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The Paper • Page 12 • February 19, 2015

Paul & Nome Van Middlesworth, The Computer Factory

www.computerfactorysanmarcos.com

Microsoft, Operating Systems and Windows 10 Part IV conclusion

Previous columns in this series revealed how Microsoft’s monopoly position in PC OS (operating systems) often encourages them to put their own strategic gambits ahead of their user’s needs.

Previously we covered Microsoft’s OS strategies through Vista. In 2009 Windows 7 succeeded the unmitigated disaster called Vista. Not only did Vista fail to invigorate PC sales, by mid 2009, two and a half years after its release it had garnered less than 20% of the PC market. Its predecessor XP still held 80%. Fast clean and stable, Win 7 was an immediate success. In a matter of months it passed Vista in market share and overtook XP in a little over two years. Today XP is still the second most

The World of...

MORTGAGE FINANCING

with...

Patrick "Skip" Jacovino Integrity Mortgage Group Senior Mortgage Consultant

Reverse Mortgages... Are they right for your family?

We’re delighted to introduce you to the world of Mortgage Financing. Each column will focus on aspects of mortgage lending ... loan products, market trends and will hopefully

popular OS with 19%, Win 8 is third with 14% and Win 7 is first with 56%. Why thirteen year old XP still works for a lot of folks is pretty simple. It does everything its users need. 90% of PC activity is Internet related. A ten-year old PC with XP does banking, e-mail, shopping, paying bills, Twitter, Facebook, Skype, genealogy or just plain surfing the WWW just as fast as a brand new computer. Internet speed is not affected by PC speed or OS. Many off-line activities like bookkeeping, taxes, spreadsheets, word processing, music and video are easily handled by older PCs. Using a lightning-fast PC for e-mail is like taking a Ferrari to an Easter egg hunt. XP will eventually fade away for lack of software and security support. Windows 7 appears to be the new XP. Already five years old with 56% market share and growing, it has everything and does everything that businesses and home users need. So why would Microsoft release Windows 8 in May of 2012? It certainly wasn’t because the industry was clamoring for a new OS, everyone was happy with Win 7. The Windows 8 release was based on corporate strategy, not customer need.

Historically much of Microsoft’s revenue has come from sales of OS for new PCs. Growth in new PCs sales has been slowing for several reasons. The market was becoming saturated, tablets and smart phones were replacing notebook PCs and users were holding on to their PCs much longer than they once did.

include some tips that will help readers make wise financial decisions when it comes to what most people consider their most valuable asset. .. their home.

Microsoft needed to look elsewhere to sustain revenue growth. Win 8 was intended to provide that opportunity

Smart phone and tablet sales were growing 40% annually but Microsoft had only a 3% share in both of these markets. Could they leverage their dominant position in PC OS to increase their presence in the smart phone/tablet business? That’ where Win 8 enters the picture. Microsoft’s Windows smart phones and tablets use the “Metro” touch screen interface. Microsoft reasoned that if they could force PC users to use “Metro” they might be able to increase their market share in smart phones and tablets. Microsoft knew most consumers wouldn’t like the Windows 8 “metro” touch screen style interface because it was ill suited for the mouse and keyboard. They felt however that they could force retail customers to accept it by denying them access to any alternative. While allowing businesses

amount of equity in the home and the age of the client at the time the loan is made. Equity is the difference between what is owed on current mortgages and liens and the value of We offer in this column a the home. primer on Reverse Mortgages. It is not the A reverse mortgage differs only product that I offer, but it has become extreme- from a conventional mortly popular lately and seems gage in the fact that with a to raise the largest amount conventional mortgage, the of questions when the topic client makes monthly payof mortgage lending comes ments to the bank to evenup. So, let's start with the tually try to payoff the loan. With a reverse mortgage, basics. the client has the option of What is a reverse mortgage? A reverse mortgage is a federally regulated program for homeowners, aged 62 and older. It allows the equity in the client's home to pay them, rather than the client paying each month for the home loan. In other words, the client can convert their home's equity into various forms of available cash without having to make a mortgage payment. The amount of money the client is able to receive is based mainly upon the

to continue buying new Win 7 Pro PCs, they dried up retail inventories of Win 7 PCs by stopping the sale of Win 7 Home licenses to manufacturers. Unable to purchase new Win 7 PCs and unwilling to accept Win 8, consumers stopped buying and PC year to year sales dropped for the first time ever. Did the strategy work? Microsoft’s share in both smart phones and tablets actually shrunk to 2.5% by January 2015. Win 8 will be mercifully euthanized when Windows 10 debuts late this year. Microsoft will offer Win 10 as a free upgrade to anyone who wants it. Why free? Because Microsoft plans to use Windows 10 to promote its new revenue scheme. Win 10 will promote cloud services and applications sales from Microsoft’s online “App” store. Businesses will probably continue to request Win 7 Pro and consumers will find little to like. Win 7 will continue to dominate through 2020.

actually receiving cash, rather than paying. There are three main ways that a client can access their equity. The next column will explain the three different ways to access your equity.

Or, if you have questions before then, please give us a call. We’ll be happy to explain it all. If you have a civic or service club and would like me to speak, I’d be happy to. No charge. Just call 619.823.1454.

The Paper - February 19, 2015  
The Paper - February 19, 2015