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Can the ease of availability of "borrowed" copy of your company's software increase your profits?

I was having lunch with few of my friends today and we all are big Apple Inc. fans, we love the iPods and iPhones and have'em both and some of us even have 2 of them. During the conversation one of my friends mentions that he wants to buy a Macbook but only reason he has been debating on it for more than a year is because he will have to pay for every additional software that he will buy in the future. Because there are barely any "borrowed" copies of the any of Apple's software available out there.

Now I know what you are thinking, this guy is talking about "borrowed" software and its wrong blah blah but lets face it, thats the reality. We see more and more people running "borrowed" software copies out there than those companies would want. I am all about the open source and believe all software should be free to the consumer but that's for another blog entry.

Any how, this conversation got me thinking that maybe the "ease" with which these "borrowed" copies of Microsoft software's is out there, is it actually helping Microsoft, HP, Sony, Dell etc. make money.

My theory says, Yes.

And, here's why. An average John Doe has $1500-$1800 that he wants to spend on computer. He is debating either to buy Apple (which he likes due to sleek design and its sexiness) or buy HP/Dell etc with Microsoft Operating System.

On average a laptop would last him about 4-5 years. Here's what goes in his mind while making a decision: If I buy Apple, the laptop is great, love the operating system and software that it comes with but what if I need additional software during next 4-5 years, I would have to buy every piece and on average the cost runs around at least $200 (I know I am low balling it but lets give the benefit of doubt). So, within next 4 years, if I need 4 more softwares (any kind even from different vendor), I am looking at $800-$1000 in costs. WOW

On the other hand, if I get a HP or Sony or Dell laptop, then there is a very good chance that I would be able to get any "borrowed" copies of most of the windows compatible software I would need in the future and save those $800. Savings.

So, decision is made, lets use Microsoft OS based laptop and even though he would have loved Apple Macbook its just not cost effective.

This is just one example but I am sure lot of people who might have gone thru similar thinking cycle and came out with a decision to purchase Microsoft based products.

Now if you are Microsoft, does the availability is "borrowed" copies out there really affecting your sales negatively? Looks like it is converting customers for you just made a sale for you and your hardware manufacturers.

1 comments:

Unknown said...

i'm still going to buy a macbook haha

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