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The Real Reason Windows is Free - And what that costs you! - Dave's Garage (youtu.be)

submitted 5 days ago by [email protected] to c/[email protected]

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Ever wondered why Windows 10 was given away for free? Join Dave Plummer, a retired Microsoft engineer from the MS-DOS and Windows 95 era, as he dives into the real reasons behind Microsoft’s bold move. From declining PC sales and Windows 8’s backlash to the rise of free macOS and Linux, discover how market pressures and Satya Nadella’s vision transformed Windows into a service. Uncover the hidden costs—telemetry, ads, and a shift to subscriptions—and what it means for you. Don’t miss this deep dive into Microsoft’s strategy! Subscribe for more tech insights from Dave’s Garage!

summerizer

Dave Plummer, a retired Microsoft engineer, explains why Microsoft decided to offer Windows 10 as a free upgrade and the implications of this decision. He dives into the challenges Microsoft faced with Windows 8, the decline of the PC market, the influence of competitors like Apple and Linux, and the shift towards treating Windows as a service rather than a standalone product. The move aimed to unify users on the latest OS and generate long-term revenue through services connected to Windows rather than direct OS sales.

Key Points

Windows 7's Success and Windows 8's Failure

Windows 7 was highly successful, but Windows 8 faced backlash due to its drastic design changes, leading users to stick with Windows 7.

Decline of PC Market

In the early 2010s, PC sales were declining as consumers turned to smartphones and tablets, compelling Microsoft to rethink its strategy for Windows upgrades.

Competition with Apple and Linux

With Apple offering free OS upgrades and Linux becoming popular among tech enthusiasts, Microsoft felt pressured to adapt its pricing model.

Introduction of Windows 10 as a Free Upgrade

Microsoft announced Windows 10 would be a free upgrade for users of Windows 7 and 8 in 2015, marking a significant shift in their approach to OS sales.

Shift to a Service Model

Under CEO Satya Nadella, Microsoft transitioned to treating Windows as a service, focusing on ongoing engagement and updates rather than one-time sales.

Data Collection and User Insights

Windows 10 was designed to collect extensive telemetry data to improve user experience, although this raised privacy concerns among users.

Monetization through Alternative Means

Microsoft shifted to generating revenue from services linked to Windows, including Office 365 subscriptions and app store commissions, rather than OS sales.

Retaining Users in a Competitive Market

By offering Windows 10 for free, Microsoft aimed to keep users from switching to alternatives like Mac OS or Linux and maintain its ecosystem presence.

Impact on Future Business Strategies

The decision to provide a free upgrade aimed to unify Windows users, enabling Microsoft to monetize through additional services over time.

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[–] [email protected] 0 points 4 days ago

Apple and Linux, together, pose zero competition to Windows.

The install base among businesses demonstrates this - Apple and Linux may as well not exist. Doesn't mean MS ignores them, hell, they gave Apple an influx of cash in the 90's so they wouldn't fail - this way they could say they weren't a monopoly despite Apple being no threat even then. And they keep an eye on Linux, but know it's such a discontinuous world it's really no concern.

And Linux? Show me an SMB that dares to run it instead of Windows. Yes, it can be done, but, because of support availability, it really doesn't cost any less than Windows (despite Windows licensing), and you still have the issues of user inexperience, lack of industry-specific app support, plus the risk of needing something that's Windows-only in the coming years.

Also, what do you do when an accounting firm/tax consultant is only familiar with Windows and Windows apps?

Or, you change IT support vendors, and you need to find one with extensive Linux experience, who then has to figure out what the previous guy did (since we know documentation is the last thing people do). I have friends in the SMB space, and whenever they get a new client that has any Linux, it's always a mess - each environment is different because that's how that evangelist thought Linux should be done. You just don't get that with Windows - you get a little, but Windows is so standardized that it's much less effort to move it to a properly-structured configuration.

And we know why Windows is free for consumers - tracking, same as apps on phones. We don't need a video to tell us this.

[–] [email protected] 0 points 5 days ago

I mean yeah but it also lets me use my computer.