Microsoft Will Streamline The Next Version Of Windows From Three OS’ Into One

During the earnings call, Microsoft CEO Satya Nadella spoke about the Windows OS and the first-party devices and he said that Microsoft is approaching the Windows OS business with a bold, challenger mindset and pushing both the product and business model forward. He highlighted the fact that Windows licenses are zero dollars for any OEM building a device less than nine inches and also added a low-cost Windows offering with Bing integration for OEMs. These changes are expected to bring Windows tablets and clamshells at lower price points. Microsoft is also optimistic about first-party hardware given the early signs from Surface Pro 3’s performance in market.

In the coming year, Microsoft will streamline the next version of Windows from three Operating Systems into one, single converged Operating System for screens of all sizes and also Microsoft will unify our stores, commerce and developer platforms to drive a more coherent user experiences and a broader developer opportunity.

Our approach to first party hardware going forward is clear – at times we’ll develop new categories like we did with Surface. And we will responsibly make the market for Windows Phone.

However, we’re not in hardware for hardware’s sake, and the first-party device portfolio will be aligned to our strategic direction as a productivity and platform company. As I said before, going forward, all devices will be created with the explicit purpose to light up our digital work and life experiences. The good examples of this today are what we are doing with Surface Pro 3 for note-taking and PPI for meetings. You can expect to see this type of innovation in our hardware including phones.

Satya said that Microsoft will be sharing more about our next major wave of Windows enhancements in the coming months.