5 ms·

I'm curious as to how much revenue/profit Microsoft still makes from the desktop line of Windows. Would setting desktop Windows free really hurt revenues at Mic

I'm curious as to how much revenue/profit Microsoft still makes from the desktop line of Windows. Would setting desktop Windows free really hurt revenues at Microsoft that much? I'm not denying that each release of Windows requires engineering effort. I figured most of Microsoft's profits come from software and services running on-top Windows, so SQL Server, Office, etc... Perhaps still charge for Windows Server, but let the Desktop and Mobile versions go free.

dageshi 11y ago
I'd have thought that Microsoft still sells a monumental pile of Desktop licenses to business because a) they've got the money b) they don't want to risk being caught without legal licenses. In fact I've felt that up until around the last 5 years Windows was primarily focused on business users and consumers were just a happy bonus because what else were they going to run? So I could see them giving away a version that can't join a domain (no use to business) for consumers, but I'd be very surprised if they did the same for business customers.
- superuser2 11y ago
  How do you imagine a business would come across a computer that did not already have a desktop license?
  - nos4A2 11y ago
    Virtual Machines and Windows Server.
themartorana 11y ago
I think they probably make a ton on OEM installations on new computers. Consumer upgrades didn't pay for the support required for non-upgrades.
adventured 11y ago
They still make a lot of money off of Windows desktop. In 2014 they changed how they report segment revenue, but as of 2013 the Windows division (non server) had $19 billion in sales for that fiscal year. Revenue for Windows desktop is down a bit from there (perhaps 8%-10%) according to reports throughout 2014. The operating income on that $19 billion was $9.5 billion. Needless to say it's still a wildly profitable cash cow for Microsoft, albeit a declining business.
- eitally 11y ago
  The vast majority of that is businesses paying ~$140/copy for the enterprise edition. In fact, if you are under an EA, it's in violation of the agreement to use any version but Enterprise.

dageshi 11y ago

I'd have thought that Microsoft still sells a monumental pile of Desktop licenses to business because a) they've got the money b) they don't want to risk being caught without legal licenses. In fact I've felt that up until around the last 5 years Windows was primarily focused on business users and consumers were just a happy bonus because what else were they going to run? So I could see them giving away a version that can't join a domain (no use to business) for consumers, but I'd be very surprised if they did the same for business customers.

superuser2 11y ago
How do you imagine a business would come across a computer that did not already have a desktop license?
- nos4A2 11y ago
  Virtual Machines and Windows Server.

themartorana 11y ago

I think they probably make a ton on OEM installations on new computers. Consumer upgrades didn't pay for the support required for non-upgrades.

adventured 11y ago

They still make a lot of money off of Windows desktop. In 2014 they changed how they report segment revenue, but as of 2013 the Windows division (non server) had $19 billion in sales for that fiscal year. Revenue for Windows desktop is down a bit from there (perhaps 8%-10%) according to reports throughout 2014. The operating income on that $19 billion was $9.5 billion. Needless to say it's still a wildly profitable cash cow for Microsoft, albeit a declining business.

eitally 11y ago
The vast majority of that is businesses paying ~$140/copy for the enterprise edition. In fact, if you are under an EA, it's in violation of the agreement to use any version but Enterprise.