Prepaid Office, Mobile Broadband Prize

Two new Microsoft sales initiatives—expanding a program that offers subscription versions of Microsoft Office, and efforts to develop computers that can provide inexpensive wireless broadband—are aimed at emerging markets. The subscription version of Office suggests that Microsoft has greater confidence in this licensing model and could expand it further as part of its thrust to provide software as a service, while Microsoft’s mobility efforts build relationships with major telecom players in fast-growing markets.

Office Subscriptions

Microsoft began offering subscription versions of Office in Romania and South Africa in June 2007. Office is preinstalled on new PCs for approximately US$30 (in equivalent local currency), and customers get a code from the computer reseller that activates the software for an initial six months. At the end of that time, the software drops into a reduced functionality mode, in which customers can view and print existing files, but cannot create, modify, or save them. Customers can renew their subscription for three months at a time by purchasing a renewal card with a new activation code for the local equivalent of US$30, or pay a higher price to convert the subscription to a permanent license.