A Forgotten Distribution Model

One of the biggest concerns/questions when considering a software venture (or really any venture) is how will you get customers?

In all the hype about Facebook, Twitter, and Web 2.0, I forgot about one of my favorite methods of distribution for consumer software:  OEM bundling.

I love the idea of coming up with a subscription service, getting Dell to bundle it, giving users a 30 day trial edition, and then using either love or fear to get them to pay you.

Interestingly, as the price of computers comes down, the price of Windows isn’t.  And the cost of Windows is becoming a larger and larger percentage of the price of a computer.  (Forget Microsoft Office which costs more than 3 computers).

OEMs supposedly pay twenty-some dollars for a copy of Windows.  They make some of that back with money they get from Google, Norton, and AOL.  I once thought a day might come where Dell bundles enough trial editions in that Windows is “free”.  I thought this might be an effective, market-driven way to incent OEMs to never ship Linux computers.

Think about it!  You get a PC and are already signed up for eBay, Match.com, have $5 in PayPal, have $5 on Full Tilt Poker, and have 1 message from a secret crush!

It’s going to be interesting to see when and how the desktop OS is simply a thin client….it’s already increasingly so for me personally…