As Microsoft continues to flounder in the wake of Google in the burgeoning field of cloud computing, it is attempting to get innovative in pushing the software as a service model.
One possible gambit may be derived from a successfully filed patent "for a method of operating a computer with scalable performance". This suggests that Microsoft could subsidize the initial purchase of a computer in lieu of subsequent revenue streams obtained from subscriptions services.
A Microsoft spokesman suggested that $1/hour for office services, $0.80/hour for internet browsing and $1.25/hour for gaming would be a reasonable package. This would bring the computing model closer to the one for video game consoles where the cost of the intial hardware is subsidized in expectation of profits from sales of games and other add ons.
How will consumers who are accustomed to using their computers for all applications after one initial payoff respond to such a subscription model? Perhaps it would be ideal to keep basic levels of all services available within the initial system and just charge for premium services. That might just suit everyone.
The model of services paid by targeted advertising may not work well for Microsoft since it doesn't have the same clout in this field as Google.