Ever since the word “personal” got attached to the front end of the word “computer”, there’s been one basic model for the relationship between hardware and software. Consumer computers almost always come with the operating system installed, as well as “complimentary” software to complement the system. For example, Windows PCs generally come loaded with Microsoft’s Internet Explorer, Outlook Express, Media Player, and Windows Movie Maker (surprise, surprise). Likewise, Macs come loaded with the Safari web browser, Mail, QuickTime, and the iLife digital lifestyle applications (iTune, iPhoto, iMovie, iDVD, GarageBand, etc.) All are designed to give your computer some basic capabilities right out of the box. Paradoxically, more expensive “professional” computers tend to come with less software installed. Don’t ask me why.

So, you’ll soon discover that there are applications you can’t do without that didn’t come installed on your computer. Like Adobe Reader to view PDF files (although the Mac’s bundled Preview application can view PDF files with ease). Or Windows Media Player, QuickTime, or RealPlayer to be able to view the full gamut of internet media. Sometimes software makers bundle fully- functional demo software on new computers, like the Microsoft Office demo included on new consumer Macs. It doesn’t take a highly-trained tech pundit to realize that these demos are really designed to make you fully dependent on the software within the given time limit.

This “purchase a license to use the software” model worked pretty well until the advent of the CD/DVD burner. Pretty soon bootleg copies of Windows started flying around the PC world like Frisbees at a Grateful Dead concert. To stem the tide of lost revenue, Microsoft (and others, of course) required a password to install and activate their software. However, one password could be used on many different computers.

Then along came the high-speed broadband Internet and with it the ability to download via a peer-to-peer client (like Kazaa) a couple of gigabytes of bootleg software within an average human lifetime. Software giants like Microsoft and Adobe now require their software to be activated with a direct link from the user’s computer to the company’s registration database. Once the computer is identified as a legitimate host, the software functions. This scheme makes it very hard, if not impossible, for bootleg CD/DVD and internet peer-to-peer software distribution.

Now, especially if you’re Microsoft, the most effective way to keep people from pirating your software is to not let them install it on their computers at all. But, Chairman Bill, you ask, “how do you keep the Microsoft coffers (which would make Solomon blush) full?”

Step One: tighten the security on the current distribution model. Done. Step Two: create a new distribution model, to open new revenue streams. How? Let people “rent” their software, with two levels of “participation”, and call it “Office Live”.

Here’s how it works. Let’s say you’re using the “Word Live” feature. For free (the first level), you get access, through your “trusty” Internet Explorer web browser, to a stripped-down version of MS Word. However, on the way there, and maybe even while you’re there, you’ll see advertising. Once the program gets really ginned up, you’ll see targeted advertising that “knows you” by analyzing previously transmitted data about your browsing habits. Didn’t know they could do that? Read the Licensing Agreement closer next time.

For a meager tribute to the Chairman you can enter the next level. No advertising (but will they still collect your browsing data?) and access to a full-featured Word with all the bells and whistles. What happens, however, if/when you stop paying? Aye, there’s the rub.

© 2005 Peter F. Zimowski