The Microsoft Watch article
What's in Store for 2004?
has an interesting paragraph about international marketing, quoted here:
"9. Microsoft will devise yet another licensing option to help combat open source in other countries. Microsoft's been rolling out all kinds of shared-source licensing options in the past year. But a growing number of international government bodies are unconvinced that Microsoft is the low-price leader it claims to be. The Thai government managed to negotiate a sweeter than sweet Microsoft deal for itself. Israel, Germany, China and others understandably want to do the same. Don't be surprised to see Microsoft codify some kind of a "we will not be undersold" licensing scheme for its international government customers in 2004."
If accurate, this confirms my thoughts on the downward pressures on Microsoft pricing in non-first world countries.
As Microsoft Watch rightly comments other governments will want lower pricing too.
So, and here is where I see the long-term danger for Microsoft, what happens when customers in the US, UK and other "first world" countries realise that they are in effect subsidising their business competitors in non-first world countries?
Posted by Andrew Watt at January 6, 2004 01:20 PM