Microsoft Won’t Turn Windows 10 into a Subscription Service

Microsoft Isn’t Turning Windows 10 into a Paid Subscription Service

After launching free upgrades for Windows 7/8/8.1 users within the first year of the new operating system’s release, from July 2015 to July 2016, some persons say that Microsoft is turning Windows 10 into a paid subscription service.

The rumor appears based on the idea: Microsoft would first lock in users with a “free” Windows 10 upgrade and then launch paid subscriptions that could replace traditional Windows license fees.

After a period of time, the rumor faded away gradually. However, a recent ZDNet report says that Microsoft is to launch a new subscription service for Windows 10 named Microsoft Managed Desktop (MMD).

To put it simply, Microsoft Managed Desktop is a “desktop as a service” for businesses that includes a lease of physical PC hardware running on Windows 10 operating system and the service will be updated for a single monthly fee.

Microsoft Managed Desktop Service will Charge a Monthly Fee

Microsoft is planning to launch a desktop-as-a-service program "Microsoft Managed Desktop", charging a monthly fee to configure computers running Windows 10.

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Based on this, some persons think Microsoft would hold users’ PCs hostage unless they paid monthly fees.

However, it is not the case. For enterprise customers, MMD is only a paid service helping to solve complaints about Microsoft’s twice-per-year OS updates disrupting IT deployment schedules.

It is unlikely that Microsoft is to launch a paid subscription for Windows 10 computers. Looking ahead, there are 5 reasons.

Microsoft Won’t Turn Windows 10 into a Subscription Service

It Would Help Its Competitors

If Windows 10 is turned into a subscription service, the “free” Windows 10 upgrade looks like the ultimate decoy and conversion strategy. This will let consumers flock to the competitors’ platforms. For instance, Apple’s macOS have gained nearly five-year free upgrades or Alphabet’s Chrome OS has always been free.

Fragment Windows Market

As to the users who use older Windows versions, they may refuse to upgrade to Windows 10 if it is turned into a paid service. That is inconsistent with the original goal of Windows 10 free upgrade plan: reduce Windows market fragmentation and let all its users on the same page.

Microsoft Has Other Methods to Benefit via Windows 10

Every few years, Microsoft sells new keys for Windows to monetizing various parts of the OS. It has added “suggested” apps to the Start Menu to generate ad revenues and promoted the use of first-party services including OneDrive, Office 365, Bing and Cortana.

Windows 10 Isn’t Free Anymore

To enterprise users, Microsoft never offers them a free Windows 10 upgrade and they always have to buy multi-year business licenses. This free upgrade program for mainstream consumers finished two years ago. Now, Windows 10’s fresh copy costs between $140 and $200, which depends on the version.

Microsoft Benefits from OEMs

In a nutshell, only the users who build their own PCs have a need to buy Windows 10 fresh copies. When referring to store-bought PCs with Windows preinstalled, OEMs will buy Windows licenses from Microsoft.

It is quite foolish to add monthly subscription fees to the OS to alienate users because Microsoft has already cut down every Windows PC sold. In reverse, this may hurt OEMs and let them switch to other OSs.

Bottom Line

In concussion, Microsoft won’t turn Windows 10 into a subscription service since it will undermine Microsoft’s long-term goals.

If you are using an old version and want to upgrade to Windows 10, please remember to back up important files or OS with the free backup software – MiniTool ShadowMaker because the update may cause data loss or system crash.