market-ticker.org / by Karl Denninger / 2015-11-28
Microsoft MSFT +0.00% has been on a roll lately. Its massive Windows 10 update ‘Threshold 2’ has far more good features than bad ones, the ‘free upgrade’ rules have been improved and even Microsoft’s Black Friday 2015 deals are surprisingly great. But a new discovery has been made which isn’t good news – at all…
What Microsoft did was rename the “telematics” service from DiagTrack to “Connected User Experiences.”
Uh huh. They didn’t get rid of it, which is what they wanted you to think. Instead they renamed it.
So Forbes caught it; I’ve not yet been “offered” Threshold 2, so it’s not on my machines yet. But this is a reminder that free never exists and the price is usually something you think is no big deal but in fact is a very big deal indeed.
I will keep reminding you that not is free never actually free but what’s worse is that the data collected, once collected, is never deleted and that while there are plenty of “benign” or even helpful things that someone can do with data they collect on you, there are also very malignant things that can be done too.
There is something that everyone needs to understand about companies like Facebook and similar that claim large “revenue per user” figures: Someone is paying them that money.
You’ve probably never paid for advertising and such, unless you have either run a company that bought it or were involved in a larger marketing organization for a large firm. I have, because I did when I ran MCSNet.
Here’s the calculus that intelligent businesses put into such advertising buys: They must return at least 10x what is spent on them in revenue.