Microsoft Unveils Windows 10

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Microsoft (MSFT) wants you to know it takes the next version of Windows — its PC operating system — very seriously. Not everyone liked everything about the touch-driven Windows 8, and enterprise customers are now eying cheaper alternatives as they look to cut PC management costs.

microsoft windows 10

This time, Windows is being designed around the needs of a “mobile first, cloud first world” with a big focus on those business PC users who prefer a mouse and worry about security. The re-vamp of Windows is so dramatic that Microsoft decided to drive the point home by skipping an entire release number.

Instead of Windows 9, the new operating system announced on Tuesday in San Francisco is Windows 10.

That now puts Microsoft’s operating system on the same version number as Apple’s (AAPL) OSX, although Apple uses the roman numeral, so that should cut down on confusion.

And speaking of which, eliminating confusion (which was rampant in Windows 8) is a big part of what Windows 10 is all about. That means ditching some of the elements of Windows 8’s touch-driven interface in favor of the more familiar “classic” Windows interface last seen in Windows 7.

Windows 10 Details

Key to Windows 10 is its ability to detect what class of device it’s running on and adjust its interface to present the optimal user interface. With a tablet, the user would see a touch-driven interface optimized for those devices — along the lines of Windows 8’s current look. But with Windows 10 on a PC, the interface falls back to the more familiar mouse and keyboard driven model that so many users prefer.

Microsoft focused on a handful major enhancements for Windows 10, many designed specifically to appeal to the enterprise users who may be tempted by Google’s (GOOG) Chromebook push.

  • An increased focus on data security, customizable app store for enterprise users, and simplified management and deployment to reduce IT costs
  • Start menu is back with one-click access to frequently used software and functions (tiles still appear, but they can be resized and customized)
  • Multiple desktop capability to switch between desktops customized for different purposes (similar to OSX Expose feature)
  • Windows apps run in a window in the same manner as desktop Windows software does
  • Snap is enhanced with support for up to four apps on the same screen
  • A new Task View button lets users see all open software with one click
  • Microsoft Insider program is focused on constant feedback from beta testers and developers through the Windows 10 release date to ensure critical feedback is addressed before release

Microsoft is betting that the more familiar interface of Windows 10 will prompt enterprise customers and consumers to finally ditch Windows XP altogether. It’s also critical to start transitioning the 50% or more of PCs currently running 2009’s Windows 7, an OS version that Microsoft has already said it will stop offering mainstream support for in January 2015.

The other goal of Windows 10 is to offer a consistent experience for users and developers across a broad range of devices. Microsoft says Windows 10 adapts to everything from an Xbox to a PC, phone, tablet or enterprise data center, offering a consistent user experience while allowing developers to easily release applications to multiple platforms.

This all sounds good, but will it help Microsoft move copies of Windows 10?

MSFT Needs Windows 10 to Be a Hit

According to Tech Radar’s Gary Marshall, Windows 8’s market share — already disappointing — declined in August, despite a rush by businesses to get off the no longer supported Windows XP.

Microsoft may be willing to give Windows 10 away for free to consumers and to slash its licensing fee for PC manufacturers, but the OS still makes up a big chunk of Microsoft’s revenue. Keeping Windows’ dominant marketshare is also critical to selling highly profitable products like its Office productivity suite. If a customer moves to Chrome OS, they also switch to Google’s apps instead of buying a copy of Office.

In its most recent earnings report, Microsoft noted that licensing revenue from Windows and the consumer versions of Office declined $218 million compared to Q4 2013, retail and non-OEM sales of Windows declined $304 million and Office consumer sales fell $243 million. That’s more than $750 million in revenue shortfall in just one quarter that’s attributable to poor sales of Windows 8.

Windows 10 needs to get consumers, developers and businesses back on the Windows train so Microsoft can reverse that slide in revenue. The push to make that happen is scheduled to begin officially in fall 2015 with the commercial release of Windows 10, but beta testing under the “Windows Insider” program begins today.

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As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/windows-10-msft/.

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