23Oct 09
Microsoft likes to be spanked
Posted by Suzanne Tindal @ 12:36 6 comments
Microsoft is going to be given a beating over the next year or so by government agencies wanting to adopt Windows 7 at bargain basement prices. But it will enjoy each gentle slap.
If a cowering Microsoft presents its bottom for you to spank, it will likely enjoy the experience more than you will.
The software giant's new operating system Windows 7 has come at a time where change is being demanded, not just in the realm of desktop computers but also in government procurement. Federal and state governments want to now make more use of their buying power to whip suppliers into shape. They are big and they want to flex their muscles on new submissive suppliers looking to claw their way out of the crisis.
But when I think about Microsoft cowering on the floor, its butt in the air saying "no, please don't hit me anymore", I see a gleam in its eye.
Because even if it had to give massive concessions on support and price to get the NSW Department of Education to change its mind from rolling out XP to putting Windows 7 on its digital education revolution laptops, which I suspect might have happened, another generation of children is going to be exposed to the joys of the Microsoft way of thinking.
It's a case of give a little, get a lot. Each swipe of the price cut whip hurts so good.
A similar idea works with the non-education public sector. How many companies are on Windows XP at the moment? A lot. Change takes time, effort and money. Microsoft knows that if it can swing another XP scale roll-out, it's going to be set for another 10 years or so. So what does it have to lose by signing lean margin agreements for three years?
Not much. After Windows 7 has been implemented, and the contract runs out, there'll be time for Microsoft to negotiate a better price.
So watch out government. If a cowering Microsoft presents its bottom for you to spank, it will likely enjoy the experience more than you will.
1%
8%
basically every other business model out there to me.
Its no different to Xbox's, PS3's or Wii's being given away with particular TV brands.
Or certain Nokia bluetooth car kits being given away for free (or cheaper than cost) with cars.
Or a certain brand of protective clothing being sold cheaply (or given freely) with forklifts...
Its call the "loss leading" sales model... and its a part of everyday, normal business practice.
Meanwhile back to the IT industry; IBM have been doing it for some time, so has HP, so has Toshiba, Dell, etc etc etc.
Nothing new here at all.