Exclusive: Microsoft Plots a Transition Year for Windows 10 (Premium)

An extensive collection of internal documentation viewed by Thurrott.com shows that Microsoft is resetting its Windows 10 strategy this year. The result will be new Windows 10 product editions, branding, and capabilities. Plus a tiered pricing model that will make appropriate new Windows 10 product editions and capabilities available via a wide range of device types.

The amount of information I've seen is so extensive and comprehensive that it's hard to put it all in perspective. But as you may recall, I recently noted that Microsoft seemed to be rebranding Windows 10 S to Windows 10 Pro in S mode. These documents confirm that observation. And they expand on this information by noting that Windows 10 Home will also be available in S mode. (We previously knew that Windows 10 Enterprise could also be made available in S mode, though I'm not aware of any customers actually using that product yet.)

OK. Here's what happening.

Microsoft will release two versions of Windows 10 this year, Redstone 4 in Spring 2018, and Redstone 5 in Fall 2018. These two releases are tied explicitly to what Microsoft is internally calling a "transition year" for Windows 10, in which its desktop platform will evolve into a more scalable family of offerings that will better meet the needs of its PC maker partners and, ultimately, the consumers who will use their shared products.

For Microsoft, the goals are obvious enough: It wishes to accelerate the transition to "Windows as a service" by driving adoption of the newest version of Windows 10. This requires volume, and to date, the biggest Windows 10 success stories have been with premium devices that can best take advantage of so-called "hero" features like Windows Mixed Reality, 3D, and gaming. So it is making Windows 10 more modular, both technically and from a branding/licensing perspective so that it can drive sales of low-end and mid-tier PCs too. Six straight years of PC sales declines are having their effect, it seems.

"Microsoft's 2018 goal is to grow Windows units year-over-year ... across all price bands and segments," the firm notes internally. For consumers---which Brad also wrote about this morning---these segments include:

Modern premium. Which competes with Apple MacBook Pro.

Modern mainstream. Which competes with Apple MacBook, iPad Pro, and Chromebook.

Modern entry. Which competes with Chromebook.

Gaming and Mixed Reality. Which really has no competition, though Microsoft lists Apple here.

Always Connected PCs. A new segment that will include both Intel and ARM offerings and will offer smartphone-like battery, standby, and connectivity capabilities.

Cortana-based devices. This is an interesting appearance, given that there is just one in the market. But obviously, Cortana devices ostensibly competes with a wide range of smart devices.

The premise here is that the premium market is well served, and that it's time to turn the industry's collective attention to mainst...