Windows 10 official version turned to change service Microsoft revenue model will change

I believe that soon, 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 has become a service, which is a good reflection of the changes in Microsoft's strategic direction.

Delayed earnings will be categorized into 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 "software licensing business model and consumer billing or cash collection related methods or time", revenue recognition and reporting method There will be no change as well.