Seeking Alpha

Businesses are unlikely to adopt Windows 8 (MSFT) in large numbers before next summer, says Dell...

Businesses are unlikely to adopt Windows 8 (MSFT) in large numbers before next summer, says Dell (DELL) CFO Brian Gladden, as they wait for kinks to be ironed out. It's not uncommon for businesses to take a cautious approach to a new OS, but Gladden's remarks carry additional weight in light of Intel CEO Paul Otellini's rumored comments (later called "unsubstantiated" by Intel), and existing worries about poor enterprise Windows 8 adoption.
Comments (18)
  • Jeremy Johnson, CFA
    , contributor
    Comments (783) | Send Message
     
    Considering how many large businesses still use Windows XP, this should not be at all surprising.
    27 Sep 2012, 11:50 AM Reply Like
  • wigit5
    , contributor
    Comments (4119) | Send Message
     
    I have never worked for a company who upgraded within the first 6 months of a release... My company just now (in the last 6 months) adopted Win 7...

     

    When I was in the military it was the same way. Windows ME until 2007 I think it was maybe?
    27 Sep 2012, 11:52 AM Reply Like
  • Jeremy Johnson, CFA
    , contributor
    Comments (783) | Send Message
     
    Windows ME is probably the worst operating system of all time. I shudder to imagine using that in the mid-2000s.
    27 Sep 2012, 12:45 PM Reply Like
  • Momintn
    , contributor
    Comments (4283) | Send Message
     
    Some people have already downloaded it and are quite pleased. Windows 8 is faster, uses less memory, less disk space, and includes less bloat overall. Provides a more secure environment and access to the cloud. Sounds like Windows 7 users have found few problems with their existing applications after upgrading to Windows 8. You are always going to find businesses who lag behind but they won't attract the best talent in IT. No one wants their skills to stagnate.
    27 Sep 2012, 12:27 PM Reply Like
  • Rbongni
    , contributor
    Comments (33) | Send Message
     
    Nice try Microsoft...
    27 Sep 2012, 02:46 PM Reply Like
  • rjgood
    , contributor
    Comments (233) | Send Message
     
    I agree, business usually are slow to adopt.

     

    I have been running the production version of Windows 8 for months now, and I am very pleased. I have not noticed one bug, so I am not sure where Intel and Dell are coming from.
    27 Sep 2012, 12:32 PM Reply Like
  • Jeremy Johnson, CFA
    , contributor
    Comments (783) | Send Message
     
    Windows 8 is really the same code base as Windows Vista, just as Windows 7 is. I think it is a bit crazy for people to think it going to be bug filled. Just like Windows 7 compared to Vista, the opposite will likely be true. I have used Windows 8 for about 30 days now and it is great. Primarily, a nice incremental improvement to 7, but with the Metro interface tagged on, which replaces how programs are opened from the existing start screen. Personally, I think MS has room to improve how the start screen works, but it happen over time and isn't that essential for users. Most people put their common programs right on the task bar, or put icons on the desktop and these methods can still be used.
    27 Sep 2012, 12:44 PM Reply Like
  • doc47
    , contributor
    Comments (1120) | Send Message
     
    There may be a debate about when, but not about if it will be used. As stated by others above, this is normal business procedure. It's an intermediate and long-term winner if the preliminary reviews are accurate.
    27 Sep 2012, 12:46 PM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    i'm running win8 release preview version on my old 2005 desktop dell dimension 5150.
    it works very well and much faster than the original xp.
    from the consumer's point, i like the new system, which a lot of thought in the design of connectivity, interface and most important the improved efficiency of resource.
    this is a revolutionary os to unify a common platform for pc, tablet, laptop & mobile.
    it is also the first system i have ever seen running faster with an old mechine without HW upgrade!
    2 thumbs-ups to Microsoft.
    wishing all the best to MS team & hoping MS be humble enough to listen and work to excel the system.
    27 Sep 2012, 12:54 PM Reply Like
  • bimmerguy09
    , contributor
    Comments (60) | Send Message
     
    I can almost guarantee you that Windows 8 will have poor enterprise adoption. Some of this is because some enterprises are just now completing a migration from XP to 7. They're not about to turn right back around and upgrade to 8 unless they have a good reason. For some, the only reason they moved to 7 was because of the impending end of XP's extended support.

     

    The other thing, is enterprise is concerned primarily about productivity. I know, because I've been in the very meetings at my "enterprise" where the possibility of a Windows 8 upgrade was discussed.

     

    There's a good bit of apprehension about how well the UI formerly known as Metro will go over with the average user, particularly if the RTM version doesn't allow a way to default back to the legacy desktop. Despite not even having tested Windows 8 yet, it is was half-jokingly suggested that we'll see what happens with Windows 9. I expect most other enterprises will follow a similar strategy, at least until they're certain the new UI won't be a productivity killer.

     

    I think 8 will do well on the consumer side, and may put Microsoft back into the tablet game. I don't think it's going to be anything more than a niche product in the enterprise, though. Fortunately, this shouldn't affect Microsoft's revenues much since most enterprises have their own licensing agreements anyway.
    27 Sep 2012, 01:07 PM Reply Like
  • wigit5
    , contributor
    Comments (4119) | Send Message
     
    bimmerguy09:

     

    I think you are right... business just can't afford to update every year whether it's a good update or not... Unless it completely revolutionizes the way we do business (ie going from DOS and typing in commands to clicking on icons) every other iteration is probably enough.

     

    If I was MSFT I would seriously consider a 2 year upgrade approach to Windows OS.
    27 Sep 2012, 01:13 PM Reply Like
  • bimmerguy09
    , contributor
    Comments (60) | Send Message
     
    If Microsoft really wants to push adoption of their new operating systems, I think they're going to need to adopt a release cycle similar to Apple. With Apple, they issue a new release every year, and once you're three releases behind your support is done. Of course, the enterprise segment tends to grumble a bit about Apple for that very reason.

     

    Microsoft, has been exactly the opposite, and has bent over backwards to make enterprise clients happy. This is why XP went through three Service Packs, and will be around 13 years old when support finally ends in 2014.

     

    Most enterprises skipped Vista and deployed 7, many of them recently. I suspect the enterprise segment will push Microsoft into doing the same thing with 7 as they did with XP - support it for a decade. From the investing side, if all you're concerned with is MS turning a profit, then they can do that still supporting a legacy OS. They get paid plenty for enterprise licensing agreements.

     

    My concern, is that to really compete with Apple and Google and grow, Microsoft needs more flexibility to innovate. It's hard to innovate, when you're busy patching a 10-year-old OS used by a bunch of accountants.
    27 Sep 2012, 01:28 PM Reply Like
  • KevinRemde
    , contributor
    Comments (387) | Send Message
     
    bimmerguy,
    "There's a good bit of apprehension about how well the UI formerly known as Metro will go over with the average user, particularly if the RTM version doesn't allow a way to default back to the legacy desktop."
    Unfortunately the claim that "there is no default back to the legacy desktop" makes people think that they won't have a legacy desktop - which is entirely untrue! While it's true that you'll start on the Start screen, you will automatically be working in and on the desktop the moment you launch any of your desktop applications, where you'll still be able to pin items to the desktop or to the taskbar just like you do in Windows 7 (and XP). Most people will still use their old, reliable Windows desktop applications and won't have to go to the start screen for anything - unless they want to use any of the new Windows 8 apps.

     

    Disclaimer - I work for and am long MSFT, and have been happily using Windows 8 in production since April - mostly on a traditional keyboard/mouse non-touchscreen PC, and mostly using traditional desktop applications. (I do love the new apps, too!)
    27 Sep 2012, 01:39 PM Reply Like
  • Momintn
    , contributor
    Comments (4283) | Send Message
     
    Intel CEO Paul Otellini is on record as saying ‘Windows 8 is one of the best things that ever happened to Intel,’ citing the importance of the touch interface coming to mainstream computing and the huge wave of exciting new Ultrabook, tablet and convertible device innovations coming to the market.
    http://onforb.es/QImKxR
    27 Sep 2012, 01:16 PM Reply Like
  • GuyGuacomole
    , contributor
    Comments (28) | Send Message
     
    "Paul Otellini is on record as saying ‘Windows 8 is one of the best things that ever happened to Intel"

     

    That's right and it seems to get lost in all the discussions. It also seems more important to me for Windows 8 to drive the consumer market first where Intel is facing intrusion from tablets and smartphones then spillover to the enterprise market.
    29 Sep 2012, 03:38 PM Reply Like
  • rumblefox
    , contributor
    Comments (8) | Send Message
     
    With the radical "metro" UI - it will be unlikely any businesses adopt W8 until SP1 which should come out one year out.
    27 Sep 2012, 01:24 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    Microsoft will be at $45.00 by this year.

     

    The giant has awoken - buy while you can.

     

    Lahiem
    27 Sep 2012, 01:24 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    Bill Gates just made a statement that he very pleased and excited with Windows 8.

     

    Take that to the bank my friends.

     

    Lahiem
    27 Sep 2012, 03:28 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector