Microsoft is still refusing to be completely free.

Summary: Microsoft announced at the build convention that it would plan for future Microsoft to provide free windows for smartphones, tablets and small networking devices . The decision appears to be a big change for Microsoft's business model, as Microsoft's 1/4 gain comes from a system-wide mandate for PC makers and consumers.

Hardware Re-invention compilation

At this week's build convention, Microsoft announced that Microsoft is planning to provide free windows for smartphones, tablets and small networking devices in the future . The decision is a big change for Microsoft's business model, because the ferment in Microsoft revenue comes from system licensing for PC manufacturers and consumers.

The move means Microsoft will voluntarily give up revenue from Windows Phone and Windows 9 inches below. However, Microsoft is apparently not as open as Apple, and the desktop system is also free of charge, and even Apple's core billing software such as office kits has been given free.

One might ask, why not just make Windows free on PCs? The answer is this is not possible, because PC-side charges are still the bottom line of Microsoft, for several reasons:

One, can not give up the cash cow

One reason why Microsoft does not extend this free strategy to PCs is that the existing Windows Licensing business is their cash cow. Although the traditional PC business has been very depressed, market research data show that desktops and laptops are still up to 315 million shipments last year, most of which are Windows platforms. So Microsoft obviously has no reason to give up the business.

In addition, traditional PC users may be less inclined to buy apps from Windows app stores, or use Microsoft services such as Xbox Music, Xbox video, and Bing Smart Search, as they have opted for their traditional desktop apps that are more commonly used. So after the system is sold, Microsoft will not be able to make money from these users.

Second, the small size terminal has after the charge mode

The main purpose of smartphones and small-scale tablets is to use apps, listen to music and watch videos. In these devices, Microsoft is more likely to build an ecosystem and make money from selling apps, service subscriptions and content, and hoping that these revenues will compensate for the loss of system authorization.

After Windows is free, mobile phones and tablet manufacturers can also further reduce their hardware costs to better compete with Android devices. And when you consider that Microsoft has been charging royalties for every Android phone, a truly free Windows license may end up cheaper than the "free" Android license.

With carrier subsidies, lower prices may not be as important in the US smartphone market, which could boost overseas market share.

For tablet computers, this is even more significant. Android tablets are generally priced at $200 or lower, and Windows tablet is sold at $250 or higher, partly because of the existence of system licensing costs (Windows 8 cannot run on devices less than 2GB of memory and 32GB storage), But that will be history after the next month's upgrade. A free license may not be necessary for large flat panels, as consumers seem willing to pay higher prices for devices that are more like laptops--and in any case, Microsoft will have to draw a line between the two types of devices.

Given that Microsoft is not going to touch its traditional PC licensing business, Windows Free is hard to claim as a concession. But it is a big gamble that Microsoft is trying to stabilize its huge legacy PC licensing business and allow itself to get out of the doldrums. (Eskimo)