How Microsoft will make money from free Windows 10

On January 21, Joe Belfiore of Microsoft announced that the 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.

So a free Windows operating system that comes from the , it was probably a necessity and not some way to win over disappointed Windows 8 customers.

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 more new computers will be sold. Microsoft will win extra 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 sword. Paying licenses for each η τελική τιμή του της συσκευής με Windows 10 θα είναι κάπως τσουχτερή. Η Microsoft θα μπορούσε να διαθέσει το λειτουργικό σύστημα δωρεάν όπως το έκανε για τα tablets και τα smartphones, εκτοξεύοντας τις πωλήσεις νέων υπολογιστών και επιταχύνοντας τη μετάβαση σε αυτήν την σύγχρονη πλατφόρμα.

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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Written by giorgos

George still wonders what he's doing here ...

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