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Business pricing
I've been surprised about how well the high price of Office has held up through the years. I guess that the $400+ price range makes corporate buyers feel clipped but not gouged.
Microsoft's price strategy seems aligned to what businesses are willing to pay, as insurance against the inconvenience of changing software, but also because it doesn't seem excessive to them in absolute terms.

This article is about Windows, not Office, and Windows has always been substantially cheaper than Office. Makes me suspect a sort of loss leader; being on Windows makes other Microsoft (and Windows-based) software purchases more likely. Of course, Microsoft is not exactly losing money on Windows, but they could make more, particularly from businesses.

So Windows costs have probably not been rankling businesses that severely.

Microsoft has a problem is in these new, poor markets with a lot of pirating. As has been pointed out, people can buy a cheap pc with Linux, substitute a pirate copy of Windows. Why should poor people be denied the world's operating system if they can avoid it?

Microsoft has an opportunity here at least as much as they have a problem. Get people used to paying for Windows. When they're in the family of Windows users and have more money they'll be glad to pay a bit more.
It's a way to reduce piracy, get something rather than nothing.

And, who knows, maybe some people who never knew anything other than Linux might come to like it. Can't have that.
But Microsoft is likely to win any comparison because of ease of use for a beginner.

Take-away is: Microsoft needn't be motivated solely by fear. They may make money and reduce piracy. Also, their pricing (outside that licensing fiasco) isn't causing them too much of a problem, particularly for businesses.
Posted by: Anton Philidor   Posted on: 09/27/04 You are currently: a Guest | Members login | Terms of Use
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And where is the budget version for US schools?  DonnieBoy | 09/27/04
But Americnad demand the right to pay full price!  B.O.F.H. | 09/27/04
Not scared, just aware  amicus_curious | 09/27/04
Man, you live in a dream world.  DonnieBoy | 09/27/04
Linux is a sort of unix  StorageGuru | 09/28/04
Linux is doing a lot more than cannibalize Unix and keep Windows out.  DonnieBoy | 09/28/04
Unix losing money by the ton  StorageGuru | 09/28/04
RUN MICROSOFT, RUN!!!!  itanalyst | 09/27/04
how fragmented is xp now - 5 versions?  V Sanders | 09/27/04
IF they allowed optional installs - would only need ONE version  V Sanders | 09/27/04
It is truly a shame that the USA is falling behind in tech.  Xunil_Sierutuf | 09/27/04
Just history repeating itself.....  Laff | 09/27/04
Thanks to Microsoft Sufficating the U.S. Tech Industry  claytonmuhler | 09/27/04
MS is finding Linux indestructible.  Laff | 09/27/04
Most of the world?  Salman Pak | 09/27/04
Missed a few announcements - did ya  TrustMe_z | 09/27/04
Oops, you blinked.. it's now 4% and overtook the MAC  Xunil_Sierutuf | 09/27/04
Hardly that  StorageGuru | 09/28/04
yeah right  V Sanders | 09/27/04
What happenned to: "we can't unbundle anything"????  shawkins | 09/27/04
Reducing functionality  Anton Philidor | 09/27/04
oh yeah, linux:fastest growing OS in history is wrecking competition to win  hipparchus2000 | 09/27/04
"fastest growing OS in history"?  Anton Philidor | 09/28/04
One of the technology "givens" taught to CS majors.  Xunil_Sierutuf | 09/27/04
shawkins, That was the LIE they told the courts...  Plain Logic | 09/27/04
What's really a shame...  Spoon Jabber | 09/28/04
How long is the rest of the world going to pay?  crocd | 09/27/04
Problem is, they weren't paying  Anton Philidor | 09/27/04
Read the post  crocd | 09/27/04
Okay, but what's the connection?  Anton Philidor | 09/27/04
Not really gloating speculating..  crocd | 09/27/04
Business pricing  Anton Philidor | 09/27/04
Marketing is a science  amicus_curious | 09/27/04
Woe there sonny...:)  Laff | 09/27/04
Whoa is me; keeping 95% of the market  Anton Philidor | 09/27/04
It's better than jail...  Patrick Jones | 09/27/04
Most of the World?  IT_User | 09/27/04
Actually that's the sick part -- he'll remain the richest man..  DigitalKid | 09/27/04
doesn't bother me  DemonX | 09/27/04
Actually, without the value of MS stock, he would not be anywhere near.  DonnieBoy | 09/28/04
Mr. Bill has cashed some $40B  StorageGuru | 09/28/04
How about Red Hat?  Spoon Jabber | 09/28/04
97% piracy?  d_jedi | 09/27/04
No control thats why they pirate  crocd | 09/27/04
That's why..  d_jedi | 09/27/04
Piracy is good for Microsoft. They don't want you to use Linux.  DonnieBoy | 09/27/04
Limited XP is the tool pirate  voska | 09/27/04
Yes, they are desperate to limit exposure to Linux  DonnieBoy | 09/27/04
Bottom Line: MS Trying to Sell A Commodity At Luxury Prices  brenthawkinsmd | 09/27/04
Ubiquitous does not mean commodity  amicus_curious | 09/27/04
There is a lot more to the Anti Windows/MS concept  Laff | 09/27/04
The question is..  d_jedi | 09/27/04
Just curious...  Michael Kelly | 09/27/04
Well..  d_jedi | 09/27/04
wow you tried twice and failed. hint try preinstalled from Walmart  hipparchus2000 | 09/27/04
His point is very valid..  Brasonte | 09/28/04
And of course...  Spoon Jabber | 09/27/04
The difference is..  d_jedi | 09/27/04
just buy preinstalled  hipparchus2000 | 09/27/04
Umm.. no  d_jedi | 09/27/04
Actually...  Spoon Jabber | 09/29/04
justlinux.com  Linux User 147560 | 09/27/04
And where is it written?  StorageGuru | 09/27/04
So are you saying that someone who purchases  Laff | 09/28/04
Another Sheep Responds  brenthawkinsmd | 09/27/04
Using caps doesn't make it so  StorageGuru | 09/28/04
Sorry but gotta disagree here  Linux User 147560 | 09/28/04
You miss the point by a mile  StorageGuru | 09/28/04
US Schools Subsidizing Microsoft's Illegal Dumping in Russia  claytonmuhler | 09/27/04
And there is the future  FilledOut | 09/27/04
WinXP Starter edition is total junk!  doh123 | 09/28/04
looks like RUSSIA OEMS give consumers a choice  V Sanders | 09/28/04
only the russians -- pls  dark8eyes | 09/28/04
That's about what it is worth!  Spoon Jabber | 09/29/04

What do you think?

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