presented by Windows XP CNET Microsoft is warning XP users to steer clear of a hack that installs security updates despite the recent end of support for the aged OS. In a statement sent to ZDNet on Monday, Microsoft explained: “We recently became aware of a hack that purportedly aims to provide security updates to Windows XP customers. The security updates that could be installed are intended for Windows Embedded and Windows Server 2003 customers and do not fully protect Windows XP customers. Windows XP customers also run a significant risk of functionality issues with their machines if they install these updates, as they are not tested against Windows XP. The best way for Windows XP customers to protect their systems is to upgrade to a more modern operating system, like Windows 7 or Windows 8.1 .” As described by Betanews, the hack directs updates intended for Windows Embedded Industry and Windows Server 2003 to XP machines via a Registry change. But XP isn’t quite the same as Windows Embedded or Server 2003. Microsoft turned off the support tap for Windows XP in early April , which means the software giant will no longer provide bug fixes, security patches, or other updates for the OS. That cutoff puts XP users at risk, so it’s only natural that some would try to find a workaround to keep their XP computers secure. It’s hard to say exactly how prevalent XP remains 12 years — an eternity in the software world — after it went into service, but that version of the desktop OS may still account for between 18 percent and 30 percent of all Windows PCs, according to Web analytics firms. Microsoft says it has been warning users of the impending end to extended support for XP since the latter part of 2007. The subsequent Windows 7 is now the most widely used desktop operating system, and Microsoft is now pushing users toward the latest manifestation, Windows 8 . Microsoft has been working on temporary custom support options for larger businesses, whose many legacy systems and established processes often mean they can’t react quickly to software changes. For consumers wondering whether Windows 7 or Windows 8 will run on their existing PC or will support their current software, Microsoft offers a Windows Upgrade Assistant tool that will analyze a PC’s hardware and software to determine if it can handle a more modern OS.
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A Subscription for Microsoft Windows? (MSFT)
Enterprise customers are typically slow to upgrade software, especially operating systems, so for Microsoft a subscription-based Windows would avoid the trouble of having to sell new versions of Windows to its customers. Instead, customers would always have the latest version, eliminating the upgrade cycle altogether, and Microsoft would be relieved of the problem of reluctant upgraders. For enterprise customers, the cost of Windows could be spread out over time instead of making large, discrete payments at every upgrade. The success of Office 365 shows that this payment model is appealing to a significant number of enterprise customers, so it’s really no surprise that Microsoft plans on offering a subscription version of Windows as well. What about consumers? While a subscription version of Windows seems like a good idea on the enterprise side, the consumer side is a different story. With alternatives like Google’s (NASDAQ: GOOG ) (NASDAQ: GOOGL ) Android tablets and Chromebooks, Windows PCs have more competition than ever before. The changes made in Windows 8 compared to Windows 7 certainly didn’t help the perception of the Windows operating system in the minds of consumers, but being forced to pay a subscription fee would do far more damage. While we have no details at all about how Windows 365 will work or even a confirmation that it exists for that matter, I suspect that Microsoft is slowly moving toward offering a free version of Windows for consumers. This is purely speculation, of course, but Microsoft could offer a basic version of Windows 9 (or whatever the next version of Windows is called) either for free or for a very low cost. It couldthen charge a subscription fee for the more advanced features that are typically found in the professional versions. Since Microsoft derives most of its profit from enterprise customers, the hit from giving away basic Windows to consumers wouldn’t be all that dramatic. In the most recent quarter, the commercial segments generated $9.9 billion in gross profit, growing by 6% year-over-year. The consumer segments, in contrast, generated just $4.7 billion in gross profit, down slightly year-over-year. While the consumer side of things certainly isn’t irrelevant, the bulk of both Microsoft’s profits and growth are coming from the enterprise. Part of the problem is competition from tablets and Google’s Chromebooks.A free version of Windows would make low-end Windows devices more competitive. A Windows laptop can already be bought for $300, but a free version of Windows could drive this price down into Chromebook territory. Chromebooks priced as low as $200 are routinely among the top-selling laptops on Amazon, so while they may not quite be mainstream devices, they are picking up at least some market share at the low-end.
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