In the past, Microsoft's operating system, known as Windows, was one of the key products that helped the company become the giant it is today. However, as time goes on, technology evolves; and that evolution has led to Microsoft's focus leaving the PC space and entering into the cloud! However, there's been quite a bit of hype about Windows 10 and how it may have the ability to drive major revenue for Microsoft. The question now is… “Is there any validity to that assessment?” Today, we'll discuss how Windows is changing their operating system business and whether or not it is likely to drive strong movement in the stock moving forward. So, let's get right to it…
Microsoft Is Turning To The Ecosystem
If you invest in tech stocks, chances are that you've heard the term “product ecosystem” once or twice. As a matter of fact, this particular term was coined by Apple; a company that has built an incredible ecosystem of products. Well, with Windows 10; Microsoft will be looking to the ecosystem as a way to generate stronger revenue.
In the past, Windows was a product that was paid for. Every few years, Microsoft would come out with a new version of Windows that came with its own price tag. If users wanted it, they had to pay for it. Well, that's no longer the case. Microsoft 10 is going to be 100% free. All users will need to do is opt for the upgrade. I know what you may be thinking… “How is it that a free product is going to drive revolutionary revenues?” Well, that's where it gets interesting…
Windows 10 is more like a Trojan horse; a gift so to speak that has other reasons to be given. The idea here is that Microsoft offers Windows 10 absolutely free; making more people want to use it than ever. However, within Windows 10, there will be several ways for Microsoft to monetize the operating system. This may be through the purchase of games, upgrades, applications, and more; all part of Microsoft's new found “ecosystem”. So, in a sense, Microsoft will be using the FREE price tag in an attempt to get more people into its “paid” ecosystem. In my opinion, this move is absolutely genius! However, there's still a huge question…
