Microsoft showed quite a lot during Build developer conference, like its own bone framework, a major update to Windows 10, and new Hololens demos. But one important part (in addition to Windows 10 Mobile) remained underexposed: The earnings of the company. Where Microsoft is going to be making money with it? And what does that mean for us as ordinary users?
Microsoft has had strange times in recent years. The company saw himself being passed by competitors, mobile phones will get it with Windows Mobile but no foothold, and consumers will increasingly pay for software. Even more important is the shift to mobile devices, and Microsoft knows is there to this day to show any attitude. That creates problems, so it’s time for a new direction.
Other course
This rate has been under tight but adequate guidance of the relatively unknown Satya Nadella. But whether that course is also the most lucrative, is another question
Microsoft’s business model was once very simple. The company dominated the desktop market, and that automatically meant a billion sales to OEM licenses. Also had the Office one of the few decent office packages in hands, so also there for paid users easy. But unfortunately for Microsoft is that time is past. Desktop sold slightly more, and there are now dozens of excellent alternatives to Office that are completely free and work in the cloud.
Free
Windows 10 is free; a fundamentally different direction for Microsoft
Under the leadership of Nadella, Microsoft embarked on a different course, one very remarkable move : Windows 10 would be a free upgrade for all existing users. Good news for all users!
That free OS, however, also called a large number of questions among critics, especially about the privacy of Windows 10. The large amounts of data that were collected “designed to better results for to dish “and” discover where users encounter “, but also” for advertisers. “
It does not appear that Microsoft is an advertisement farmer, like Google and Facebook. How or should? There are several ideas.
Freemium
‘Freemium’ is a key word in. Microsoft understands that more users count down large amounts of money for a piece of software, but at the same time does see the big (financial) success of competitors such as Apple and Google. Which get their App Store and Play baking money coming through micro transactions and app purchases, while the rest of the OS is free. “That we can!” Microsoft thought.
Universal Windows Platform
One of Microsoft’s largest-scale projects ever developed therefore: UWP or the ‘Universal Windows Platform. UWP is intended as a single underlying architecture for both the desktop and mobile devices, and even for the Xbox One and the Hololens. Developers can develop one app please use on any platform. That means it is very attractive to develop Windows applications.
UWP is especially designed for mobile devices
However, this development takes it especially for mobile devices. How nice Windows 10 may be, it is on the desktop does not necessarily need to have a Facebook app if you have a browser. UWP is therefore especially designed for Windows 10 Mobile, where Microsoft still has a lot of hope.
No unanimously ridiculously huge success
However, Windows 10 Mobile is far from successful. Influential websites like The Verge have been declared dead the platform, and with 4.5 million units sold per quarter and a market share of less than 2% can now also difficult to speak of a success.
Office shows yet still not to be the cash cow which had hoped Microsoft. Although the subscription model is priced and basic functions are simply free to use attractive look but few users are warming up to the paid features to collaborate online with others.
But if Microsoft’s new revenue model than as unsuccessful , what remains? Where the money is?
Companies
Cliché as it is, it is mainly companies that have money. Companies that want to pay more for a great desktop environment with Office, but also manufacturers that Microsoft cooperates. Therefore, Microsoft still recorded a significant other hand under Nadella, which Microsoft is more open to competitors.
Microsoft to have the company, what does that mean for user privacy?
That is to see the collaboration with Canonical so you can now use Bash shell Windows 10, and earlier SQL Server available to Windows. Also opening a Bot Framework SDK during Build does indicate where Microsoft has its priorities lie: Companies need Microsoft’s ecosystem. It should be attractive for developers to code in Windows, system administrators should not necessarily switch to Linux to manage servers, and manufacturers should be able to program their own chat bots on Microsoft’s way.
And the users do?
Users will no longer pay for software companies still. That would still pay for a good Office suite and cloud service. But what does it mean that Microsoft will soon especially businesses should have? What will it mean for user privacy, what happens to all that data using Windows 10, Cortana, and now the chat bots are collected? That is the question, and one that has not been answered by Microsoft …
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