And even if those customers don't end up buying cloud services from the company, at least they're staying in the Microsoft ecosystem. The company now offers a range of cloud services, including Office 365, Skype and OneDrive, that Windows users may be more likely shell out for, even if they didn't buy an operating system license. Microsoft may similarly see a free Windows 10 as the gateway to alternate revenue streams.
But Google offers its Android mobile operating system for free, making money off mobile advertising and app sales in the Google Play Store. Apple can make up for some of this lost revenue through increased hardware sales, and Microsoft is trying this strategy as well with its Surface tablet/notebook hybrid and other new devices. Apple has offered free upgrades to OS X since 2013, and mobile operating system updates have long been free. Meanwhile, operating system pricing expectations have also been changing.
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