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October 26, 2009 12:00 AM

Microsoft Riding High in the Wake of Windows 7 Launch

Windows IT Pro
InstantDoc ID #103023
Rating: (6)

It was everything the Windows Vista launch wasn't: low-key and yet confident. And in many ways, the Windows 7 launch thus matched the tenor of the product itself—a product that, in the words of one Microsoft PR person, "doesn't need a big splash because it sells itself."

Indeed it does. With consumers around the world lining up in front of retail stores last Thursday to be among the first to purchase boxed copies of the product, Windows 7 came racing out of the gates. There was a palpable, even enthusiastic reaction to the event everywhere, and while reviews are universally positive—even from the infamous Apple-loving toadies in mainstream media—the most important and positive reactions this time came from the people who tested Windows 7 over the previous several months.

Over 90 percent of people who tested the beta or release candidate versions of Windows 7 described the product as "good" or "extremely good" and would recommend it to others. And get this: A whopping 80 percent of testers who identified themselves as Mac users said that they, too, would recommend Windows 7. Somewhere, a badly beaten Snow Leopard is licking its wounds.

Most telling for the future was Microsoft's quarterly earnings announcement. Normally, the software giant would have announced its results Thursday after the closing of financial markets. But instead of stepping on the Windows 7 launch, the company decided to wait until the next morning.

This delay triggered fears that Microsoft was about to drop another bad-news bomb on the market, and since the results were for the quarter just before its biggest product launch in almost a decade, such an outcome would have been at least understandable.

But that isn't what happened: Microsoft defied all analyst expectations with financial results that gave the company's stock a sudden and welcome boost. Microsoft recorded a profit of $3.57 billion on revenues of $12.92 billion, both down from the same quarter a year ago but better than expected.

Most notable was a $1.47 billion revenue deferral related to Windows 7. This figure represents 50 percent of the revenues Microsoft had recorded for a product that hadn't even shipped yet. So Windows 7 has already accounted for $3 billion in revenue, or almost 25 percent of the company's overall revenues for the quarter.

Here in New York, where I'm still recovering from the after-effects of the various Windows 7-related celebrations I've attended, Microsoft's latest OS still looms large, with building-sized advertisements around the city and even a bright, animated Windows 7/Toshiba ad on the Times Square New Year countdown ball.

So, congratulations Microsoft. For the first time in a long time, you got everything right.

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Comments
  • Andrew
    3 years ago
    Oct 27, 2009

    Same old, Same old.

    http://www.pcworld.com/article/174342/windows_7_upgrade_woes_mount_endless_reboots_and_product_key_problems.ht
    ml

  • Daniel
    3 years ago
    Oct 26, 2009

    I wish Paul wouldn't make everything a damn Windows vs. Mac smackdown. It's so unnecessary. Windows 7 is a great achievement (especially considering the complexity built around Windows), and Apple has managed to create an amazing ecosystem around an alternative OS—something no one else has been able to do. They're both worthy of respect."

    Lotsa, I only wish many others could be as mature about this kind of thing as you.

    Seriously, they are both worthy of respect. We're consumers and not working for the corporations (I think.), so really, we as consumers are the ones who win with the choice available.

  • Lotsa
    3 years ago
    Oct 26, 2009

    "There are some die-hard industry guys who use the Mac (like lotsa) who will always need what they sell to be more productive. I respect that. I'm in the same boat. For people typing email, the computer is a commodity good."

    Thanks for that. That's why I have—and use—both platforms. For my professional life, there's nothing on the Windows side that meets my needs. Period. But I also own a netbook (and bought two more for family members) that runs Windows because when I'm out and about doing basic browsing, email and presentation development, that's a great solution, and they're so cheap, it doesn't really matter if they get stolen/damaged or if coffee spills on them.

    Both have their place. I *prefer* the Mac by a longshot, but the differences these days are trivial, and largely come down to personal preference and other intangibles.

    I wish Paul wouldn't make everything a damn Windows vs. Mac smackdown. It's so unnecessary. Windows 7 is a great achievement (especially considering the complexity built around Windows), and Apple has managed to create an amazing ecosystem around an alternative OS—something no one else has been able to do. They're both worthy of respect.

  • Sam
    3 years ago
    Oct 26, 2009

    I'm a little surprised by all of the euphoria over Windows 7. It's not like Windows 7 is an all-new operating system built from the ground up. It's essentially Vista with a face-lift. The real test will be how it performs over the next year as it becomes more widespread.

  • Christopher
    3 years ago
    Oct 26, 2009

    "What a sad and grey little world you must live in."

    The first 5 minuets of Fight Club when it mocks everyone by suggesting we're all slaves to image and insecurity -- by panning around the apartment and showing all the trendy stuff bought from the IKEA catalog. That scene was brilliant.

    "Has anyone ever found a vendor-neutral study"

    I wish. Realistically I think the time-delta is zero, once you're used to either one. Even if the Mac were easier, we're talking seconds per day. Or perhaps it's front-loaded time not present on subsequent OS revisions. It's like hybrid cars. I doubt most owners drive enough to bridge the cost.

    "For example, a few months ago I was at a small conference"

    Well, they could have been using XP (8 years old) and your Mac might have been, say on 10.5 (1 year old), corporate IT might have monkeyed with it. Who knows. I've never had a problem with Vista or 7, except with some draft-n firmware (who knows how "final N" will react). I'd be curious what they use to validate bargain-basement radios in the mega-cheap laptop segment. There are too many factors, but generally Intel radios seem solid.

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