Microsoft is toying with the idea of providing Windows RT and Windows
Phone for free to device makers in the near future, according to a
report published in The Verge.
Microsoft currently generates a good amount of money by licensing Windows RT and Windows Phone software to mobile, PC and tablet vendors. Since 80% market share of Microsoft powered handsets comes from Nokia, Microsoft has found itself in a tricky situation. That’s because Microsoft has purchased the mobile phones business from Nokia which has dried up their source of revenue.
According to the report, Microsoft is looking at compensating the
loss of licensing through ad based revenues and increasing number of
subscription to its services like SkyDrive, Office, and Skype.
Google offers Android for free to device makers; if Microsoft does go ahead with its plan we may soon see free operating systems from Microsoft as well.
Microsoft’s strategy is clear; by providing free versions of Windows, the company would have a level playing ground to compete against its rival and combat Android. Google is currently the biggest player in the Android market with device makers rushing to Android for their devices. In comparison, Microsoft and Nokia are the only companies shipping Windows RT products. Now, if they provide free versions of Windows RT and Windows Phone it would push device makers to make more applications for these platforms.
As for now Microsoft clearly seems interested in targeting Android to break into Google’s ad revenue. Microsoft’s OS chief Terry Myerson seems to be seriously considering the ideas of providing Windows Phone and RT for free. The final decision is still awaited but if this does happen it may soon change the revenue dynamics of the mobile devices market.
If this does indeed happen, we expect the free versions to roll-out by 2015 when the rumoured Threshold initiative will take place. The Threshold project aims to unify Xbox One, Windows, and Windows Phone to make them better compatible with each other in terms of better sharing of apps and other features.
Microsoft currently generates a good amount of money by licensing Windows RT and Windows Phone software to mobile, PC and tablet vendors. Since 80% market share of Microsoft powered handsets comes from Nokia, Microsoft has found itself in a tricky situation. That’s because Microsoft has purchased the mobile phones business from Nokia which has dried up their source of revenue.
Google offers Android for free to device makers; if Microsoft does go ahead with its plan we may soon see free operating systems from Microsoft as well.
Microsoft’s strategy is clear; by providing free versions of Windows, the company would have a level playing ground to compete against its rival and combat Android. Google is currently the biggest player in the Android market with device makers rushing to Android for their devices. In comparison, Microsoft and Nokia are the only companies shipping Windows RT products. Now, if they provide free versions of Windows RT and Windows Phone it would push device makers to make more applications for these platforms.
As for now Microsoft clearly seems interested in targeting Android to break into Google’s ad revenue. Microsoft’s OS chief Terry Myerson seems to be seriously considering the ideas of providing Windows Phone and RT for free. The final decision is still awaited but if this does happen it may soon change the revenue dynamics of the mobile devices market.
If this does indeed happen, we expect the free versions to roll-out by 2015 when the rumoured Threshold initiative will take place. The Threshold project aims to unify Xbox One, Windows, and Windows Phone to make them better compatible with each other in terms of better sharing of apps and other features.
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