Microsoft Windows has the highest market share in the desktop operating system space in every part of the world. The dominant status of Windows in the desktop OS market helps Microsoft make lots of money. The software giant has plenty of strategies in place to make money simply by getting you to use Windows 11.
Even if you’re using Windows 11 for free, you’re directly or indirectly helping Microsoft to make money. But how exactly did that happen? Let’s enlighten you with the multiple ways the company earns money.
1. Microsoft Earns Money by Selling Windows 11 Licenses
You can install Windows 11 on any computer that meets the minimum requirement to run the OS. Unlike Apple, Microsoft sells Windows 11 licenses so that you can make your PC using all the best components available.
You can buy Windows 11 licenses from the Microsoft Store or other authorized retailers. Microsoft earns profit for every license sold everywhere in the world.
Microsoft also charges a fee from Windows PC makers for pre-installing Windows 11 on their laptops, all-in-one PCs, and other devices that run Windows 11 desktop OS. While you don’t pay for the license separately while purchasing a Windows laptop, laptop makers include that fee in their final pricing.
In short, Microsoft earns money every time a PC is purchased or someone buys a license separately to build his custom PC.
2. Microsoft Sells Subscriptions to Windows 11 Users
When you start using Windows 11, the chances are high that you’ll end up using some of Microsoft’s apps and services, some of which are paid. Like it or not, Microsoft keeps promoting its paid subscription offering, like Microsoft 365, through various apps and services.
For example, on opening the Microsoft Store, you’ll see Microsoft promoting its Microsoft 365 apps by highlighting some of their benefits.
Much of Microsoft’s paid subscriptions are available across all the major platforms, including macOS. However, it is easier for Microsoft to promote those services on Windows than on Apple’s macOS or any other platform for that matter.
Some popular subscription services that boost Microsoft’s revenue include Microsoft 365, Microsoft Azure, and Microsoft Dynamics 365.
3. Bloatware Apps in Windows 11 Help Microsoft Make a Profit
Potentially Unwanted Programs (PUP)—popularly known as bloatware apps—are the ones that device makers pre-install in return for money from the app developers. In Windows 11, if you see any apps pre-installed with the OS but aren’t from Microsoft, you can be sure that third-party app developers paid the company in anticipation of getting more visibility and installations.
Bloatware apps aren’t necessarily harmful to your device, but may not be useful to you. For example, the Candy Crush Saga game, Spotify, Facebook, and many more come pre-installed with Windows 11, and you may not want to use any of them. Luckily, you canuninstall bloatware apps on Windows 11and free up some space on your PC.
Bloatware is not limited to Windows 11, though. You can find them in other Microsoft apps and services.
For example, the Microsoft Edge browser comes with bloatware, too. The “buy now, pay later” option in Edge is a perfect example of bloatware in a web browser. The service is powered by a third-party company called Zip, which pays Microsoft a fee for each transaction happening via the BNPL (Buy now, pay later) service in Edge.
If you’re using Windows 11 and pay attention to the details, you’ll see Microsoft promoting its apps and showing ads in some of its apps on Windows 11. For example, you’ll see ads in apps like Weather, Photos, and more.
5. Microsoft Makes Money From Search Advertising Business
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Microsoft earns a sizable chunk of its revenue from the personal computing space, which includes online search. And search is an integral part of Windows 11—you’re able to see it in the Start menu, Settings app, and even File Explorer.
Also, there is a dedicated search widget in the taskbar. Behind the scenes, Microsoft’s Bing is responsible for showing you the results.
Microsoft’s Revenue Sources Are Diverse in Windows 11
For a company as big as Microsoft, having a diverse revenue stream is imperative. Besides personal computing space, productivity and business processes, and intelligent cloud, Microsoft invests in other companies to earn profit. It also invests in research and development to innovate new products to reach new customers.
