How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 492.06

+0.2%

Dec 9 3:59 PM EST

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To: ToySoldier who wrote (11647)	10/22/1998 2:31:00 PM
From: rudedog	of 74651

Toy - From what I have read, the OEMs know whats going on but are too scared to make an issue of this for fear that MSFT will bump up the licensing price on the Win98 This is a popular 'urban myth' but has not been reflected in any actual pricing policy that I know about, and I know quite a bit about the MSFT licensing practice. There are just too many ways to get MSFT products to customers where the prices are available publicly. Although the OEM's cut individual deals, the guidelines are pretty cut and dried, you could do it on a spreadsheet. Basically it revolves around minimum purchase commitments to a certain product, the distribution mechanism the OEM wants to use, the level of support MSFT provides with the product, and the term of the agreement. Plug in the numbers and out comes a price. MSFT uses other kinds of incentives and pressure than license pricing to work OEMs. Recently they have been using more carrots than sticks but both are in their arsenal.

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