Yes,
Microsoft is giving Windows away for free to people who don't
technically qualify for the upgrade. That's a good deal, but it's
not that big a deal. Here's why. [Updated]
June
20, 2015
Update, June 23 6:00AM PDT: Microsoft updated its original
post, adding some new details and raising more questions. I've
highlighted a few of those changes in this post and have asked
Microsoft for clarification on other issues.
In the always confusing world of Microsoft licensing, there are
two sets of rules.
One is written down in license agreements, drafted by Microsoft's
large legal team, with separate terms for PC makers and end users.
These combined terms are extremely specific about the rights and
responsibilities of every party to the license agreement. They are
aimed primarily at Microsoft's commercial customers and its
PC-building partners, who account for more than 98 percent of all
revenue from Windows desktop licenses.
The other set of rules is unwritten, for the most part. But its
terms are fairly easy to deduce. They are intended for hobbyists,
enthusiasts, and IT pros who like to tinker with Windows and PC
hardware. Microsoft's
TechNet program was a long-running gift to this group, offering
thousands of dollars' worth of Microsoft software for a few hundred
bucks.
The Windows Insider program is being run in that same spirit.
Every once in a while, Microsoft actually makes a public
statement tacitly (and carefully) acknowledging those unwritten
rules. That happened this week, with an
announcement on Microsoft's official Windows blog outlining
what's next for registered members of Microsoft's Windows Insider
program :
Windows Insiders running the Windows 10 Insider Preview (Home
and Pro editions) with their registered MSA connected to their
PC will receive the final release build of Windows 10 starting
on July 29th. This will come as just another flight. I've gotten
a lot of questions from Windows Insiders about how this will
work if they clean installed from ISO. As long as you are
running an Insider Preview build and connected with the MSA you
used to register, you will receive the Windows 10 final release
build and remain activated. Once you have successfully installed
this build and activated, you will also be able to clean install
on that PC from final media if you want to start over fresh.
One thing you'll notice if you read that section carefully is
that it doesn't contain any legal language. In fact, the word
license doesn't appear anywhere in the post. The June 22
update, however, does contain that word: "This is not a path to
attain a license for Windows XP or Windows Vista systems."
Update, June 21: Via Twitter, Tom Warren of the Verge points
out that the post was edited overnight to change the wording,
removing both references to activation. Here's a comparison of the
changes:
Those edits, of course, simply muddle the description and were
clearly added at the insistence of one or more of the aforementioned
lawyers. In fact, the last sentence contradicts everything that came
before it in the paragraph. I am confident that no change is going
to be made to the delivery and activation servers for Windows 10.
But at least the folks in L&C are now happy.
It's also worth noting comments on that post are closed,
which prevents customers from asking for clarification.
Update 2, June 21 12:15PM PDT: On Twitter today, a day after
these legalese changes were made,
Microsoft's Gabe Aul confirmed that registered members of the
Windows Insider program who upgrade from a clean install of the
preview edition will end up with a fully activated copy of Windows
10.
The updated post contradicts that language:
If your system upgraded from a
Genuine Windows 7 or Windows 8.1 license it will remain activated,
but if not, you will be required to roll back to your previous OS
version or acquire a new Windows 10 license. If you do not roll back
or acquire a new license the build will eventually expire.
It's no accident that the original post makes no mention of the
Windows license. Instead, it's a reflection of the fact that those
unwritten rules have to remain unwritten. So, with a wink and a nod,
here's what it means to individuals who aren't PC builders or part
of an enterprise network:
Yes, anyone who signs up for the Windows Insider program and
installs a preview build will receive the final release build
automatically, with no hassles and no registration required.
(Anyone running Windows 7 or 8.1 should see the
"Get Windows 10" prompt.)
Yes, that copy of Windows 10 will remain activated, even if
it was installed clean with no trace of any previous Windows
version to be found.
Yes, you will be able to clean install Windows 10 on that PC
from the official media if you want to start over fresh.
And if there's a technical conflict with the license
agreement terms, you can relax. Microsoft is happy to have you
on Team Windows.
Preview builds that are installed from an ISO rather than as
an upgrade to a previously activated Windows system will still be
activated, but those builds will eventually expire. You can continue
in the preview program and continue receiving new builds, in the
Insider Fast or Slow ring, and that expiration date will continue
moving out.
In theory, you can remain in the Insider program
indefinitely. From the updated blog post: "Since we're continuing
the Windows Insider Program you'll be able to continue receiving
builds and those builds will continue to be activated under the
terms of the Windows Insider Program."
Why is Microsoft doing this? I can think of a billion reasons.
Microsoft's stated goal is to have
Windows 10 running on a billion devices within the first three
years after this summer's launch. To reach that huge number, they
need to convince hundreds of millions of current Windows users to
upgrade.
Asking people to pay means most will say no. So the upgrade is
free to the overwhelming majority of current PC users.
You could think of it as a reward for the millions of people who
have participated in the Windows Insider program, but there's really
a much more practical reason: It simply isn't possible to do any
kind of meaningful license check on individual PCs, and any attempt
to do so would just cause friction. Likewise, activation hassles
cause friction.
Friction means people get frustrated and cancel the upgrade.
Friction is not consistent with getting a billion Windows 10 users
in the next few years.
So the new rules are written with the expectation that activation
will be ridiculously easy. If that allows a very small number of
Windows enthusiasts to get free copies of Windows 10 that they're
not technically entitled to, that's a fair exchange for absolutely
minimizing the friction on those upgraders who meet the technical
qualifications.
How many "freeloaders" will be able to use this so-called
loophole? The number is downright tiny, a fraction of a blip on
Microsoft's balance sheets. (See
the chart in this article if you don't believe me.)
Any homebrew computer builder who puts together his own PC and
has been running the Windows 10 preview on it gets a nice little
gift. Happy Birthday!
Likewise, Microsoft is offering every Mac owner an opportunity to
try out Windows 10 and keep it for free if they like it. Just
install a preview release now, either in Boot Camp or in a virtual
machine, and you will get an automatic, fully activated upgrade to
the final edition when it is released. No strings attached.
If you like to tinker with virtual machines, you can do so with
ease as well.
Microsoft is leaving some money on the table, obviously. But the
amount is, quite literally, a rounding error for its Windows
business, and having a gargantuan user base is more important than
that puny revenue.
So why not just say, "Windows 10 is free"?
Because it's not.
Businesses still have to pay for their Windows Enterprise edition
licenses. PC builders still have to pay for their OEM copies. End
users pay, indirectly, when they buy a new PC from one of those
OEMs.
Yes, in theory a business could pick up a hundred "naked" PCs (no
operating system installed) from a local system builder, install the
Windows 10 Pro preview edition on each one, and then drop out of the
Insider program after the final, fully activated version arrives. At
$140 per copy, that's a pretty fair chunk of change. But while those
machines would be properly activated, they would not have valid
licenses. And when (not if) Microsoft shows up to conduct a
licensing audit at that company, the consequences will be
unpleasant.
I suspect Microsoft's lawyers will include language in the final
license agreement that prevents those "creative" deals from cutting
into the core Windows business.
License terms for a new Windows edition don't typically appear
until the very last minute. The broad outlines rarely change, but
Redmond's lawyers like to throw in one oddball change just to mix
things up.
At the moment, there's only a preview license agreement in place,
so there's no telling what surprises we'll find this time around.