Microsoft to provide free upgrades to Windows 10 for 2 to 4 years ?

Microsoft to provide free upgrades to Windows 10 for 2 to 4 years | Computerworld

The message from MS has nothing to do with how long they intend to provide free updates. What is discussed is merely an accounting technique to spread any income over the life of the free updates.

richc46 said:

The message from MS has nothing to do with how long they intend to provide free updates. What is discussed is merely an accounting technique to spread any income over the life of the free updates.

Why is this done? Is it just to make the company annual profits look more comforting to share-holders, even though it's an imagined effect?

MS is doing business in the USA and are subject to what is know as FASB rules (generally accepted accounting practices)
MS is giving away free Windows 10 and in the first few months, maybe the first year they will derive income because of this. It would not be fair to shareholders if they are led to believe that all of a sudden MS is making all kinds of money and that it will continue into the foreseeable future. This deferral of income gives a much more accurate picture of MS financial picture.

In none accounting language: A little income will be spread over several years, rather than have one great year.

Not actually stated, but possible, MS will give support for only 2 3 or 4 years.

Thanks for that explanation.

Richc46

I really can't see Microsoft stopping free updates to windows 10 when windows 7 sp1 extended support doesn't end till January 14, 2020 and Windows 8.1 extend support doesn't end till January 10, 2023.

I did find another article on this subject to add more confusion. It also brought up something I would like to know.

The software giant has revealed nothing about what would happen once the "supported lifetime" expires. Will it discontinue the upgrades entirely or offer updates for a fee? Microsoft CFO Amy Hood has promised to provide more details on lifecycles later this year. Keizer expects Microsoft to disclose these details on or before July 29, when Windows 10 is officially launched.

Masters of confusion, masters of subscriptions, masters of FUD. Its all coming to a windows PC soon

groze said:

Richc46

I really can't see Microsoft stopping free updates to windows 10 when windows 7 sp1 extended support doesn't end till January 14, 2020 and Windows 8.1 extend support doesn't end till January 10, 2023.

I did find another article on this subject to add more confusion. It also brought up something I would like to know.

Let me give you the bottom line, as far as I am concerned. I do not think the MS is attempting to mislead us in any way. I have been happy with them and their OS, since 2000. As a major corporation, everything takes time. First the top people have to decide what is the best course of action for both the customer and the Company's bottom line. Then lawyers have to approve it then public relations has to decide on the best way to present it to the public. What this all boils down to is confusion, which is what we have. Anyone who says that they know more than what was explicitly made public is confused, to say the least.
I think that we all have to wait just a bit longer to get definitive answers, which I want too. I am just sitting tight and waiting for straight forward answers and when they come I will believe them since my experience tells me MS is a Company that can be trusted.

richc46 said:

MS is doing business in the USA and are subject to what is know as FASB rules (generally accepted accounting practices)
MS is giving away free Windows 10 and in the first few months, maybe the first year they will derive income because of this. It would not be fair to shareholders if they are led to believe that all of a sudden MS is making all kinds of money and that it will continue into the foreseeable future. This deferral of income gives a much more accurate picture of MS financial picture.

In none accounting language: A little income will be spread over several years, rather than have one great year.

Not actually stated, but possible, MS will give support for only 2 3 or 4 years.

Question...

Couldn't MS just claim the free upgrade as promotional cost and spread it to 2-4 years? Effectively offsetting other income and lower their taxes...

No, actually MS has stated that the free upgrade to W10 if for the life of the device, without time limit. MS may estimate this time to be between 2-4 years, but that does not mean it'll be the case in all free updates.