Windows as a software package would have never been affordable to individuals or local-level orgs in countries like India and Bangladesh (especially in the 2000’s) that are now powerhouses of IT. Same for many SE Asian, Eastern European, African and LatinoAmerican countries as well.
Had the OS been too difficult to pirate, educators and local institutions in these countries would have certainly shifted to Linux and the like. The fact that Windows could be pirated easily is the main factor that led to its ubiquity and allowed it to become a household name. Its rapid popularity in the '00s and early ‘10s cemented its status as the PC operating system. It is probably the same for Microsoft Office as well (it is still a part of many schools’ standard curricula).
The fact that Windows still remains pirateable to this day is perhaps intentional on Microsoft’s part.
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How would they have blocked it? Windows activation didn’t exist in the 90s.
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If no one knew about Windows, why would they want to use it in the first place? You don’t see your average Joe or Jane installing Linux on their brand new PC. For most of them, Windows is the only OS that they know of. I’ve mentioned Linux to these types of people before and the usual response is “if it’s so good, how come over never heard about it?” or “if they give it away for free, how do they make money?”