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Don't expect businesses to upgrade to Windows 8, says Microsoft (MSFT) watcher Paul Thurrott:...

Don't expect businesses to upgrade to Windows 8, says Microsoft (MSFT) watcher Paul Thurrott: the OS, whose new features are almost entirely aimed at consumers, and which sports a completely revamped desktop UI, won't go over well with corporate buyers. Microsoft's decision is a "calculated risk" made with the goal of catching up to Apple (AAPL) in the consumer realm, but it could antagonize a market that accounts for a huge and growing share of its profits.
Comments (18)
  • Matthew Davis
    , contributor
    Comments (3906) | Send Message
     
    Isn't that why they always release a basic, pro, and ultimate editions? Maybe the Pro will be a desktop version. That would make sense to me.
    30 May 2012, 02:05 PM Reply Like
  • evannever
    , contributor
    Comments (52) | Send Message
     
    Many mid-sized to large organizations are just getting on board w/Windows 7. That gives MSFT a few years to workout the enterprise version of 8.
    30 May 2012, 02:11 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3906) | Send Message
     
    Not only that, many businesses haven't even upgraded from XP yet.
    30 May 2012, 02:13 PM Reply Like
  • jigglylizard
    , contributor
    Comments (25) | Send Message
     
    I just got upgrade at work to XP yesterday...
    30 May 2012, 02:14 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (471) | Send Message
     
    Doesn't matter if Windows 8 is a hit or not b/c Dell, HP, Lenovo, Acer, Toshiba, Sony, Samsung & Asus will be buying it for their systems. At first, the consumer will have the choice between Windows 7 or 8, but 7 will eventually be phased out and fully replaced by 8 for newly sold systems.

     

    So this is really a non-issue since corporations will continue buying their PC systems in bulk from at least one of those major suppliers.
    30 May 2012, 02:15 PM Reply Like
  • bimmerguy09
    , contributor
    Comments (60) | Send Message
     
    Not exactly. The organization for which I work (in the IT field) was able to order from Dell and HP systems running Windows XP OEM long after Vista was released, and even up to a certain point after Windows 7 was shipping - long after consumers could no longer acquire XP OEM. Besides, just because a system ships with an OS, it doesn't mean enterprise environments won't re-image them with something entirely different anyway. So, enterprise IT departments do have options to stick with Windows 7 long after Windows 8 is the OEM default.

     

    The flip side, from an investing perspective, is that it doesn't matter much because Microsoft will get their money anyway. They will sell an OEM copy of Windows 8 when the machine ships, so MSFT gets its OEM license fee and a tick in their sales column for Windows 8. On top of that, enterprises generally have independent licensing agreements with Microsoft that let them run pretty much whatever they need to.

     

    So, it is correct in that it won't matter to Microsoft's bottom line. In fact, it's great for MS because they're getting royalties twice on each machine (once on the OEM license and again under the enterprise agreement). However, I still wouldn't expect enterprise to contribute much to Windows 8 marketshare anytime soon after its release, and that could be a potential source of embarrassment for Windows 8 just as it was for Vista.
    30 May 2012, 02:58 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (471) | Send Message
     
    "The flip side, from an investing perspective, is that it doesn't matter much because Microsoft will get their money anyway."

     

    Exactly. MSFT isn't going away. Microsoft makes money when someone buys a PC. Doesn't matter which version of Windows is on there.

     

    Heck, the US Government is still running Windows Vista on 99% of all Government employee PCs.
    30 May 2012, 04:12 PM Reply Like
  • raincity
    , contributor
    Comments (221) | Send Message
     
    Sales are tanking for PC makers. Windows 8 will not make any difference.
    30 May 2012, 02:17 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3906) | Send Message
     
    This has to do with market saturation, not because no one wants them. Everyone has one already, so what can they do to sell more if you already got one?

     

    Same with TV market.
    30 May 2012, 02:28 PM Reply Like
  • raincity
    , contributor
    Comments (221) | Send Message
     
    I agree madav on the saturation. There is no need to buy another one. Including when Win 8 is released.
    30 May 2012, 02:47 PM Reply Like
  • IPOChaser
    , contributor
    Comments (55) | Send Message
     
    If your product turnover is too fast you will drive up costs because MSFT will have to offer support for several OS' at once.
    30 May 2012, 02:31 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3906) | Send Message
     
    Vista -> Win7 -> Win8 in less than 5 years...whats up with that right?
    30 May 2012, 02:35 PM Reply Like
  • bimmerguy09
    , contributor
    Comments (60) | Send Message
     
    Speaking as someone working in the IT field in higher education, I can vouch for this assessment. We're just now getting to the point where we have more systems running Windows 7 than XP. We won't be looking at Windows 8 anytime soon - especially with the potential usability issues surrounding Metro on traditional desktops. I'm hoping the RTM version allows the circumventing of Metro altogether. If not, we'll likely wait for Windows 9.
    30 May 2012, 02:37 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Personally, I think Win7 is pretty good. No need to u/g.
    30 May 2012, 02:46 PM Reply Like
  • romilar
    , contributor
    Comments (675) | Send Message
     
    Madav,they make the one you've got obsolete and at the same time push the "new". Mfg knows that the big profits are in volume sales.Mass production,however, cannot exist without mass consumtion.Ever wonder why lots of other stuff just dosn't last like it could or should? If it did,the makers bottom line would suffer.Electronics seem to hang in for quite a while.So whats a mfg to do? They press R&D to come up with faster,smarter,newer ect. all in the name of out with the old, in with the new. One of the many up sides to this is discovery/innovation/i...
    30 May 2012, 04:45 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    But none of the comments addressed switching from MSFT to AAPL. AAPL remains a niche in computing. Same goes for open source.
    30 May 2012, 07:16 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (471) | Send Message
     
    Because it's more like MSFT to MSFT & AAPL. People still use Windows on their MACs. Super Easy to do with MAC's BootCamp. And in some instances, Windows is the only OS on an Apple device. Lots of IT departments want MACs for their performance but still want the functionality & compatibility of Windows.

     

    Apple makes a luxury product & Microsoft makes for the masses. Here's a little analogy:

     

    Apple : Porsche :: Microsoft : GM
    31 May 2012, 10:25 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Even if Win 8 flops, Microsoft may not get hurt that much because of Win 7 upgrade.
    30 May 2012, 11:51 PM Reply Like
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