June 25, 2009

Windows 7 upgrade campaign savings limited for enterprises

Program stipulates only 25 PCs per company can qualify for the low- to no-cost upgrade

Enterprises ready to restock with new PCs and take advantage of Microsoft's Windows 7 Upgrade Option Program might find the cost savings to be less than originally thought.

Under this program, to debut tomorrow, anyone who buys a PC from a participating manufacturer or retailer that is fitted with a Windows Vista OS will receive upgrades to Windows 7 at little or no cost. Windows 7 is set to debut in 14 languages, including English, on October 22. The upgrade program runs until January 31.

[ Windows XP users could face their own Windows 7 upgrade disaster. ]

But there is a catch: there is a limit of 25 PCs per individual under the program. A single company counts as an individual, a Microsoft representative added on Thursday.

"Specifically designated PCs that are pre-installed with Windows Vista Home Premium, Windows Vista Business, or Windows Vista Ultimate may qualify for an upgrade to the equivalent Windows 7 product," a Microsoft representative said. "Similarly, in some markets, retail-packaged Windows Vista software products (sold separately from PCs) may also qualify for an upgrade to the equivalent Windows 7 product."

Manufacturers, or OEMS, and retailers may charge a nominal stocking or shipping fee pertaining to the arrangement.

Microsoft's limit of 25 PCs is unfair to enterprises, analyst Michael Silver, research vice president at Gartner, said. "I think it also encourages companies to monkey around with their purchasing programs," by waiting until October 22 to purchase PCs.

Still, individual hardware vendors might just give enterprises the free upgrades anyway beyond the 25-PC limit, Silver reasoned. Or, they could negotiate with Microsoft. "Everything's negotiable, but if you don't ask, you don't get," he said.

Microsoft, Silver said, would prefer enterprises adopt the company's Software Assurance program, which offers automatic upgrades but costs an annual fee, which has turned off some companies. "They think Microsoft is double-charging them," under Software Assurance, said Silver.

Estimated retail prices fore the full packaged Windows 7 product in the United States range from $199.99 for the Premium edition to $319.99 for the Ultimate variant. Upgrade pricing for Windows 7 ranges from $119.99 for the Home Premium edition to $219.99 for the Ultimate product.

Windows 7 offers features like a redesigned Windows TaskBar that are intended to make a PC simpler and easier to use. The latest in the Windows line would follow the much-maligned Vista, which has been criticized over issues such as performance, compatibility, and cost.

Read more about windows in InfoWorld's Windows Channel.

Paul Krill is an editor at large at InfoWorld.
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Dilbert 26-Jun-09 6:30am
I'm still sitting here with the white elephant known as Vista Ultimate where the only ultimate was the price. I doubt I'm going to be jumping in for another $219.00 to "upgrade" that anytime soon. I don't care how much better they say it is. They still owe me for all the "wonders" that Ultimate buyers were supposed to get over the regular users. I don't think one game counts!
vakog 26-Jun-09 9:07am
MS again display a lack of understanding of the real world. They should be paying the people who have had to suffer using Vista to upgrade, not charging them at least another $120+. Any enterprises that have gone to Vista, well hopefully you've learned an important lesson. This definitely adds one more tick to the Mac pros column. But don't think that people moving to Apple upsets MS that much, they'll probably still need to buy MS Office for Mac and don't MS still have a big stake, i.e. $'s, in Apple ? The one thing to remember is that Win7 IS NOT a new OS, it's just a 'fixed' version of Vista, needing even higher spec. hardware. Putting 4GB of mem in my HP notebook seems to have fixed Vista's daily BSOD and sudden reboots. If you must have MS, want bells and whistles, don't mind being second guessed as to how something should be done, crashes/daily reboots, programs hanging (especially MS apps!), and the list goes on; then Vista/Win7 is for you. If you need an MS OS that will run reliably and doesn't try to impress you with flash gimmics, and just works; then good old solid XP - get it while you can !
GreeneConsulting 26-Jun-09 1:30pm
I have seen too many small business people making the wrong choice in OS because they don't know or can figure out what they need when it come to Vista . I have seen companies buy cheap systems only to spend tons on upgrading them hardware and OS and now with companies income going south and good IT people being laid off in the thousands they think someone going to have the knowhow to take advantage of program that would cover only maybe a third of some companies systems? I noted that a good amount of small companies don't get the costly Vista business edition as they don't want to have to budget for it. It seems they will look for system that they can get at a low cost and no matter how many time you tell them you want all system running the same OS they mix the systems. Now on a larger company where cost is not or I should say when money was not a matter they got what ever it took to get the job done but now we have many people gone and cost dose matter they found as spending to win was not the answer and now the less money and people to run their IT and the companies. SO MS thinks that cutting the price to upgrade will work.. ya good luck on that. I can see Joe Public garbing this up in hope of getting better deal after vista confused the heck out them. It took me month to get my client on track with Vista some have spent more on manuals for Vista than on the OS and computer and paid me to make sense to the chaos that is Vista. Now win 7 (Vista Lite)hits and we still have thing I do not like and I won't go into it right now and MS think a gimmick like free or very little cost will bring people back.. I think we will see a very small businesses jump over and mostly the small business people that do understand the need to stay current in the tech in their business. I think we will see more people wanting XP running their business than Vita or win 7. I am still testing networking and shared system and Vista worked better than Win 7 I mean you turn drive sharing you should be able to see that drive and move file..not in 7 it very complex and the normal everyday user will not find it easy and this is where MS is going to fail. I still do not like there is 5 or 6 or eve 7 version of the OS as the did with Vista I think the need to go back to XP type model 2 version with some ad-on's for Business. this upgrade should be free and let those in a business upgrade to the Win 7 the need not the same version they have I.E. they are run a version of Vista Home but need business then let them upgrade to Win Business it would be a better and over all win win as their business get better(questionable in my mind) but they feel they can do more then it would be better for MS to eat the cost Heck MS need to eat the cost of lot of this BS with Vista and the coming cost of win 7 I feel will happen. GC

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