Posted 12/29/08 at 01:19:55 PM by Paul Lilly

We've heard of pay-as-you-go cell phones, but can the same concept be applied to PCs? Microsoft thinks it can, who filed a patent application in June 2007 detailing a new PC business model. U.S. patent application 20080319910, published on Christmas Day, outlines how end-users would be charged based on usage time and performance levels in exchange for a free or heavily subsidized PC, in addition to a "one-time charge."

While not a rent-to-own scenario, Microsoft concedes that this business model could result in end users paying more for their PC in the long-run than buying it outright. But that's okay, the Redmond company says, because the result would be a PC with an extended "useful life."

"A computer with scalable performance level components and selectable software and service options has a user interface that allows individual performance levels to be selected," the patent application reads. "The scalable performance level components may include a processor, memory, graphics controller, etc. Software and services may include word processing, email, browsing, database access, etc. To support a pay-per-use business model, each selectable item may have a cost associated with it, allowing a user to pay for the services actually selected and that presumably correspond to the task or tasks being performed."

Microsoft says its proposed business model would allow a more granular approach to both hardware and software sales, rather than forcing PC vendors to try and maximize profits on a one-time sale. To give an example, the company points out a scenario with three bundles of applications and performance, where the Office bundle would cost end users $1 per hour, a Gaming bundle $1.25 per hour, and a browsing bundle $0.80 per hour. Alternately, a specific bundle could incur a one-time charge instead of usage-based billing.

Is Microsoft on to something, or on something with its metered computing vision? Hit the jump and post your thoughts.

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