Microsoft doesn’t give things away without a strategy. Why are they pushing Windows 10 so forcefully?

Microsoft doesn’t give things away without a strategy. Why are they pushing Windows 10 so forcefully?

The piece they’re giving away is the piece nobody is buying anyway, which is the upgrade to Windows

— Gartner

Microsoft doesn’t make much money from upgrades. They rely on the short life span of the laptops and make most of the money selling licenses with new PCs/laptops you buy. And Microsoft is not giving away these licenses for free. You still pay Microsoft when you buy a new PC.

Thus, they don’t lose much revenues. Why is Microsoft giving away the upgrades for free?

  1. PC market is declining (Gartner Says Worldwide PC Shipments Declined 9.5 Percent) and Microsoft is trying everything to avoid that. Windows 10 is designed to be used across PCs, phones and tablets. Microsoft hopes to give mobile developers enough market to push their apps. Having all PCs move up to Windows 10, which would in turn work with all mobile devices is a very enticing opportunity for the app developers.
  2. Bing is embedded everywhere in the new OS. Microsoft sees more opportunities for ad revenues with this “Bing” OS. The drop in revenues from upgrades could be gotten just through increased ads to your new OS.
  3. Better management of security threats. Many users don’t upgrade for many reasons including cost. This affects Windows brand as a whole. By getting all old users to Windows 10 there can better handling of security.Windows 10 will kill off ‘Patch Tuesday’ as Microsoft pushes constant stream of updates
  4. It gets everyone to upgrade to the newest OS. This reduces support costsas well as reduces some of the anti-Windows rants [with people running dinosaur era OS].
  5. It gives them a lot of free publicity & goodwill. Free Windows upgrade? Everyone talked about that.

Windows 10 Signifies Microsoft’s Shift in Strategy

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