Ads for Works

Posted on April 18, 2008

Microsoft has announced that it has been giving away Microsoft Works in five countries.

Works is the substitute offered on many PCs when the buyer has not opted for a full Office upgrade. Rather than several applications which work together as with a standard Office package, Works provides the basic functionalities of those programs in a single application.

Normally, Microsoft sells the application to vendors for a minimal amount and they then bundle it with the PC at no additional cost to the consumer. Now, it is being provided for free by Microsoft so the vendor has zero upfront cost for including it on the PC. The difference is that Microsoft has decided to make the application ad-based. Now, they stand to make a much greater sum from the app over time than if they sold it upfront. Plus, the computer builder doesn’t get a share of the sales, so all ‘your bases belong to us’. It’s 100% to Microsoft.

Maybe this is the start of something even bigger. This may be Microsoft’s first inroad into ad-based product, but it will likely not be their last.