Linked by Thom Holwerda on Wed 11th Dec 2013 13:40 UTC
Windows

The Verge is reporting that Microsoft is considering making Windows RT and Windows Phone free for OEMs, to combat Android.

We understand that any decision to axe the license fees for Windows Phone and Windows RT would be backed by a push for revenue from Microsoft’s apps and services. Microsoft has been experimenting with ads in Windows 8 apps, and any associated revenue from those apps and the company’s built-in Bing search results would help offset the lack of license fees. Microsoft would also push consumers to subscribe to services like SkyDrive, Office, and Skype for additional revenue.

So, let me get this straight. In April this year, a Microsoft-sponsored antitrust complaint about Android had this to say:

Google's predatory distribution of Android at below-cost makes it difficult for other providers of operating systems to recoup investments in competing with Google's dominant mobile platform.

And we have the whole Scroogled campaign (I felt dirty just for visiting that site).

And now they're considering doing the exact same things they claim Google is doing unfairly? Does this company have any internal consistency whatsoever?

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Is this a seminal moment?
by Tony Swash on Wed 11th Dec 2013 20:54 UTC
Tony Swash
Member since:
2009-08-22

Microsoft was founded on the principal that making software was the way to make a successful business in the new PC markets. The Microsoft empire was built on an ecosystem where almost all the value flowed into software. Microsoft still makes most of its profits from selling software licenses of one sort or another, even if a lot are labelled as services. if it is true that Microsoft is going to start to offer free OS software then that is surely a true inflection point, the moment when the software giant said there is no future in selling software, or at least there is no big revenue/profit in software licenses anymore.

If they go down this road how long can Office command significant licenses fees?

I wonder what their business model for the future will be?

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