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."
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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