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Microsoft's New Windows Monetization Methods Could Mean 'Subscriptions'

Posted by timothy on from the get-this-free-duffel-bag dept.

SmartAboutThings writes Since the first version of Windows, Microsoft has offered the operating system on a initial fee purchase. But under new management, it seems that this strategy could shift into new monetization methods, a subscription-based model being the most probable one. At the recent Credit Suisse Technology Conference from last week, Chief Operating Officer Kevin Turner was speaking (transcript in Microsoft Word format) to investors about the fact that Microsoft is interested in exploring new monetization methods for its Windows line of products. The company might adopt a new pricing model for the upcoming operating system, as it looks to shift away from the one-time initial purchase to an ongoing-revenue basis.

5 of 415 comments (clear)

  1. I'm sorry by CrackerJackz · · Score: 5, Insightful

    I'm sorry, I don't rent my operating systems. Or my applications for that matter. Now get off my lawn. :)

  2. Maybe they should focus on... by BladeMelbourne · · Score: 5, Interesting

    Maybe they should focus on reducing logging and fragmentation. I won't pay for such poorly written software again:

    http://i.imgur.com/Ulem4sP.png

  3. Full-circle by Anonymous Coward · · Score: 5, Insightful

    Back in the 70's, businesses used terminals hooked to servers using leased software with maintenance contracts. This was clearly a scam that generated unjustified profits for some corporate titans who were then free to be mediocre and not innovative.

    Along came guys like Jobs, Wozniak and Gates who took on that old system and trashed it by saying to small business "you can own your system, have full control of your data, and pay for your software only once". Using this model, they defeated to old corporate giants while competing against eachother and bringing the consumer innovation and value. Now that they have become the corporate titans with near a monoply grip on the market, they have seen what the old titans saw: to keep growing your profits and keep your shareholders happy when you already have essentially all the available customers, you must find a way to get more cash out of your existing customer base. SHAZAM! The old server/data model is re-marketed as a big white fluffy "cloud", and the old abusive customer-wallet-milking billing model is a "subscription". They are just counting on newer, younger useres not noticing that this is all the vary same rip-off that they once insisted was evil.

    Time for somebody new to come along and repeat the 70's with "you can own your hardware, control your data, and only pay once for your innovative software..."

    This would be great news for Linux and BSD if only their developers would stop trying to re-create Windows2000, stop trying to adopt every crazy new fad before first fixing the most basic usability hurdles that keep these things from taking over the desktop: Linux printing? (still a crappy joke most users cannot make work) Linux audio? (still a screw-up without a single standard LINUX API) Linux desktop use of files on a server or NAS? (still a mess with things like Nautilus not able to reliably do it, when it SHOULD be totally plug-and-play and access to such files from all apps should be just as if they were local). As long as it takes a "guru" to make LINUX or BSD do ANY thing a normal user would want to do, it's a mistake to be adding sugary glossy eye candy and new features no matter how much deveopers would prefer to be doing this.

  4. trust lost is difficult to regain by ChipMonk · · Score: 5, Insightful

    With the crazy UI shifts, the security debacles, the hunger for hardware resources, and the generally inconsistent (read: shitty) performance of the various Windows releases, Microsoft has made a lot more enemies than friends over the years. What's worse is that it took their Board of Directors so long to oust Steve Ballmer, who was at the helm during their "screw the customers" years.

    So now nobody likes Microsoft, nobody trusts them. The end users merely tolerate them, and even that has its limits. Such a transparent attempt to wring even more cash from their remaining customers is going to do nothing to win back former allies, while at the same time vindicating their critics.

    There were once those who cried "break up Microsoft!" during the anti-trust sentencing. If Microsoft decides to go with subscriptions, it may end up bringing about its own break-up with very little outside effort.

  5. Re:Consumers are cheap by Richy_T · · Score: 5, Funny

    It will be "Freemium". $0 for the OS then extra for items as you need them:

    $5 Clippy
    $5 That search dog/Einstein/Whatever that was
    $10 Autumn leaves wallpaper
    $15 Turn off animated window effects
    $20 Control Panel with things named as you remember them
    $30 Remove Evony advertising from dialog boxes
    $60 Start menu