When Thailand's Information and Communications Technology Ministry last year
launched a program to boost the country's modest installed base of home
computers by selling machines at a rock-bottom price, it asked Microsoft to
help out. 

To keep to its targeted price of the equivalent of about $260 for a fully
equipped desktop computer, the ministry sought a discount on the company's
software. 

No deal, said Microsoft. 

Convinced that price rather than feature set was the key to success, the
ministry went ahead and began marketing its computers in May 2003, bundling
them with freely distributed but less user friendly "open source" software:
a Thai language version of the Linux (news - web sites) operating system and
an office productivity suite. 

Within a month, the ministry had more than 100,000 orders in hand. And it
also had the attention of Microsoft, which came back with an offer the
ministry couldn't refuse. 

"Microsoft offered a special price of 1,500 baht ($38) for XP Home and
Office XP combined," recalled Jumrud Sawangsamud, chairman of affordable
computing working committee. Normally, Windows XP Home Edition sold for
4,500 baht and Office XP cost 15,000 baht. 

The only thing lacking, said Thai and Microsoft officials, was
English-language in the Windows displays - menus and the such - to
discourage exports to outside markets. 

Microsoft now touts its original Thai deal as a model for emerging markets.

"...a model [deal]" lol 

Entire article at:
http://story.news.yahoo.com/news?tmpl=story&cid=530&e=3&u=/ap/20040606/ap_on
_bi_ge/microsoft_tiered_pricing



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