Windows 10 no 'loss leader' for Microsoft, but making money may rely on services

Details of the Windows 10 business model will be announced early in 2015

Microsoft won't talk about what Windows 10 will cost until next year. But it's looking unlikely that it will be completely free, either for users or for PC makers building larger devices, after Chief Operating Officer Kevin Turner said that Windows 10 won't be a priced to keep users in the Microsoft ecosystem.

"We haven't announced the Windows 10 pricing framework yet. But the one thing I can tell you that we've not had any conversations on is Windows 10 being a loss leader for us," he said at the Credit Suisse technology conference.

The way Microsoft makes money from PCs is changing. Windows hasn't been the biggest earner for Microsoft for some time: Turner said it was in third place behind the Office and enterprise businesses.

He also gave indications that Microsoft would look to extend the kind of deals it's done with makers of smaller devices who get Windows for free but are encouraged to bundle deals like Office 365 subscriptions that bring income for Microsoft. Notebook makers can already get a cheaper licence for Windows 8.1 if they make Bing the default search engine. But Turner seemed to suggest Microsoft would extend that even further.

"We've got to monetize it differently," he explained. "There are services involved. There are additional opportunities for us to bring additional services to the product in a creative way."

Unlike analysts, who have suggested that low-priced PCs may undermine the Windows 10 market, Turner was notably enthusiastic. "It's wonderful to see these 9-inch and below devices explode, because that was an area where candidly, I was blocked out and I had no share of what was being built. The $199 laptop, the HP Stream, is an amazing device."

Turner confirmed that Windows 10 will ship "by late summer and early fall" of 2015. And, he said, Microsoft will reveal what the Windows 10 business model will be "in the early part of 2015."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags MicrosoftWindowssoftwareoperating systems

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mary Branscombe

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?