Microsoft could lose billions in sales to Google's Chromebook

Google's Chromebook subscription program could seriously pinch Microsoft enterprise licensing revenue. The $28 per month per user fee is bargain-basement pricing compared to what businesses now pay Microsoft for software and OEMs for supporting hardware. Google could easily take $1 billion a year in software revenue from Microsoft, says one licensing expert, with the number substantially growing over several years.

Earlier today, Google announced June 15 as launch date for Chromebook, which will initially be available from Acer and Samsung with 11.6-inch or 12.1-inch displays, respectively. Prices start at $349, for notebooks with Intel Atom dual-core processors and limited local storage, running Chrome OS. But there is another acquisition option -- a monthly subscription for business and education markets. School price is $20/month per student and for businesses the aforementioned $28/month per user. The subscription price requires businesses to make a 3-year commitment. Microsoft volume-licensing customers typically also license software for three years, although a 2-year option is available.


Read Original Article Here: http://www.betanews.com/joewilcox/article/Microsoft-could-lose-billions-in-sales-to-Googles-Chromebook/1305159992

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