Monday, May 22, 2006

Pay-As-You-Compute

Microsoft Corp. is announcing a flexible business model for emerging markets powered by Microsoft FlexGo technology.

The pay-as-you-go computing model enabled by Microsoft's FlexGo technology allows customers to have a fully featured PC at home by paying only for the time as they use it through the purchase of prepaid activation cards or tokens. Microsoft has been running trials of the program in Brazil for more than a year and will soon be expanding to select markets in India, Russia, China and Mexico.

The company intends to start a second trial in Brazil this week.

AMD intends to develop processors designed specifically to support Microsoft FlexGo technology. Other partners in the pay-as-you-go program include the HSBC Bank Brasil S.A., Infineon Technologies AG, Intel Corporation, Lenovo, Phoenix Technologies Ltd., Transmeta Corp. and more. These will join Microsoft for the next round of pay-as-you-go and subscription trials in Brazil, China, Hungary, India, Mexico, Russia, Slovenia and Vietnam.

Along with the new pay-as-you-go model, Microsoft has also been working with major telecommunication companies around the globe on subscription computing offerings that provide convenient and predictable monthly payments for a full-featured PC with broadband access and genuine software. With the availability of Microsoft FlexGo technology, it will be possible to expand the potential of the subscription model by enabling telecommunications providers to better secure the PC asset from default and offer this option to a broader range of customers.

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