Microsoft To Rent Its Software -- Sort of

Blaise Zerega waits with bated breath: Microsoft today announced that it will offer software on a subscription model. But is it WOW - all caps and exclamation mark?  Or is it wow-- a lowercase whimper? Likely it's a little of both.

In a press statement, Microsoft said that it will be begin offering a software bundle called Equipt, for an annual subscription of $70. Equipt consists of Microsoft Office Home and Student 2007 ( basically Word, Excel, PowerPoint), and  Windows Live OneCare, a security service. And, as part of the subscription price, users will automatically get version upgrades.

The WOW: That Microsoft would be wiling to experiment with new revenue models should be applauded. It's tough to call this cloud computing but it's definitely a step in that direction. Equipt was code-named Albany during its development.

The wow: That Microsoft is offering this only through Circuit City stores, shows that the company is still behaving like a traditional software company. If it is still selling software in a box, then it is not ready for  as Bill Gates put it, The Internet Tidal Wave (PDF).

The new software will be available from 700 Circuit City stores in mid-July.