Microsoft reveals how it will make money giving away software

Microsoft has been doing some surprising things with software over the past year. Free Windows and Windows Phone licenses for PC and phone makers, free Office for iOS and Android, and acquisitions of free mobile apps all come to mind. While Microsoft has been praised for its bold moves, one question remains: how will Microsoft make money if it gives away software? The answer is freemium.

Microsoft’s traditional revenue has primarily come from licensing software like Windows and Office to OEMs and businesses. Microsoft grew into the giant it is today thanks to this hugely successful strategy and a dominance of the PC market. With mobile altering the landscape, Microsoft is turning to new strategies for the future of its entire business....

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