Razors or razor blades

Microsoft has made a fortune licensing its Windows software.  Why would they change their model?  Is there more money in selling the adds on?

Microsoft Opens a Window Into a New Era,” Wall Street Journal, January 22, 2015 B1. Microsoft decides to give away Windows 10 to some users, in the hope the other add-ons it sells (e.g., Office365, Azure) will make up for the lost revenue.

Sort of like Gillette giving away razors that only took Gillette blades.

Are you in the licensing-of-software business or are you in the sale-of apps business?  I guess they chose, sacrificing $500 million in short-term revenue.

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Filed under Business Case, Definition, Information, Risk, Value

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