Microsoft's Prepaid Computing Initiative*

            


Details


Case Code : CLIT003
Publication date : 2006
Subject : IT and Systems
Industry : Computers, IT & ITeS
Length : 02 Pages
Price : Rs. 100


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Key words:

Microsoft, Prepaid, Computing, Initiative, Information, technology, Systems, Micro, Case, Study, Softwares, Cards, Postpaid, Mobile, Phones, Trial, Time, Craig Mundie, Business, Computer, Personal, Device


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Abstract:
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Microsoft's Prepaid Computing Initiative - IT and Systems Micro Case Study, On September 13, 2006, Microsoft Corporation (Microsoft), the world's largest software company, announced that it planned to launch prepaid software cards in India. According to the company, these prepaid cards, similar to mobile phone prepaid cards, would enable users to buy Microsoft's software and use it for a limited time period.

Introduction

On September 13, 2006, Microsoft Corporation (Microsoft), the world's largest software company, announced that it planned to launch prepaid software cards in India. According to the company, these prepaid cards, similar to mobile phone prepaid cards, would enable users to buy Microsoft's software and use it for a limited time period.

One of the objectives of this initiative was to counter the problem of software piracy by making it easier to purchase the company's software, instead of having to incur a large one-time cost. Craig Mundie, chief research and strategy officer, Microsoft, said, "In Brazil, we are testing the pre-paid card and we will launch it in India. This will be one of the alternate models to fight piracy."


Software piracy was a major problem for Microsoft in most emerging markets such as China, India, Brazil, etc. With regard to India, Microsoft said that pirated software accounted for approximately 73 percent (as of November 2005) of the software available in the country. The high prices of original software products were believed to be one of the main reasons for the high proportion of pirated software. Kiran Karnik, President of Nasscom , said, "One of the most important factors that encourage piracy in India is the high cost of commercial software-the street price of software forms one-sixth the price of acquiring the computer."

Although the prepaid software system was expected to help Microsoft counter the software piracy problem, it was actually part of a larger business development initiative termed as Microsoft's "FlexGo" program...

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