Microsoft Windows has the highest market share in the desktop operating system space anywhere in the world. Windows’ dominance in the desktop operating system market helps Microsoft make a lot of money. The software giant has a lot of strategies to make money just by encouraging you to use Windows 11.
Even if you are using Windows 11 for free, you are directly or indirectly helping Microsoft make money. But how exactly did that happen? The following article will help you better understand the many ways this company makes money.
You can install Windows 11 on any computer that meets the minimum requirements to run the operating system. Unlike Apple, Microsoft sells Windows 11 licenses so you can build your PC using all the best components available.
You can purchase a Windows 11 license from the Microsoft Store or other authorized retailers. Microsoft earns a profit for each license sold anywhere in the world.
Microsoft also charges Windows PC manufacturers for pre-installing Windows 11 on laptops, all-in-one PCs, and other devices running their Windows 11 desktop operating system. Although you don’t have to pay for a separate license when you buy a Windows laptop, laptop manufacturers factor that fee into the final selling price.
In short, Microsoft makes money every time a PC is purchased or someone privately buys a license to build their own custom PC.
When you start using Windows 11, you’ll likely be using a number of Microsoft apps and services, some of which are paid. Like it or not, Microsoft continues to promote its paid subscription services, like Microsoft 365, through various apps and services.
For example, when you open the Microsoft Store, you’ll see Microsoft promote its Microsoft 365 apps by highlighting some of their benefits.
The majority of Microsoft’s paid subscriptions are available on all major platforms, including macOS. However, it will be easier for Microsoft to promote those services on Windows than on Apple’s macOS or any other platform.
Some popular subscription services that help increase Microsoft’s revenue include Microsoft 365, Microsoft Azure, and Microsoft Dynamics 365.
Potentially unwanted programs (PUPs) – commonly known as bloatware – are programs that device manufacturers pre-install to collect money from app developers. In Windows 11, if you see any apps that come pre-installed with the operating system but aren’t from Microsoft, you can be sure that third-party app developers have paid the company in the hope of get more impressions and installs.
Bloatware apps aren’t necessarily harmful to your device, but they may not be useful to you. For example, Candy Crush Saga, Spotify, Facebook and many others come pre-installed with Windows 11 and you may not want to play any of them. Luckily, you can uninstall bloatware apps on Windows 11 and free up some space on your PC.
However, bloatware is not limited to Windows 11. You can find them in other Microsoft apps and services.
For example, the Microsoft Edge browser also comes with bloatware. The “Buy Now, Pay Later” option in Edge is a perfect example of bloatware in a web browser. The service is provided by a third-party company called Zip, which pays Microsoft a fee for each transaction that occurs through the BNPL (Buy Now, Pay Later) service in Edge.
Every major tech company profits from advertising, and Microsoft is no exception. In fact, the company is very focused on increasing advertising revenue.
And since Windows is the company’s most successful product used by billions of people, displaying ads in Windows 11 is arguably one of the best ways to earn more profits.
If you’re using Windows 11 and paying attention to the details, you’ll see Microsoft promoting its apps and showing ads in some of their apps on Windows 11. For example, you’ll see ads in apps like Weather, Photos, etc..
The company uses the Microsoft Advertising SDK to run ads. Third-party developers can also monetize their apps with the SDK. When you see ads in Microsoft apps on your Windows 11 PC, chances are the company is making some money.
Note : It’s worth noting that the Microsoft Advertising SDK is no longer available for new apps. But you can still use it to display ads from other ad networks. The SDK is available as an extension in Visual Studio.
Windows 11 shows you personalized ads, which means it will try to show you ads that you might find interesting. And personalized advertising requires Microsoft to collect your data. But you can get rid of them all by making Windows 11 ad-free.
Microsoft earns most of its revenue from the personal computing space, including online search. And search is an integral part of Windows 11 – you can see it in the Start menu, Settings app, and even File Explorer.
There is also a dedicated search widget on the taskbar. Behind the scenes, Microsoft’s Bing is responsible for showing you the results.
When using the search function in the Windows 11 Start menu or the Search widget, Bing will display results from the web. On the search page, you’ll also see ads that often appear at the top as Sponsored results.
Microsoft shows all this sponsored content on the search page because the company gets paid to do so. Microsoft’s Bing Chat bot also displays sponsored content in its responses, thus increasing the company’s overall revenue.
Since Bing is so well integrated into Windows 11, it will be easier for Microsoft to attract more people to use their search in one way or another. The more Bing can grow its user base, the more revenue it makes by displaying sponsored content on its site. Overall, search remains an important area of focus for Microsoft to monetize Windows 11.