Microsoft’s Windows 10 reaches 270 million users

Microsoft Chief Executive Officer Satya Nadella kicked of the company’s BUILD developer conference on Wednesday (March 30) with a keynote address in which he said computers and people together would ultimately move society forward.

“Ultimately, it’s not going to be about man versus machine. It is going to be about man with machines. Each of us excels at very different things. The fact that we have creativity, empathy, emotion and judgment that can then be mixed with vast computation, the ability to reason over large amounts of data and do pattern recognition fast — it’s that bringing together that I think is going to help us move our society forward,” he said.

Executive Terry Myerson announced at the gathering that the latest version of the Windows operating system has 270 million active users eight months after launch.

The number represents a solid start for Windows 10 after the tepid reaction to its predecessor, Windows 8.

Getting its Windows strategy right is a key part of Microsoft’s plans to stay relevant in a mobile-centric world where rivals like Amazon.com Inc, Apple Inc and Alphabet Inc’s Google carry more clout with many consumers and developers.

One reason for the rapid take-up is that Windows 10, released in July, is free for individual consumers who download it during its first year. Enterprise customers must pay for Windows 10.

An anniversary upgrade to be released this summer will also be free for users already running Windows 10, Myerson said on Wednesday.

The giveaway is effectively an admission by Microsoft that few individuals are willing to pay for software, and represents a shift to a strategy embraced by most tech startups of attracting as many users as possible and nailing down how to make money later.

Microsoft laid out its business case last year: the more consumer devices run on Windows, the more potential targets it gains for advertising sales and for its own paid-for applications and services.

Myerson said before launch he was aiming for 1 billion devices running Windows 10 within a few years.

On Wednesday, he did not give a breakdown on the type of devices Windows 10 was being used on. Microsoft still dominates the market for personal computer software, but its share of smartphones – where many people now do the bulk of their computing – is tiny.

Technology research firm IDC is forecasting that smartphones running Windows will account for only 1.6 percent of the global market this year, compared to 83 percent running Google’s Android system and 15 percent running Apple’s iOS.

Microsoft’s main problem is that the range of apps that work on Windows mobile devices lags behind those on Android and iOS, making them less attractive to buyers. The less popular they are, the less developers are motivated to make apps for Windows devices, reinforcing the vicious cycle.

During the developer conference, which Microsoft calls Build, the company also gave an update on its Microsoft Ink platform and its HoloLens augmented-reality technology, which ships to developers on Wednesday.

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