Microsoft has announced how it plans to charge businesses interested in using applications linked to its .Net My Services Web offering.
Speaking at the company's Professional Developers Conference, Bob Muglia, group vice president of Microsoft's personal services group, said the company would offer three tiers of service: entry, standard and commercial.
Entry, or small-scale, applications will be priced at $1000 per year plus $250 per application. Standard, which Microsoft expects will involve the majority of users, will cost $10,000 per year and $1500 per application.
Commercial, which is based on a service level agreement and might include mission critical applications with round the clock support, has yet to be determined. Muglia said companies using the third tier "will have custom pricing".
Pricing to consumers is yet to be agreed, Microsoft said, but some basic services, such as Passport and Notify, would be free.
Muglia said that the company will be introducing a deeper set of services through MSN and Office that will have a subscription attached to them. "That's really where we think we'll generate the revenue," he explained.
"The numbers are barely covering our costs," said Muglia. "Microsoft will invest hundreds of millions of dollars in the next few years to build out this platform."
US telecoms provider Verizon announced at the conference that it is working to integrate .Net with its telephony services to offer Web services to businesses and consumers.
Expected to debut next year, .Net My Services, formerly codenamed HailStorm, is a line of services from online calendar and contact list access to document storage and email in-boxes which developers can choose to support some or all of the applications they develop.
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