CyberTech Rambler

November 11, 2007

Interesting statistics…

Filed under: Uncategorized — ctrambler @ 12:58 am

Now, lets link two things together, i.e., the much talk about marketing deal Microsoft try to strike in Nigeria, and the USD3 Windows/Office pack Bill Gates says it is going to offer to developing country. There is nothing to say the two things are linked, but hey, for the sake of this post, let’s assume there is.

The basics that are undisputed: 17,000 PCs, Mandriva cost USD10.00 per seat, marketing deal is USD 400,000.

Assumption: We are talking about installing the USD3 deal on those PC.

First, how much is Microsoft’s marketing money worth per PC? USD23.52. After deducting the cost of unused Mandriva software, we have USD13.52.

The USD3 deal is attractive, very attractive. But first thing first, do Nigeria qualify? Developing Country? Check. Students? Check. Sufficient for on those PC? Assuming secondary schools are using it. OS? yes. Have Office and other packages thrown in? Even better. Check. Deducting the MS licensing fee from the remainder we have pure subsidy of USD10.52 per PC, or USD 178,840 for the lot.

The implication? MS is not selling Windows. It is not even giving them away coz that means no money changes hand. I cannot say it subsidised Windows license because subsidy by implication means the buyer stills has to pay something. What we have instead is money going from Microsoft to Nigerian. Hence, the only conclusion is


and the small print is, it will throw basic office software and other packages in as well.

What a pity that the Nigerian is reported to had rejected this.


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