14 DAY TRIAL // ‘Free’ and ‘Windows’ are not exactly concepts that mix very well together, as opposite to ‘free’ and Linux for example. This is an inherent aspect of Microsoft’s business model built on proprietary software, incongruent with the open source paradigm. But as the world slowly shifts to software plus services, or software as a service, whichever you prefer, Microsoft itself has embraced ‘free’ more and more. The question is whether the Redmond company will ever provide a free version of Windows to its users. Free, but ad-supported, with the advertisers paying the bill, and with customers being served ads as an alternative to not paying a single cent for the operating system.
There is really no answer from Microsoft on this matter, but there are indications that Microsoft has been exploring such a possibility. According to MSFTKitcken, the software giant has been building Project Madison, a prototype for advertising in Windows. (via Mary-Jo Foley). Microsoft explores a variety of concepts and ideas, some prototypes even make it into fully fledged products, or are melted into existing software solutions and technologies from the company. But a free Windows client? Cloud it be possible?
According to Steve Ballmer, Microsoft chief executive officer, the answer is no. Ballmer was asked whether Windows Phone could ever be offered for free to handset manufacturers while on stage at the Mobile World Congress 2010, in Barcelona, Spain, on February 15, 2010.
Here’s what he said, “I think there's something clean and simple and easy to understand about our model: We build something, we sell that thing. (…) Our model is clear and direct. We plan on staying with the model that we are on. We think it's not only in our best interests, but it's probably a simple model that's easy for developers, handset manufacturers and our operator partners to deal with, to understand, and to build from.”
Ballmer was obviously talking about Windows Phone, the mobile flavor of Windows for smartphones, but the perspective is somewhat generalized since he does talk about the business model as a whole. This means that a completely free Windows client isn’t really an option for Microsoft. At least not for the immediate future.
It’s hard to believe that Microsoft will shoot itself in the foot and give up on the billions and billions in revenue that Windows generates in quarter after quarter. But what about a single edition of Windows? What if Microsoft shoots off just a toe? After all, there is a precedent, namely the Office Starter edition
Officer Starter will be pre-installed on new OEM machines and will be offered completely free by Microsoft, but will be ad-supported. Yes, the SKU is a stripped down version of Office 2010, with only basic functionality, but the Office suite is one of the company’s main cash cows, and not a Microsoft Security Essentials-level product.
A similar basic Windows edition featuring ads could be in the company’s future. And perhaps Microsoft is looking to see the success of Office 2010 Starter before it makes a similar move with Windows. Either way, I see something different than a ‘blue links’ advertising model working on the Windows desktop.
Fact is that Microsoft is already offering ads in its latest iteration of Windows. Some of the customization content, such as themes and wallpapers, available on the Windows Personalization Gallery is designed for brand advertising. Users will easily be able to recognize the brands that are testing a Microsoft Advertising pilot which allows them to advertise on users’ desktops.
Yaser Khan, program manager noted on Themes, "Microsoft appreciates the passion consumers have for brands, so we created this one year pilot to understand consumer response and how brands can add value to a user's Windows 7 experience."
“Windows 7 is a great platform for any advertiser wishing to connect with their customers - it reaches beyond traditional advertising and builds a fresh relationship right from the consumer's desktop. Whether you're looking for a pure branding message that imbeds your persona directly within the consumer's desktop, or a full Windows Theme Experience, our partners have found this opportunity both powerful and unique. And Windows 7 makes it easy,” Microsoft’s John Nicol revealed.