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Microsoft reveals how it will make money giving away software
While Microsoft has been praised for its bold moves, one question remains: how will Microsoft make money if it gives away software? The answer is freemium.
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It involves four parts: acquire, engage, enlist, and monetize. Acquire is Microsoft's way of getting people to use a product for free, like Office for iPad. Engage is Microsoft’s plan to get them hooked on the product and leverage other parts of its ecosystem to keep someone using the service. Enlist is simply finding fans to keep the circle going, and then monetizing is figuring out who will pay for subscription versions of the service they’re hooked on.