Buyer Beware
You pay a monthly service fee for Cable TV, Cell Phone, and Internet. If you buy Windows 8, then be prepared to pay a hefty monthly service fee for your software too.
Microsoft has had “lock-in envy” for Apple’s product distribution model for years. Microsoft’s newer product offerings, such as Office 365, clearly indicate their future direction.
The Windows 8 Metro Desktop is designed to break existing Windows software applications, while simultaneously keeping developers trapped inside a Windows world. They intend to move to a Software As A Service (SAAS) business model. With this model, there is no installation. Instead, the software runs on a remote server and is accessed through a web browser, and soon through the Windows Desktop itself. In addition, SAAS has the benefit of centralized file storage. This means your documents will be available anywhere, on any computer. Sounds perfect, right? Not so fast. Corporations are in business to make a profit. So the idea is that the end users enter into a MONTHLY service contract.
You upgrade traditional “installed” software product when YOU decide it is time. For instance, if you had bought Office 2000, you might have decided to skip a few upgrades before purchasing Office 2010. With SAAS, Microsoft decides once and for everybody the frequency of updates, and how much of your monthly service fee is dedicated to adding new features. This is a win-win for Microsoft. The more features they add, the harder it is for competitors to match their services, and the more they can charge for their monthly service. As with any monthly service, they can raise the price anytime they feel like it. This way they can ease users into their ever-increasing service fees. They can also play the “locked-in price service fee” game where the consumer is “locked” into a price as long as they don’t drop their monthly service, effectively using fear to trap users into perpetual bondage.
These monthly fees remain cheap while traditional “installed” alternatives exist. But if SAAS takes off, then there will be few people using “installed” alternatives, and thus little incentive to continue developing/supporting them. At that point Microsoft and other SAAS vendors are free to charge whatever they want. Remember, companies are in business to make a profit. How much is Microsoft Word worth to you? $5 per month? $10? $20? It will probably be offered in bundles, the same way as phone and cable are, meaning it might cost $60 or $100 per month for a suite of products. As long as Microsoft controls the platform, they get to decide how much you should pay per month for SAAS, and what is included.
What should we do?
In my last article I stated my belief that Windows 8 will be largely irrelevant. That belief presumes that end-users will make wise decisions about the software and services they purchase, and not be beguiled by marketing trickery into a dead-end path where users no longer have ownership of their own content, and are forced to pay excessive monthly licensing fees. To prevent this, end-users must make the following decisions:
- Insist that cloud/SAAS products must be interchangeable before opting-in. If there is no open standard across vendors, then make sure that your data can be downloaded and used locally before opting-in.
- If you prefer the pay-once per version model, or better yet the pay-nothing model, then consider using Free and Open Source alternatives, such as Linux. At one time Linux was considered by many as difficult to install and administer. Hardware support was once hit-or-miss. But Linux has changed dramatically over the past few years. Installation is usually a trivial task and hardware support is excellent and getting better all the time. If you know you are interested in running Linux before you purchase your next computer, then you can select a computer based on its support for Linux. Today it’s difficult to argue that Windows 7 poses any significant usability or technical advantage over Linux. In fact many users, including myself, were pleasantly surprised to find that Linux was actually an improvement over Windows. You can try Linux from a CD or USB stick without installing anything on your machine. It has also become simple for end-users to create dual-boot computers where Linux can be run alongside Windows.
By supporting the Free and Open ecosystem, you help to guarantee that there is an alternative to SAAS. As long as there are alternatives, users have a fighting chance at having fair and reasonable prices.
Developers should consider supporting Free and Open technology stacks, to reduce dependencies on Planned Obsolescence for Overt Profiteering (POOP) Technology stacks. They should work towards ensuring that SAAS is used in a manner that benefit the development community and end-users, and treats end-users as the rightful owner of their own content.






