Microsoft Tries A 'First One's Free' Strategy To Lure Startups

from the you-know-you-want-to-try... dept

Microsoft certainly recognizes the fact that most startups these days are automatically gravitating to a LAMP infrastructure (Linux, Apache, MySQL and PHP). So, now it seems to be trying out a new program to lure startups by offering them free software for a few years and combining it with additional services that they hope will appeal to startups. It's an interesting approach, though, in the long run, it still seems like they may have the equation backwards. While they are giving some stuff away free initially, the ultimate goal is to lock companies into paying for infinite goods like software, rather than scarcities like services.
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Filed Under: free, services, software, startups
Companies: microsoft


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  1. identicon
    Rebsky, 6 Nov 2008 @ 11:43am

    Why this makes sense

    A startup has to control capital expenditures much more than a company that's actually got some cash flow going. This eliminates the biggest risk for a startup to using MS products: not being able to afford the licenses at a time when cash is most limited. Later on, if the business becomes more successful, then it will be able to afford the licensing fees.

    I know it might be hard to believe for all of you who are convinced that selling software is evil, but it is a workable business model, and you could do much worse than Microsoft for a platform stack.

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