India Mobile
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Soon computer buffs will be able to buy software cards or opt for monthly subscription of software a la prepaid mobile cards.
Microsoft, the largest software company in the world, is all set to introduce a novel concept called pay-as-you-go cards and subscription computing offerings despite scepticism about their success from some experts.
The concept, which is powered by Microsoft FlexGoTT technology, requires customers to pay upfront 50 per cent cost of the computer and buy pre-paid cards from the company showrooms or retailers for hourly access to the computer.
The card—expected to hit the market shortly— alerts users as time is consumed and shows them how to add more hours by typing in a number from the pre-paid card. If time is not added, the PC gradually moves into a ‘‘reserve tank’’ or limited-access state until the customer purchases more time either online or from local vendors.
‘‘The moment someone tries to copy the software, it will go on a self-destruct mode. The computer becomes the customer’s property after a set number of hours are purchased,’’ says a Microsoft note on the new plan. However, when contacted, the company refused to discuss the timing of the launch and pricing of the products.
A section of IT experts are doubtful whether this initiative will make any difference to the customers. ‘‘It’s a good initiative but not an extra-ordinary one. Any cheaper product is beneficial for both the company and the user. Marketing gimmicks will not make any big difference,’’ says D B Pathak, professor, School of IT, IIT Mumbai.
The same concept is already used in other segments like mobile phones and consumer durables. ‘‘The idea is in existence as the dealers of consumer durables are already doing it. Nonetheless, the penetration of durables has shot up drastically after EMI schemes were launched,’’ adds Pathak.
Karvy Consultants IT analyst R Ravi feels that bandwidth availability is the main obstacle in PC penetration and bridging the digital divide in India. ‘‘Unless this is addressed, these initiatives will not help. Except for IT and ITES industry, bandwidth availability is very poor for common users,’’ he said.
Though Ravi thinks that pre-paid cards will help prevent piracy to a certain extent, he says it will not change the landscape. Doubting the mass success of the initiative, he cites the failure of HCL’s initiative to launch personal computers below Rs 10,000.
Said Ravi Venkatesan, chairman, Microsoft India: ‘‘There are more than 50 million pre-paid mobile phones in India so we know this is a familiar and comfortable model that works in markets with low or unstable income levels. Bringing this flexibility to PC ownership will help new groups of customers in India thereby bridging the digital divide, a cause which Microsoft India is committed to.’’
Basically designed for emerging markets like Brazil, India, Vietnam, Hungary etc, the model is already in use in Brazil. Along with the new pay-as-you-go model, Microsoft has also been working with major telecommunication companies around the globe on subscription computing offerings that provide convenient and predictable monthly payments for a full-featured PC with broadband access and genuine software. In India, it has already tied up with VSNL.
