Can “programs and services”, promises of enhanced security, custom gadgets and a powerful graphics engine make the company's extensive user base upgrade to Windows Vista?Five long years have passed since the release of Windows XP — a lifetime for the software industry. During this time, Microsoft has invested almost $ 9 billion in
Windows Vista , which is replacing XP, and in the Office 2007 office suite.
And the wait is over.
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Microsoft’s executive director Steve Ballmer will present Windows Vista, Office 2007 and Exchange Server 2007, an update to the market-leading email platform, during this week’s launching presentation in New York. The share of programs for personal computers and servers in Microsoft's total annual revenue is 82%, which underlines how important the launch of three new products is for Gates, Ballmer and the company.
Delay in launching key products, attacking non-watchful competitors, imposing a new wave of updates on users - Microsoft went through this more than once and always managed to maintain the growth of sold software licenses.
Will this company be able to get together and perform a miracle once again? Ballmer certainly believes that yes. In an interview this past week, he called the new Vista, Office and Exchange "a giant step forward." Skeptics Ballmer responds: "Everyone who says otherwise is away from our consumers."
Microsoft does not predict explosive revenue growth in fiscal 2007, most likely, it will be in the range of 13% to 15%, to approximately $ 50 billion (for comparison, in 2006 the growth was 11%). Even these numbers will be akin to a feat for the largest software company, especially at a time when its 30-year-old business model is crowded with competitors providing online services (
software-as-a-service ) and earning contextual advertising in search results (search-ad-driven). Why pay for programs for a personal computer when other, more interesting applications are available online?
Maybe Vista and Office 2007 are ready, but
Windows Live ,
Office Live and
Office Online , Microsoft’s online service projects are far from over. Office 2007 integrates 13 applications and none of them resides on Office Online or Office Live resources. Ballmer responds evasively about this: “We have what we have online. If you continue to be interested, perhaps something new will appear there tomorrow. ”
Microsoft needs to be able to demonstrate that desktop applications and online services can not only coexist, but also evolve together, creating better working conditions. Microsoft is increasingly using the concept of “software and services” to describe such a joint development. Ballmer predicts the emergence of a "new generation of individual ways of working that will combine the best achievements of the Network with the rich capabilities of client computers" (see
Steve Ballmer's Own Top 10 List ).
But for Microsoft this is a matter of the future. "We try our best," says Ballmer. While users are starting to switch to online services, he argues that Microsoft is moving at the same pace with them, and not behind.
Windows Vista with customizable gadgets (
Gadgets ), with a powerful graphics engine, advanced search tools, new security features and mobile devices, and much more is a significant step forward. It is important that the new storage format of the operating system installation files (
WIM ) greatly simplifies the implementation and updating of Windows Vista for corporate users and simplifies the process of distributing critical updates.
InterKnowlogy, with the help of .NET tools, third-party components, and the
Windows Presentation Foundation [formerly Avalon], has recently finished developing an application for the
Scrips Research
Institute . The new application allows scientists to view three-dimensional images of cancer cells and leave comments to them. "Together with Vista, this is just super," says Peter Kuhn, a professor at the institute. "Incredible."
The scope of the upcoming release of Microsoft applications with hundreds of new features is too large to be able to try all the new products at once. We selected 100 facts that are worth knowing to all IT professionals.
Microsoft's Office "system" consists of 13 applications that are available in eight combinations, along with nine Office servers. The names are well known. Here are some of them: Access, Communicator, Excel, Outlook, PowerPoint, Project and Word. Office SharePoint Server (formerly SharePoint Portal Server) is the heart of the Microsoft software environment. Excel spreadsheets, for example, can now be managed in a centralized manner, but for this you will need to use SharePoint's Excel Services.
7% | companies are planning to install Windows Vista immediately after release |
39% | companies will install Windows Vista during the first year |
34% | They refer to the fact that the improved search system and the organization’s capabilities are of great interest to them |
17% | companies will need to upgrade computers to run Windows Vista |
32% | want cheaper alternatives to Microsoft products to be available |
73% | Mention PC server type integration as an important feature of Microsoft products. |
five% | say that Vista Gadgets and Sidebar are very interesting to them |
According to the InformationWeek Research survey in October 2006 |
Exchange Server 2007 is Microsoft's first major email update in more than three years. The key innovation is unified messaging, when faxes, voice and e-mail are placed in the universal mailbox.
Mike Leeper,
Columbia Sportswear manager for Windows systems, believes that a unified messaging system is useful for the company, especially when it comes to sending voice mail outside the company. This opportunity is popular with workers who have to travel abroad, because they do not need to call the US voice mail system to receive messages. “The end user experience is better,” says Leeper. Also with Exchange Server 2007, it is easier to implement uniform email usage rules and customize the storage of correspondence.
However, Columbia Sportswear has no plans for an immediate upgrade to Windows Vista or Office 2007. Leeper explains: “We had limited resources to try out pre-release versions, update the server part and resolve multiple issues on client computers.
Upgrade pathHow will users upgrade? When? According to the InformationWeek Research survey conducted in October among 672 IT professionals, 10% will install Windows Vista on existing computers, 25% will install Vista on new computers and 69% will do both. 39% plan to upgrade to Windows Vista within a year after its release.
As with previous versions of Windows, a massive corporate transition will take several years. In doing so, Ballmer expects companies to adopt Windows Vista “a little bit faster” than Windows XP, if only to protect themselves with improved security.
A representative of a competing company Ken Bisconti (Ken Bisconti), vice president of product marketing at IBM Lotus does not share this opinion: “I would like to look at at least one company that is going to upgrade Windows regardless of the standard process for updating equipment. For most companies, this update is a 2008 event. ”
"Microsoft is still using a business model from the era that preceded the emergence of the Internet, which is based on the inevitable upgrade of a paid operating system and paid applications." Bisconti's words summarize the skepticism that haunts Microsoft every time a company puts its users on a new software update cycle: “Do I really lack additional functions for editing documents? Innovations in business and technology do not depend on a specific operating system or version of Office. ”
Nevertheless, Microsoft’s extensive user base is envying quite a few companies. Will Ballmer get another bunny out of his hat? Those who have seen this trick before will follow his every move.