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Microsoft Rolls Out Pay-As-You-Go Computing Models
Staff Reporter -- Electronic News, 5/22/2006
Microsoft today launched a new FlexGo technology program for subscription and pay-as-you-go computing models in emerging markets with a slew of support from companies like Intel, AMD, Infineon, Lenovo and Transmeta.
The program sees the PC industry giant use a model similar to prepaid mobile telephone services, allowing for flexible, pay-as-you-go PC purchasing models for consumers in emerging markets. According to Lenovo, the new market trials in India and China will be launched during the next three months, building upon a successful market trial conducted by Microsoft during the past year in Brazil. The first pay-as-you-go market trials will feature high-quality, mid-range Lenovo desktop PCs that are already available worldwide.
"This program creates new options for people whose access to personal computing would be limited otherwise," Philippe Davy, VP of Strategic Alliances at the China-based PC maker, said in a statement.
Consumers will be able to purchase a Lenovo desktop PC by paying about half of its street price up-front, and paying the balance over time through the purchase of prepaid cards from Lenovo, the company said.
Intel’s work in support of Microsoft’s FlexGo will see initial involvement on the MPU maker’s Discover the PC platforms tailored for people in developing regions, such as the recently introduced Intel-powered Community PC in India. Intel's support is part of its World Ahead program, which aims to help speed access to uncompromised technology and education for people in developing regions around the world.
"We are excited to work with Microsoft to implement the FlexGo technology and further equip millions of new users with the power of low-cost, full-featured PCs through a tailored financing model that fits their lives and budgets,” said William M. Siu, VP and general manager of Intel's Channel Platforms Group, in a statement. “Pay-as-you-go and subscription computing with Microsoft FlexGo technology will be a key part of Intel's portfolio of enabling efforts in developing communities in 2006 and beyond."
In a similar fashion, AMD’s efforts with Microsoft's FlexGo will be part of the company’s 50x15 Initiative, which seeks to apply new and sustainable business models to help narrow the global digital divide. Through AMD's 50x15 Initiative, the company believes it and its partners are building sustainable ecosystems that incorporate the full range of hardware, software, infrastructure, micro-financing, and entrepreneurial experience necessary to provide affordable, relevant technology to people in high-growth markets.
"Pay-as-you-go powered by Microsoft FlexGo does exactly that by delivering affordable, modern computing technology to people around the world," William T. "Billy" Edwards, AMD's chief innovation officer and senior VP, said in a statement. "We have seen great success under this same model with cell phones and we're very optimistic that Microsoft and AMD will enjoy the same kind of success with PCs. More importantly, this new program will greatly accelerate AMD's 50x15 Initiative, which aims to connect 50 percent of the world's population to the Internet by the year 2015."
On its end, Transmeta has developed a specialized Efficeon microprocessor and a reference system platform specifically designed to support FlexGo. The version of its x86-compatible Efficeon microprocessor and the associated reference system platform come under an engineering services agreement between Transmeta and Microsoft first announced in May 2005.
Meanwhile, Germany-based Infineon is working with Microsoft to develop specialised security chips that will support the deployment of FlexGo.
Microsoft’s FlexGo announcement took place the day before the Microsoft Windows Hardware Engineering Conference 2006 in Seattle.
