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More about Microsoft's $3 software plan

In Beijing this morning, Bill Gates announced plans for Microsoft to offer a package of Windows, Office and other software for $3 to government programs that distribute subsidized PCs to students around the world. The "Student Innovation Suite," to be released later this year, is part of a new push by the company to increase access to computers around the world, and in developing nations in particular. See this story from today's paper for details.

The company says its goal is to double the number of computer users in the world by 2015, adding another billion people. Of course, it's far from the only one trying to spread the reach of PCs in the developing world. And there's a major business angle in all of this. Among other things, Microsoft wants those new PC users to run Windows, not Linux -- which has been making major strides in developing nations.

Additional details about the company's plans:

  • Microsoft says the version of Windows in the suite will be Windows XP Starter Edition, the stripped-down version of Microsoft's previous operating system for developing nations. Why not Windows Vista Starter Edition? Orlando Ayala, Microsoft's senior vice president for emerging markets, explained in an interview that "there are scenarios at the low end where we wonder if Vista is going to run properly." However, he said that Windows Vista Starter Edition is part of the plan in the long run.
  • Just how much is Microsoft putting on the line here? I asked Ayala whether progress toward the 1 billion goal will become one of the factors used to determine executive and employee compensation and bonuses. It won't, he said. However, he said he believes people inside the company will recognize the importance of the cause, and rally around it.
  • The $3 student software suite is only one of the company's efforts in developing nations. Among other things, it's continuing to pursue the notion of using mobile phones and televisions as makeshift computing devices. Other projects include its "FlexGo" pay-as-you-go computing initiative.

For today's story, the P-I's graphics department put together an interesting graphic that shows the existing distribution of personal computers around the world, based on data from the IDC research firm:

Posted by at April 19, 2007 7:37 a.m.
Categories: , ,
Comments
#30160

Posted by unregistered user at 4/19/07 9:24 a.m.

Good job pointing out the Microsoft isn't so much "thinking of the children" as they are thinking of Linux. Gee, I wonder if governments can combine this offer with any other discounts from Microsoft. Wouldn't that be nice.

#30163

Posted by unregistered user at 4/19/07 9:43 a.m.

If Microsoft is willing to provide a significant benefit to the developing world, why can't they provide this same benefit to our children? Our school districts face serious budget problems and taxpayers are stretched, nearly to the breaking point. Microsoft should offer this software to our school districts and our children. If not, Microsoft should explain why they want to charge our children more than children in the rest of the world. FYI: Less than 1/3 of the computers in use in the world are within the borders of the United States.

#30164

Posted by unregistered user at 4/19/07 9:52 a.m.

Just shows how much Linux is making progress vs the inflexability and in-ability of MicroSoft Corp has in to getting their act (& code together). Besides with so much at stake why not offer a basic useless version for only $3, they still make a profit!. The only reason MS hasn't folded, is there legal high-way robbery tactics used to extract enormous funds from users' and business, and eleminating competitors. I know, I was a loyal MS user from as far back as MS Dos 2.1 days through XP. Not no more, especially with the Vista fiasco!

Now if MS was to get thier code corrected and realistically price all general consumer products to under $99 USD (including Office Pro), and say $299 USD for all there commercial server software, then I might reconcider. But I don't have to even hope for this, because MS greed always outways thier commitment to thier customers. Besides I'm tired of all the broken promises since Windows 3.0 days. I wish MS all the best of luck, they need it. Because looking back at all the money I have previosly spent on MS products and hardware, internet services, etc I could have paid cash for my house. But that's just another testimony to the Success of Bill Gates/Microsoft corp. strategies, it proves it works.

#30172

Posted by unregistered user at 4/19/07 10:20 a.m.

I agree with the comments about US kids first. Our high school has computers that barely run XP on the old hardware they have. Another better use of Bill's time would be to get the utility companies to provide decent internet connections at resaonable prices. Once again those that got rich off American citizens seem to have forgotten US...

#30173

Posted by unregistered user at 4/19/07 10:24 a.m.

Clearly they are not worried about helping anyone. What they want is another billion MS users. In their own words, "...its goal is to double the number of computer users in the world by 2015, adding another billion people."

These guys are like the drug pusher on the corner... Practially give it way at first until you are addicted or in my case so vested in their product I can't quit using it.

#30177

Posted by unregistered user at 4/19/07 10:31 a.m.

Historically, no one cleans up one's own mess, and we go out trying to do others. I completely agree with that point that US kids need support too with lower prices.
But interestingly I only see Microsoft taking the steps in the right direction in doing charitable contributions, and I do respect them for that. What about Apple, Oracle etc etc, there is hardly any buzz about them. Wonder if they do anything in this department.

#30181

Posted by unregistered user at 4/19/07 10:41 a.m.

There is literally not one single reason to use Windows XP Starter Edition. It is severely crippled (no networking, for example) and a disgusting insult. Ubuntu Linux has far more features and applications than Windows Vista, it's 100% free, it will run on any hardware that XP Starter Edition will run on, and a lot of hardware that XP won't run on, and it actually enhances your dignity instead of diminishing it. In 2007 there is simply no reason for even the poorest people in the world to accept this treatment when Linux is freely available.

#30183

Posted by unregistered user at 4/19/07 10:42 a.m.

American students get the same software for free (don't even have to pay $3). I don't get what you are all talking about. As long as you are enrolled in school, and your school has opted into the program, you can get most of the MS products for no charge. This includes the latest versions of Office, and Windows (and they are the full versions, not trials.

Microsoft isn't giving computers away, they are giving software for $3 to companies that are giving the computers away.

#30184

Posted by unregistered user at 4/19/07 10:44 a.m.

Well first off mc must be making a killing of there operation systems,cause how else could he give billions to cherity?His givaways are like robbing the neighbor to donate to some one else from anouther town.All his excess moner came from poor pockets to start with.How duplictic

#30185

Posted by unregistered user at 4/19/07 10:45 a.m.

I think all schools should run UBUNTU (a Linux distro) and stop brainwashing kids into believing only MS software can do the job!

#30190

Posted by unregistered user at 4/19/07 11:05 a.m.

I have no vested interest in any specific company, but it seems like MS is always considered "guilty even if proved innocent." If the proponents of LINUX, MAC, and other systems are so afraid that once exposed to the wonders of Windows, their kids would not be able to switch, they don't have much faith in their own choices.

I'll applaud MS for offering something to help increase computer availability in countries outside the developed world and not concern myself with their motives.

#30191

Posted by Hollywood at 4/19/07 11:05 a.m.

What MS is doing is called Dumping. Selling a product below the cost manufacturing the product.When factoring in the sole reason for this action, to keep from losing market share in the developing world to the Linux operating system, and the Open Office Suite. This is the same predatory behavior MS has demonstrated in the past. Expect the EU to once again file action against MS for their Monopolistic Culture. Let's not forget about Apple ; now that they run the x86 architecture , Apple is also being targeted from getting a foothold in the rest of the world. The U.S. government may even take steps to reign in or break up the MS Monopoly. Then again, maybe it only costs $3 to develop and manufacture the various Windows products. If that's the case, MS is going to have to justify why the general public pays " Hundreds " for the MS products.
If this was Steel being Dumped on us from Asia, or Beef from Argentina, or produce from various countries , The U.S. government would be filing protests with the WTO. FYI- Vista sucks - I want my money back. !!!

#30192

Posted by unregistered user at 4/19/07 11:10 a.m.

This is really indicative of how the international economy has come to value Microsoft. Prices have dropped to $3. Apparently they don't have a monopoly overseas.

#30193

Posted by unregistered user at 4/19/07 11:11 a.m.

Not one of these negative commentors will ever come close to contributing as much good to the world as Bill Gates. They are too busy using their computers to spread negative crap like, why doesn't Microsoft won't do more for the world? Why don't the negative commentators give their computers to charity and stop spreading hatred for someone who is changing the world for the better?(just a thought)

#30217

Posted by unregistered user at 4/19/07 12:36 p.m.

Microsoft has had educational discounts for years in the US. This is not something new. When I was in college, any Microsoft product was $5. I could have any program Microsoft made printed on a CD and install it as a student. Most large universities have this deal, and many school districts receive significantly discounted educational products.

#30218

Posted by unregistered user at 4/19/07 12:36 p.m.

All you ladies and gentlemen out there are in dire need of a spell-checker. If you are going to post to a subject on the www, and be from the USA, at least have the intelligence to understand the difference between "their" and "there". My guess would be MOST if not all of you are using Windows because it is easy, there are lots of games, and you can get pirated versions of whatever you need from your friends. Personally, I use Windows because it is easy, there are lots of games, and it puts food on my table as an engineer. Just my .02

#30219

Posted by unregistered user at 4/19/07 12:37 p.m.

MS has humiliated consumer world many times. Its latest Vista system could not offer any significant innovation and computer capability advancements to us since its win95 system. With their aggressive monopolizing policy a lot's of computer world usage limited and corrupted.

Now they are trying to enter into other side of consumer world and trying to tie them like how did it to us.

#30222

Posted by unregistered user at 4/19/07 12:48 p.m.

When have US Schools not faced serious[?] budget problems and why do teachers & their supporters ALWAYS complain they're paid too little for 9 months of work? 2 weeks Xmas, 1 week Easter and other holiday pay, retirement and other benefits. When does the whining stop? When???

Microsoft: I hope you succeed. The more of the world that accesses to some level of computing, the better.

Microsoft is successful because they weren't greedy like Apple was, which is why Apple is a looser. They wanted to rule software and hardware. Microsoft only wanted the software. Now they rule and that's the truth (though people don't want the truth).

Microsoft is not perfect, but it does rock.

#30227

Posted by unregistered user at 4/19/07 1:17 p.m.

Dumping - nifty conspiracy theory. Have you visited any developing markets recently? IMO this is primarily about 2 things:

1) Making legitimate commercial software available at practical affordable prices in developing nations.

* Consider the large % of users in such markets who already pay some local person on the street ~$ 2 to $3 for a CD/DVD of pirated software that is commonly infected with viruses.

* In 2000 a legitimate copy of Office cost roughly 2 months salary of an average Chinese citizen. As I recall the legitimate price was roughly $600US at the time.

2) Investing in building an IT economy in these countries.

Every one of these countries wants to build and grow their economy. China is just one example. Brazil, Thailand - there are many examples.

I was told that the American dream was basically that parents want their kids to be better off than they are. Funny thing is everybody I met in China wants the exact same thing.

#30277

Posted by spacemarmot at 4/19/07 7:58 p.m.

The best way for developing world countries to build their IT economies is to adopt open source technology like Linux. If Microsoft succeeds in making developing nations dependent on Microsoft products, then those developing countries will be less likely to compete with them in the future. Wealthy Asian governments bankrolling Linux development is Redmond's worst nightmare.

If you like your computer and you value your freedom, make the switch to open source and tell Redmond to jam their hideous and defective products where the sun don't shine.

#30296

Posted by unregistered user at 4/19/07 11:57 p.m.

Funny to read comments from people lamenting the state of american schools and education. Pick on Microsoft all you want - while your own government is burning your money over in Iraq.

#30302

Posted by unregistered user at 4/20/07 12:33 a.m.

Anyone else thinking that the just released Feisty Fawn (Ubuntu 7.04) would make a far better choice for the developing world?

#30441

Posted by unregistered user at 4/21/07 1:22 a.m.

Congratulation Bill Gates again on a move that benefits the developing world.

Negativity on a non violent move such as a $3 dollar giveaway to afford the worlds best office suite is a bonus. That doesnt need any expalanation. I would rather appreciate and should see whether I can match such generosity...otherwsie I just remain silent...

#30460

Posted by unregistered user at 4/21/07 8:44 a.m.

Only 3$ to buy the shovel to dig your own grave does seem generous, until one perceives the ultimate goal - death. 3rd world countries don't need buggy software with backdoors to steal government secrets and track the populace online anymore than the U.S. consumers do, but Microsoft is more than happy to provide the chains to bind the populace.. ah the charity of it all.

Bill Gates is a master of marketing and deceit, which are often one and the same, he makes Karl Rove look like a neophyte. The great white programmer appears in the land of the rising sun and offers the natives blankets with smallpox germs on them. Beware white men bearing gifts or 3$ software.

#30501

Posted by unregistered user at 4/21/07 7:59 p.m.

Ive just realised (from#30640 above)that buying $3 software would perceives the ultimate goal....death. $3 for Killer shovel is too cheap..how about million fighter chopper use by Bush to Kill the many innocnet civilians in Iraq....

What can you offer?????

#30690

Posted by unregistered user at 4/23/07 7:04 p.m.

Is there any particular reason that poor starving kids in Africa need computers to better their lives? Do they really need to spend their time glued to a screen, trying to get the the next level of the game, when they could be doing something constructive? I suppose that some of these kids will grow up to do something useful with the knowledge they glean from the computer industry, but what about the rest of them. Like all of us in this fine country, they too will learn to become couch potato's, and wait for their next upgrade when they should be working or studying...

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