eCommerce in the News Week 7

Microsoft Outlines Vision of Pay-As-You-Go Computing
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Microsoft just recently submitted a patent for a very different kind of business model for the computer industry. Instead of the traditional buy and own scheme, this model allows a per-as-you-go system, but for computer packages. According to Microsoft’s patent document, customers can choose varied levels of performance for individual parts based on their needs. They are then charged something like $1.00 for every hour they use the computer. If they decide to upgrade to a better package obviously that price increases. The computer will be subsidized and given away to customers.

In theory this is a very logical approach.

But I see a ton of problems with it from a consumer’s point-of-view. First is metering. I bet within days of launch the thousands of skillful hackers out there will figure out how to crack the metering system, and businesses will lose a lot of money from hours used but not metered. Then there is the issue with theft. What if the system is “stolen”? Will suppliers force customers to pay for it full? According to the article, this payment system will end up making the computer more expensive than the traditional one-time charge, but the user can “extend the useful life of the computer [by] migrating the performance of the computer as needs change over time, while supplier can develop a revenue stream.” I simply don’t think this will work because to me it is geared at benefiting the suppliers (computer/software makers) more than customers, and the truth is we are the ones that are paying.

With the way computers are built these days, it is not hard for people to buy individual parts to upgrade their current system anyway. Also, I personally like the feeling of owning something and not have to keep paying for it. I rather pay $1000 for a computer and pay another $1000 five years later if I want another one, than to pay $1.00 a day for the rest of my life. On the other hand, I can see this working with companies that want constant software and hardware support, and tailor made IT customization package to fit their needs. Perhaps this will be the future of the computer business industry? Maybe one day we can walk out of BestBuy with a high end gaming computer for just a dollar?