Windows XP: What is the Verdict from Businesses?
Thursday December 13 01:12 PM EST
By Robyn Weisman, www.NewsFactor.com
The advertisements for Microsoft's (Nasdaq: MSFT - news) latest operating system, Windows XP (news - web sites), appear to be focused almost exclusively on the consumer. As Madonna (news - web sites)'s "Ray of Light" pulses, a person flies through a Technicolor blue sky holding a Windows laptop, while below people edit movies and do all sorts of multimedia things. It is as if they had walked into a Mac ad by mistake.
While the consumer push seems to have a Steve Jobs (news - web sites) ring to it, businesses, which almost without exception have used XP's predecessors, are not necessarily looking for the latest innovations in digital content. They just want an OS that is stable and runs their software without fanfare and cost effectively.
Given these rather modest yet unbending requirements, are businesses switching over to Windows XP in droves or are they taking a pass -- at least, for now?
'Good Enough' Computing
IDC analyst Alan Promisel told NewsFactor Network that XP's snazzy new look, ease of use and more intuitive setup do not have the same resonance for businesses as for consumers, especially when so many businesses have cut IT spending in the wake of a soft economy.
As a result, said Promisel, enterprises so far have had a cool to lukewarm reaction to Microsoft's latest OS, and are sticking with Windows 98 (news - web sites) and 2000.
"The general crunch on IT spending [causes Windows XP] not to be on the forefront of IT buyers' and IT managers' buying lists," Promisel told NewsFactor, adding that older Windows operating systems offer "good enough" computing for most businesses.
Lack of Need
Promisel went on to say that a lack of need combined with the weak economy have conspired to make Windows XP a bust with mid-sized and large businesses -- at least, for the near term.
Laura DiDio, director of desktop and server operating systems for Giga Information Group, who has covered Microsoft since 1986, told NewsFactor that when businesses ask her whether they should install Windows 2000 (news - web sites) or Windows XP, she tells them that 90 percent of both systems' code is the same.
Only the remaining 10 percent reflects XP's improvements in graphics and applications.
In addition, recent tests performed by InfoWorld indicate that XP is actually slower than Windows 2000 Professional in core business applications.
"If you're a business that needs video capabilities, XP is the way to go," DiDio said. "But when you're talking rank and file office workers," there really isn't any compelling need to upgrade -- until 2003.
2003: The XP Breaking Point
XP "does appear to do a very good job at seamless integration," and its wireless LAN and video capabilities absolutely will cause businesses to upgrade beginning in late 2002 or early 2003, IDC analyst Promisel said.
But DiDio found a more compelling reason for companies to upgrade to XP from their present Windows OS.
"Microsoft support for Windows 2000 ends in early 2003, whereas Microsoft will provide support for XP through 2005," said DiDio, adding that this may serve as the break point for most businesses, rather than the need to adopt advanced features.
Starting around the second quarter of 2002, Windows XP "is going to take off, and you'll start to see rapid adoption" in the business sector, according to DiDio.
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