Microsoft To Come Up With New Business Model For Windows 10 | TechTree.com

Microsoft To Come Up With New Business Model For Windows 10

It will be interesting to see what model is adopted by the company

 

It wouldn’t be wrong to say that Microsoft is in the midst of reinventing itself. This is evident as the company is all set to roll out a new business plan for the Windows 10 and is looking to register profits in the OEM revenue.

In Q1, Microsoft’s OEM non-Pro revenue declined by 1%, which is not alarming but will keep the company on its toes. This was not due to reduction in the number of users, but change in the policy of Microsoft when it waived off the licensing fee for smartphones and tablets with lesser than 9 inch screen.

Despite its inability to increase revenue, the Microsoft’s new OEM model proved to be a successful one as it has helped it to increase its footprint. With Windows 10 receiving impressive reviews after the release of technical preview, the company will surely be keen to get back to growing its profits.

So this throws up some interesting strategies, the most important one doing rounds is that the company might provide Windows 10 for free or at a cheaper subscription. Announcing that Windows 10 may be launched in September 2015, Kevin Turner, Chief Operating Office, Microsoft, said that the company was looking to cash in on the adjacent services tied to Windows.

This is an indications that while the software may come up with a subscription fee with additional features available at an extra cost. The company is already following this model for its Office for iOS and there might be a universal adoption of the same.

Turner was also quoted by thevarguy.com: “The thing about it is, though, we’ve got to monetize it differently. And there are services involved. There are additional opportunities for us to bring additional services to the product and do it in a creative way. And through the course of the summer and spring we’ll be announcing what that business model looks like.”

Ever since the Windows took the world by a storm, the OEM revenue has been the money minting machine for the company. Once hooked on, the customers have always stayed with them until Windows 8 received a cold reception as it didn’t strike the right chords.

With Windows 10, which is what Windows 8 should have been, the company is also looking to build the customer loyalty and in turn monetize it. Microsoft wants to “monetize the lifetime of that customer through services and different add-ons that we’re (going) to be able to incorporate with that solution,” said Turner according to GeekWire.

Knowing that the company is back to what it does best, allowing the software to talk for it, it may well have some surprises up its sleeve when it announces the new business model. The biggest challenge ahead of it will be to convince customers that it has a lot more to offer in paid services than what it offers for free.


TAGS: Microsoft, Windows 10

 
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