Microsoft's new consumer operating system pricing strategy

Dari

Lifer
Oct 25, 2002
17,133
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I forgot where I read it but Microsoft said they admired Apple's operating system strategy. Apple has (arguably) churned out 7 operating systems in 10 years and their customers have lined up to pay for each one. Microsoft has churned out only 4 in that time period. IIRC, Microsoft has a program for businesses where customers pay a yearly fee and are able to get the latest operating system. I don't think it caught on so they've decided to try a different way by going the Apple route. Windows 7 may be the starting point of this new pricing model.

So, my question is, will you buy a brand new operating system from Microsoft in 2-3 years time like Apple users do if the features were compelling enough?
 

nageov3t

Lifer
Feb 18, 2004
42,808
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if the upgrades between the operating systems are significant enough to warrant the expense.
 

Barfo

Lifer
Jan 4, 2005
27,539
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Originally posted by: Dari
I forgot where I read it but Microsoft said they admired Apple's operating system strategy. Apple has (arguably) churned out 7 service packs in 10 years and their customers have lined up to pay for each one. Microsoft has churned out only 4 in that time period. IIRC, Microsoft has a program for businesses where customers pay a yearly fee and are able to get the latest operating system. I don't think it caught on so they've decided to try a different way by going the Apple route. Windows 7 may be the starting point of this new pricing model.

So, my question is, will you buy a brand new operating system from Microsoft in 2-3 years time like Apple users do if the features were compelling enough?

Fixed that for you.
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: Barfo
Originally posted by: Dari
I forgot where I read it but Microsoft said they admired Apple's operating system strategy. Apple has (arguably) churned out 7 service packs in 10 years and their customers have lined up to pay for each one. Microsoft has churned out only 4 in that time period. IIRC, Microsoft has a program for businesses where customers pay a yearly fee and are able to get the latest operating system. I don't think it caught on so they've decided to try a different way by going the Apple route. Windows 7 may be the starting point of this new pricing model.

So, my question is, will you buy a brand new operating system from Microsoft in 2-3 years time like Apple users do if the features were compelling enough?

Fixed that for you.

Yeah... you have no idea what you're talking about.

They haven't been 7 new full operating systems, but the prices have ranged from $0 to $29 up to $129 for a complete, non-gimped version. Pricing depends on how much they've improved in the new version.

The thing that MS should think about copying from Apple with regard to OS releases and pricing is Apple's family packs. 5 licenses for less than the cost of two individual licenses. I doubt there are many Anandtech members who wouldn't come out ahead with that pricing scheme.
 

rasczak

Lifer
Jan 29, 2005
10,437
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Originally posted by: darkxshade
I'd rather windows 7 be like the next xp and last about a decade.

this. I don't want to deal with software compatability/driver issues every 2-3 years.
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: Sheik Yerbouti
I bought the pre-order today. I really like windows 7, and for 50 bux, it's a hellava deal.

Yeah I got two copies. I just hope the "upgrade" version isn't a PITA to install. I always do a clean install of my OS. If MS gives Windows 7 away to developers like they did with Vista in their Power Together promotion, I can always cancel the pre-order.
 

Dari

Lifer
Oct 25, 2002
17,133
38
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Originally posted by: GeneValgene
Originally posted by: darkxshade
I'd rather windows 7 be like the next xp and last about a decade.

QFT

But how will MS get paid? They're not a charity, you know. Gates gotta eat. Ballmer gotta eat.

Considering their consumer and businees OS are now the same, something's gotta give.
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,344
126
I'm a biter. Err...pre-buyer.

Didn't get in on the RC-Releases but by pretty much everyone's account that did, they are very happy with it. I've really become a big user of Vista Media Center and the updates to that (Reported QAM support!) seem to be worth the $50 bump.
 

tk149

Diamond Member
Apr 3, 2002
7,253
1
0
I like playing old games, and not spending hours/days with incompatibility issues. I don't like buying new productivity software everytime I upgrade OS's.

I really really hate re-learning how to do things in Windows because Microsoft enjoys training us to do things one way for 10 years, then switches to something completely different.

So, no.

I'd bet that MS is seriously considering going to a "rental" OS, where you have to pay an annual fee, or your OS borks.
 

vi edit

Elite Member
Super Moderator
Oct 28, 1999
62,484
8,344
126
Another reason for me to move to it is that every vendor we've worked with has completely skipped over Vista support and is focusing on Windows 7 versions of their apps.

Having a Windows 7 box at home helps me become more familiar with what our eventual client platforms will be running on.
 

nakedfrog

No Lifer
Apr 3, 2001
60,664
15,865
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Originally posted by: Dari
So, my question is, will you buy a brand new operating system from Microsoft in 2-3 years time like Apple users do if the features were compelling enough?

If the features were compelling enough? Sure. I don't personally see any compelling reason to switch from XP to Vista, so obviously it would have to be pretty compelling.
I have Vista on three PCs at home, including my daily use laptop, so I'm not just being mindlessly anti-Vista, it's been pretty solid for me. I haven't heard about anything in 7 that would get me to go out and buy it, either.
 

Capt Caveman

Lifer
Jan 30, 2005
34,543
651
126
Dumb question - will Windows 7 require all new drivers, use existing Vista drivers and/or be compatible with XP drivers?
 

jamesbond007

Diamond Member
Dec 21, 2000
5,280
0
71
Originally posted by: rasczak
Originally posted by: darkxshade
I'd rather windows 7 be like the next xp and last about a decade.

this. I don't want to deal with software compatability/driver issues every 2-3 years.

Amen.

Originally posted by: Chryso
There is not a need for an operating system to change that often.

Agreed. That's why I like OSX - baby steps in the right direction towards perfection! Windows XP was and still is totally stellar, but I hope Windows 7 is here to stay for a while. I'd rather pay a bit more for an OS that I can use for several years than dealing with formatting and reinstalling, driver problems, having to learn different ways of doing the same thing, like the posters above.
 

darkxshade

Lifer
Mar 31, 2001
13,749
6
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Originally posted by: Dari
Originally posted by: GeneValgene
Originally posted by: darkxshade
I'd rather windows 7 be like the next xp and last about a decade.

QFT

But how will MS get paid? They're not a charity, you know. Gates gotta eat. Ballmer gotta eat.

Considering their consumer and businees OS are now the same, something's gotta give.

The same way they always get paid. I'm not exactly sure how their business model works but I'm under the impression that the bulk of their earnings from windows come primarily from OEM licenses with computer vendors and not from actual copies of the retail versions. So while they could make more by churning out new OSes every 3 years and forcing individual system builders upgrade, it shouldn't affect how they make money from vendors like Dell.
 

lxskllr

No Lifer
Nov 30, 2004
58,819
9,145
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I like a 5 year spread between O/Ss. I'm skipping Win7, as I prefer Vista, but I would consider buying if the changes were sufficient enough. I voted "not sure".
 

PokerGuy

Lifer
Jul 2, 2005
13,650
201
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I can't see any scenario where MS could build enough compelling features to make me want to go through the hassle of incompatible devices, drivers etc every 3 years or so. I would much rather purchase the OS, and keep it until the next real upgrade. XP to W7 appears to be that real upgrade.

There's no way I'd pay a yearly fee for keeping the latest and greatest: what incentive would there be for the company to keep building new features or adding/fixing anything? They'd be getting the money no matter what....
 

mcvickj

Diamond Member
Dec 13, 2001
4,602
0
76
Originally posted by: Sheik Yerbouti
I bought the pre-order today. I really like windows 7, and for 50 bux, it's a hellava deal.

I thought about that but I want the full version. I've never had great luck with upgrading a previous Windows OS.