Tag: model

Microsoft mulls new model

andrew-neilSoftware aging lothario Microsoft is mulling if it is worthwhile moving to  a younger sexier subscription-based model.

At the recent Credit Suisse Technology Conference last week, Chief Operating Officer Kevin Turner was speaking to investors about the fact that Microsoft is interested in exploring new monetisation methods for its Windows line of products. The company might adopt a new pricing model for the upcoming operating system, as it looks to shift away from the one-time initial purchase to an ongoing-revenue basis.

When asked if Microsoft was going to start losing money on Windows, Turner said that we Microsoft had to monetise the software differently and link it to services.

“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. At the same time it’s wonderful to see these nine-inch and below devices explode, because that was an area, candidly, I was blocked out and I had no share of what was getting built. So it’s a very fascinating transition for us,” he said.

It looks like Microsoft will be ruminating over its new cunning plan through the long winter nights and plan what a new Windows business model will look like. This could mean that Nadella and his team has already decided which path to take.

There have been previous rumours that have already pointed toward the creation of Windows subscriptions. What is crucial is the price and the frequency of upgrade cycles.

Windows 10, which is already promoted by Microsoft as ‘one Cloud OS’, will be the first to fall under this new pricing scheme. Microsoft also needs to lure in hundreds of millions of Windows 7 and Windows XP users who did not perceive Windows 8 and 8.1 as good.

Microsoft has made its Microsoft Office products available for free to mobile users on iOS and Android.