>I could be wrong in this, but isn't what MS is talking about just a little different from that type of agreement? As I understood it, while MS has backed off the XP subscription system for North America for this year, the intention, once it's introduced, is that you will get all these neat bells and whistles, but if you do not pay your next year's subscription fee, some of those bells and whistles may stop working. In other words, you pay each year just to be allowed to continue doing what you were doing last year.
>
>Yes, there may (probably will) be upgrades, but even if you don't need or want a particular upgrade, you still have to pay the fee.
>
>In most vertical apps of which I'm aware, you don't lose functionality by not paying a maintenance fee. You lose automatic upgrading, and probably support, but you still are allowed to continue on as before.
>
>Like I said, it's possible I misunderstood MS's stance, and if so, hopefully someone will correct me.
>
>Alan
>
>>I don't think MS is leading the way. Subscriptions are common for vertical market applications, although they may not be called subscriptions. Take a maintenance contract for example. It typically says you'll get any upgrades for the life of the contract...sounds like a subscription to me. What other vendors are learning is that subscriptions level out the cash flow and typically make you more money.
>>
>>>
>>>IF other software companies are, indeed, moving to subscription licensing then you can bet your bottom dollar that it is because MS is leading the way.
>>>
>>>These others may well be first actually doing it, but that is only because it is far easier for them to do so than it is for MS.
>>>
>>>You make it sound like MS is only doing what others are doing.
>>>
>>>Jim

Alan;

Applied to the hardware world a subscription service would be interesting. Perhaps after the 12 month subscription expires your color video card is monochrome, the DVD,CD and 3.5" floppy no longer work, and the hard disk is now read only. However, the 5 1/4" floppy will work - if you can find one. Gee, what fun this could be! Feel free to add to the list if you wish.

As far as the software world goes, I can argue either way as to the validity of a subscription service. One problem I see is that we could have 12 month “new version releases”, which will be full of know and unknown bugs. Never fear – you have a subscription and if you are lucky the bug will be resolved before the release of the “next version”. Maybe - and be sure you believe in Santa Claus.

I foresee software containing more bugs being sold through a subscription and will therefore rationalize “the bugs will be fixed”. I truly think the quality of software will suffer from this concept. You do not have to release a quality product and regardless the customer is going to pay anyway.

Tom