Win 10 turns into service model

With the release of the official version of Windows 10, the way Microsoft will return revenue to shareholders will also change. A few days ago, a PowerPoint made by Microsoft talked about this. Microsoft pointed out in the show that since Windows 10 will receive software updates over time, the company will have a new revenue recognition model that will no longer use specific pricing, which will delay revenue recognition. In the future, Windows is no longer a product, but a service, but this change is a good reflection of the changes in Microsoft's strategic direction.

Deferred earnings will be categorized in the “Business and Others” section of the Quarterly Performance Report. And Microsoft's balance sheet will also be affected. See the picture below:

According to Microsoft, the unaffected will be “the software licensing business model and the related method or time of the consumer bill or cash gathering”, and the revenue recognition and reporting methods are also not the same. There will be a change.