Pay-as-you-go computer sounds like a headache

December 29, 2008 | Anthony Ha | Comments |

Updated

Have you ever complained that your computer was just too darned powerful? Have no fear, Microsoft has filed a patent for a different kind of computer business model that answers your prayers. The patent was filed back in 2007, but the U.S. Patent Office published it on Christmas Day 2008, and CNET’s David Meyer spotted it earlier today.

It’s not clear how seriously Microsoft is pursuing this plan; after all, this is just a patent application for “a method of operating a computer with scalable performance,” not a design for an actual product. Still, it’s a compelling idea, if only because it’s a fundamentally different way of selling a computer. Instead of paying for all the hardware and software upfront, the initial purchase price would be subsidized by the manufacturer, then the user would pay based on how intense their demands are — for example, Microsoft says it could charge $1.00 per hour for an “office” bundle, $1.25 for gaming, and $0.80 for web browsing.

“The current business model for computer hardware and software relies on a user purchasing a computer with hardware and software that is suited to the most demanding applications that the user expects to encounter,” Microsoft writes. “Therefore, a user may buy a multi-core processor with a significant amount of memory and advanced video support for gaming applications that are only used on the weekend, while the user’s day-in, day-out activities may involve little more than word processing or web-browsing.”

Under the proposed model, users only have to pay for the needs of the moment. On the face of it, this doesn’t sound like a completely ridiculous idea — after all, there are plenty of products, from video game consoles to cell phones, where the initial price is subsidized and companies make up the cost in fees later on. The software-as-a-service business model, where users pay as they go for software via online subscriptions, is working out well for Salesforce.com, despite the downturn.

Still, I’m less-than-thrilled about the prospect of getting billed every time I want to use my computer. That sounds like a recipe for frustration, especially since Microsoft acknowledges users are likely to pay more in the long run than if they just bought everything outright. In fact, that kind of pay-to-use model is exactly what Philip K. Dick skewered in the opening chapters of his novel Ubik, where the protagonist Joe Chip’s electronics constantly demand payment. Dick’s dystopian future probably isn’t a great model for consumer technology.

[photo:flickr/annia316]

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About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • me
    do you mean "cell phone" instead of vrll phone?
  • Uh, yes
  • iljung
    Buying a computer w/all conceivable software/hardware outright is like getting an unlimited phone plan. The thought of keeping track of how many minutes I have spent on which application price level would drive me nuts. Admittedly I do not keep up with the latest technology. That is the only way I could see this being cost effective for a consumer.
  • Loren
    "Still, it’s one thing to pay more for Playstation games or an iPhone wireless plan ... and another to cough up cash to unlock the hardware that’s sitting on your desk." I think that the notion of unlocking existing hardware is an incorrect interpretation of what is meant by scalable performance. Most likely this refers to some sort of cloud computing, which is an old but compelling idea. It's like the electric grid. If you had to buy a constant number of Watts per hour then you would by enough to satisfy your energy needs during the most demanding times. But that would suck. The way it is now, we pay for what we use, and what we use changes constantly. If we could do that with computing that would be awesome. Again, old idea, but a good one if it is possible.
  • Hmmm, after reading the patent again I think you're probably right -- but the summary is vague, and the more detailed part of the patent is a bit over my head, so I'm not sure. What made you think cloud computing was the likely model? Was it something in the patent itself?
  • Anthony Ha
    Dam who hired you?
    Why the hell would they give you say an 8 core processor when they wouldn't be able to do anything with it when your done in a few years.
    Of course it is cloud computing. That's what everyone is talking about. That's what Microsoft is planning for the Windows after Windows 7.
  • If the cloud computing that you're referring to is Windows Azure, that's a separate product from the operating system. Maybe I'm misunderstanding you -- it would have been nice if you'd included a link to what "everyone is talking about."

    Also, don't comment under my name again.
  • By the way, I rewrote the last paragraph -- that was fuzzy reading/writing on my part, but I didn't want to make the hardware/cloud computing thing the focus of the conversation.
  • Jon
    This is great... Microsoft will become another netsol, the price of computing is ever going downwards yet, magically, the prices just keep going up for "services".

    Jon
    http://WoodMarvels.com - Create Unique Memories
  • carla
    This sounds like a really bad idea...
  • Bad idea for many reasons, least of all having to watch the clock while I use games or apps, which amounts to "renting" the computer I already own.
  • Exactly -- though in this case you probably paid a much lower price to own it.
  • Tracker001
    What have MS been smoking ?
    What about those of us that go out ,buy the bits we need and build our own ?
    It seem MS is trying to paten what is all ready beeing done .
    Go over the disk space you have already allocated on a rented site. Do you not get an additinal charge ?

    The last propritory computer I'v bought is a laptop. As for the desktop , try 1989 .

    This is NUTS !!
  • edhardy622
    British law student sues Abercrombie-Fitch for disability discrimination.
    http://www.abercrombieonsale.co.uk