I was going to leave this comment there but there were far too many hurdles to leave a simple comment.
This might be appealing to groups who can’t afford netbooks.
Microsoft has no current software targeting this form factor – Vista is too resource greedy, Office 2007 UI is too screen greedy. Win 7 is not going to fix this.
I think Linux netbooks are the main competition for this PAYG, and IMO are much better. I have Ubuntu netbook remix on my Acer Aspire One, its superb.
With corporates pulling out of SA and EA, I think Microsoft subscriptions are proving to be unpopular. Possibly because of the ‘OW starts now’ with EVO (Exchange Vista Office in 2007).
Thats my view, I’m not a fan of rentals, what do you think?
Is renting software by features used/needed radical and new and exciting? or not?
I think MS need to do something to target netbooks – OS and Apps. My kids got Linux netbooks for Christmas and are now learning OOo not MSO, Firefox not IE, Linux not Windows. (in fairness they are just playing flash games found through google!)
Maybe MS should resurrect Office 2003 (as they did with Win XP – just for netbooks) – at least that UI can be customised to work on a 600px high screen.