Mediaboss Marketing

News Analysis

March 4, 2014 03:38 PM ET

Computerworld - The cheaper, the better.

Lowering the price of an operating system upgrade accelerates its uptake five-fold, but setting an upgrade free stomps on that pedal, boosting uptake as much as 12 times, data from an analytics company shows.

Microsoft has likely run those numbers too, and internally may be making the case that it's better to expand Windows-for-free to all upgrades, not just the more minor updates like Windows 8.1. (Don't let Microsoft catch you calling Windows 8.1 an "upgrade;" to them, it's an "update," and for financial reasons, even though it is free.)

The numbers game is admittedly a bit iffy, since it's comparing, well, apples and oranges, necessitated by comparing upgrades within Apple OS X world to those of Microsoft's Windows. But the results seem clear: cheap is better than pricey, free is better than cheap.

Free trumps all, in other words. Or as Apple's Craig Federighi, who leads software development at the Cupertino, Calif. company, put it last October: "Free is good."

Last month, OS X 10.9, aka Mavericks, accounted for 59% of all Macs running it and its two precursors, Mountain Lion and Lion, an increase of 4 percentage points from January, said California-based Net Applications.

(Unlike others, Computerworld stopped the in-Mac comparison at OS X 10.7, aka Lion, because Snow Leopard, or 10.6, has been nearly unaffected by the draw of the free Mavericks.)

Apple dropped the price of Mavericks to zero, giving it away to most, although not all, of its customers running Mountain Lion, Lion and even 2009's Snow Leopard. On the other hand, Mountain Lion, which came out in mid-2012, carried a price tag of $19.99, a third less than 2011's Lion.

Continue reading here:
OS upgrades: Cheap is better than pricey, free is better than cheap