And all user driven.
In a curious sort of way, this is exactly what Kit Cameron, Microsoft’s identity management guru is proposing.
Update: Cripes! I wort this early evening and now it’s late. I’ve just seen this Wired article where it’s said Microsoft is discussing the very thing I’m musing upon. I hadn’t read this before I wrote the above. Honest!
Technorati Tags: innovation, Microsoft
