Windows 7 and 8 users who don’t have a valid Windows license will get a free bump up to Windows 10. The release timing and new upgrade scheme were revealed by Microsoft operating system chief Terry Myerson at the WinHEC technology conference in Shenzhen, China, Reuters reports.
It’s a surprising move given the importance that Microsoft has placed on Windows license revenue in the past, and the lengths Microsoft has gone to to prevent the spread of pirated copies of the operating system. But the company has spent the past year reinventing itself in many ways, including going so far as to announce a free version of Windows for devices with screens smaller than nine inches.
Operating system pricing expectations have also been changing. Apple has offered free upgrades to OS X since 2013, and mobile operating system updates have long been free. Apple can make up for some of this lost revenue through increased hardware sales, and Microsoft is trying this strategy as well with its Surface tablet/notebook hybrid and other new devices. But Google offers its Android mobile operating system for free, making money off mobile advertising and app sales in the Google Play Store. Microsoft may similarly see a free Windows 10 as the gateway to alternate revenue streams.
The company now offers a range of cloud services, including Office 365, Skype and OneDrive, that Windows users may be more likely shell out for, even if they didn’t buy an operating system license. And even if those customers don’t end up buying cloud services from the company, at least they’re staying in the Microsoft ecosystem. Last quarter Microsoft’s revenue from consumer licensing — including both Windows and Office — accounted for only 16 percent of the company revenue, down from 23 percent the previous year. With Apple and Google Chromebooks slowly eating into Microsoft’s market share, the company could be thinking that a non-paying customer is better than no customer at all.
The company could also be worried about leaving millions of machines running outdated operating systems and software. Unpatched systems can spread malware and viruses, and releasing security updates for decades old platforms is costly. Microsoft has been campaigning to get users to retire Windows XP and the Internet Explorer 6 web browser, but China has been particularly slow to upgrade both. To make matters worse, the Chinese government, which has long clashed with Microsoft over piracy, even banned the use of Windows 8 on government computers largely due to concerns over upgrade costs.
The move to simply give away updated copies to pirates could ensure that Microsoft doesn’t end up in the same situation again. But regardless of the reason, it’s certainly a change of direction for the company. And welcome news to those who acquired Windows through less than legal means.
Content Credits: Wierd