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?
Thursday, January 29, 2009
eCommerce in the News Week 6
Even in Test Form, Windows 7 Leaves Vista in the Dust
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The author of this article looks at the highly anticipated Windows 7, the about-to-be newest operating system from the software giant, and hopefully a cure for those who disliked Vista. He points out how Windows 7 is faster, has an easier interface, more customizable, and comes with a touch screen feature similar to the iPhone. The author expects Microsoft to launch Windows 7 no later than fall of this year, and its beta version is already very promising.
It is now very clear that Microsoft made a wrong turn with Vista. It was slow, incompatible, annoying, and had tons of issues that made people unwilling to upgrade. Not only did Vista become one of the least popular OS after launch, it also gave Microsoft a poor brand image. People would either stick with XP for as long as they could, or simply move to Macs. Therefore, it is no surprise to me that Microsoft is rushing its Windows 7 to recover all the damage that Vista has done. I think consumers’ expectations are somewhat low because of the previous launch, but whether they could still be disappointed is entirely up to Microsoft.
click click click
The author of this article looks at the highly anticipated Windows 7, the about-to-be newest operating system from the software giant, and hopefully a cure for those who disliked Vista. He points out how Windows 7 is faster, has an easier interface, more customizable, and comes with a touch screen feature similar to the iPhone. The author expects Microsoft to launch Windows 7 no later than fall of this year, and its beta version is already very promising.
It is now very clear that Microsoft made a wrong turn with Vista. It was slow, incompatible, annoying, and had tons of issues that made people unwilling to upgrade. Not only did Vista become one of the least popular OS after launch, it also gave Microsoft a poor brand image. People would either stick with XP for as long as they could, or simply move to Macs. Therefore, it is no surprise to me that Microsoft is rushing its Windows 7 to recover all the damage that Vista has done. I think consumers’ expectations are somewhat low because of the previous launch, but whether they could still be disappointed is entirely up to Microsoft.
eCommerce in the News Week 5
iLife Gets Better; Just Don't Ask It to Find a Face
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I decided to move away from iPhones and look at articles that reflect a bigger picture for personal computing. One article that I found to be great with this transition is this one about the newest iLife ‘09, a recently announced software package that would come free with any new Mac OS X.
According to the article from WSJ, and a quick search on the infamous Wikipedia, iLife is a software suite featuring various multimedia programs that are geared towards organizing, viewing and publishing digital content.
From an eCommerce point-of-view, iLife becomes an opportunity and gateway that would link new and old users to the world of Web 2.0. While competing directly with window vista’s features, iLife allows users to arrange, edit and finally upload content to popular sharing websites such as flickr, youtube and facebook. I just find it interesting that even for a strong multimedia function-based company like Apple cannot ignore the fact that digital content are no longer staying on personal computers. With the development of Web 2.0 websites, people are enjoying the ability to upload their memories, interests, and ideas to a remote space, where they can access and share to their hearts content.
Programs like iLife comes bundled free with any new Mac, mostly because a lot of the features they offer can now easily be found on online tools and services. I think when the day of unlimited bandwidth arrives, we will no longer have much, in any, software left in our personal computers.
click click
I decided to move away from iPhones and look at articles that reflect a bigger picture for personal computing. One article that I found to be great with this transition is this one about the newest iLife ‘09, a recently announced software package that would come free with any new Mac OS X.
According to the article from WSJ, and a quick search on the infamous Wikipedia, iLife is a software suite featuring various multimedia programs that are geared towards organizing, viewing and publishing digital content.
From an eCommerce point-of-view, iLife becomes an opportunity and gateway that would link new and old users to the world of Web 2.0. While competing directly with window vista’s features, iLife allows users to arrange, edit and finally upload content to popular sharing websites such as flickr, youtube and facebook. I just find it interesting that even for a strong multimedia function-based company like Apple cannot ignore the fact that digital content are no longer staying on personal computers. With the development of Web 2.0 websites, people are enjoying the ability to upload their memories, interests, and ideas to a remote space, where they can access and share to their hearts content.
Programs like iLife comes bundled free with any new Mac, mostly because a lot of the features they offer can now easily be found on online tools and services. I think when the day of unlimited bandwidth arrives, we will no longer have much, in any, software left in our personal computers.
Wednesday, January 28, 2009
eCommerce in the News Week 4
Life After iPhone
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Continuing on my look at Apple’s successful iPhone and iPod Touch, this article from CNN Money discusses about what AT&T and Apple would do after their successful contract in 2007. Ever since AT&T made the deal with Apple’s iPhone, they climbed on top of Verizon as the nation’s number one wireless provider at 75 million wireless users. According to the article, neither company plans on staying in contract, which means we can predict several things. First, the iPhone might break the AT&T only barrier and begin showing up in packages from Verizon, Sprint, T-Mobile, or other service providers. Second, we might see one of these providers pair up exclusively with a Smartphone just like iPhone, since it was so successful. Third, Apple might re-market the iPhone to tailor for corporate uses, perhaps hinting a danger future for blackberries. Last, as mentioned in the article we might see wireless companies begin to shift towards becoming software development companies. Either way, the iPhone is still taking the world by storm wherever it is, and it won’t be stopping for some time!
click click
Continuing on my look at Apple’s successful iPhone and iPod Touch, this article from CNN Money discusses about what AT&T and Apple would do after their successful contract in 2007. Ever since AT&T made the deal with Apple’s iPhone, they climbed on top of Verizon as the nation’s number one wireless provider at 75 million wireless users. According to the article, neither company plans on staying in contract, which means we can predict several things. First, the iPhone might break the AT&T only barrier and begin showing up in packages from Verizon, Sprint, T-Mobile, or other service providers. Second, we might see one of these providers pair up exclusively with a Smartphone just like iPhone, since it was so successful. Third, Apple might re-market the iPhone to tailor for corporate uses, perhaps hinting a danger future for blackberries. Last, as mentioned in the article we might see wireless companies begin to shift towards becoming software development companies. Either way, the iPhone is still taking the world by storm wherever it is, and it won’t be stopping for some time!
Wednesday, December 17, 2008
eCommerce in the News Week 3
Apple Tweaking iPhone App Store: Good News for Shoppers, Developers
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This is a follow-up article I found on CNN money about the same issue that I found last week. It seems like Apple is finally tweaking its App store to give the less popular applications a chance to compete against the popular ones. They are also separating free applications from "Most Popular" because they keep appearing on the list. According to the article, these changes help with the overall experience of the app store, but it still doesn't solve the problem with the $0.99 app domination like I mentioned in last week's post.
I think its becoming more interesting to track how Apple will act according to this issue. On one hand, they have all these talented developers who want to make top of the line software, yet the mass of consumers still prefer the free and $0.99 "ringtone" applications. The recent change of the store's appearance doesn't seem to reflect this issue, so perhaps Apple either doesn't care about their shop populated with low quality applications, or they simply cannot come up with a solution for it. One can argue that apple is just letting the market play itself, yet I think the way they display popular items creates a tendency for customers to download those only.
I'll keep looking for updates and see how Apple wants to deal with this situation. Meanwhile I'll just go ahead and download all the free semi-useless applications for my iPod.
click click
This is a follow-up article I found on CNN money about the same issue that I found last week. It seems like Apple is finally tweaking its App store to give the less popular applications a chance to compete against the popular ones. They are also separating free applications from "Most Popular" because they keep appearing on the list. According to the article, these changes help with the overall experience of the app store, but it still doesn't solve the problem with the $0.99 app domination like I mentioned in last week's post.
I think its becoming more interesting to track how Apple will act according to this issue. On one hand, they have all these talented developers who want to make top of the line software, yet the mass of consumers still prefer the free and $0.99 "ringtone" applications. The recent change of the store's appearance doesn't seem to reflect this issue, so perhaps Apple either doesn't care about their shop populated with low quality applications, or they simply cannot come up with a solution for it. One can argue that apple is just letting the market play itself, yet I think the way they display popular items creates a tendency for customers to download those only.
I'll keep looking for updates and see how Apple wants to deal with this situation. Meanwhile I'll just go ahead and download all the free semi-useless applications for my iPod.
Wednesday, December 10, 2008
eCommerce in the News Week 2
Trouble in the (99-cent)
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This article discusses about the issue with the apple app store for the iPhone and iPod Touch. As indicated by the diagram below, most of the app store applications are either free for download or $0.99. Due to this issue, programmers and developers are pushing to aim at the $0.99 category, sacrificing quality for low cost software. As a result, instead of having innovative and complex products, we see more and more low-cost, low budget turning the app store into "crap store".
Picture retrieved from the article. (Fortune)
As mentioned in the article, I think one of the best methods to tackle this problem is to change the way iTunes promote and display applications. Applications that are high quality and high priced should be given an opportunity to have more prominence. This could range from having a spot on the main page, or customized application description page or more screenshots. Perhaps users can also see a video sample of the application. If Apple wants to prevent their app store from hosting poorly developed programs, they need to show their support for developers and programmers by giving more attention to $2.99+ programs. Otherwise, this will only turn away developers from developing really good applications that is actually worth the price tag
click click
This article discusses about the issue with the apple app store for the iPhone and iPod Touch. As indicated by the diagram below, most of the app store applications are either free for download or $0.99. Due to this issue, programmers and developers are pushing to aim at the $0.99 category, sacrificing quality for low cost software. As a result, instead of having innovative and complex products, we see more and more low-cost, low budget turning the app store into "crap store".
Picture retrieved from the article. (Fortune)
As mentioned in the article, I think one of the best methods to tackle this problem is to change the way iTunes promote and display applications. Applications that are high quality and high priced should be given an opportunity to have more prominence. This could range from having a spot on the main page, or customized application description page or more screenshots. Perhaps users can also see a video sample of the application. If Apple wants to prevent their app store from hosting poorly developed programs, they need to show their support for developers and programmers by giving more attention to $2.99+ programs. Otherwise, this will only turn away developers from developing really good applications that is actually worth the price tag
Thursday, December 4, 2008
eCommerce in the News Week 1
Sony's E-Book
http://blogs.wsj.com/biztech/2008/12/03/turns-out-sony-e-book-readers-sell-after-all/
This article from WSJ pretty much talks about how Sony is selling their e-book well, despite having debatable unconventional features, such as lacking pages or having a feel of a real hardcover.
I have mixed feelings about e-books. While I see them as unpreventable replacements for our future books, it also kills our traditional interaction with these things. A book is simply not a book without its pages and binding. The ability to flip through pages, slide in funny looking bookmarks, or check progress by examining the remaining thickness of the book is what makes book reading so unique. With companies cutting down on marginal costs and making the world more techy and digital, I can see books slowly fading away, especially with the new generation of kids who will grow up with nothing but electronics.
So how will books fair with the emerging popularity of E-books? Will books die off like analog photography, or will its traditional features be distinct enough to survive the digital age?
http://blogs.wsj.com/biztech/2008/12/03/turns-out-sony-e-book-readers-sell-after-all/
This article from WSJ pretty much talks about how Sony is selling their e-book well, despite having debatable unconventional features, such as lacking pages or having a feel of a real hardcover.
I have mixed feelings about e-books. While I see them as unpreventable replacements for our future books, it also kills our traditional interaction with these things. A book is simply not a book without its pages and binding. The ability to flip through pages, slide in funny looking bookmarks, or check progress by examining the remaining thickness of the book is what makes book reading so unique. With companies cutting down on marginal costs and making the world more techy and digital, I can see books slowly fading away, especially with the new generation of kids who will grow up with nothing but electronics.
So how will books fair with the emerging popularity of E-books? Will books die off like analog photography, or will its traditional features be distinct enough to survive the digital age?
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