Microsoft has not specified where the ad-supported Works will be tested, but the model has clear potential in emerging markets. Developing-country users are more price-sensitive and may be more willing than their developed-country counterparts to trade ads for free, legal software. Emerging-market users might also prefer Microsoft's pre-loaded software over online productivity applications if their Internet connection is slow, expensive or unreliable.
Microsoft's foray into the free software market would benefit low-income computer users who cannot afford full-priced software licenses and do not want to use pirated software. In addition to gaining new (legal) users, Microsoft would also benefit from partnerships with multinational corporations (e.g., Coca-Cola, P&G, Dell) eager to reach emerging mass markets through targeted advertising. Ad-based software could help these potential advertisers capture a larger share of the small but rapidly growing disposable income of emerging mass market consumers.
Also in the news
- Lenovo to Launch $199 PC
- Google to Develop its own Handset
- Emerging Markets-based Companies Spend More on Innovation
1 comment:
google must be giving microsoft sleepless nights. The biggest mistake that microsoft made was to enter into the internet race late.
Now they have to constantly play catch up.
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