Linked by Thom Holwerda on Mon 13th Sep 2010 20:57 UTC
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RE[2]: and for paying customers....
by lemur2 on Tue 14th Sep 2010 01:36
in reply to "RE: and for paying customers...."
It's not cost per copy, it's the total cost and profit that matters for MS. Say they program Windows for $1B in total (salaries, utilities, etc). They'll aim to gather say something like $2B all around the world to make a profit. Thus if they can get $300/copy in US and $30/copy in Russia, and the total adds up, it's OK for them. The actual cost of plastic is of course a small $1 drop in the pond.
For "donations" like this, the marginal cost to Microsoft is not $300/copy in US or even $30/copy in Russia, it is more like the $1/copy everywhere.
Not a bad investment by Microsoft in order to buy $390 million worth of PR cred.
Edited 2010-09-14 01:37 UTC
RE[3]: and for paying customers....
by Carewolf on Tue 14th Sep 2010 14:52
in reply to "RE[2]: and for paying customers...."
I think you are overestimating the marginal cost at $1. If the affected parties are not aware of the license, then you have to assume they have either bought or pirated the software. So there is no additional cost to Microsoft. They are just renouncing the right the later sue the parties. Being NGOs that probably wouldn't bring in any money to Microsoft, and would probably affect Microsoft negatively if PR-value is considered. All in all, this is a free move. Only the office to advocate the new deal has any real cost associated to it.




Member since:
2006-11-19
It's not cost per copy, it's the total cost and profit that matters for MS.
Say they program Windows for $1B in total (salaries, utilities, etc). They'll aim to gather say something like $2B all around the world to make a profit. Thus if they can get $300/copy in US and $30/copy in Russia, and the total adds up, it's OK for them.
The actual cost of plastic is of course a small $1 drop in the pond.