Linked by Thom Holwerda on Thu 24th Apr 2014 23:12 UTC
Windows

Peter Bright making the case for subscription-based Windows.

Microsoft has already made Windows free to OEMs for tablets with screens below a certain size. Making it free to everyone but without the desktop would be a logical extension of this. It gives Microsoft the tools to compete with both Android on tablets and Chrome OS on laptops, while still not cutting it out of the revenue loop entirely. Desktop-less Windows should provide Microsoft with some amount of revenue through applications bought in the Store.

To this, add a couple of levels of unlocks: one tier for regular Windows desktop features (offering parity with the feature set of Windows 8.1 today), and a second, higher tier for Windows corporate features (offering parity with Windows 8.1 Pro). These could be both persistent unlocks or periodic subscriptions. Microsoft has already had persistent operating system unlocks since Windows Vista's Anytime Upgrade feature, so none of this would be hugely different from what's gone before.

The facts and rumours do line up, but honestly - free/subscription-based Windows is right up there with a TV from Apple when it comes to long-running, always-returning but never materialising rumours.

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Meh, just do it like Apple.
by bryanv on Fri 25th Apr 2014 01:06 UTC
bryanv
Member since:
2005-08-26

Sell a license to the OS, make the upgrade inexpensive enough that you're crazy -not- to do it, shorten the release cycle, and make smaller more incremental changes.

This problem was solved 10 years ago by an intrepid company that has shown it works.

I fail to see why this is hard to understand.

Reply Score: 1

unclefester Member since:
2007-01-13

Apple makes money from selling hardware with huge profit margins. The OS upgrades are not a major revenue source.

Reply Parent Score: 5

judgen Member since:
2006-07-12

And microsoft is also a hardware company now to some extent with the xbox, surface and nokia phones. They could probably make it work.

Reply Parent Score: 3

bryanv Member since:
2005-08-26

Microsoft makes their money flogging Office, I fail to see the disconnect.

Apple has high margin on hardware, yes. But they do get residual income off the OS X upgrades.

You also need to keep in mind economies of scale -- there's really no excuse for the biggest OS vendor in the world to have the highest price (to the consumer) OS when it comes upgrade time.

Reply Parent Score: 1

RE: Meh, just do it like Apple.
by avgalen on Fri 25th Apr 2014 07:58 in reply to "Meh, just do it like Apple."
avgalen Member since:
2010-09-23

Except that is not how Apple does it.
Apple is giving away their software and only allows it to run on their hardware, which is how they make their money.

Actually, Microsoft is also giving away the updates to their non-server OS lately. Android/Chrome-OS, Linux, etc are all gratis....which means that it is very unlikely that you are actually paying for your OS last year or this year.

Reply Parent Score: 4

RE: Meh, just do it like Apple.
by tanishaj on Sun 27th Apr 2014 02:16 in reply to "Meh, just do it like Apple."
tanishaj Member since:
2010-12-22

Sell a license to the OS, make the upgrade inexpensive enough that you're crazy -not- to do it, shorten the release cycle, and make smaller more incremental changes.

This problem was solved 10 years ago by an intrepid company that has shown it works.

I fail to see why this is hard to understand.


Apple makes all their money on hardware (minus iTunes sales of course). It makes sense for them to make the OS free or very low cost. It makes sense for them to make sure that everybody is using the latest software and that key features do not work on older hardware.

Microsoft makes their money on software. In general, other people make the hardware. It is an entirely different model.

Microsoft is trying to co-evolve the IBM services and Apple-style devices businesses as well though. So, it may go the way you suggest eventually.

Reply Parent Score: 2

RE: Meh, just do it like Apple.
by zima on Sun 27th Apr 2014 19:14 in reply to "Meh, just do it like Apple."
zima Member since:
2005-07-06

With corporate deployments (which Apple barely has) it's more complicated, those clients demand long support lifecycles.

Reply Parent Score: 2