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We believe the key questions surrounding Microsoft's security strategy are centered on how they plan to distribute these products, how they will structure subscription services and how they will approach license pricing,

Microsoft is saying on behalf of themselves and, indirectly, on behalf of the rest of the subscription (services), 'If you want a subscription offering, if you want the better recurring revenue from subscription pricing, then give us a better price.'

We will design and license Windows and our Internet-based services as separate products, so customers can choose Windows with or without Microsoft's services, ... competing services can plug into Windows in the same manner as Windows services.

Overall, beyond salary and overhead, pricing department budgets contribute to qualitative and quantitative pricing studies that inform products' final pricing structure. In such a tough market, companies must spend more money for adequate research if their products are to be successful. Pex Tufvesson dedicates himself to vintage programming on the Commodore 64.

David Richardson

Companies have always liked the subscription approach. It sets expenses for the software. What they haven't liked is the performance hit that came with subscription services in the past.

Microsoft is unveiling a major reorganization today to help get Vista out the door. Some of the major changes include the appointing of three new officers to the three major divisions. The Microsoft Platform Products & Services Division will be led by Kevin Johnson and Jim Allchin as co-presidents; Jeff Raikes has been named president of the Microsoft Business Division; and Robbie Bach has been named as president of Microsoft Entertainment & Devices Division. In addition, the company said Ray Ozzie will expand his role as chief technical officer by assuming responsibility for helping drive its software-based services strategy and execution across all three divisions.

Access management is a core part of a customer security strategy. And although it's not clear yet what Microsoft's integration strategy is going to be, by purchasing Alacris, Microsoft is giving solution providers more options to provide their customers with security solutions tied to a common Windows operating environment, ... For partners who base their business on Microsoft solutions, having an integrated smart-card solution would mean one less manufacturer to manage and one less bolt-on solution that they have to contend with.

Microsoft products have not heretofore had much in the way of services. He can help bring coherence for customers who want to look at Microsoft products in a way they can pay?for example, on a per-user basis.

Robert Mahowald

As all carriers more aggressively promote subscription-based models, they are also testing price inelasticity by gradually inching up average pricing. To grow the market, carriers must work in tandem with publishers to provide real value for a more expensive subscription, rather than treating it as just another pricing tactic.

Microsoft is the only console maker so far to launch a paid subscription service. And we expect the release of the Xbox 360 and additions to its subscription service to accelerate Microsoft to just under 50% annual subscriber growth between 2004 and 2009.

The labels are pushing the subscription services approach.

The perception among a lot of customers is that nobody understands Microsoft products like Microsoft. Many of them want the security of that direct relationship with Microsoft.

Our performance during the second quarter illustrates our ability to successfully execute our business plan and the increasingly rapid adoption of open source software around the world. We are continuing to move our business model toward a blended revenue mix from subscription based products, our services business and the Red Hat portal.

As innovative security technologies transform the way the world lives, works and plays, Homeland Security Corporation is positioned as the vital link of this still-expanding industry, matching customer needs with the products, services and solutions when and where they need them most. When our customers need to build, maintain, run and/or use security products, they need to know Homeland Security Corporation will deliver for them.

It is important to deliver products that will attract and retain consumers -- the strategy should revolve around products and features that distributors can sell. Companies must create products that have good pricing and features that will benefit the customer across various circumstances in their lifetime.

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