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For several years, Microsoft truly believed that a fleet of hardware devices could carry its software into homes and businesses. Based on news around the company's fourth-quarter earnings report, though, it feels a little like Microsoft’s landed safely on the shores of a new world, and is burning the ships that took it there.
That a software company should make its money from software and services certainly isn’t news. And Microsoft still continues to sell hardware—the Surface lineup, for example, recorded another billion-dollar quarter in Microsoft’s. But how many PCs, phones, and tablets actually run Windows 10? For the first time in recent memory, Microsoft didn’t say.
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