Windows 10 is free – for all 7/8.1 users for first year

Nadella is on the right track, but this move wasn't bold enough, the Windows clients should adopt the OSX free model while still charging for server licenses.

It's about 20% of revenue so it would be a big hit to earnings, but the mobile ecosystem game is too critical to play around with. If they don't start doing better soon they could become relegated to a cloud/server only model completely within 5 years.