Despite software piracy - how to win Microsoft?

ADVERTISEMENT

Despite the prevalence of hacking for Windows, Microsoft is still making huge profits. It is still one of the largest technology companies globally and one of the most valuable. There is a valid belief that the company is limited to software production, but the situation is much larger.

Show key points

  • Microsoft continues to generate substantial revenue from Windows license sales to OEMs, businesses, and individual users.
  • The company's cloud services like Office 365 and Azure play a crucial role in its diversified income stream.
  • Microsoft combats software piracy through partnerships with governments and incentives for legal upgrades.
  • ADVERTISEMENT
  • A significant portion of the user base either cannot or chooses not to hack Windows, opting instead for legitimate licenses.
  • Products like Xbox, LinkedIn, and Surface devices add additional layers to Microsoft’s revenue sources.
  • Microsoft's broad patent portfolio provides consistent income through licensing agreements with other tech companies.
  • With a massive user base, Microsoft benefits from the network effect, encouraging developers to prioritize Windows platforms.

Microsoft invests heavily in the fight against piracy, working with governments and law enforcement agencies to combat the sale and sale of counterfeit versions of Windows. Microsoft also offers incentives for users to upgrade their pirated operating systems to genuine.

Despite the prevalence of hacking, Microsoft's market capitalization remains high. This is partly due to the company's business diversity, focus on innovation, and strong brand.

ADVERTISEMENT

How does Microsoft win even though there are many hacking of Windows?

1. Windows License Sales:

صورة من unsplash

OEM Windows sales: Microsoft sells Windows licenses to computer manufacturers (OEM) to pre-install on their devices.

PC sales: Windows PCs still make up a large part of the PC market. With each new computer sold, provided there is a contract with the manufacturer; Microsoft gets a license fee for Windows. Sales of new computers with Windows pre-installed generate significant profits for Microsoft.

Operating system upgrades: When a new version of Windows is released, many users purchase upgrades to the current operating system.

Commercial license sales: Microsoft sells Windows licenses in bulk to companies and organizations. It is most common in the company's best-selling lists. Microsoft contracts with companies to sell Windows licenses in bulk at a discounted price.

ADVERTISEMENT

2. Windows Services:

صورة من unsplash

Office 365 subscriptions: Microsoft offers a range of cloud subscription services, including Office 365, which requires a Microsoft account to run, and OneDrive, which requires a paid account.

Azure services: A wide range of cloud computing services, including Azure, which are used by many companies and organizations.

Advertising services: Microsoft displays ads through several online applications, and there is a system dedicated to them, which is used by collecting data, including the Bing search engine, which generates profits.

Windows Store: The Windows Store charges commissions on apps and games sold through it.

3. Other products and services:

صورة من unsplash

Microsoft owns an Xbox game console, which sells game hardware, software, and games.

ADVERTISEMENT

LinkedIn: Microsoft owns LinkedIn, a corporate social networking site, which generates revenue from advertising and premium member subscriptions.

Patents: Microsoft has an extensive portfolio of patents, which it licenses to other companies.

4. Hacking does not affect all users:

صورة من unsplash

Legitimate users: Many users buy Windows licenses legally, generating profits for the company.

Users who don't know how to hack: Not all users can hack Windows, prompting them to buy licenses.

Risk-feared users: Some users prefer to purchase legal licenses to avoid the security risks associated with hacking.

5. Manufacture and sale of devices:

صورة من unsplash

Microsoft sells devices like Surface Laptop and Surface Studio. These devices are an additional source of income for the company. It has increased in the recent period, especially among a specific segment of customers, who prefer mobile devices.

ADVERTISEMENT

6. Patents:

صورة من unsplash

Microsoft owns several patents related to computer technology. The company licenses these patents to other companies, providing a source of income.

7. Network Effect (Huge Number of Users):

صورة من unsplash

Windows has a large share of the market, making a huge impact on other companies. For example, software development companies may choose to develop their software for Windows first due to the large number of users. This is already happening in most companies.

7. Adapt to changes:

صورة من unsplash

Microsoft understands that the needs of users change over time. The company is constantly developing its products and services to meet these needs. The most notable of these changes has been what has happened in recent years, including the administration taking on a completely different mentality than before.

ADVERTISEMENT

9. Investing in innovation:

صورة من unsplash

Microsoft invests heavily in innovation. This helps her stay ahead of the tech and attract new customers. Microsoft has a strong financial position, allowing it to take the risk of investing in new projects.

toTop