T-GAAP’s E. Werner Reschke says when Apple announced that OS X Mavericks, was going to be free, the audience roared with approval. Just like with iOS, now OS X was a free upgrade.
He notes that this news must have driven Microsoft completely nuts, since Microsofts entire business model consists of writing software and then charging a license fee to each user. For Windows and Office it can cost anywhere from $99-499 per license.
However, he contends that the notion that software should be, or can be, free is actually a monster Microsoft created the mid-90′s, when Netscape was charging $30 for their Navigator browser. Microsoft was late to the browser game, so in order to make a quick dent in market share Microsoft decided to give Internet Explorer away for free. Explorer became part of the operating system, and the era of paying for software began to decline.
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