Microsoft no longer sells software: it sells inevitability

Microsoft's strategic shift solidifies its position as a platform, not just a software provider, by ensuring guaranteed access to OpenAI's models and freedom to create its own. This move signals a transformation from selling software licenses to offering continuous, indispensable services. This approach underscores a broader trend in the tech industry. Microsoft's strategy involves the integration of AI tools, like Copilot, into its core products, including Office, Teams, and Windows. Large-scale enterprise contracts further embed AI as a fundamental operational cost. The company controls the primary digital workspace for millions of users, cementing its role. This strategy affects businesses and individual users who increasingly rely on Microsoft's integrated AI tools. The broader implication is that companies that control distribution, like Microsoft, hold the most power. This shift raises questions about market competition and the potential for a lack of alternatives within the digital landscape. This transformation began over a decade ago. Microsoft’s evolution, from Office 365's subscription model to Windows 10's mandatory updates, reflects a strategic shift towards providing services that create dependency. The recent OpenAI deal is the culmination of this strategy.