By Gavin Clarke in San Francisco for The
Register.
This article has been reproduced with permission.
The rise of subscription-based pricing a charging
mechanism favored by a crop of start-ups and software as services
(SaaS) companies in Silicon Valley could help squeeze out
the opportunity for pirates to rip off software, Ballmer said.
The "tight subscription relationship" SaaS produces between
supplier and customer could cut down on piracy, according to
Ballmer. "With less piracy, with more proper, use it certainly
creates an opportunity for us and for other software companies to
take a look at also reducing the cost," Ballmer told an industry
conference in Paris.
Ballmer aired his views as Microsoft prepared to release its
third-quarter financial results on Thursday. Thompson Financial
expects a 15 per cent increase in revenue to $11bn and earnings per
share of $0.33, slightly higher than Microsoft's own guidance that
was issued in January.
Today's results will be piqued by the fact Microsoft typically
uses its third quarter to make projections for the coming fiscal
year, starting in July. The next year's results should start to
factor in the delayed Windows Vista, now due in January, and Office
2007, due in "early" 2007 since it was also pushed back. Thursday
afternoon's predictions should provide some insight into how much
Microsoft is expecting to make from Windows Vista and Office
2007.
Ballmer last year promised Wall Street that Microsoft would
charge a premium to use certain versions of Windows Vista. While
Microsoft has not yet announced Windows Vista pricing, Goldman
Sachs analyst Rick Sherlund has estimated Microsoft could claw in
an additional $1.5bn a year by charging for "premium" editions.
Specifically, Sherlund believes 75 per cent of home uses will
adopt Windows Visa Home Premium instead of Windows Vista Home
Basic, because of the new Aero interface, and ability to burn
DVDs features that are lacking in the weaker edition.
© The Register
2006
