Monday, December 14, 2015

Why Windows 10?

            If you have a Windows installation on your computer, you’ve seen the advertisements. Windows 10, the new, free installment of the Windows operating system. It seems like a good deal; a free software upgrade to a newer version of Windows.
            We don’t live in a world where companies provide free upgrades out of the goodness of their heart. It’s not good business sense. So the question arises; why does Microsoft want to give us Windows 10?
            Well, there’s a saying; if you’re not paying for it, you’re the product. That’s the axiom that’s driving the ‘free’ upgrade to Windows 10. The new operating system features new data collection capabilities that are enabled by default. Microsoft is making a play towards Facebook’s business model of collecting and selling data as a commodity.
            It’s not a bad way to do business. The collection side is a little underhanded, but the economics are solid. According to a Financial News Report, an active user’s data is worth around $4.50 to Facebook. That’s not including the wealth of personal user data that an always-on operating system can gather. Apply that number to the 110 million people who have upgraded to Windows 10, and Microsoft has made roughly $500 million on the new upgrade. That’s not accounting for the fact that the new users are a captive market; there’s no way to downgrade without buying a new copy of Windows.
            However, there’s a discrepancy between the projected value of a consumer and the retail value of Windows 10. The software sells for $120 on Microsoft’s online store. A single consumer is worth less than $5. So where does the extra money come from?

            Another way that Microsoft makes money off of Windows 10 is the reduced cost of maintenance. Maintaining software is expensive, and is a stage that can last years. By offering the free upgrade, Microsoft can guarantee that the majority of their users will switch over to the new operating system immediately. They can reduce legacy support for old operating systems and, in doing so, save money.

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