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Microsoft Windows 10 subscription strategy "somewhat risky": Telsyte

Brian Karlovsky | Jan. 23, 2015
SaaS strategy offer opportunities and threats for Australian channel.

"It's a mindset they have to overcome. I'm not saying it won't work. It's in start contrast to what other competitors are doing in that space with their operating systems."

For channel players, Gedda believes the move to SaaS was quite expected and played into vendors hands.

But that doesn't mean there is not a viable channel model around it.

"There's probably just as many opportunities as there are threats," he said.

So if you in the business of Windows desktop support and you sell business licenses, you could continue that business model around offering support as well as value added services.

"There might also be an opportunity for Microsoft resellers to earn margins on the service aspect of the product.

"So there's still the traditional channel margin business in Cloud and in SaaS, so all it not lost.

"I wouldn't panic if I was a reseller, but obviously you have to position your business to be agile to take into account these sort of changes.

Gedda also questioned whether the company would offer the product free for the first year for mobile devices as well as on desktops.

"The intention is to give Windows 10 for free on the desktop operating system for the first year and then charge for it thereafter," he said.

"But it's a consistent platform across all devices, so where's Microsoft gong to delineate between people paying for deskptop and people expecting to have free upgrade on their phone.

He said there was a bit of a backlash when it released Windows Phone 7 and they couldn't be upgraded.

"That could cause a bit of disillusionment if they are releasing phone and tablet devices that can't be upgraded to successive versions of Windows in a reasonable timeline.

Overall he said the strategy was sound.

"It will have more consistent look and feel across all devices, but its hard to pivot the titanic, so its hard for Microsoft to take one business model and turn it on its head, but the company is certainly determined to do that."


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