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Intel's sales chief said Wednesday he expects Windows 7 to deploy at a faster pace than Vista did.

Intel made a splash last year when it said there was "no compelling reason" for Intel's IT department to upgrade to Windows Vista.

"This time I think it will go faster," said Sean Maloney, speaking Wednesday at the Intel Technology Summit.

"There was a reason not to deploy Vista because you're waiting for service pack X or (because of) compatibility issues," he said.

"There are really good reasons (to deploy Windows 7) for the business client. You've got compatibility mode that takes away that argument," he said. "Security, power management. A lot of good reasons," he said.

Maloney's comments were focused on business, but he said "consumer will happen, too."

He also addressed Netbooks saying that Netbooks will not attract first-time buyers. "The first time you buy something you want the real deal," he said, referring to mainstream laptops. He also reiterated a recent Intel theme that Netbooks will become more of a market targeted at children.

SANTA CLARA, Calif.--The popularity of the Netbook caught Intel by surprise--more than once.

Shipments of this category of inexpensive, ultra-light, handy laptops--almost all powered by Intel's Atom processor--are set to hit at least 20 million units this year, about twice the number shipped in 2008, according to IDC. But if an analyst had suggested these numbers to Intel in March of 2008, executives would have dismissed the forecast out of hand--or laughed.

This failure, by many in the industry, to grasp the significance of the Netbook, forced Intel into perpetual catch-up mode at the beginning. "I'm the one who had to explain to our factory--I'm really, really sorry I miscalled the demand," said Noury Al-Khaledy, general manager of Nettop and Netbook Computing at Intel in an interview last week. "And the next month, I didn't quite get it right either," he said.

"I think we under-called how easily people would comprehend how useful the device was," he added. For the record, Asus launched the phenomenon with the Eee PC in late 2007, followed in 2008 by Hewlett-Packard, Acer, and Dell, among others.

Al-Khaledy continued. "I think there was sort of this pent-up desire for an affordable, portable, Internet-access light editing sort of device and many of our customers--with our help--nailed it. They helped us so much."

One of the distinct advantages that Intel Atom-based Netbooks have over other similar devices--such as those based on ARM processors--is Windows. ARM-based devices today don't run Windows XP or Vista--and won't run Windows 7. Intel-based Netbooks can run all of these operating systems and versions of Windows 7 may run as well, or better, than XP on Netbooks.

"People bash (Microsoft) all the time. But then what do you really want to buy?" Al-Khaledy asked. "People really do want Windows...the XP attach rate was really, really good." Though Al-Khaledy praised Asus' initial Eee PC and its Linux operating system, some consumers were disappointed when they found out that it wasn't Windows.

"The Linux thing wasn't clear to people. If you think you're getting Windows and then you get home and it isn't (that's a problem)," he said.

And what impact will Windows 7 have on the Netbook market? Pricing will be critical. Unless Windows 7 is priced aggressively, Al-Khaledy doesn't see it as a catalyst necessarily for a spike in Netbook sales. "I don't see it as a big tipping point. It's all about pricing. If you have to pay $30 more for Windows 7, it might make (consumers) pause. There's just not a lot of margin in the box," he said. "(But) if Microsoft prices Starter and Basic aggressively, why wouldn't you?"

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While much of the media is tripping over itself to mark the Second Coming of Windows (aka the Windows 7 beta), I am recalling the First Install of Windows Vista.

Although I have been running Vista without major incident since January of 2008, the initial switch in August of 2007 consigned me immediately to my own private Vista hell. Let's hope that Microsoft makes the upgrade to Windows 7 easier this time.

In a personal blog post written in August 2007, I wrote: "As more people experience the fiasco that is Windows Vista, I thought I would pile on. With trepidation, I upgraded to Windows Vista. My instincts were dead-on."

The upgrade from Windows XP went far beyond the typical upgrade woes: "I can handle the usual driver problems. But the last straw was a paid call to Microsoft that lasted four hours. I know that it lasted four hours because I remember being jolted out of the stupor of my support call purgatory by the phrase, "Thank you for being so patient over the last four hours." (For about two of the four hours, the Microsoft support person was remotely controlling my computer, and I was not present for much of that time.)"

Ordinarily, calling Microsoft for paid support is unthinkable, but at that time, I had little choice. "I had wasted so much time trying to configure Vista to work with some level of stability on my network that I just couldn't afford the additional time to figure it out on my own," I wrote. "Just so you don't think I'm an idiot, the Microsoft 'expert' had just as much trouble trying to solve my myriad problems as I did. In short, he was stumped."

In trying to think of ways to describe Vista at that time, I came up with my own code name for the program: Molasses. "The computer still hung in various situations and, to appropriate a phrase used by someone else, was like molasses. Also, as pointed out by fellow sufferers, going into standby is a crap shoot: the odds are 50-50 that you'll see the Windows desktop again. Vista seems almost ingenious at finding ways to hang, besides being just slow (I won't go into my docking-station woes)."

Reboots were excruciatingly slow. "Installing the constant parade of updates, which usually require a reboot, from various software providers can, alone, be excruciating, but Vista pushes this beyond the pain threshold. On my corporate Hewlett-Packard client (a presumably stable platform used in Fortune 500 companies across the United States), I can sometimes reboot Vista without incident, but more often than not, it goes into a 10-minute reboot holding pattern (with absolutely no indication from Vista about what it's doing)."

I had no idea what Vista was doing: "It may actually be using processor cycles to do something necessary, but you would never know it."

Granted, there were a few lucky people out there who upgraded with few problems. But I would submit that these few lucky souls used Vista on a relatively simple, straightforward workstation. Anything more complex--e.g. an IIS web server and a wireless network with a windows 2003 file server--and things could take on the consistency of molasses.

With Apple under its belt, Nvidia is taking aim at Netbooks.

On Wednesday, Nvidia is launching its GeForce 9400M "Ion" graphics chipset for Netbooks and small desktop designs. And the Santa Clara, Calif., company is hoping for another coup like the one it staged at Apple, where Nvidia bumped Intel silicon out of the Apple MacBook because of underperforming graphics.

The goal this time is to replace the Intel silicon that supports the Atom processor. Currently, Netbooks from companies such as Acer, Asus, Hewlett-Packard, and Dell use the Atom and accompanying Intel silicon called a chipset.

Nvidia has always stayed well ahead of Intel on the graphics performance curve. "Nvidia does have superior graphics, and it's a double annoyance for Intel," said Jon Peddie of Jon Peddie Research, a firm that tracks the graphics chip market.

"First, because Nvidia is in competition with (Intel), and second, because it will allow Netbook makers to build larger-screen Netbooks, which will encroach into the thin-and-light segment, and potentially cannibalize Intel's bigger mobile CPUs," he said.

In short, Nvidia wants to bring full-fledged PC features to the Netbook. "What we want to bring to the Atom-based platform is true visual computing," David Ragones, product line manager at Nvidia, said in an interview last week. "For example, high-definition video where Blu-ray (Disc video) processing now happens on the GPU (graphics processing unit), not the CPU (central processing unit), where you get a much more smooth experience."

(Nvidia had originally intended to enter the Netbook market with Via Technologies--an announcement made in April--but it later dropped the idea.)

"Some of the restrictions Intel has put in place around Atom platforms really zero (in) on deficiencies that the underlying chipset has--the (Intel) 945 chipset," Ragones said. "For example, you cannot pair a GPU with these platforms because of the limitations of PCI Express bandwidth," he said.

PCI, or Peripheral Component Interconnect, is a data path used in all PCs today. Netbooks today have a relatively low-performance version of this technology.

Nvidia's Ragones also said Netbooks are limited artificially to displays of 10 or fewer diagonal inches. This sentiment echoes recent statements from Advanced Micro Devices, which is expected to announce its Yukon platform at the Consumer Electronics Show in January. Yukon will likely target a new class of low-cost ultraportable laptops that have screen sizes larger than Intel-based Netbooks.

Nvidia doesn't stop there. Ragones claims that its one-chip design is more space-efficient than Intel's two-piece chipset.

He also said the GeForce 9400M silicon would offer more robust support for Windows Vista and the upcoming Windows 7 operating system.

The price premium over a standard Netbook will not be large, Nvidia claims. Probably no more than $50.

Intel would not comment on the Nvidia 9400M. However, the company's success with the Atom processor--which powers virtually all Netbooks today--has put a bull's-eye on it and the platform. In addition to Nvidia and AMD, companies such as Qualcomm and Freescale Semiconductor are now targeting the Netbook space. And, of course, all are claiming that they can outdo Intel.

From the beginning, Intel has maintained the view that Netbooks are not notebooks and don't require the high-octane graphics found in higher-end laptops. Netbooks are relatively low-performance designs and consequently inexpensive (typically under $500) precisely because they are targeted at less-demanding users looking simply for e-mail, Web-browsing, and word-processing capabilities.

Step up from this, and a Netbook isn't a Netbook anymore, but rather an inexpensive notebook, according to Intel statements in the past. And inexpensive notebooks are plentiful--such as this Dell Inspiron listed at Best Buy for $499.

According to Peddie, in competing against rivals in the Netbook space, "Intel's weapon will be price; their IGP (integrated graphics processor) will be about half the price of Nvidia's."

Irasshaimase! Stores in Tokyo districts such as Akihabara have launched sales of Intel's Core i7 processor, due to be officially rolled out at U.S. resellers on Monday.

Computerworld reported that "several hundred people crowded stores" that opened around 10 p.m. Saturday. The top-of-the-line 965 chip sold out, according to one retailer.

The Core i7 represents the vanguard of Intel's new Nehalem microarchitecture. The i7 is a desktop processor targeted initially at gaming boxes.

(See CNET review of Falcon Northwest Mach V tower system based on Core i7-965 processor.)

Sofmap, a large Japanese computer reseller, is showing Core i7 processors, motherboards, and systems on its Web site.

Sofmap lists the boxed Core i7-920 (2.66GHz) at 32,800 yen or close to $340. The i7-940 (2.93GHz) is listed at 63,800 yen or about $660. The high-end i7-965 (3.20GHZ) goes for 112,800 yen or $1,160.

A series of i7-920 processors bundled with Windows Vista Home Premium "DSP version" are shown ranging in price from 45,800 yen ($470) to 54,800 yen ($565).

Specification details (listed by Sofmap) include: LGA1366 socket, Quick Path Interconnect (QPI) rated at 4.8GT/sec (gigatransfers per second), 8MB L3 cache, and a 130 watt TDP (Thermal Design Power).

The DSP, or Delivery Service Provider, version of Windows Vista is being promoted heavily in Japan and is typically bundled with other components.

Motherboards and systems are also on sale. Motherboards are based on the Intel X58 chipset. DDR3 memory is being promoted along with the i7 too.

Tower systems using the Core i7 chip range in price from 179,800 yen ($1,852) to 219,800 yen ($2,264).

How about a 64-bit operating system with that 64-bit processor?

The 64-bit version of Windows Vista is not new. It arrived when Vista did. But making it standard on a crush of new consumer laptops being sold at Best Buy is a recent change.

All PCs now ship with Intel or Advanced Micro Devices 64-bit processors. Until recently, however, most consumer laptops have come with a 32-bit version of Vista. There are many reasons for this, two of the biggest being a lack of driver support and the larger memory requirements for the 64-bit OS.

But memory is no longer an issue. Many of the new sub-$1,000 laptops at Best Buy, for example, now come with 4GB of memory standard. Out of the 11 HP laptops listed as "new arrivals" at Best Buy, 9 come with 4GB of memory and 64-bit Vista. Ironically, the other two new-arrival HP systems come with "Windows Vista Business downgraded to XP Pro."

In other words, you get either XP or 64-bit Vista: 32-bit Vista is not offered standard at all in this list of new arrivals.

What's the difference between 32- and 64-bit Vista? Here's what Microsoft says: "The 64-bit versions of Windows can utilize more memory than 32-bit versions of Windows. This helps minimize the time spent swapping processes in and out of memory by storing more of those processes in random access memory (RAM) rather than on the hard disk. This, in turn, can increase overall program performance."

One potential problem is driver confusion. Some buyers of retail laptops may not be aware that they are getting a 64-bit OS that requires 64-bit drivers. HP, for its part, provides plenty of 64-bit drivers. For the HP Pavilion dv5t laptop, drivers include those for the Nvidia GeForce 9200M and GS/9600M GT graphics chips, as well as those for the Mobile Intel 4 Series Express chipset family. Keyboard, mouse, network, and storage drivers--among others--for 64-bit Vista are also listed.

Also, Microsoft publishes software compatibility lists at its Windows Vista Compatibility Center. Though photo-editing applications such as Adobe Photoshop and CorelDRAW are listed as compatible, many applications are listed as not compatible or "unknown." In particular, a number of games are tagged as "status unknown" or "not compatible." Popular games, such as Crysis and World of Conflict are compatible, however.

One other thing to keep in mind: older "legacy" hardware could be a problem on 64-bit Vista. Although many older devices have 32-bit Vista drivers, that's not necessarily the case for the 64-bit version.

Will 2009 be the year that solid-state drives take off? Maybe not. The speedy drives are catching on, but wider acceptance will take time--and the bad economy isn't helping.

Costs are still high for these drives, which typically outdo--and in some cases blow away--hard disks in performance. "2010-2011...that's when we think the price points for the SSD market get attractive enough to really drive stronger growth," Sanjay Mehrotra, president and chief operating officer of SanDisk, said this week during SanDisk's third-quarter earnings conference call.

Indeed, there is still a wide price gap between hard-disk drives and solid-state drives. The difference, for example, between a 120GB hard-disk drive and 128GB solid-state drive--essentially the same capacity--on the new Apple MacBooks is $500. That's a deal-breaker for a lot of consumers. (On a Dell XPS M1530 notebook, the difference in price between a 250GB 5400rpm hard disk drive and a "Ultra Performance" 128GB solid-state drive is also $500.)

"On the mainstream notebook side we agree with SanDisk that the price points are too high and the added benefits received by customers from SSDs are just not worth the added expense," said Avi Cohen, managing partner at Avian Securities. "We expect the transition in notebooks to take a long time and will probably require Microsoft to change the OS in order to jumpstart this transition," Cohen said, citing the need for Microsoft to make Windows Vista and Windows 7 more SSD-friendly.

Eli Harari, chairman and CEO of SanDisk, believes that solid-state drives will have to wait a little longer yet for their breakthrough.

"It's still a very young market, and 2009 is not the year that it really takes off," he said during SanDisk's earnings call. In addition, solid-state drive demand will not be enough to siphon off the flash memory oversupply that is plaguing the flash memory industry, he said. "I don't believe...that 2009 inventory overhang is going to be solved through solid-state disks."

Nor does Intel--which just started shipping its first high-capacity solid-state drives this fall--see the market really taking off for a couple of years in laptops.

"I believe within in two years when the economies of scale come into play and the prices hit the right point, it will not only be in the more expensive systems but go down to mainstream (laptops)," Mooley Eden, Intel's general manager of mobile platforms, said in Taipei on Tuesday. Intel is shipping 80GB drives now and will ship a 160GB solid-state drive later this quarter.

Seagate, the largest hard-disk drive supplier, plans to enter the market in 2009 but sees "price as an inhibitor right now," according to Rich Vignes, senior manager of market development at the Scotts Valley, Calif.-based company. He also says standards work needs to get completed to make enterprise customers comfortable and "overcome endurance fears."

Beyond that, enterprise customers are showing resistance to accelerated adoption of solid-state drives as the economy worsens. "Conditions across technology are awful," said Avian Securities' Cohen. "On the enterprise SSD side, where we thought it made the most sense for the transition to occur...we have seen a slowdown in momentum for this shift as CTOs and CFOs look to conserve cash and slow new adoption programs."

SanDisk said Monday that Windows Vista is not optimized for solid-state drives, delaying the delivery of optimized drives until next year.

Solid-state drives (SSDs) are used instead of hard disk drives in select high-end notebook PCs today such as the Apple MacBook Air and Toshiba Portege R500.

The next generation of SSDs will use multilevel cell (MLC) technology, which will require a more sophisticated controller--a crucial component in solid-state drives. These drives will have capacities ranging up to 128GB, 160GB, and later, 256GB. MLC drives are expected to appear in a wider selection of notebooks later this year.

Speaking during SanDisk's second-quarter earnings conference call, Chairman and Chief Executive Officer Eli Harari said that Windows Vista will present a special challenge for solid-state drive makers. "As soon as you get into Vista applications in notebook and desktop, you start running into very demanding applications because Vista is not optimized for flash memory solid-state disk," he said.

This is due to Vista's design. "The next generation controllers need to basically compensate for Vista shortfalls," he said.

"Unfortunately, (SSDs) performance in the Vista environment falls short of what the market really needs and that is why we need to develop the next generation, which we'll start sampling end of this year, early next year," Harari said.

Harari said this challenge alone is putting SanDisk behind schedule. "We have very good internal controller technology, as you know...That said, I'd say that we are now behind because we did not fully understand, frankly, the limitations in the Vista environment," he added.

In the very low-end of the market, however, this is not an issue. "In very low-end, ultra low-cost PCs, existing controllers can get the job done for 8-, 16-, and 32-gigabyte storage because these are relatively unsophisticated...requirements," he said.

SanDisk has a production joint venture with Toshiba, which also makes solid- state drives.

The Gateway notebook roll-out is official. Sony's is not. Gateway Computer announced three lines of notebook PCs on Monday with 64-bit Windows, while Circuit City prematurely posted images of upcoming Sony notebooks.

Gateway rolled out three notebooks targeted at students. The P series desktop replacement comes with a 17-inch widescreen, the M series with a 15.4-inch screen, and the T series uses a 14.1-inch screen.

All systems come with 64-bit Windows Vista Home Premium and pack 4GB of memory--the minimum for acceptable performance in 64-bit Windows.

(See Gateway goes all 64-bit in back-to-school desktops.)

The 15-inch "Garnet Red" Gateway M-6848 is spec'd with an Intel Core 2 Duo T5750 processor, 4GB of memory, a 250GB hard disk drive, 802.11a/b/g,a wireless, DVD-R/RW drive, and Vista Home Premium 64-bit with SP1. It retails for $799.99.

The 14-inch "Pacific Blue" Gateway T-6836 notebook has virtually the same specifications. It also retails for $799.99.

Other features include a multimedia panel integrated into the keyboard, DVD burner with LabelFlash technology, and an integrated Webcam.

Meanwhile, details about upcoming Sony notebooks continue to seep out.

Circuit City prematurely posted photos of the upcoming Sony portables. (Though Circuit City has pulled the links, cached images are still accessible.)

Last week, less colorful user-manual images appeared at Notebookreview.com as well as tidbits about various models. Apparently, models will use Intel's next-generation Centrino 2 "Montevina" processor, graphics chips from Advance Micro Devices' ATI unit, and sport 13- and 16-inch screens.