Microsoft considering free desktop applications

Executives within Microsoft are examining the option of releasing free ad-supported versions of several major software packages; including Money, Works, and the Windows operating system. No specific plans have been made.

In a paper presented to Microsoft executives earlier this year, two researchers wrote, “as web advertising grows and consumer revenues shrink, we need to consider creating ad-suppored versions of our software.” This in a document written for the twice-annually Thinkweek exercises. During Thinkweek Bill Gates and other executives gather and discuss new avenues to follow.

Microsoft confirmed the paper, but characterized it as an internal brainstorming exercise. “It is simply an exploration of different models of delivering software to customers. It is not policy, it is not a plan, and no decisions have been made - it’s just some thoughts from our research and business units.”

Microsoft CTO Ray Ozzie feels that Microsoft has “an obligation to act on the shift to ad-supported software” according to CNet.com. Writes Ozzie, “It’s clear that if we fail to do so, our business as we know it is at risk. We must respond quickly and decisively.”

Hopefully Microsoft will not limit releases to free ad-based versions. Matt Rosoff, a Microsoft analyst, “Are people willing to pay $100 every three or four years not get bomarded with ads? I think a lot of people will.”