Microsoft to Cut Windows Licensing Price by 70% to Compete with Apple

[peterdevries]

Microsoft Windows 1 and 2 did nothing to disrupt the market an any way. Traction for Windows didn't occur until Windows 3 was introduced in 1990. Apple had already defined the windowing product category 7 years earlier and being the #2 computer manufacturer in the early 90's did disrupt the computing market. The structure of the market was already altered, not in iPad or iPhone sales numbers ways, when Microsoft Windows work started paying off for them, and its users.

Sorry, but you are missing my point. I understand that you know the history and so do I, but to understand the market and it's dynamics it's necessary to look wider.

The MS windows product follows a textbook product life cycle curve. The start of that curve is slow adoption by early adopters, followed by incremental innovations in the platform to start an accelerating growth phase. It is indeed windows 1 that started the market disruption, while windows 3 started the growth phase. MS is now struggling to find a way to get its product out of the maturity part of this cycle, which is very difficult.

Sorry if this sounds theoretic, but understanding product life cycles is incredibly helpful in determining product and business strategy.

 

[coolspot18]

What happens to a software company that can't sell software?

Microsoft will continue to sell software - Business and Pro markets are secure.

Apple's withdrawal from these key markets have guaranteed this.

Seriously, with the issues I had with the ISO, it took me no less than 7 hours from start to finish, until I had Windows 8.1 with all the updates, security patches, etc.

Did you check the CRC of the ISO? It was probably corrupt - Windows 7/8 have a pretty good, streamlined, installation.



OSX does need some upgrades - like a better finder, and features like iSCSI, etc.

 

[westrock2000]

OSX is not always free. It may have been this round. But it also alienated a lot of the older user base as well, which I'm sure they are hoping will convince people to upgrade older Macs.

Why would providing free OSX upgrades alienate any OSX users?

Because all (most) of the core Apple software on the app store now requires Mavericks or Mountain Lion and they have a policy of not offering any older versions of software. So while everyone is happy that they can download iLife for free, anyone that can't load those operating systems has absolutely no ability to get the software from Apple. Apple has come up with some very good ways of wiping out the older customer base over the years.

I'm still not sure what would happen if my 2nd generation Touch ever had to be restored and I didn't save the old apps. Because nothing on the app store will work on it anymore.

 

[furi0usbee]

Did you check the CRC of the ISO? It was probably corrupt - Windows 7/8 have a pretty good, streamlined, installation

I downloaded it 3 times using 3 different browsers. Had the same error on install each time. However, as I mentioned, I was able to install it over the 8.1 Enterprise eval. For whatever reason, 8.1 would not install to a new virtual machine, whereas the 8.1 enterprise eval would.

I've installed/re-installed Mac OS probably 20+ times on all my computers from 2005 onward, and never had any issues like this. Now I know why people don't update Windows, and just get new versions with their new computer.

 

[mabhatter]

Meanwhile Apple adds $30 because they can't keep iOS critters in stock.... (Ducks)

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What happens to a software company that can't sell software?

The same thing that happened when Microsoft used to release products for free... Netscape, stacker, mosaic, etc....

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The only things that Microsoft has a modicum of success in are legacy OS and XBOX.

Microsoft's money is in Enterprise Support. Windows is the "loss leader" because when you own 10,000 computers you gotta pay them for support and security updates. Not to mention, exchange, Sharepoint, and SQL server that all require CALS and CALS require software support for the OS. Microsoft is only really interested in cashing 6+ figure checks. (That's why Windows is the way that it is) Where Apple is focused on selling ONE DEVICE at a time.

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OSX is not always free. It may have been this round. But it also alienated a lot of the older user base as well, which I'm sure they are hoping will convince people to upgrade older
Now $20 is still a damn fine price for upgrading OSX.

That's because Apple sells DEVICES and APPS. That 30% cut of iTunes/ App Store purchases most people make more than covers keeping everybody on the latest OS release. Apple keeps up OS releases, developers develop using the coolest new features sooner, people BUY more IWidgets and Apps!

 

[JHankwitz]

Microsoft nailed it. It's their customers who are too stupid to realise how to use it properly.

Very well stated. It's the customer base that best describes the difference between Apple and Microsoft. Very profound but true.

 

[Parasprite]

Because all (most) of the core Apple software on the app store now requires Mavericks or Mountain Lion and they have a policy of not offering any older versions of software. So while everyone is happy that they can download iLife for free, anyone that can't load those operating systems has absolutely no ability to get the software from Apple. Apple has come up with some very good ways of wiping out the older customer base over the years.

I'm still not sure what would happen if my 2nd generation Touch ever had to be restored and I didn't save the old apps. Because nothing on the app store will work on it anymore.

iirc the App Store will automatically offer you the "latest version before they dropped support". I don't have an old device to test it with but it may be worth looking into.

 

[notjustjay]

I tried that. It said "30 minutes until the download is finished". An hour later it said "Takes about an hour to install". The next two hours, it counted down to zero then said "Oh, and another hour". It counted down a few minutes, then nothing happened anymore.

I think this exact thing happened to me after Christmas when I bought a Lenovo Yoga 13" to play with (and, the hope was, to replace a laptop + iPad combination).

Windows 8 was glitchy, but I knew everyone said 8.1 was better. I couldn't even find an 8.1 updater in the App Store. Turns out you have to have certain patches installed first before you can even see it. Fine, let's update. Windows says 83 critical security updates are ready to install. Click "Start Updates". Wait for hours. Nothing happens.

Repeat process three times, same result. Nothing happens. Give up. Pack up Yoga and return to store. Buy 13" Retina MacBook Pro instead

 

[Michael Goff]

Yeah, but it's just extra work then. Maybe they put that there as a test?

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Another will replace it, hopefully something again based in the United States.

That's a naive thought.

 

[phillipduran]

As a mac user, I don't understand what everyone is bitching about. Windows 8 is awesome. Metro is like dashboard and launch pad all-in-one.

Plus, you can use a basic desktop and have a small portable monitor like the gechic on lap which has 10-point touch support natively.

So you get a 15.6 in trackpad, that is also a screen, that supports stylus and 10-point finger touch and works great with metro.

OSX doesn't have anything like it.

Microsoft nailed it. It's their customers who are too stupid to realise how to use it properly.

This is the first ever version of windows where I am actually considering ditching OSX, which has gotten progressively worse since snow leopard. Apples value was always the software, and Since apple killed fcp there isn't really any value in apple computers anymore.

Well, it is the stupid people who are the market that will make or break the device.

Also, this direction for Microsoft is not working. Apple "not having anything like it" was a great move on Apple's part and has proven successful.

Apples value was always the software, and Since apple killed fcp there isn't really any value in apple computers anymore.

What? They make the most amazing and solid hardware ever across all devices. All of that is nullified because of Final Cut Pro?

From another article:

In recent years, Apple has been the top vendor in the PC market, selling more combined tablets, notebooks and desktops than any other manufacturer

 

[milo]

And windows phone.

They've achieved a higher percentage of smartphone marketshare in just a couple years than apple ever achieved in the desktop market over 30 years.

Looks like windows phone is generally under 3%. Mac marketshare has been above that for years, and the big success of mac hasn't been the marketshare, it's the profitability. Maybe someday, but I wouldn't call windows phone much of a success just yet.

 

[MattG]

Desperate times...

 

[Eidorian]

I believe this coincides with this tidbit about the next Windows 8.1 Update.

http://www.bit-tech.net/news/bits/2014/02/24/windows-8-1-update-1-release-date-in-spring/1

"The update will also lower the base specification for devices, with just 1GB of RAM and 16GB of storage now required - a possible hint at a move away from continuing with Windows RT, as well as allowing for cheaper devices overall. Joining these software changes there are rumours Microsoft will be lowering the cost of Windows 8.1 licenses for PC makers, by as much as 70 percent for machines retailing for under $250. Sadly there is no hint that consumer license pricing will change."

 

[Michael Goff]

I believe this coincides with this tidbit about the next Windows 8.1 Update.

http://www.bit-tech.net/news/bits/2014/02/24/windows-8-1-update-1-release-date-in-spring/1

"The update will also lower the base specification for devices, with just 1GB of RAM and 16GB of storage now required - a possible hint at a move away from continuing with Windows RT, as well as allowing for cheaper devices overall. Joining these software changes there are rumours Microsoft will be lowering the cost of Windows 8.1 licenses for PC makers, by as much as 70 percent for machines retailing for under $250. Sadly there is no hint that consumer license pricing will change."

I wouldn't be surprised if they lowered the price for RT at the same time. After all, they're putting RT and Phone together. Maybe they'll end up with RT at whatever Phone costs now?

 

[Eidorian]

I wouldn't be surprised if they lowered the price for RT at the same time. After all, they're putting RT and Phone together. Maybe they'll end up with RT at whatever Phone costs now?

They made the attempt with Windows RT but in all honesty the lack of application compatibility with the plethora available under x86 is what hurt the most. Intel finally pushed out their consumer Atom chips in 64-bit so I can imagine that is what we will be seeing from here on out.

 

[Michael Goff]

They made the attempt with Windows RT but in all honesty the lack of application compatibility with the plethora available under x86 is what hurt the most. Intel finally pushed out their consumer Atom chips in 64-bit so I can imagine that is what we will be seeing from here on out.

I always found the lack of x86 apps to be a funny argument against Windows RT. I could see it as being an argument in favor of an Atom Tablet, but it is usually used as an argument for either an Android Tablet or iPad. And that's where it gets weird to me.

 

[Eidorian]

I always found the lack of x86 apps to be a funny argument against Windows RT. I could see it as being an argument in favor of an Atom Tablet, but it is usually used as an argument for either an Android Tablet or iPad. And that's where it gets weird to me.

I had the same questions when getting my first Mac. "Does 'x' application exist to replicate existing functionality on my current platform." Office on Windows RT is a nice touch but not the entire ball game.

Something like VLC is just getting around to the Windows RT platform after its Kickstarter.

 

[Michael Goff]

I had the same questions when getting my first Mac. "Does 'x' application exist to replicate existing functionality on my current platform." Office on Windows RT is a nice touch but not the entire ball game.

Something like VLC is just getting around to the Windows RT platform after its Kickstarter.

Yeah, the VLC debacle is disappointing. "In three months" became "over a year later". :|

 

[notjustjay]

I always found the lack of x86 apps to be a funny argument against Windows RT. I could see it as being an argument in favor of an Atom Tablet, but it is usually used as an argument for either an Android Tablet or iPad. And that's where it gets weird to me.

Not sure what you mean. I think it's a perfectly legitimate point, and precisely the reason why I didn't buy a Windows RT tablet.

If all you're looking for is a brand new tablet experience out of the box, and you're looking at choosing between RT, Android, or iOS, then that's a pretty fair comparison. You look at the apps available in their respective App Stores and you choose whichever one suits your needs best. From a pure tablet app point of view, they're probably pretty comparable -- everyone's got Dropbox, Twitter, Facebook, etc.

But one of the selling points of a non-RT device is that I have the ability to run any x86 app I want, not just the new App Store ones. Full MS Office (granted, this IS available on RT), Photoshop, you name it. There are a gazillion things I'd love to be able to do on a tablet that gives me full Windows -- manage files on USB and memory cards, for example, install photo editors, run batch scripts, access network shares. I've got utilities to massage GPS coordinate and mapping data and transfer them to Garmin GPS units. I've got utilities I've written myself. Being able to run all that on a tablet-size device would be a huge advantage. A Windows tablet could replace an iPad and a netbook/Chromebook in one shot.

Apparently VLC is on that list, going from the above posts. I'd like VLC.

RT can't do any of those things, which isn't necessarily a knock against it, but if I have the choice between RT and full Win8, and the only practical difference is price, why would I choose RT?

 

[Michael Goff]

Not sure what you mean. I think it's a perfectly legitimate point, and precisely the reason why I didn't buy a Windows RT tablet.

If all you're looking for is a brand new tablet experience out of the box, and you're looking at choosing between RT, Android, or iOS, then that's a pretty fair comparison. You look at the apps available in their respective App Stores and you choose whichever one suits your needs best. From a pure tablet app point of view, they're probably pretty comparable -- everyone's got Dropbox, Twitter, Facebook, etc.

But one of the selling points of a non-RT device is that I have the ability to run any x86 app I want, not just the new App Store ones. Full MS Office (granted, this IS available on RT), Photoshop, you name it. There are a gazillion things I'd love to be able to do on a tablet that gives me full Windows -- manage files on USB and memory cards, for example, install photo editors, run batch scripts, access network shares. I've got utilities to massage GPS coordinate and mapping data and transfer them to Garmin GPS units. I've got utilities I've written myself. Being able to run all that on a tablet-size device would be a huge advantage. A Windows tablet could replace an iPad and a netbook/Chromebook in one shot.

Apparently VLC is on that list, going from the above posts. I'd like VLC.

RT can't do any of those things, which isn't necessarily a knock against it, but if I have the choice between RT and full Win8, and the only practical difference is price, why would I choose RT?

I said I could see it being an argument for atom based (and all x86) tablets. I said it was a funny argument in favor of an iPad or Android alternative. As you've pointed out, the app situation is pretty much equal for ARM devices.

 

[notjustjay]

I said I could see it being an argument for atom based (and all x86) tablets. I said it was a funny argument in favor of an iPad or Android alternative. As you've pointed out, the app situation is pretty much equal for ARM devices.

Oooh. Right. I see. I guess I misinterpreted your point.

Well, it kind of works both ways, but RT is the loser in each case. There are way more apps for Android or iOS in their app stores than for Windows. The Windows (non-RT) folks like to counter that with "who cares how many are in the app store, I can run any program I want!"

 

[Michael Goff]

Oooh. Right. I see. I guess I misinterpreted your point.

Well, it kind of works both ways, but RT is the loser in each case. There are way more apps for Android or iOS in their app stores than for Windows. The Windows (non-RT) folks like to counter that with "who cares how many are in the app store, I can run any program I want!"

I can counter with that as well. I have the apps I need, want, and I never saw the point of bragging about how one store has 300k apps while the other only has 150k. Only. As if the average person is going to ever download even a slim portion of those apps. You'd be hard pressed to find somebody who has even downloaded 1/100 of those apps, I'd even go as low as to say 1/1000 for that figure.

 

[Eidorian]

I can counter with that as well. I have the apps I need, want, and I never saw the point of bragging about how one store has 300k apps while the other only has 150k. Only. As if the average person is going to ever download even a slim portion of those apps. You'd be hard pressed to find somebody who has even downloaded 1/100 of those apps, I'd even go as low as to say 1/1000 for that figure.

Same, it doesn't matter if you have a million programs in your application repository if you don't have the one I want. From my experiences, I'd be getting another Android tablet but an Atom based one running Windows 8.1 sounds right too.

 

[Michael Goff]

Same, it doesn't matter if you have a million programs in your application repository if you don't have the one I want. From my experiences, I'd be getting another Android tablet but an Atom based one running Windows 8.1 sounds right too.

Don't make the mistake of thinking I'm trying to tell you what to buy. You should get something that's best for your use case. Whether that's Windows or Android should be based on what works best for you.

 

[Eidorian]

Don't make the mistake of thinking I'm trying to tell you what to buy. You should get something that's best for your use case. Whether that's Windows or Android should be based on what works best for you.

Oh no, it would definitely be based on my needs. Though right now my MacBook is in more dire need of being replaced.