Win10 official version adopts a new business model to mark the strategic transformation of Microsoft

Today, the US "New York Times" online version of the article said that in order to adapt to the overall development trend of the market, Windows 10 adopted a new business model and development ideas, marking Microsoft A comprehensive transformation of the strategy.

Windows 10 will integrate virtual assistants to keep track of users' schedules, and Microsoft will regularly provide users with updates via the Internet. At the same time, the menu that has been with Windows for many years has begun to return.
Microsoft returns to the traditional start menu in Win10

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Free upgrade strategy

When Microsoft launched a new generation of Windows 10 operation on July 29 In the system, the software giant will present to the world in the image of a new and old mixed-mouth, retaining some familiar features, but also will make 1.5 billion old users feel a stranger.

This system will integrate virtual assistant functions to keep track of users' schedules, and Microsoft will regularly provide users with various updates over the Internet. With the Windows for many years, the "Start" menu will also officially re-emerge.
Microsoft CEO Nadella

However, the biggest change is the price. Microsoft will not charge premium users, highlighting the power changes in the technology industry.

Microsoft previously charged $50 to $100 for upgraded users, and this decision-making adjustment is in line with the free trend in the mobile phone industry. Companies such as Google have already dealt a heavy blow to Microsoft with free systems and services. Their real source of revenue is the huge advertising business. In recent years, Apple has also begun to provide users with applications and system upgrades free of charge, and turned to hardware sales to generate revenue.

Since Microsoft's core business is still software, it is inevitable to try to suppress this trend as conditions permit. But the rapid development of Apple and Google has put pressure on it, forcing the company to find new sources of revenue.

& ldquo; This will confirm people's free expectations for the operating system. "American investment firm Jackdaw analyst Jane · Jan Dawson said, "In addition to Xbox, Lumia phones and Surface computers, they are actually suppressing their ability to generate revenue through consumers." In fact, the company has launched Office applications such as Word and Excel for free, hoping to revitalize these software in its own vulnerable areas. They also license Windows systems to small device manufacturers such as smartphones and tablets for free, in order to gain a bigger market share.

Windows and applications follow similar logic

Microsoft's decision-making follows a similar logic: In order to attract more people to use Windows 10, Windows revenue must be sacrificed to some extent. . In recent years, the development momentum of PCs has lagged far behind smartphones and tablets. The company's previous generation of Windows 8 operating systems failed to revitalize the market, and what's even worse is that too bold interface revisions have alienated some users.

According to US market research firm Gartner, global PC shipments in the second quarter of this year fell 9.5%. Gartner estimates that this year's global PC sales are about 300 million units, and mobile phone sales are about 1.9 billion units. Windows' share of the global smartphone market is less than 3%, while Google Android and Apple iOS almost share all of the remaining shares.

 In the era of Apple and Google’s leading operating systems, consumer Windows is working hard to avoid being marginalized. "The US investment company Evercore ISI analyst Bill · Bill Whyman said, "This is the challenge." ”

The operating system can only really make a difference if it attracts enough applications. But in recent years, Windows has been abandoned by many software developers, and they are actively embracing more and more interactive smartphones. This change also puts Microsoft's position in the consumer market at risk.

In order to attract more attention from developers, Microsoft has redesigned the Windows 10 system to make it compatible with PCs, smartphones and other devices, making it easier for developers to develop unified applications for various devices. The company expects that in the next two to three years, the number of devices using Windows 10 will reach 1 billion, providing developers with a broad market.

Kevin ·, director of product marketing for Razer, a high-end gaming computer device developer, said: "I think Windows 10 will be widely available." & rdquo;

If the free Windows 10 can be quickly popularized, the benefits will far outweigh the benefits of Microsoft. The company did not disclose revenues from previous upgrades to the new Windows system, but analysts estimate that this portion of revenue is small compared to other revenue-generating methods of the system.

Focus on the enterprise market

Microsoft CFO Amy · Amy Hood recently told investors that the company generated revenue through Windows in the last fiscal year ending June 30 About $15 billion.

Most of these revenues are related to the corporate market, and Microsoft's position in this market is more stable than the consumer market. About a quarter of Windows revenue comes from volume licensing agreements with big companies, which typically buy years of Windows upgrade privileges and access to services to manage many users across the corporate network.

In fact, most people pay for this when they buy a new PC with Windows pre-installed, but some people don't realize it. Nearly half of Windows' revenue comes from licensing licenses purchased by PC makers for professional devices, and only a quarter (about $4 billion) comes from consumer PCs.

“ In fact, no one has purchased Windows upgrade privileges. ”Gartner analyst Steve Kleynhans said.

Windows still dominates the PC operating system market, and unless this situation changes, the company is unlikely to stop charging computer makers. However, competitors are eroding the company's share of the consumer market, forcing it to cut prices in certain areas. Microsoft lowered its fees for low-end notebook vendors last year because Microsoft faced the challenge of low-cost devices such as Chromebooks in the field.

The company's CEO, Satya & middot; Satya Nadella also offers Windows systems free of charge for devices smaller than 9 inches. The field is dominated by smartphones and tablets, and some are similar to notebooks. device of.

Increasing revenue-generating channels through Windows

Microsoft executives have begun to explore the latest ways to generate revenue through Windows. The company's executives believe that Bing search advertising may become a source of revenue, and the search engine has been integrated with multiple Windows features. In addition, if the company can attract more users to purchase games and other software through the Windows App Store, the commission income earned through such transactions will be considerable.

Microsoft has made similar sacrifices in other areas. For example, Microsoft offers a mobile version of Office for free, which attracts people to pay for subscriptions to the product, thereby gaining access to Office on the PC and gaining additional cloud storage and other benefits. Microsoft also hopes to participate in the hardware field with Surface and Lumia smartphones, but the company has recently squeezed the smartphone business due to weak sales.

Microsoft has also added software products for the enterprise market, including databases, chat and cloud computing services, which are doing well, helping the company offset the loss of free upgrades.

But US investment bank Jefferies analyst John · John Difucci said that Microsoft's control over the corporate market may not be as strong as many people think. He found that more and more people are starting to use iPads, Andorid tablets and Chromebooks when meeting with investors.

“I think people ignore some risks, or at least not pay attention to them. & rdquo; He said.