Microsoft moves generate subscription speculation
QUESTION: Is Microsoft getting ready to start charging a monthly fee for Windows 10?
ANSWER: After Steve Ballmer stepped down as the CEO of Microsoft and Satya Nadella took over, transforming Microsoft into a “cloud-focused” company was a top priority.
Microsoft deviated from its traditional path with Windows when it rolled out Windows 10 as its final version, and it was free for many users.
There was a time when Windows was one of the primary revenue sources for Microsoft, but Microsoft’s diversification efforts with Xbox and Office, for example, have created revenue sources that far outpace that of Windows.
It’s not hard to understand why so many are awaiting the announcement that Windows will become just another subscription product.
Designed for businesses
A bit of misinformation is circulating online because of the discovery of Microsoft Managed Desktop, a new subscription service Microsoft will be releasing.
The proposed subscription service is designed for businesses as the package includes hardware to run Windows 10, along with customized configurations and support.
Microsoft has been selling subscription services to businesses with a variety of products, including Windows and Office, for quite some time. This new product is an expanded offering that includes Windows 10.
Is the consumer next?
The new service has generated speculation that general consumers are next, but I’m not sure that would be in Microsoft’s best interest.
Microsoft is much more focused on products that have recurring revenue attached to them, but many users are still running Windows 7. A subscription-based Windows 10 would do little to encourage those users to upgrade.
Another factor is the viable alternatives that users can turn to, such as an iPad or Google Chromebook, especially if most of what they do is online.
We already conduct the majority of our activity on our mobile devices, which Microsoft has unsuccessfully attempted to penetrate. Creating an environment that encourages users to abandon Windows wouldn’t serve its greater goal. Windows 10 is the gateway to delivering more ads, selling apps and other subscription services, so anything that reduces the number of users would be counterproductive.
Businesses are a more desirable target for Microsoft because they will spend far more per month than the average consumer and will have a tougher time switching to another service once they commit to cloud-based services.
Having said all that, Microsoft may offer a subscription version of Windows to consumers at some point, but, just like with its business customers, it’ll have to do a lot more than just provide Windows to be appealing.
A bit of misinformation is circulating online because of the discovery of Microsoft Managed Desktop, a new subscription service Microsoft will be releasing.