The article was spotted here - Star Online : TechCentral. Let’s cut through the chase here.

What’s the goal:

  1. Cheap computers at 50% off the retail price
  2. Cheap software. You get Windows and MS Office with some education software (Math and Office Essentials). Live Mail Desktop is free so that doesn’t count.

What’s the catch:

  1. Windows XP is Starter Edition only. See here for what this means, coming from Microsoft. See what the industry is saying about it. Words like ‘Cripple ware’, ’stripped down’ are thrown around.
  2. Office 2007 isn’t as bad, you get full versions of software, just less. The most glaring omission would be Outlook. On the bright side, you get to install it on 3 machines, legally ;).
  3. The government will need to subsidize 50% off the purchase price, do at least 10000 PCs and look for its own PC vendor. (PC used loosely, includes laptop k?)

Now I admit that everything still looks fine, despite the stripped down Windows. But in order for mass adoption, the computer has to be really cheap. Because no matter how you cut it, software has little value to the home user, more so in Malaysia. Those that has money, goes for Apple computers. Obviously, this scheme is NOT aimed at this crowd. No, this is aimed at folks that won’t even consider buying a PC because RM 1000 is too much to spend for a non-essential household item. Rationalizing based on the fact that a cheap bare bones computer can be had for RM 1000, a 50% subsidized PC will have to sell for less than that, ideally at RM500. And here lies the problem - the government will most probably go for branded computers and/or act stupidly by getting ripped off by unscrupulous vendors (hey, happens all the time). If either happens, the subsidized computers will not sell cheap enough and the ultimate goal of increasing PC usage among Malaysia will fail to materialize yet again. De ja vu? Remember the EPF-sponsored computers last time? Tax payers’ ringgit goes down the drain, again.

All in all, it’s a great strategy by Microsoft to increase its Windows and Office user-base. What do you think?