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To my knowledge, they make money off of selling SAAS software here and not ads. It being cloud based is done to get recurring revenue. Office and Photoshop hit
by dayvid 4y ago
To my knowledge, they make money off of selling SAAS software here and not ads. It being cloud based is done to get recurring revenue. Office and Photoshop hit a point where it will satisfy vast majority of customer needs a while back. That's when the recurring payment model was put in place. To deal with piracy and paid customers not updating their software for years.
- boringg 4y agoThat might be the case now but who knows where the future takes them. A smart legal council once told me even though you have a great relationship with the organization right now the contract you sign is binding and when ownership changes and revenues needs are different you really don't know who you are up against and what they will do with your data. Not that we have any real power except to try and use another product...
- dayvid 4y agoA lot of their money is from enterprise contracts. These businesses have strict privacy requirements and would immediately end their Microsoft contracts or sue the company is they were monetizing their data. Let alone businesses with regulated privacy laws like medical or fintech. No business would touch them with a 10 foot pole. For Windows Home or other free/bundle solutions, it's a different situation. But not for enterprise or pro/higher-tier customers.
- kornhole 4y agoMS is a big ad player now. They have the ad contract with Netflix and are growing the business. Advertising is not the only use of this data. MS also makes billions from service contracts with the DOD. The services sold are not detailed or disclosed to the public.