Microsoft May Compete With Android By Making Windows Free

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Steve Ballmer Microsoft

Business Insider/Julie Bort

Microsoft CEO Steve Ballmer

The Verge's Tom Warren reports that Microsoft may offer free versions of the Windows Phone & Windows RT in the near future.

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With the acquisition of Nokia, the ability to make money of product licenses has dried up. Warren's sources told him that Microsoft wants to experiment more to discover other lucrative areas

The article mentions that one area of testing will revolve around advertisements in Windows 8 apps.

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However, distributing the OS for free can help Microsoft improve relationships with developers.

Google's Android software is given to their stable of developers for free so this would help Microsoft compete with the rival company. Plus, this should pique the interest of developers since a free software to test could result in higher quality apps for future products.

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If the company does follow through with this plan, Microsoft could launch the free OS along with the Threshold initiative in 2015.