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Ballmer expects some businesses to upgrade quickly and others to wait for better economic times

Microsoft and much of the technology world is preparing for the October 22 launch of Windows 7. The operating system is perhaps the most important that Microsoft has ever offered with it replacing Vista, one of the most maligned OS'.

Microsoft CEO Steve Ballmer played down the roll that he and Microsoft expect Windows 7 to have in increasing PC sales when it launched.

Ballmer said, "There will be a surge of PCs but it will probably not be huge." Ballmer is trying to temper expectations for Windows 7 at the same time he and Microsoft's marketing arm are in overdrive to promote the new OS. Microsoft went so far as to offer a 90-day trial of Windows 7 to enterprise users to help woo them to upgrade from Vista or XP.

The question of whether or not businesses will quickly adopt Windows 7 or wait has varied answers. Ballmer feels that some businesses will upgrade quickly, while others will wait until later in 2010 when the economy is hopefully improved.

Microsoft is keen to transition as many users to Windows 7 as it can as a way to improve profits, which for the first time are down for the software giant. In fiscal Q4, eWeek reports that Microsoft posted a 17% drop in revenues compared to the previous year. At the same time the company posted earnings of $13.10 billion, $1 billion below Wall Street estimates.

Surveys are split on whether or not upgrades to Windows 7 by corporations will happen quickly. A report from Deutsche Bank in July showed that companies would adopt Windows 7 quickly while a similar report by ScriptLogic found that companies would wait until later in 2010 to move to Windows 7.

Ballmer told financial analysts at a meeting, "It's the middle of a down economy. I'm not going to sit here and give you a one-year optimistic guidance. I'm just not going to do it. But it’s not that I'm not optimistic."

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[grammer nazi]
By Motoman on 10/8/2009 10:35:27 AM , Rating: 5
You mean "role" not "roll."

[/grammar nazi]

RE: [grammer nazi]
By DOSGuy on 10/8/2009 10:48:17 AM , Rating: 5
And it should really be "downplays", not "plays down".

RE: [grammer nazi]
By Morphine06 on 10/8/2009 10:57:05 AM , Rating: 5
He changed it to "Plays Downplays"


RE: [grammer nazi]
By SpaceRanger on 10/8/2009 11:18:57 AM , Rating: 2
I read the title and said, "Huh?!?!"

Plays Downplays??

RE: [grammer nazi]
By MrBlastman on 10/8/2009 11:25:53 AM , Rating: 2
Should we or shouldn't we downplay the significance of this event?

RE: [grammer nazi]
By Chernobyl68 on 10/8/2009 6:41:46 PM , Rating: 2
*roles eyes*

RE: [grammer nazi]
By achintya on 10/8/2009 11:30:15 AM , Rating: 3
"Ballmer Downplays Role of Windows 7 on Increased PC Sales" is what it should be.

RE: [grammer nazi]
By SpatulaCity on 10/8/2009 11:06:08 AM , Rating: 2
RE: [grammer nazi]
By woofersus on 10/8/2009 11:07:40 AM , Rating: 2
I thought maybe he was shortening "Rollout" to be hip.

RE: [grammer nazi]
By amanojaku on 10/9/2009 12:12:12 AM , Rating: 2
Roll... Shortening... I see what you did there.

RE: [grammer nazi]
By Motoman on 10/8/2009 11:25:15 AM , Rating: 5
...fixed the title, but there's still this:

Microsoft CEO Steve Ballmer played down the roll that he and Microsoft expect Windows 7 to have in increasing PC sales when it launched.

How many points do I get for editing assistance anyway? And where do I cash them in?

RE: [grammer nazi]
By polaris2k4 on 10/8/2009 11:41:06 AM , Rating: 1
He fixed the title, but messed it up again. And neglected to fix the article. Is it just me or is Mick rubbing off on Shane? Or is this just the DailyTech culture?

RE: [grammer nazi]
By bissimo on 10/8/2009 12:09:28 PM , Rating: 3
This is what we get when ad revenues for "news" sites like Daily Tech are so low that they can't afford to hire a proofreader.
It won't get any better until someone finds a way to actually make decent money from online ad sales.

RE: [grammer nazi]
By crystal clear on 10/9/2009 5:18:21 AM , Rating: 2
Strange "Anandtech" does not have such problems ?

Time to "buy out" this site ....any buyers ???

Send in your takeover/buy out bids....

RE: [grammer nazi]
By B3an on 10/10/2009 6:11:04 PM , Rating: 2
I bid $5.

I know, i know, it's probably more than the site is worth. And i'll over buy at that price if Mick goes.

We have a deal?

RE: [grammer nazi]
By mfed3 on 10/8/2009 11:43:32 AM , Rating: 3
Also he wrote OS'.

OS is short for Operating System. Why did you write OS' as if it were posessive?

RE: [grammer nazi]
By Spookster on 10/8/2009 6:30:48 PM , Rating: 3
I often suspect that MS Windows is possessed.

RE: [grammer nazi]
By jonmcc33 on 10/8/2009 12:39:35 PM , Rating: 1
Do any of you realize that this is a blog website and not a news website? There aren't any editors that get to proofread what people post so calm down.

RE: [grammer nazi]
By harshbarj on 10/8/2009 2:43:55 PM , Rating: 2
If that is so then why does it Say "Latest news by DailyTech" on anantech's website? Sure it's a blog, but it's a tech news blog.

RE: [grammer nazi]
By TomZ on 10/8/2009 3:48:10 PM , Rating: 3
Do any of you realize that this is a blog website and not a news website? There aren't any editors that get to proofread what people post so calm down.
Not true, as I understand it. DT is a news site that also has blogs, not a blog site.

RE: [grammer nazi]
By crystal clear on 10/9/2009 5:12:20 AM , Rating: 2
Time to change it to newer/better model from what its today to something more interesting & wothwhile.

Turn it around to user a generated content site,use the subject matter as a platform to build upon & develop/refine on it.

Give the subject matter with a brief introduction & let the users pick up & addon more content & discuss it at the same time.

Right now its a fanboyism/an Apple bashing site /a Jason bashing site/name calling/& more of such types.

Has D.T. ever conducted an opinion poll for the regular users ?

RE: [grammer nazi]
By 91TTZ on 10/8/2009 5:08:44 PM , Rating: 3
About DailyTech

DailyTech is a leading online magazine for a well-educated, tech audience. Our readers enjoy hard-hitting and up to the minute CE, PC, IT and information technology news. DailyTech’s fast-moving content also reaches out via news syndications, public portals and forums.

RE: [grammer nazi]
By crystal clear on 10/9/2009 5:27:44 AM , Rating: 2
This is a Apple bashing site....put an Apple out & you will see it ripped apart/smashed beyond recongnition.

Its a Jason bashing site.... put out a Jason article & you see it tortured & raped.

bye the way many here seem to enjoy it...login to have some fun/enjoyment .

RE: [grammer nazi]
By Delitus on 10/8/2009 9:07:29 PM , Rating: 2
[spelling nazi]

"grammar", not "grammer".

[/spelling nazi]

RE: [grammer nazi]
By Motoman on 10/9/2009 11:08:49 AM , Rating: 2

That is funny as hell. Can't believe it took so long for someone to notice I screwed one up...

In my opinion...
By BigToque on 10/8/2009 11:10:56 AM , Rating: 5
I don't think the computer industry is ever going to have "huge surges" in sales anymore. The industry is starting to mature, and almost everyone and their mother has a computer.

There is definitely room to grow (portable devices are a big thing now), but I would say we are reaching a saturation point. Almost any computer in the last 5 years can do most of what anyone would ever need from a computer. They have become an appliance that needs to be replaced only when they don't work anymore.

RE: In my opinion...
By MrBlastman on 10/8/2009 11:27:45 AM , Rating: 2
There might be some maturity in the states, but there certainly is not overseas. I think it has quite a bit of room to grow abroad, thus, more surges and (when their economies grow), more profits.

RE: In my opinion...
By crystal clear on 10/9/2009 5:57:02 AM , Rating: 2
Sorry not anymore !

Asia/E.U. have also reached their full potentials.

Africa gets all the stuff that you throw away plus OEMs dumping their unsold stuff (inventory clearance).

Intel's netbooks have achieved that & thats why you see Intel diversifying from desktops/notebooks/netbooks etc into appliances of all sorts from home to industrials/medicine etc.

Now Toshiba brings in the cell chips on their new generation TVs.

A few years from now TVs & computers will merge into one device.

You will not need a DVD player/recorder as it will be in your multimedia tv with ssd cards as your storage device.

Take a trip to South/S.E Asia & China to see for yourself.

Africa has become the dumping ground for the all the computers you throw away.

RE: In my opinion...
By StraightCashHomey on 10/8/2009 2:26:42 PM , Rating: 3
Heh.. people are buying PCs today mostly because they don't know what reformatting is, imo.

RE: In my opinion...
By StevoLincolnite on 10/8/2009 11:18:28 PM , Rating: 2
Heh.. people are buying PCs today mostly because they don't know what reformatting is, imo.

I've seen allot of people buy a new computer simply because it wasn't fast enough, and usually the big reason it wasn't fast enough was because of the lack of RAM or it used an Intel Decelerator Graphics chip, which is cheap to upgrade and most OEM machines these days have a decent enough processor anyway.

RE: In my opinion...
By crystal clear on 10/9/2009 8:55:13 AM , Rating: 2
No ! they buy PCs as their 2nd/3rd/or even 4th computer in their homes.

Mainstream buyers-Typical families (husband/wife & 2 kids) have atleast 2 to 3 computers in their homes.

The range could be from a desk top to notebooks to netbooks.

Plus the life span of components like the hard drives,gpus,mobo etc are on an average 3 yrs,after that its problems/failures/burn out/crashes & many more.

With guarrantee plans spanning from 1 to 3 yrs, after that leaves you the option (depending on component failures) but to buy a new one rather than repair the existing one-it turns out cheaper/better in the long run, as its a higher/better upgraded version with massive price cuts offered by OEMs & retailers + 1 to 3 yrs free guarrantee plan offered to tempt you to close the deal.

Example could be a better/faster (& or) CPU + GPU + memory + hard drive etc plus some frees in the bargain.

Remember we are talking of mainstream buyers & not computer professionals,nor university students etc.

Sometimes it is cheaper & preferred to throw away the existing computer (with no guarrantee plan),rather than repairing it.

The great recession has some good sides to it ,namely you have retailers/OEMs begging you to buy their products with massive price cuts & credit plans.

Read this-even though it applies to business user & notebooks,but equally applicable to home users & desktops.

These days, companies are tempted to hang on to their notebook computers for a couple of years beyond the usual three-year lifecycle in order to avoid the capital expense of replacing them. But tech analyst Jack Gold has developed a cost model that casts doubt on that make-do strategy.

In essence, Gold said that in Years 4 and 5, the laptops are more trouble than they're worth. Gold, founder of J.Gold Associates in Northboro, Mass., said that because of the need for repairs, keeping notebooks the extra two years actually costs an additional $960 per machine -- a sum that may exceed a cost of a typical replacement notebook.

"After the third year, hard drive failures go up dramatically," as do problems with keyboards, screens, and batteries, Gold said in an interview. Plus, the outdated notebooks will cost an organization $9,600 annually per person in lost end-user productivity, Gold said, since a machine that's two generations behind current models takes longer to boot up and runs sluggishly.

Gold's model also indicates that the cost of repairing a failed notebook that's under warranty is $970, whereas the cost of repairing a failed notebook that isn't under warranty is $1,425.

RE: In my opinion...
By bfonnes on 10/11/2009 11:06:46 AM , Rating: 2
I don't know what kinds of hard disk drives you're buying and how you're using them, but I expect my hard disk drives to last 10 years (and the other components you mentioned twice as long or more than that) and they do. Computers aren't toasters or shoes.

You must work for a retailer. Sure, I'm a computer hobbyist and I believe in upgrades, but I think that not everyone needs to be in a 3 year upgrade cycle. That's a little insane.

By the way - I think by the time this thing is over, academically, it may be more appropriate to call it a "small depression" rather than "great recession." I think the very act of calling it a recession rather than a depression is minimizing it and the only people calling it that are those that are benefiting from it or that just don't understand what is really going on. I'd rather call it like it is and be prepared.

The whole diatribe about laptops is stupid, too, IMO. It's called you clean out the dust and buy a new battery before either damages the internal components. Just out of curiosity, do you advocate replacing cars every five years, as well? Or do you just buy a new one when the $40-80 battery goes out?

RE: In my opinion...
By WheelsCSM on 10/8/2009 7:16:07 PM , Rating: 2
I completely agree. Several years ago there were significant advantages to upgrading to the latest & greatest hardware/software, and each new version was a huge improvement over its predecessors. Now days it seems like most software upgrades just add bells & whistles (prettier graphics) without much functional improvement. For the vast majority of computer users 5 yr old hardware is completely adequate.

That said - I already pre-ordered a copy of Windows 7 just to check out the latest bells & whistles.

By damianrobertjones on 10/8/2009 12:12:40 PM , Rating: 3
Here, in this little UK company of just over 100 pcs/laptops, we'll be moving to Win7 as and when we need a new machine. (I'd say that three machines will be upgraded, all Directors wanting the latest flash and dazzle)

Windows 7 is steady, has improved GP's over XP and most importantly, works with our 3rd party software.

Would we/I ever consider moving over to a mac? No. I see no positive arguments from where I'm sitting as we/I run the system to a level that prevents idiotic problems. WSUS server, good solid group policies and the fear/respect of the users.

Windows 7 simply adds to that stability.

P.S. Office 2010 is looking very nice from where I'm sitting and could possibly add some small little bits and bobs to make it a worthwhile 'new' pc purchase

RE: WIn7
By damianrobertjones on 10/8/2009 12:14:15 PM , Rating: 2
P.s. Admins, don't be afraid of change, break from the tired day to day usual habits and maybe go for Win7. We had reasons not to go for Vista (Only two pcs have it, mine and an accountant who wanted x64!?? Yeah, I know) but Win7 is a slightly different, better beast.

RE: WIn7
By foolsgambit11 on 10/8/2009 6:06:07 PM , Rating: 2
Maybe your company rakes in some *really* big revenues? So the accountant needs to deal a lot with numbers over 5 trillion?

RE: WIn7
By damianrobertjones on 10/9/2009 2:56:41 AM , Rating: 2
He deals with some very, very large spreadsheets so wanted 4gb ram. Fair enough. Wasn't required but the FD is my boss. Sob

Windows 7 Looking good so far.....However
By honestIT on 10/8/2009 6:15:22 PM , Rating: 2
The tax it has on older machines will keep us from deploying it company wide for some time to come (we have over 40k workstations in the US alone). You add in SEP and Office 2007, and our IIS application which does not work in IE 8 yet, we cannot feasibly deploy for another 3-5 years.

I run it on my work laptop, which is a C2D 2.4GHZ, 4GB ram and dedicated graphics card and it runs circles around XP. However, most machine still have 512MB memory....

By dragunover on 10/8/2009 10:54:12 PM , Rating: 2
Those machines shouldn't be using windows XP in the first place, why even consider wasting money on a relic of a computer like that? It makes no proper sense.

Ballmer needs to retire
By crystal clear on 10/9/2009 9:53:29 AM , Rating: 2
“It will be an important year for how Ballmer is viewed as CEO.”

Ballmer's success will be measured by market share, continued revenue growth or get ready to retire.

Microsoft's share price has fallen a massive 53 per cent since Ballmer took over as chief executive in 2000.

Windows 7 won’t change things because it doesn’t have any “must-have” features.... so the need for Ballmer to tonedown his expectations.

But in the meantime-

Microsoft's new Windows 7 operating system boots slower than its unloved predecessor, Windows Vista, a PC tune-up developer said Thursday.

The claims by iolo Technologies, a Los Angeles maker of PC software, contradict Microsoft's boasts that Windows 7 starts up faster than Vista.

iolo said it will release more details and results of its Windows 7 boot-time benchmarks on Monday (10th Oct).

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997
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