Pressure mounts for Microsoft to deliver with Windows 7
SEATTLE -- One thing you don't see very often on corporate PCs and laptops: Windows Vista.
Nearly two years after introducing Vista, Microsoft msft is grappling with an unanticipated phenomenon: The latest version of its flagship Windows computer operating system remains a rarity in corporate settings. As a result, the software giant finds itself under acute pressure to stay on track with plans to replace Vista with the next version of Windows, code-named Windows 7, perhaps as soon as late 2009.
With the global economy stalling out — and with Apple Macs increasingly replacing Windows desktops and laptops in workplace settings — Microsoft can ill afford a repeat of the delays that beset the introduction of Vista. "They have to get Windows 7 right — and get it right the first time," says Laura DiDio, principal analyst at tech research firm ITIC
ITIC and Sunbelt Software surveyed 700 senior executives and found only 10% had deployed Vista in their organizations. Windows XP remained the primary desktop PC operating system for 88% of the respondents. Meanwhile, 77% reported some use of Macs, and 50% said they plan to permit wider use of Apple products, including the iPhone.
Monday, in a nod to those who don't want to switch to Vista now, Microsoft said it would continue letting smaller PC makers order XP through Jan. 31 for delivery through May.
Even so, revenue from Microsoft's client division, which includes Vista, rose 13% to $16.9 billion in its 2008 fiscal year, ended June 30. Operating income rose 14% to $13.1 billion. That's partly because corporations paid Microsoft to access Vista but then chose not to use it.
Many tech managers remain wary of Vista's reputation for crashing programs. "Vista's main problem is lack of compatibility with other applications," says DiDio.
Shanen Boettcher, general manager of Windows product management, says Vista has been refined and now works well with most business applications. Today, "nearly nine of 10 people who actually run Windows Vista say they enjoy it and are favorable," he says.
Microsoft's big challenge: Get corporate buyers to embrace Windows 7. The economic slowdown won't make that any easier, says Charles King at tech research firm Pund-IT. "As money tightens and the recession deepens, both consumers and businesses will do everything they can to avoid purchases," says King.
Tech buyers who postpone replacing aging PCs risk cutting themselves off from newer software designed for Windows 7, says Michael Silver, Gartner tech industry analyst. "You could end up with too much Windows XP, too late in its life," he says.
"There is a very good probability of Windows 7 shipping early, in time for holiday sales in 2009," Silver says. "Strong sales of new PCs will allow Windows 7 to get off to a good start."