October 26, 2009

The real cost of Windows 7: $1,930?

Gartner’s estimate for the total cost of upgrading from XP to Windows 7 explains why the software industry has slowed down

When you include replacement hardware, admin costs, application testing, and replacing incompatible apps, Gartner's VP of research, Michael Silver, believes that -- in a hypothetical organization with 2,500 Windows users -- the cost of upgrading from Windows XP to Windows 7 will run $1,035 to $1,930 per user. Silver's cost estimate of migrating from Vista is a fraction of that number: from $339 to $510.

No doubt organizations already mired in Vista will roll out Windows 7 in a hurry for usability, compatibility, and performance reasons. But the value prop for the XP masses remains elusive.

[ Pound for pound, which is the better desktop OS, Snow Leopard or Windows 7? Find InfoWorld's answer to that question in our PC vs. Mac deathmatch. ]

After last week's saturation coverage of Windows 7, I will spare you the laundry list of changes and new features (check out our Windows 7 Deep Dive Report for that). But I ask you to imagine the hypothetical CFO of that hypothetical 2,500-user organization, staring at an upgrade cost of between $2,587,500 and $4,825,000. Glaring at that number, looking at it sideways, maybe turning it upside down. And this buys us ... what, exactly?

Even as, post downturn, the desktop hardware upgrade cycle kicks into gear again -- which Gartner says is already happening -- the obvious fact that Windows 7 will be pre-installed on new hardware does not ensure migration. As InfoWorld's Galen Gruman reported last week in "Was Windows 7 worth saving XP for?" a Hewlett-Packard exec said he expects many if not most businesses to "downgrade" Windows 7 to XP through much of 2010 (an option for some editions of Windows 7 until April 23, 2011).

It's tempting to be dramatic and declare the Windows treadmill broken beyond repair. Steve Ballmer's rather manic performance at the official Windows 7 launch last Thursday suggests that, in his heart of hearts, even he believes that the world has changed. I could push things even further and point to today's "PC vs. Mac deathmatch: Snow Leopard beats Windows 7" as evidence that the Mac will eventually become the default corporate desktop.

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r00a006 26-Oct-09 9:02am
Hmmm, not my experience. So far I have upgraded (refreshed) 70 XP desktops to Windows 7 without a hitch except for the client that runs AutoCAD. Now I work with smaller companies (<100 desktops per company) maybe my clients use more main-stream software. Also if the PC was purchased in the last 5 years, I have not needed to buy new PC's, just add some memory and in a couple of cases a video card. So far I am extremly please with the experience.
lawryll 26-Oct-09 10:06am

Almost $2000? Seriously? I can't believe that. What are the guys who are performing this feat absolute morons? For that price, you could pay the helpdesk personnel to manually migrate the boxes and you'd come out waaaaay ahead.

I can only assume that Gartner is referring to a "worst case scenaro" here as just buying everyone all brand new machines and running their previous XP in a VHD would come in less than this figure.

I'm calling BS on this report. Absolute Gartner crap.

JtechG 28-Oct-09 12:09pm
Mac OS as the default desktop...PLEASE...join the real world...have Gartner show the cost of moving 2500 users to iMacs and publish those numbers. Hopefull you users will all have widescreen monitors to be able to get those number on one line.
mwagner 28-Oct-09 12:46pm
This is a silly comparison - it assumes that everyone upgrading their OS pays retail prices to do so. This is nonsense. Almost all OS upgrades are performed on recently acquired hardware by users who enjoy steep discounts for licenses that they buy directly from Microsoft or from their hardware OEM.

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