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Microsoft Windows 7: Getting More Bullish
Tuesday, July 14, 2009 11:01 AM


(Source: Business Week)trackingBy Peter Burrows and Aaron Ricadela

On the day Microsoft (MSFT) unveiled the next version of its Office suite of productivity programs, company executives were hoping they could also generate buzz for the next version of the Windows operating system.

During a July 13 keynote, Windows marketing chief Bill Veghte noted that companies running Windows 7 include BMW (BMWG.DE), T-Mobile (DT), and Del Monte Foods (DLM) and that Microsoft has had to turn away others that wanted to become early testers. He also outlined discounts for corporate customers and marketing programs for the thousands of IT companies that resell and install Windows on its behalf.

Yet the news that diverted some of the attention that might otherwise have been focused on Microsoft came from a company called ScriptLogic. The small software vendor released results of a June survey that showed that 59.3% of companies have "no current plans" to use Windows 7 in their computers. At first glance, the findings might appear to undermine a widespread assumption among investors that Windows 7 would spark a much needed round of corporate buying.

But the results may be less indicative of companies' eventual buying plans than the headline numbers show. The Web-based survey was carried out four months before the planned release date of Oct. 22. So companies haven't yet heard the marketing pitches Microsoft has planned for the launch. Chief among these are big price promotions. During the first six months after launch, for example, the professional version of Windows 7 will sell at a discount of at least 15%, compared with the current business-class version of Vista, the most recent version of Windows.

All Versions Will Come Installed Maybe because the company botched Vista's launch so badly, Microsoft seems to have done far better advance work for the unveiling of Windows 7. Veghte says more than 10,000 software developers are already creating products for Windows 7, versus less than 4,000 for Vista at a comparable stage of its development. That includes many drivers, the bits of code that enable particular devices, such as printers and digital cameras, to work with Windows 7.

And the company has a more understandable pricing strategy. Rather than various versions with various features, there will be a clear "good, better, best" approach. People who want the basics can buy Windows Starter, while companies can buy a version with many networking and security features. Rather than choose a flavor and stick with it, all Windows 7 PCs will ship with multiple versions of the OS preloaded. Any could be turned on in minutes with a credit card, saving the customer a trip to a retail store or a lengthy download.




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