Microsoft to trial pay-as-you-go PCs

Microsoft is starting up trials of pay-as-you-go PCs in underdeveloped nations as a way to give residents of those countries more access to low-cost computers.

Microsoft will provide the prepaid PCs in retail outlets in Brazil, Mexico, Russia, India and China beginning this week, said Mike Wickstrand, director of product management for Microsoft's market expansion group.

These PCs will be built using a technology called FlexGo, developed by Microsoft and its partners. FlexGo is a combination of hardware and software that enables PCs to be sold and used on a pay-as-you-go basis, much like wireless phones, Wickstrand said.

A user will buy a PC for about half the normal retail price and, in exchange, will be given a certain amount of time on the system. The computers have metering technology built in that tracks a user's time and alerts them when they are running low on time.

As time begins to run out, the PC will shut down certain functionality, going into "reserve mode" so a user knows to buy more usage time. Users can buy this time over the Internet or through prepaid cards. If usage time runs out completely on a FlexGo PC, the technology locks the machine until a user buys a new card.

The FlexGo PCs were inspired by the success of prepaid cellular phones in countries where people may not have credit cards or predictable income streams, Wickstrand said. In India alone, there were 5 million prepaid cell phones five years ago; today there are more than 90 million, and that number is growing every month, he said.

Microsoft has been looking for new ways to sell Windows in emerging markets for some time now. Many see the company's push in these markets as a way to stave off competition from inexpensive open-source technologies that threaten Windows revenue growth.

Brazil will be the first country to sell the PCs. Microsoft had quietly tested FlexGo pay-as-you-go PCs in Brazil last year, selling them in a national retailer Magazine Luiza. The other countries will follow Brazil with rollouts in the next two months, Wickstrand said.

The PCs, which will cost about the equivalent of US$300, will be available at various local retail outlets in each country. However, the PCs are technologically equivalent to a machine that would cost about US$600 in the U.S., Wickstrand said.

"Customers pay a lower amount for the PC up front because they have to keep purchasing [usage time]," he said.

Partners that have worked with Microsoft to design the FlexGo PCs in the current round of trials include Intel, Advanced Micro Devices, Infineon Technologies, Lenovo Group, Phoenix Technologies and Transmeta, Wickstrand said.

Manufacturers building the FlexGo PCs are Lenovo in China and India; First International Computer in Brazil ; Excimir D.M. in Russia and Avatar in Mexico.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Elizabeth Montalbano

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?