How Microsoft will make money from free Windows 10

On January 21, Joe Belfiore of Microsoft announced that the Windows 10 it will be free for Windows 7 and Windows 8.1 users, but only if the upgrade is done during the first year after the release of the operating system.Microsoft Free Windows 10

This means that Windows 10 will be free if you download and install it in the first 12 months once it is available, provided your computer runs today with Windows 7 or Windows 8.1.

After the first year, you may need to pay an amount that has not yet been disclosed.

A free Windows operating system coming from the company was probably a necessity and not a way to win disappointed customers with Windows 8.

But let's see why:

Windows 10 will be free only for consumers, but by carefully looking at the offer, it is absolutely clear that Microsoft is launching a very smart and effective strategy.

The basic Windows market is the business market. Windows represents only 25% of Microsoft products, which makes the operating system the third most important product in its portfolio. Office software is still the company's product number with a rate that reaches 32%, while the Operating Server and various other tools come second with a 26%.

As far as the company's customers are concerned, companies hold 55% of sales, while consumers account for only 20%. Microsoft has repeatedly stated that it is businesses that bring cash, not consumers.

Selling Windows licenses to consumers is clearly less important than selling them to businesses, and it's easy to understand why. Organizations and companies typically buy a lot more licenses for Microsoft's leading products and are willing to spend much more on the support and additional services the company offers.

And here is the secret behind the free disposal of Windows 10. Consumers will actually be able to upgrade to Windows 10 for free, but not for businesses. Businesses will have to pay for Windows 10.

Free Windows 10 means that more new computers will be sold. Microsoft will earn extra money from OEMs.

OEMs represent 19% of Microsoft sales, and yes, Windows 10 will not be available for free for them. OEMs are just as important as businesses and will have to pay fees for Windows 10 licenses that will be installed on their devices (unless Microsoft decides otherwise before the new operating system is released). So Microsoft will have additional revenue.

On the other hand, making Windows 10 an extra charge for OEMs is a double-edged knife. By paying licenses for each device, the final price of the Windows 10 device will be a bit bitter. Microsoft could dispose of the operating system for free as it did for tablets and smartphones, launching new computer sales and accelerating the transition to this modern platform.

Very clever. Making Windows 10 for free, the company is still earning money.

Obviously, with Windows 10, Microsoft mixes and sheds the deck in a different way, with a free operating system designed from scratch with help from its users.

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