Subscribe to Windows IT Pro
November 01, 2007 12:00 AM

Vista Growth Surges as Corporate Adoption Kicks In

Windows IT Pro
InstantDoc ID #97467
Rating: (22)

Last month, Microsoft announced that it had sold 85 million copies of Windows Vista, compared with just 45 million copies of Windows XP during the same time span in its initial release. This milestone is particularly impressive given the widespread negative articles one reads everywhere online about Vista, though most of that is anecdotal. But Microsoft says the reality of Vista is all upside and that Vista's growth is making a sudden surge.

The reason, Microsoft says, is that its biggest Windows customers, slow-moving corporations, are now starting to move to Vista. They're doing so as they always do, on their own schedules, but now that Vista has been in the market for most of a year, the sudden jump in sales is coming at an opportune time. Combined with holiday PC sales, this surge could make a huge quarter for the supposedly flailing OS. That's good news, unless of course you were playing the Chicken Little role in this invented tech farce.

"We feel like we are starting to hit our stride not only in demand, but in deployment in business," Microsoft president Kevin Johnson told Reuters this week. Growth in the Windows business has exceeded 20 percent each quarter since Vista first shipped, and the company is on track for 25 percent annual growth. Most impressive, perhaps, is that Microsoft makes 75 cents of profit on each dollar in Windows sales.

Part of the reason for Vista's huge financial success is that consumers are turning to high-end versions of the system in record numbers. In the previous quarter, over 75 percent of all Vista sales were for the high-end (and higher cost) Vista Home Premium and Vista Ultimate versions. (With XP, 59 percent of customers opted for premium versions of the OS.) While the software giant's decision to bifurcate Vista into more product versions than any previous Windows version was widely criticized, it's clearly been successful doing so. The company credits its progress on "educating consumers" about the benefits of the higher-end versions.

After the holiday sales season is over, Johnson expects another Vista sales boost, this time from the corporate market, when Microsoft ships the system's first service pack in the first quarter of 2008. Many of Microsoft's business customers wait for the first service pack before deploying a new Windows version. Microsoft's unearned revenue in the Windows business jumped 27 percent in the previous quarter, indicating that its customers were getting ready to make the jump to Vista: Unearned revenue is revenue that has been signed but not yet recognized because the product has yet to be delivered to and deployed by customers. That's all from upcoming Vista deployments, Johnson says.

Related Content:

ARTICLE TOOLS

Comments
  • Lotsa
    5 years ago
    Nov 05, 2007

    "ya, you know, cuz Pogue falls under that category."

    Considering that Pogue has two best-selling books on Vista, two on XP and one each on Windows 2000 Pro and Windows Millenium Edition (cough, cough), I'd say that, yeah, he's very qualified as a "long time Windows user" and is more than justified in making such judgements, "Waethorn".

  • Christopher
    5 years ago
    Nov 03, 2007

    "it can't simply be dismissed as unreliable, uninformed opinion. In fact I would say that the positive reviews(which are far less common) are anecdotal."

    Not wanting to point out the obvious, but of course any negative review can be easily dismissed. The product is out, it has been out for a year, no person needs a "review" to tell them anything they can't discover for themselves. It's not the code just went RTM or they are taking the wraps off something secret.

    I've been an Ultimate x64 user since Beta 2 on my primary computer. I've had no business issues to speak of. My only negative issues had been something game related, which a hotfix and driver updates took care of (this isn't exactly surprising given that game developers are some of the lowest paid coders I've seen).

    Outside of my personal experience, my general corporate experience matches "de Silentio" above. Deployment was easy. There were some initial issues with drive mapping, login scripts, and some general management changes, but solutions were documented within a couple months of general release.

    At this point, I tend to think people with problems are using some antiquated hardware without proper driver support, or they haven't applied those compatibility packs (which remedied all the issues I've seen on any machine thus far).

  • Joe
    5 years ago
    Nov 03, 2007

    "I'm afraid Paul, a lot of these negative reviews have been written by long time Windows users after using Vista entensively"

    ya, you know, cuz Pogue falls under that category.

    XP

  • Rhys
    5 years ago
    Nov 02, 2007

    That's great for Microsoft, as long as Vista is being sold and they're raking in the money for the high end versions. (The low end affordable versions are too hobbled to do anything useful)

    Who cares about the widespread negative reviews. (Paul simply dismisses these reviews as being anecdotal)
    I'm afraid Paul, a lot of these negative reviews have been written by long time Windows users after using Vista entensively and when the negativity becomes widespread, it can't simply be dismissed as unreliable, uninformed opinion. In fact I would say that the positive reviews(which are far less common) are anecdotal.

  • Joe
    5 years ago
    Nov 02, 2007

    "I also do not condone Waethorn's "anything except MS sux" rants"

    hey, anything to feed losta more of his bad medicine back at him.... ;)

    XP

You must log on before posting a comment.

Are you a new visitor? Register Here

advertisement

advertisement

Windows is a trademark of the Microsoft group of companies. Windows IT Pro is used by Penton Media Inc. under license from owner.