Alex Zaharov-Reutt
Monday, 30 November 2009 13:58
Opinion and Analysis
Page 1 of 3
It’s the Australian tech news of the day – Microsoft has launched a
cheaper way for families to “upgrade” 3 PCs running Windows XP Home or
Vista Home to Windows 7 Home Premium, but with this carrot comes the
“limited time offer” stick urging you to buy now - before stocks run
out!
Earlier today we looked at Microsoft Australia’s announcement that a new 3-user license Windows 7 Home Premium Upgrade Family Pack would be made available for AUD $249, or only $50 more than the $199 single-user licence Win 7 in an
article entitled “Microsoft FINALLY launches Aussie Win 7 family pack with ‘limited’ BS”.
We made some fun of the notion that easily and infinitely copyable software could ever truly be available in “limited” quantities as Microsoft can make as many as it wants, but there’s the rub. How many does it want to make? And can Microsoft truly afford to remove this pricing now that it has delivered it, even as it “threatens” to?
For now, the message is that it is available in limited quantities and to buy now as the whole 3-user license thing is a “pilot program” anyway, which presumably needs a great amount of study to see whether some consumers are willing to buy in bulk and pay less.
3-user license editions of the Win 7 Home Premium Upgrade have been available in in the US and other selected countries since the start and Australia’s original non-inclusion wasn’t received very nicely by consumers or the local tech media, in stark contrast to the overall high popularity of Windows 7 itself, so the efforts of those within Microsoft Australia, such as its Windows Consumer Lead, Jeff Putt, and others, to bring the deal down under was successful and this should definitely be acknowledged.
However, Microsoft HQ should have made a 3-user license edition of the Windows 7 Home Premium upgrade available to the everyone, worldwide, right from the word “go”, but chose not to.
I guess it helped Microsoft Australia come out with the “good news” of a price drop for selected upgraders just before Christmas to presumably do what it to keep the "good feeling about Windows 7 going" for as long as possible and well into 2010 when ever newer, lighter and faster PCs arrive.
Microsoft also wanted to ensure it did something for the upgraders who had already purchased three separate Win 7 Home Premium upgrades at $199 each (with the proviso that they were purcahsed on the same credit card before November 30), and if consumers can prove that with receipts, Microsoft will offer three Microsoft Wireless Comfort Desktop and Mouse keyboard packs as compensation.
After all, at $199 per copy, it's a way to make up some of the difference since the price drop which at $249 reduces each copy in the 3-pack to $83, more than half price off the single-user license price.
Microsoft should also make a specially priced 3-user license edition of the full, not upgrade edition, of Windows 7 Home Premium available as well to those who want to build brand new machines for themselves or their kids and not need to pay full retail pricing either, nor need to be tempted by sneaking around the upgrade “restrictions” of the fully natively installable Windows 7 upgrade DVD.
It would be fascinating to know the percentage of income Microsoft gets from retail purchases of its operating systems compared to income from OEM sales to computer manufacturers and home system builders and upgraders.
Surely the OEM sales of various Windows 7 versions to the big computer manufactures, even though at much reduced prices compared with upgrade and retail pricing, must massively dwarf income from those retail sales?
Microsoft under massive market attack as never before – please read on to page 2.
