Windows 10: Windows now accounts for mere 10% of the Microsoft’s revenue.

The free upgrade is not affecting Microsoft's bottom line much, if at all. Remember, traditionally, most people don't upgrade their OS's, they just got a new computer when they were ready with whatever OS was the current.

OEM's do not get Windows 10 for free for their new PC's either, so they definitely generate revenue from Windows 10 that way, just as they always have. Corporations that upgrade to Windows 10 also have to pay for the license as part of their Enterprise Agreement.

In other words, the ways that Microsoft has traditionally made their money on Windows are not free. It's just that the demand for desktop PC's is so much less than it ever has been.

 

Agreed. *Nerd

Once manufacturers stop making desktops/laptops (and stop supplying components to the public) the era of personal computing will be dead.

The never ending era of "Corporate Cloud OS" computing will then begin.
"Please input credit card details to continue ..." *Sick

 

So true. . .*Smile

 

I don't think that's going to happen for quite some time if ever.

 

Okay, then why doesn't Microsoft relax and quit trying to force Windows 10 on the desktop? First, they aren't making money on it since it's free. If anything they are managing to make people angry when the upgrade bricks the machine that has their important data. (Happens often enough.) They should back off and let folks run the supported OS's if and until they wish to upgrade. It's like I tell people today, I love windows 10 on my 2in1, hate it on my desktop. Windows 10 still has quirks on my desktop, especially around performance. Don't get me wrong, for a new OS it's pretty solid, but I would prefer to give it another 12 months to allow my vendors, and Microsoft, to get the kinks out of the drivers, improve network and multi-tasking handling. All that said, given Windows greatly shrinking role, Microsoft at this point really needs to take a breath and stop sending the Windows 10 pushes to Windows 7. We get it, we can upgrade, stop it already.

 

BunnyJ is right. Big iron still exists, and in fact runs Linux now. The PC is going nowhere. Although they "declined", 71.9 million were sold last year. Also, today's PC's remain viable far longer than they did even 5 years ago. There is always a place for the PC. The cloud is a great concept for the masses. However, the super users, and technologist that understand how the internet works knows it's better to be in control of your own data, and where possible applications.

 

More than likely because they don't want to keep maintaining older versions of Windows. Windows 10 may not be costing them money, but older versions of Windows do.

 

Not so much actually. I base this on Microsoft's own model from my days at the company.(not to mention it is a standard model for all software releases.) The support curve spikes on release and then gradually reduces. Because Microsoft charges for support after a warranty period their model comes closer to breaking even on something like Windows 7.(Actually they make money, lots of money. That's what service contracts are for, among other things.) Also, their own support model runs until 2020, so it isn't like the costing model for Windows 7 is somehow out of whack.

Windows 10 on the other hand will have a higher support cost. Mostly because it is shipping free, support is free initially, and they are buried in support issues. Every new patch release brings on even newer bugs. With the more frequent releases that support curve maintains its higher levels for extended periods of time. This means they are likely trying to kill off Windows 7 early not because of direct cost, but because they need to free up people to work on Windows 10 or higher more developers/support folks. Unfortunately for Microsoft, the bulk of their users are business customers. Large corporations and business just moved to Windows 7, so for all their kicking and screaming they won't move that elephant until it is ready to move on its own. For the consumer they may find their market share begin to shrink. As everything goes multi-platform people are going with what works. No, this isn't an Apple endorsement, merely stating that whatever it is, consumers will migrate to it if that stable and consistent platform runs the programs they need.

 

I agree that Windows will likely become a service or conduit, by which other products are distributed. If they do want to wind down the "Explorer" portion of Windows (the conventional part), they'll need to wait until business has fully shifted away from conventional productivity applications (such as office suites) and on to specialized apps that can be used with the modern/metro interface. I think that's coming. A lot of companies have distributed tablets to field techs, sales people, and many office people. And many of them are adapting to a non-windowing environment for day to day work.

But wasn't Windows RT more like what iOS is? Or Windows Phone OS for that matter? Aren't they biting the dust now?

I think that Microsoft believes a gradual transition from a windowing system to mobile apps will be better acommodated using a unified product, rather than two products. That way the OS retains a familirity throught the pace of change, allowing users to beome better acustomed to the new product. I'm not saying that 's the correct way, just Microsoft's way.

 

What I mean is that the current style of desktops/laptops will probably be replaced by OEM terminal-style machines (like Chromebooks).

"Real" desktops/laptops will still be sold, but the prices will increase markedly (i.e. back to the early '80s PC levels).

 

I hope you are wrong. I like to play a few small games offline that my eyes can handle.

 

I really doubt it.... PC hobbyist will still exist for some time to come.

 

I guess it is time to go back to uni to get a MBA. . .I mean with all the folks here on the tens who seem to know what Microsoft is doing wrong, and what they should do to make the company run right I need to update my education so I can understand better what it is they are saying, so that I to can help Microsoft do thinks right. . .*Smile

 

The problem is that with Windows 10 they are trying to remove all parts of Legacy applications, so other than CPU instructions, it will eventually become not much more than an RT unit. Therein, why I think they should split off 10. Perhaps they will call it the Windows 10 Chromebook. MS wants all apps supplied through their store (how iOS is setup). They really don't want to have developers create Legacy type software (they can't cash in, on it). That is what I believe their ultimate goal is, they are looking at it 10-20 years from now. Sad really. Perhaps by then Linux will become more user friendly by then.

 

I still know some folks in the company. Believe me, it is far from the same corporation of the 90's. I think the new CEO is doing some good things to get the company moving in the right direction. Back when I was there if you had shipped your code incomplete or returned a legacy bug into new code you likely would have been fired. Windows did not normally ship with Windows 3.1 interfaces in Windows 95. They completed the work. Microsoft has shipped code recently that would fix one bug only to return a legacy bug in the process. This is a clear indication that their change control process, specifically version control, internally is out of whack. This is hopefully just a blip caused by the massive shakeup in the last couple of years. However, I hope it is not indicative of other companies who have off shored and are getting less experienced developers than they would have hired in the past.