On CBSNews.com: Aniston: What Jolie Did Was "Uncool"
BNET Business Network:
BNET
TechRepublic
ZDNet

October 9th, 2008

Look who’s buying Vista Home Basic (hint: it’s not home users)

Posted by Ed Bott @ 4:02 pm

Categories: Windows Vista, Microsoft, Windows 7

Tags: Dell Computer Corp., PC, Microsoft Windows Vista, Small-business Buyer, Microsoft Windows Vista (Longhorn), Microsoft Windows, Operating Systems, Software, Ed Bott

Who’s buying new PCs with Windows Vista Home Basic? Judging by the name, you’d assume those OS editions would be loaded on underpowered machines headed for tract homes in the burbs and studio apartments in the city. But you’d be wrong.

Based on my observations of the PC market over the past year or two, I think consumers have rejected Home Basic in favor of Home Premium. But small, budget-conscious businesses have embraced the low-end OS.

budget_business_small.jpgIn one large sample I looked at, nearly three out of every five machines destined for small business included Windows Vista Home Basic. Small-business buyers are apparently able to look past that name, and PC makers are happy to accommodate them. The primary appeal of Home Basic isn’t technology, it’s cold hard cash. Vista Home Basic runs Windows apps just fine, and it’s dirt cheap. Dell, one of the world’s two largest PC suppliers, in fact, is pushing Home Basic as the preferred option for many computers aimed at the small business market.

Take Dell’s Vostro 200, which is aimed squarely at the small-business market and starts at $269 with a Celeron 430 processor, 512MB of RAM, and no monitor. A much more capable machine with a Core 2 Duo processor, 2GB of RAM, and a 19-inch monitor sells for $449. All three machines in this line come with Windows Vista Home Basic. To upgrade to Vista Business or downgrade to XP Pro is another $99, which represents a huge percentage of the system cost.

The phenomenon is equally pronounced if you look at the Vostro notebook line, where more than half of all available configurations, 13 out of 24, include Vista Home Basic. By contrast, Dell’s consumer notebook line offers 34 separate configuration, of which only three start with Vista Home Basic. The remaining 90% come with Vista Home Premium (only one model includes Vista Ultimate by default).

You can see the same mix of Windows versions if you go to a business-focused reseller like CDW and look at a list of the cheapest available desktop computers, sorted by price in ascending order. Five of the 10 PCs on the list, including models from HP Compaq and Lenovo, come with Vista Home Basic. (Once you get past those low-end PCs, however, almost all computers sold at CDW include Vista Business.)

So how popular is Vista Home Basic, and who’s buying it?

Who’s buying Vista Home Basic? See the details by segment –>

Pages: 1 2

Ed Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications. See his full profile and disclosure of his industry affiliations.

  • Talkback
  • Most Recent of 143 Talkback(s)
Small numbers
If you look at the "n" in each chart, the number of PC's sold, the number is much smaller for budget PC's. Some 684, compared to over 2000 for the other categories. In total, this makes for few Home Basic PC's sold.... (Read the rest)
Posted by: jorjitop Posted on: 11/13/08 You are currently: Logged In | Log out
Makes sense CobraA1   | 10/09/08
Same thing with XP Home Pliny the Elder   | 10/09/08
Makes sense to Cobra dcdavy   | 10/09/08
Or maybe they're just smarter than you. Sleeper Service   | 10/10/08
I'm sorry, am I supposed to be having some sort of troubles? CobraA1   | 10/10/08
small business TedKraan   | 10/10/08
Most businesses have less than 10 employees. CobraA1   | 10/10/08
And most employees work at big companies... TedKraan   | 10/10/08
Not when that logic is flawed. Bozzer   | 10/12/08
Not when it means that you're changing the subject flatliner   | 10/12/08
I did switch the topic.. TedKraan   | 10/13/08
@Bozzer: Interesting.. TedKraan   | 10/13/08
Problems? Vista Home Premium, No. pixelated   | 10/10/08
Everybody networks mswift@...   | 10/13/08
makes sense to me too TedKraan   | 10/10/08
Actually... Ed Bott  ZDNet | 10/10/08
I've been instructed personally TedKraan   | 10/10/08
A handful of stories is not equivalent to a market trend. CobraA1   | 10/10/08
On the other hand.. TedKraan   | 10/10/08
Or to put it another way... Ed Bott  ZDNet | 10/10/08
Touche indeed TedKraan   | 10/10/08
You did indeed, Ted Ed Bott  ZDNet | 10/10/08
You stand corrected helmsc@...   | 10/10/08
Legit? Ed Bott  ZDNet | 10/10/08
I buy legit XP Pro all the time for $69. gvincent@...   | 10/10/08
Stolen, counterfeit, or diverted. But not legit. Ed Bott  ZDNet | 10/10/08
Wrong Again Ed jns@...   | 10/10/08
The XP option is easy to find Ed Bott  ZDNet | 10/10/08
Why didn't you Kid Icarus   | 10/10/08
Space Ed Bott  ZDNet | 10/10/08
Funny dbisse@...   | 10/10/08
Makes sense, but not always good sense ShadowGIATL   | 10/09/08
2 questions Michael Kelly   | 10/10/08
Re: 2 questions ShadowGIATL   | 10/11/08
Well a few problems... JT82   | 10/10/08
98 on a Domain btidwell   | 10/10/08
XP Home on a domain Real World   | 10/11/08
98 on a Domain (and XP Home) ShadowGIATL   | 10/11/08
98 on a Domain (and XP Home) etherspy   | 10/12/08
Never underestimate the power that be. ShadowGIATL   | 10/12/08
Market Share vs. Installed Base Redux DannyO_0x98   | 10/10/08
x64 yagijd   | 10/11/08
Small numbers jorjitop   | 11/13/08
RE: Look who's buying Vista Home Basic hint: it's not home users g_keramidas@...   | 10/09/08
Really? Sleeper Service   | 10/10/08
none.. TedKraan   | 10/10/08
So why not buy a Linux... Sleeper Service   | 10/10/08
Supplier TedKraan   | 10/10/08
Not normally offered... storm14k   | 10/10/08
Not legal Ed Bott  ZDNet | 10/10/08
There never was a... TedKraan   | 10/10/08
There is, but not to small business GuidingLight   | 10/10/08
With really small businesses TedKraan   | 10/10/08
So your argument is... Sleeper Service   | 10/10/08
Yup ;) TedKraan   | 10/10/08
You don't understand volume licensing Ed Bott  ZDNet | 10/10/08
I guess i don't.. TedKraan   | 10/10/08
Answer Ed Bott  ZDNet | 10/10/08
Not legal ShadowGIATL   | 10/12/08
You're wrong Ed Bott  ZDNet | 10/12/08
It was more of an opinion really... ShadowGIATL   | 10/12/08
Sometimes we are wrong... ShadowGIATL   | 10/12/08
none.. etherspy   | 10/12/08
This is exactly.. TedKraan   | 10/10/08
You really need to learn a few things... Ed Bott  ZDNet | 10/10/08
fascinating.. TedKraan   | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users jamesrayg   | 10/09/08
Just for clarity AndyCee   | 10/10/08
Vista Basic is OK pwright2@...   | 10/09/08
Basic is fine dbisse@...   | 10/10/08
College kids can get Windows Server 2008 for free LBiege   | 10/09/08
Called Dreamspark logic_earth   | 10/09/08
In 2010 there should not be a need for a Basic SKU Mr. Dee   | 10/09/08
And you're suprized? wolf_z   | 10/10/08
Basic Saved the Day ravi16aug@...   | 10/10/08
But... but... but... Sleeper Service   | 10/10/08
Check this.. TedKraan   | 10/10/08
Does not indicate that it is a legal install GuidingLight   | 10/10/08
it's made too complicated TedKraan   | 10/10/08
Never seen that set of dialogs Ed Bott  ZDNet | 10/10/08
How about this scenario dbisse@...   | 10/10/08
True for Academic, not for business Ed Bott  ZDNet | 10/10/08
Oh really? GoPower   | 10/10/08
It is if You Don't use the XP Home Version zulubuck   | 10/10/08
Yep! GoPower   | 10/10/08
Nos os fast CrashPad   | 10/11/08
geez TedKraan   | 10/11/08
What is your argument then... CrashPad   | 10/11/08
unpredictable... TedKraan   | 10/11/08
RE: Look whos buying Vista Home Basic hint: its not home users Gis Bun   | 10/10/08
Precisely.. TedKraan   | 10/10/08
Half right Ed Bott  ZDNet | 10/10/08
Skewed Article itanalyst2@...   | 10/10/08
i think i have a vista license too TedKraan   | 10/10/08
I covered that in the article Ed Bott  ZDNet | 10/10/08
True, But... itanalyst2@...   | 10/10/08
Site licenses dkerber@...   | 10/10/08
You don't understand volume licensing Ed Bott  ZDNet | 10/10/08
Ya'll are a bunch of whiners... JT82   | 10/10/08
Found one TedKraan   | 10/10/08
Correct JT82   | 10/10/08
Intel is deploying Vista.. CrashPad   | 10/11/08
RE: Look who's buying Vista Home Basic hint: it's not home users balaknair   | 10/10/08
I said this a couple days ago here... Narg   | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users Digitalcomet   | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users dkerber@...   | 10/10/08
It still sucks (nt) storm14k   | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users enawn   | 10/10/08
It's not surprising at all ... mwagner@...  ZDNet | 10/10/08
They're replacing it with XP johnnydoe1894   | 10/10/08
Wrong Ed Bott  ZDNet | 10/10/08
Overpaying isn't TedKraan   | 10/10/08
Yes, but... Ed Bott  ZDNet | 10/10/08
What I Would Like to See melekali   | 10/10/08
ABOUT BASIC!!!! chaz15   | 10/10/08
Windows already does these things: ye   | 10/11/08
You don't use Windows do you >.O outpostprime   | 10/13/08
ALSO chaz15   | 10/10/08
Desperation breeds strange bedfellows... mikifinaz1@...   | 10/10/08
What kinds of problems did you have? ye   | 10/11/08
How about... Resplendent   | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users dobick@...   | 10/10/08
Pressing the CAPS LOCK key again switches it off. Sleeper Service   | 10/10/08
The not silent minority.. CrashPad   | 10/11/08
Another Ed Bott Attempt To Paint Vista As A Success chessmen   | 10/11/08
Yup keep lying,, that'll work tonymcs@...   | 10/12/08
NO Aero !!!! And Great !!!!! Faster !!!! a_munir@...   | 10/12/08
Why the sharp contrast consumer vs business? 3dguru   | 10/12/08
RE: Look who's buying Vista Home Basic hint: it's not home users kershawfamily@...   | 10/12/08
only one version of Mac OS X (non server) chadpengar   | 10/13/08
Only one Mac hardware vendor cquirke1   | 10/14/08
RE: Look who's buying Vista Home Basic hint: it's not home users Jim5506   | 10/13/08
The real deal however is Ubuntu it's FREE! mikifinaz1@...   | 10/13/08
If small businesses are adopting Vista Home Basic... trentreviso   | 10/13/08
Vista isn't just for 'Now' cquirke1   | 10/14/08
Vista doesn't fit. trentreviso   | 10/14/08
Who gets to choose? cquirke1   | 10/14/08
RE: Look who's buying Vista Home Basic hint: it's not home users pete@...   | 10/15/08
RE: Look who's buying Vista Home Basic hint: it's not home users pete@...   | 10/15/08
I would not expect ... Ed Bott  ZDNet | 10/15/08
Truth is the company I work for anonymous_dan   | 10/19/08
RE: Look who's buying Vista Home Basic hint: it's not home users Mike062   | 10/24/08
Vista SP1 nix_hed   | 11/11/08

What do you think?

5 Trackbacks

The URI to TrackBack this entry is:
http://blogs.zdnet.com/Bott/wp-trackback.php?p=563

  • look whoâ??s buying vista home basic (hint: itâ??s not home users ...
    who???s buying new pcs with windows vista home basic? judging by the name, you???d assume those os editions would be loaded on underpowered machines for starving students and penny-pinching families. but you???d be wrong. based on my ...

    Trackback by windows vista forums — October 10, 2008 @ 3:21 am

  • Look who's buying Vista Home Basic (hint: it's not home users)
    Ed Bott: Who's buying new PCs with Windows Vista Home Basic? Judging by the name, you'd assume those OS editions would be loaded on underpowered machines headed for tract homes in the burbs and studio apartments in the city. ...

    Trackback by KezNews.com - Windows portal - News — October 10, 2008 @ 4:09 am

  • Windows Vista Google Alerts for 10 October 2008
    EMC’s Mozy Raises Interesting Questions About OSes And Backing Them Up InformationWeek - Manhasset,NY,USA I use VMware’s Fusion so my Mac can host an x86 virtual machine (VM) that runs Windows Vista when I need it to. ...

    Trackback by WindowsObserver.com — October 10, 2008 @ 7:04 pm

  • Look who’s buying Vista Home Basic (hint: it’s not home users)
    Ed Bott: Who's buying new PCs with Windows Vista Home Basic? Judging by the name, you'd assume those OS editions would be loaded on underpowered machines headed for tract homes in the burbs and studio apartments in the city. ...

    Trackback by Tekorama — October 11, 2008 @ 4:04 am

  • Look who’s buying Vista Home Basic (hint: it’s not home users)
    Ed Bott: Who's buying new PCs with Windows Vista Home Basic? Judging by the name, you'd assume those OS editions would be loaded on underpowered machines headed for tract homes in the burbs and studio apartments in the city. ...

    Trackback by TechCola — October 12, 2008 @ 3:41 pm