Apple’s Free Operating System Upgrades – Will Microsoft Really be Hurt? On October 22, 2013, Apple launched its next generation of iPads. The specs are exciting. What gave Apple-fans even more excitement was its announcement that the next versions of the operating system for Macs and iOS devices will be free. However, I question whether Microsoft will be hurt too much by this move. Let’s take a look a few things: iOS Devices iOS devices (iPads, iPods and iPhones) do not compete against traditional Microsoft Windows. It competes primarily with Google Android. Android has had free upgrades from day one. So there is nothing other than catch up on the part of Apple. Even Windows Phone has so far had free updates. For phones and tablets, it’s not about free stuff. It’s about attracting users to upgrade their devices. Apple, like many other closed environments, does not make as much money from selling upgrades to software, as they do by selling upgrades to devices. This is not a new idea. IBM, DEC, and most systems vendors have had this approach for decades. Macs Like its iOS devices, Apple makes money from users upgrading their Macs. This strategy is no different to Microsoft’s when it comes to consumer devices. Today, many reporters have made references to the fact that many Microsoft Windows users have had a hard time upgrading from Windows XP, or other versions of the operating system. While the observation is not lost, the issue here is that Microsoft still owns a vast majority of the market. If only Apple had the same problems! The upgrade reluctance is not a consumer issue. It’s an enterprise issue. All vendors in the enterprise market face the same problem. The issues related to the reluctance is not a technology issue, but more of a process issue. Once a process is in place – good, bad, or indifferent – no enterprise wants to change, unless absolutely necessary. For me … So when it’s all said and done, should Microsoft be shaking in its boots? I doubt it. All the grandstanding from Apple is just that – grandstanding. OK, I’m not an Apple fan. I like things that break! I like to break things! Apple products don’t fit that description. So kudos to Apple for creating an ecosystem that makes your users, a significantly and materially smaller percentage of the overall market, happy. All this said, Microsoft (and Google), take note. This isn’t just an early Christmas present from Apple. For Microsoft, it is never easy to make an operating system that started in the 1980′s work with something that is still in demand 30 years later. For Google, get your OEMs in line, to achieve what Apple has done so well – a seamless ecosystem. Usual disclaimer #1: This is not investment advice. What you do with your money is between you and your spouse! Disclaimer #2: I don’t like Apple products. They just work! ift.tt/18IzrV0
Posted on: Wed, 23 Oct 2013 01:55:11 +0000
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