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August 28, 2009 4:00 AM PDT

Measuring Windows 7 appeal to businesses

by Ina Fried
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There are a whole bunch of reasons why Windows 7 should appeal to businesses, but one threat--the still-sluggish economy--could overshadow all of those reasons to move to the new operating system.

"I think they have a really good product at a really bad time," Directions on Microsoft analyst Michael Cherry said in a telephone interview this week.

Among Windows 7's business-oriented features is "XP Mode"--a downloadable add-on that lets applications that won't work natively in Vista or Windows 7 run in a free, virtualized copy of Windows XP.

(Credit: Microsoft)

While Cherry says that there is definitely a lot to like about Windows 7, the release comes at a time when IT budgets are shrinking and companies are trying to limit new technology projects, even ones as badly needed as updating aging stables of desktop and notebook PCs.

"Even if they like it, I don't know how fast it is going to go when it is ranked against all the things IT has to do against a shrinking budget," Cherry said.

Among the things that should appeal to businesses about Windows 7, Cherry said, are its improved compatibility and performance, Windows XP Mode and a DirectAccess feature that allows for automatic virtual private network-like connections to a corporate network anytime a PC is connected to the Internet. (See chart below.)

Windows 7 goes on sale to consumers and small businesses on October 22. However, large businesses with volume licensing deals can get access even earlier, although most will wait before putting it on anything other than test machines. Gartner analyst Michael Silver said that, as with other releases, most businesses will take a year or 18 months before starting to deploy Windows 7. However, he added that "we've had a surprising number of calls with organizations, some very large, planning to move fairly early."

With little appetite for widespread spending to beef up old machines, Cherry said that many businesses may just upgrade to Windows 7 as they buy new machines. "I'm not sure that isn't going to be the majority way that this is handled," Cherry said, pointing out that would still be an improvement from Vista, where most companies wiped the operating system off of new PCs and instead installed Windows XP.

One quibble that Cherry has is with the way that Microsoft bills Windows 7 as a major upgrade even though so little has changed under the hood.

"I think they confuse major with important," Cherry said. "It's an important update. It's one you want to take advantage of."

Windows 7, Cherry said, is noteworthy simply because it addresses many of Vista's shortcomings and makes the key improvements that Vista brought now accessible and attractive to businesses.

In many ways, he considers Windows 7 to be the "R2" release of Vista, borrowing the nomenclature Microsoft uses to describe updates to its server products. That's not a bad thing, he said, noting that server customers have rather liked the way Microsoft alternates between minor and major releases.

"R2 has been a very solid approach for (Windows Server)," Cherry said, "and people know what they are getting."

As an indication of just how close Windows 7 is to the border between minor and major, the server version that was developed simultaneously is being designated as Windows Server 2008 R2--a minor upgrade.

Cherry said that perhaps Microsoft should just embrace Windows 7's "minorness."

"You really don't want two major releases in a row," he said, arguing that the major architectural changes made with Vista are akin to pouring new concrete. "It needs time to cure. It needs time to settle in," he said. "It doesn't mean that, as an interim release, Windows 7 isn't important."

(Credit: Directions on Microsoft)
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.


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Add a Comment (Log in or register) Showing 1 of 2 pages (72 Comments)
by ColinABQ August 28, 2009 4:33 AM PDT
@InaFried: the link to CNET's Windows 7 coverage page, in the first paragraph, is broken (missing a slash).
Reply to this comment
by mjconver August 28, 2009 4:39 AM PDT
At my client's businesses, it's going to be a slow rollout. What will make or break the rollouts is whether Win7 boxes play nicely in the Win03 AD ecology.
Reply to this comment
by Random_Walk August 28, 2009 6:41 AM PDT
It plays well w/ existing 2k3 Active Directory (Native Mode)... no bumps or bruises there yet on RC or RTM, and no crippling in AD if that's what you're wondering.

OTOH, you have to get an XP compat package (not the internal ones) or an XP VM if you want to run a few apps.

One example that sticks out for me: VMWare's vSphere client doesn't work at all in Windows 7, even though the VI3 client runs fine (ironically, this is probably because the vSphere client requires the J# runtime). Also, you're likely going to have to update your Java runtime as well - I've found many apps which worked fine in XP or Vista with Java 6u5 and 6u7 suddenly don't work anymore until you bump up to Java 6u14 or higher.

I suspect there's going to be a bit of a delay in rollouts as folks start having to see what works, what doesn't, and what's going to require some patches or re-coding. Microsoft has made a little VM-like package (similar to Parallels) for things that simply will not run in Windows 7 or in any of its built-in compatibility modes - but performance will suffer a little. If you have an SA/EA agreement you can get it free - not sure if it'll cost you otherwise (haven't looked).

Overall - one would do well to test against numerous OSes (e.g. Snow Leopard can apparently talk natively to Exchange now, Linux just works anyway, etc), since Windows 7 is likely going to require more than just a little work to implement, XP compatibility tools be damned.
by cosuna August 28, 2009 12:30 PM PDT
@Random_Walk:

@mjconver means REAL smoothless interaction with Active Directory, that is:
1) no UAC prompts (that would confuse endusers) when adding shares
2) no hidden Win 7 PC or with confused properties.
3) no shared printer driver problem or confused driver due to machine having 7 instead of Vista (interesting problem... agreed?)
4) no integrated security problems (SSO or something else) using IE8 or VB6 programs using COM+ AD objects.

As you can see, it's not as easy as testing that your machine logs into the network. There's lots of other tests which--by the way--have no REAL company requirement to charge them to.
by TinyIoda August 28, 2009 5:02 AM PDT
Most companies ive worked for or know something about have about a year to 18months test time on new OS's no matter how popular it is.. that should give the economy enough to rebuild itself and loosen some belts
Reply to this comment
by Mark_Anderson August 28, 2009 5:14 AM PDT
Wait... a few months ago - when the economy was REALLY bad as opposed to starting to recover like it is now - wasn't there a survey that said 40% of businesses planned to upgrade within 12 months?

I mean that's huge and bigger than anything before.

As for the major/minor thing - kind of agree. It's a small but important improvement and worth paying for.
Reply to this comment
by Random_Walk August 28, 2009 6:52 AM PDT
"wasn't there a survey that said 40% of businesses planned to upgrade within 12 months? "

It was a bit of a strange dynamic, but the plans to upgrade were likely budgeted and allocated for before the economy went splat, but hadn't been carried out yet. I wouldn't rely on them to predict some sort of explosive growth for Windows 7 just yet.
by Mark_Anderson August 29, 2009 2:46 AM PDT
Perhaps not. However since the economy is recovering and set to improve over 2010 I suspect that it's a valid prediction although I don't think the majority will move until 2011-12 myself.
by kelmon August 28, 2009 5:18 AM PDT
My company appears to be planning to deploy Windows 7 next year, which is more than they ever did with Vista, so it's looking promising here. Finally we may see the back of XP and I certainly won't be sorry to see it go.
Reply to this comment
by Super2online August 28, 2009 5:30 AM PDT
It doesn't matter whether it's a superficial, minor, moderate, large, major, or a massive upgrade. The point is does it bring features or improvements to the table that businesses feel they need enough to justify the purchase. Other than that you can call it inconsequential or the savior of mankind and it won't make a bit of difference. Time will tell.
Reply to this comment
by ballmerisanape August 28, 2009 5:35 AM PDT
They will have to switch eventually. Don't you have to pay extra for Exchange in 7?
Reply to this comment
by Random_Walk August 28, 2009 6:42 AM PDT
Err, That's what the Pro version is for (they also have an "Enterprise" version... but never mentioned that in the pub press).
by Random_Walk August 28, 2009 8:37 AM PDT
I assume you mean "Exchange compatibility", unless you think that each copy of Windows 7 comes with a mail server in it...
by ballmerisanape August 28, 2009 8:48 AM PDT
Yes.. exchange compatibility.. that's what I meant. Not trolling here.. but I thought it was odd that Snow Leopard has this built in but 7 does not.. I also didn't think about the multiple version thing either.. Most businesses get the upper versions of windows anyway.. so I guess this is a non-issue. Thanks for the clarification.
by pjcamp August 28, 2009 5:35 AM PDT
"In many ways, he considers Windows 7 to be the "R2" release of Vista"

So it really is a Vista bug fix for $400? And no upgrade path from XP? What a ripoff!
Reply to this comment
by darkxeno August 28, 2009 6:06 AM PDT
You know what I read that and stopped for a minute, and thought wow, I never knew someone would say it. But with the improvements and that 65% of the PC crowd only upgrade their OS when they buy a new computer then hell why not say "Yep we messed up with Vista, hardware companies didnt have time to write drivers so hardware didnt work, software venders where in the same boat we just pushed it out onto people way to quick. We got hurt, and this time we gave everyone that wanted to try it a chance. Five years of errors now we are trying to make it right."
Now we just need a better price, Microsoft you want to cut down the number or pirated copied of Windows cut the price by 60% and watch sales ramp up, yes there will always be the pirates but learn from Apple cheap upgrade equals fast sales.
by Hernys August 28, 2009 12:02 PM PDT
No, a bug fix is something completely different from a minor upgrade. XP was a minor upgrade over Windows 2000. The difference is a technical one, not something from a user point of view. A major update makes significant changes to the architecture and kernel, while a minor update only adds features and functionality, but does not change the architecture.
Microsoft gives bug fices in the form of Service Packs for free (they usually add some new functionality in Service Packs as well, but nothing major).
So you have:
- Individual fixes (free).
- Service Packs (free).
- Minor upgrades (paid, include lots of new functionality and improvements).
- Major upgrades (paid, include new functionality as well as architecture changes).

By the way, why do you talk about $400? You pay $400 if you don't own any previous version, so it wouldn't be a bug fix even under your twisted view. That smells like a troll to me. Most users will pay between $50 and $150.
by Mark_Anderson August 29, 2009 2:49 AM PDT
An Apple marketing guy says something derogatory about a competing product! The sky is falling!

And $400? Say what?

Obvious troll is obvious.
by Mr. Dee August 28, 2009 5:47 AM PDT
Businesses have always been slow to new upgrades, no surprise there. That's why they tend to subscribe to volume license programs, so although they might not deploy the OS at launch, its still money in the bank where contract renewals are concerned. Reading the feedback on blogs and forums, a lot of people are looking forward to upgrade, it will definitely be a success for Microsoft. As consumers adopt the OS and start asking for it at work, you will see IT Pros embrace it quicker.
Reply to this comment
by Random_Walk August 28, 2009 6:49 AM PDT
"Businesses have always been slow to new upgrades, no surprise there."

...that's because we don't have the luxury of just not running an app that refuses to work.

"That's why they tend to subscribe to volume license programs..."

No, we do it because it's cheaper in bulk, and because it is less painful to endure a 'true-up' than it is to endure a BSA audit.

"As consumers adopt the OS and start asking for it at work, you will see IT Pros embrace it quicker."

That's not how it works for the majority of users. Unless that user is a CxO or VP, or the request is for a specific technical reason (e.g. to run certain apps and such), it simply doesn't happen that way.
by aMUSICsite August 28, 2009 6:01 AM PDT
Heck my company is still using Windows 95, although it's only to launch remote desktop to a terminal server.
Reply to this comment
by divisionbyzero August 28, 2009 6:08 AM PDT
While normally I'd agree that 12-18 months is the normal upgrade cycle for businesses if they skipped Vista, it's been 8 years since they upgraded their OS. I love Windows XP/2000 but it's really showing it's age especially in a corporate environment. I expect rapid adoption of Windows 7. IT departments have been tinkering with it for a while now and I'd expect small scale deployments right after its officially available followed-up by large scale deployments six months later, say, by May of 2010. The 12-18 month estimate is another example of analysts mindlessly applying a standard formula without actually thinking through the specific context.
Reply to this comment
by YankeePoodle August 28, 2009 7:17 AM PDT
I have not seen any individual (other than fanbots) critical of Windows 7 and actually have good reviews. That would certainly increase the pent up demand from the workforce and will drive this business roll-out either bottom-up and top-down. I certainly see the Windows 7 catching up faster than many people think.
Reply to this comment
by HlLLARY CLITON August 28, 2009 7:31 AM PDT
No real reason to upgrade from XP...really its not a must
Reply to this comment
by Seaspray0 August 28, 2009 10:24 AM PDT
Reason: better security. Ooops! I guess you're wrong.
by Hernys August 28, 2009 12:29 PM PDT
1) better security. Much, much better.
2) better, more responsive UI.
3) more functionality out of the box. Things like desktop search just work, whereas in XP you have to install separate software which just doesn't work as well.
4) Better included tools.
5) Much, much faster resume (in a laptop, resuming on XP takes twenty seconds, whereas on 7 it takes two).
6) Better power management and better battery life.
7) Much better management of wireless networks.
8) Better navigation between documents, with great previews and jump lists.
9) Better device management.
10) Ability to run as non admin in practice.
11) Parental controls.
And that's off the top of my head, there's much more in there.
Of course it is not a must, as least for as long as XP is supported. But do you only do what you MUST do or somethimes do just things because they are better for you?
by knowles2 August 28, 2009 1:45 PM PDT
Direct 10. thinking on non commercial side of cause.
New interface.
It just something new to play.
better security, through it still probably got as many undiscovered holes as previous versions.
by jackdaniels08 August 30, 2009 11:08 PM PDT
Better security? Will a crack copy of Win7 have just as good security, you know one of those Developer Win7 that I heard gets all the regular security updates and will be massively available and distributed through certain sites, what I hear will be the biggest distribution of unauthorized OS ever? I'm just asking and reporting what I hear from the grapevine. It would be so wrong to do that though, I, of course, would never do such a thing, NOOOOOO because that is SOOOO illegal, OMG! Why down load the free unauthorized version on the internet when you can easily go down to computer store and shell out a few hundred dollar bills and buy a copy that works just as good, come on, it's not so bad. The thing is these guys that are and I'm sure will be downloading this illegal unauthorized free version are missing out on the nice pretty colorful box it comes in. I like colorful. It makes me happy, see? :)
by codynews August 28, 2009 7:41 AM PDT
I don't know why people skip the obvious...

If you're a business, you buy new PC's and they'll run Windows 7

If you have machines already, then there likely isn't a need to UPGRADE their OS to Windows 7.

I love Windows 7 but if I were running a biz I wouldn't go and upgrade existing machines. I'd just upgrade through attrition as they get replaced.
Reply to this comment
by Hernys August 28, 2009 12:33 PM PDT
Companies look at cost/benefit. Maintaining XP is costly today, mostly due to security needs (and I'm not talking about OS security, but about data security). Risks are high and that also implies money.
Windows 7 is also costly (deployment, user training, hardware upgrades and, of course, licenses), but in general it's nothing compared to the costs of operation.
by Mark_Anderson August 29, 2009 2:50 AM PDT
Cody makes a good point - we're on lease agreements (currently with HP) with a three year refresh cycle.
by BtmnHatesRbn August 28, 2009 7:44 AM PDT
After a large amount of testing, the only two flaws I found for Windows 7 are minor:

The hardware requirements are on the steep side, but it still installed on a Pentium III with 384 MB of RAM and an 8 MB cheapo ATi video card with a SoundBlaster 16 for sound.

The other flaw involved programs that nobody is going to use: Adobe Photoshop 4 and Adobe Illustrator 8. The patches for those two programs wouldn't load at all, and just hangs.

Other than that, I think the other glitches, inidicating no network connection when there is, and no hard disk when there is, is specific to the RC I'm using for the testing. I have installed all of my business programs from the Windows 2/3.x days and up. Other than the Adobe flaws, everything else works great, including the MovieCD player (strangely), EO Video, and TweakAll 3. For gaming, I haven't ran into anything specific, but I also haven't bought a new computer game for Windows since 2006, when I purchased a PSP, Wii, iPod 5G, and Xbox 360, and still use my old PS2 and original Xbox. Still, not one single game for me has failed, considering I've had game failures frequently on old Windows 95 games constantly in XP.

I hoping to purchase a 32-bit version of Windows 7 for my in-laws to fix their computer with just a minor upgrade. Windows 7, to me, anyways, is as much of an improvement as Windows 95 was to Windows 3.1. For the record, I'm a Mac user, but I totally like Windows 7.
Reply to this comment
by BtmnHatesRbn August 28, 2009 7:51 AM PDT
I forgot to mention, but for me, Windows 7 also doesn't crash like the other versions of Windows I've used. Like Mac OS X, I can leave the machine one for weeks on end without any problems.
by Random_Walk August 28, 2009 8:28 AM PDT
"The other flaw involved programs that nobody is going to use: Adobe Photoshop 4 and Adobe Illustrator 8."

See above - you can add VMWare vSphere management client to the list of apps that don't work so hot in Windows 7 (as in, not at all in the RTM stock release).
by pentest August 28, 2009 8:01 AM PDT
People should wait until it is actually released to start praising this bug fix release. IIRC, Vista had great reviews for its RC's, and between the last RC and release lots of bloat was added and drivers broken. We all know how well that turned out.

MS better get 7 right or it is their end.
Reply to this comment
by Random_Walk August 28, 2009 8:39 AM PDT
I have the RTM version now. It has some faults, and although we've only begun testing, overall they didn't screw the pooch on the same scale as they did with Vista (mostly because they packed a shedload of XP compatibility modes and tools into Windows 7).
by najaboy August 28, 2009 9:19 AM PDT
Ummm... in case you haven't noticed, 7 RTM has been "in the wild" for almost a month now. We're well past the RC, and the final product has been in use. Case in point, I've had Windows 7 Pro installed for a few weeks now. It handles everything I've thrown at it with ease.
by Random_Walk August 28, 2009 12:04 PM PDT
There's a big diff between businesses with EA agreements and "power user" individuals, and the typical Joe Sixpack.
by cosuna August 28, 2009 12:44 PM PDT
Don't forget the learning curve... most people blame Vista failure on problems, but few have pondered the learning curve...
by Commander_Spock August 28, 2009 8:06 AM PDT
Re: "In many ways, he considers Windows 7 to be the "R2" release of Vista, borrowing the nomenclature Microsoft uses to describe updates to its server products. That's not a bad thing, he said, noting that server customers have rather liked the way Microsoft alternates between minor and major releases.

"R2 has been a very solid approach for (Windows Server)," Cherry said, "and people know what they are getting."

Since Code-Base OS/2 (Windows) will always be Code-Base OS/2 (Windows) it would be most interesting to know which Version of OS/2 this new release of Code-Base OS/2 (Windows 7) should be???

Cool!
Reply to this comment
by krypter August 28, 2009 8:07 AM PDT
Windows XP Compatibility Mode is a major feature now? Great, so I can pay for an upgrade just so that I can downgrade. Might as well stay with the Original Windows XP Compability Configuration, aka Windows XP.
This is a minor upgrade to Windows. The entire OS space needs a major upgrade, Apple included. We seem to be in the "decadent rococo" phase of OS development, with barely anything worth mentioning being added.
Reply to this comment
by sanenazok August 28, 2009 8:25 AM PDT
Compatibility mode is a feature and who says you have to dump XP. If you want it, keep it.
by Random_Walk August 28, 2009 8:30 AM PDT
Actually, Apple's upgrade includes a lot of under-the-hood improvements, including the final phase of full 64-bit integration and a full 64-bit kernel (instead of the split-personality/dual-mode kernel that Leopard and earlier have). In Snow Leopard's case, it's more steak than sizzle, and you'll only notice once you run it (as opposed to just seeing it).
by Random_Walk August 28, 2009 8:41 AM PDT
Compatibility Mode doesn't always work (it's kind of hit-or-miss). OTOH, Microsoft does make an external app that enhances the compat. mode (basically the same way Parallels does on OSX) that you can get... you take a bit of a performance hit for it (e.g. I wouldn't want to play Crysis on it), but otherwise it seems to work.
by shymooned August 28, 2009 8:38 AM PDT
well, company level wise, get Linux, run Windows under VMWare (when needed) make economy on software/ service cost, be happy ...

or get Windows 7, get bloated, viruses, DRM enforced, etc, waist money on software you can get for free (OS) , update hardware to get some decent speed, etc.

best move i see for microsoft to get now some self esteem back is to drop DRM enforcing, make an user friendly OS and give-it away for free, plenty of money to make from all other things that come from using the OS ... or at least make a decent free platform and extra payed options for it (to use as server/mail server/ domain controller , etc)

in a time we have an option to use a free OS, there is no need to pay for one just to get "more" that is not there
Reply to this comment
by Seaspray0 August 28, 2009 10:28 AM PDT
If you had even used windows 7, you would know it's not bloated.
by Commander_Spock August 28, 2009 11:13 AM PDT
Huh! Re: "best move i see for Microsoft to get now some self esteem back is to drop DRM enforcing, make an user friendly OS and give-it away for free, plenty of money to make from all other things that come from using the OS ... or at least make a decent free platform and extra payed options for it (to use as server/mail server/ domain controller , etc)..."

Nah! The very best move that IBM, Microsoft, Intel et al (that have intellectual property rights to the OS/2 Source Codes) would be to have these "Shared" or even "Open-Sourced"; and, Windows, Linux.... will be toast. Wanna bet the farm on the latter not happening any time soon.

But, then - there will be eComStation soon anyway; so, let's wait just a little bit longer and see what punch this OS/2's extension packs.
by cosuna August 28, 2009 12:47 PM PDT
don't feed the troll...
by ptn107 August 28, 2009 9:46 AM PDT
I second shymooned.

Since the release of Vista we've moved all our servers to Ubuntu LTS or Debian and workstations to Ubuntu LTS. Both work perfectly fine with active directory (openLDAP), postfix (email server) and play nice with each other in our network. Why pay [again] for a Microsoft OS when you can get the same functions and features for free?!
Reply to this comment
by cloudmatt August 28, 2009 10:17 AM PDT
lulz. first off no rip on linux its a good os makes for a great novel server base no beef with performance but ptn107 and shymooned the users are soft and week. they want windows, their nice warm fluffy blanket of familiarity. those who work with their company want documents from office not open office. even if the server is a linux/unix based novel monster of awesome, the client will most likely need to be windows for the over whelming majority.

All hail NetWare Admin and kneel before the all mighty penguin, you will still have to get reamed by that geek in Seattle when it comes time to remember the users.
by sunishkumar August 28, 2009 10:34 AM PDT
Ubuntu is great!!!
It has proved Linux can be great desktop OS too.

My colleague who uses Win XP used to open his .docx (Microsoft Docs) files in my Openoffice bundled with Ubuntu.
That is the reality..
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About Beyond Binary

During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft.


Beyond Binary is a look at how technology is changing our lives and the people behind all that life-changing stuff, with an extra emphasis on that which emanates from Redmond, Wash.

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