Microsoft: A Move into the Rental Business

If you can’t afford to buy, perhaps you will rent. At least this is what Microsoft is hoping:

“Software giant Microsoft has begun renting its Office productivity suite to users in South Africa so that they are able to run the package without buying it.

Instead of purchasing it, the user are able to rent the software on a pre-pay basis. It is one of a number of ways Microsoft is experimenting with charging users for its applications.”

link: Microsoft launches pay-as-you-go Office

Cell phone companies are finding a lucrative market in the monthly rental business. Microsoft sees that rental of software applications as following the same business model - and generating a constant revenue stream from people who cannot afford a large one time payment.

Catherine Forsythe

Tags: microsoft, rental, revenue stream