Microsoft Still Makes Money On A Product It Scrapped In 2014

Microsoft Still Makes Money On A Product It Scrapped In 2014
<a href="">PIX1861</a> / Pixabay

Microsoft stopped selling Window XP in 2010 and ended its support updates around a year ago, but the product still makes money for the tech firm. Windows XP still enjoys a big customer base ready to spend millions for custom security support, and latest in this list is the U.S. Navy, says a report from Business Insider.

Windows XP still earning revenue for Microsoft

The U.S. Navy’s Space and Naval Warfare Systems Command (SAPWAR), which runs the navy’s communications and information networks, signed a deal worth $9.1 million earlier this month for continued access to security patches for Windows XP, Office 2003, Exchange 2003 and Windows Server 2003.

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The U.S. Navy is paying Microsoft millions of dollars to keep its 100,000 systems afloat just because it has yet to transition away from Windows XP. This contract could extend to 2017 and be worth up to $30.8 million.

Steven Davis, a spokesman for the Space and Naval Warfare System Command in San Diego, said the “Navy relies on a number of legacy applications and programs that are reliant on legacy Windows product.” Davis made it clear that until the systems are “modernized or phased out,” a continued service support becomes necessary to “maintain operational effectiveness.” The executive added that they are working on a plan to shift to the current and most recent technology.

Windows XP still very popular

Three of the four products which Microsoft contracted with the U.S. Navy have been scrapped by the company, while Windows Server 2003 will reach its end on July 14. Therefore, Microsoft has ceased its free security updates but will continue to provide the services on a paid basis.

All the organizations that still operate on Microsoft Windows XP need custom security updates to protect them from external threats. This is a major cause why Windows XP is like God’s gift to Microsoft, as it continues to bring in revenue.

Apart from the U.S. Navy, the U.K. and Dutch governments also signed a $9.2 million and multi-million euro deal respectively last year to support their systems. For the current month, about 10% of the desktop PCs accessing websites using the StatCounter traffic reporting service were running on Windows XP. On the basis of data from Net Applications, Windows XP still holds a 14% market share, which is more than the market share of Microsoft’s latest operating system, Windows 8.1.

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