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July 24th, 2008

Vista: Whose ‘reality’ do you believe?

Posted by Mary Jo Foley @ 1:18 pm

Categories: Vista, Windows client, Financial Analyst Meeting

Tags: Microsoft Windows Vista, Microsoft Corp., Forrester Research Inc., Microsoft Windows Vista (Longhorn), Operating Systems, Microsoft Windows, Software, Mary Jo Foley

The same day that Forrester Research is touting yet another of a growing number of studies claiming Vista is failing to gain traction in the enterprise, Microsoft is claiming just the opposite.

In a presentation at Microsoft’s annual Financial Analyst Meeting in Redmond on July 24, company officials outlined their bullish projections and claims for Windows Vista. But it wasn’t the facts and figures that garnered the most attention from attendees here; instead, it was a video of a focus group of Vista skeptics who changed their originally negative opinions of Microsoft’s latest Windows release once they had a chance to see it demonstrated.

Microsoft told the focus group participants that they were seeing a demo of “Mojave,” (why not “Midori”?) an as-yet-unannounced Windows release (which was actually Windows Vista). The participants, a number of whom admitted they had no direct hands-on experience with Vista, said they were jazzed about Mojave and would definitely use it once it was released.

The Mojave demo was used to back Microsoft’s contention that once they had a chance to try Vista for themselves, customers liked the product.

Forrester Research issued new study results today claiming that 18 months after release, “Vista is still struggling to gain a foothold in large companies.” Forrester called Vista the “new Coke.”

Forrester said that Vista use remains in the single digits (”just under nine percent according to Forrester’s month-by-month desk-top analysis of 50,000 of our enterprise clients across 2,300 companies. That’s up from six percent in January of this year, but far short of the 87 percent penetration for Windows XP.”)

Meanwhile, Bill Veghte, Senior Vice President for Online Services and Windows Business Group, told FAM attendees today that Vista’s uptake among business users is solid. He said Vista enterprise sales were up 20 percent and renewal rates for Software Assurance among business users were greater than 80 percent. (Not surprisingly, there were no stats in Veghte’s presentation about what percentage of business users are downgrading to XP, one of their “benefits” under the Software Assurance program.)

The answer to whether Vista is growing among enterprise users is “an emphatic yes,” Veghte said.

Veghte said that the higher end of the mid-market also is beginning to upgrade more rapidly to Vista.

Microsoft identifies the business version of Vista as Vista Enterprise, coupled with the optimized desktop (Microsoft Desktop Optimization Pack, or MDOP). Veghte told FAM attendees that Microsoft is readying a set of new MDOP updates for later this year.

Veghte also emphasized that three quarters of Microsoft’s customers are opting for “premium” versions of Vista, rather than bare-bones, lower-priced ones (like Vista Home Basic.) He told attendees of FAM that Microsoft will be “aggressive” in getting PC makers to attached Genuine Windows (rather than pirated versions of the product) right out of the gate.

“Perception vs. reality — that’s a conversation we need to have with our customers this year,” Veghte said.

Do you agree with Microsoft Vista’s biggest challenge is perception, not performance, at this point? Or do you think Forrester is closer to reality with “Vista is the ‘new Coke’ analogy?

Mary Jo has covered the tech industry for more than 20 years. Don't miss a single post. Subscribe via Email or RSS. Got a tip? Send Mary Jo your rants, rumors, tips and tattles. For disclosure on Mary Jo's industry affiliations, click here.
  • Talkback
  • Most Recent of 302 Talkback(s)
Thanks! Good link.........
Good news for some, bad news for others...... depending on which side of the fence they sit.

Should be a deciding factor for those straddling the fence and wondering which way to jump. (referen... (Read the rest)
Posted by: Ole Man Posted on: 08/10/08 You are currently: Logged In | Log out
Microsoft Search sucks. bjbrock   | 07/24/08
Curious to what you're moving to strebby   | 07/24/08
Aye! There's the rub ... mwagner@...  ZDNet | 07/25/08
I don't think the rub isn't sales ptches as much as it's standards Breetai   | 07/25/08
Vendors know what ??? colinnwn   | 07/25/08
Really? Sleeper Service   | 07/25/08
"Instead, the enterprise always looks at the cost/benefit..." bmerc   | 07/25/08
Mac - triumph of marketing over substance dougs.zdnet@...   | 07/27/08
Astroturf above MarcB_z   | 07/27/08
Vista - better computing through denial john_gillespie@...   | 07/27/08
I have my own questions, Strebby... vulpine@...   | 07/25/08
We did... Sleeper Service   | 07/25/08
If only you could demonstrate the following true: ye   | 07/26/08
Proof, oh YE doubting thomas? vulpine@...   | 07/26/08
I'm pretty sure LiquidLearner   | 07/27/08
Well, I'll give you credit for thinking vulpine@...   | 07/29/08
some people choose win32 only enterprise apps then say "what do we move to" stevey_d   | 07/25/08
Web based apps... Wolfie2K3   | 07/25/08
browser apps aren't a solution for business Drakaran   | 07/27/08
amazon, banks, ebay etc cant possibly be trading $bns online then.. oh wait stevey_d   | 07/27/08
Actually they are 914four   | 07/28/08
the same thing you do if your windows server goes down stevey_d   | 07/27/08
We're still on XP mainly, even the the 'creative guys' frankwick   | 07/28/08
Well, DUH! Yagotta B. Kidding   | 07/24/08
well said mrdtr   | 07/24/08
Actually, in the enterprise, MS is not ... mwagner@...  ZDNet | 07/25/08
Actually, in the enterprise, MS is... vulpine@...   | 07/25/08
It is certainly true that you can employee ... mwagner@...  ZDNet | 07/25/08
Maybe it is... vulpine@...   | 07/25/08
Not enough money to be made from the desktop? zkiwi   | 07/27/08
It's true LiquidLearner   | 07/27/08
Windows Server 2003 stevey_d   | 07/25/08
Mac OSX server... Anyone got experience of this? vulpine@...   | 07/25/08
OpenBSD LiquidLearner   | 07/27/08
Better check... vulpine@...   | 07/29/08
Don't buy that... Sleeper Service   | 07/25/08
...not some 10 year old survey. vulpine@...   | 07/26/08
"They are looking for something easier and cheaper" LiquidLearner   | 07/27/08
I don't care where you work, I want the costs. Sleeper Service   | 07/28/08
My company is investing in MacBooks 914four   | 07/28/08
Very True, but when and will it be Vista? dunn@...   | 07/25/08
RE: Vista: Whose 'reality' do you believe? epobirs   | 07/24/08
Which raises the question lschw1   | 07/25/08
good post. Also what is the compelling reason to update? stevey_d   | 07/25/08
Agree...Not Compelling at all dunn@...   | 07/25/08
Explain why... Sleeper Service   | 07/25/08
As friendly as XP? Mike (not Cox)   | 07/25/08
i've never seen an XP without classic control panel stevey_d   | 07/27/08
Uh... Sleeper Service   | 07/31/08
Irrelevant Cardhu   | 08/03/08
RE: Vista: Whose 'reality' do you believe? Loverock Davidson   | 07/24/08
Message has been deleted. Linux User 147560   | 07/24/08
.... Linux User 147560   | 07/24/08
Welcome to freedom and uncensored press fr0thy2   | 07/25/08
A private message board Crestview   | 07/25/08
Well Said Breetai   | 07/25/08
Apparently so Kid Icarus   | 07/25/08
Truth will not be tolerated Ole Man   | 07/25/08
How about Crestview   | 07/25/08
You Really Do Occupy The Microsoft "Twilight Zone"... BanjoPaterson   | 07/24/08
RE: You Do Really Occupy the Microsoft "Twilight Zone" bfilipiak@...   | 07/25/08
"made sure that they were running it on the best hardware" -was video clip stevey_d   | 07/25/08
But of course... Jeremy W   | 07/24/08
If Wall St. "gets drunk" then Microsoft are continuously paraletic fr0thy2   | 07/25/08
RE: But of course.... bfilipiak@...   | 07/25/08
Of course you do. If Microsoft said "Loverock, jump off a cliff" fr0thy2   | 07/25/08
Well, doctrine... TedKraan   | 07/25/08
RE: ....If M$ said: "Loverock, jump off a cliff" bfilipiak@...   | 07/25/08
Re: looking like fools for never trying it Kid Icarus   | 07/25/08
I would tend to believe Forrest. vulpine@...   | 07/25/08
That Tired Microsoft Spin Cardhu   | 07/27/08
You forgot exploding Pintos! 914four   | 07/28/08
Exactly! Cardhu   | 08/09/08
My first motorized buggy was a '49 Ford Ole Man   | 08/09/08
Microsoft has released no data on such statistics Ole Man   | 07/28/08
Look What I Found Cardhu   | 08/10/08
Thanks! Good link......... Ole Man   | 08/10/08
Microsoft's new marketing campaign MGP2   | 07/24/08
That was either over done or half baked Cayble   | 07/24/08
But really... Jeremy W   | 07/24/08
Correct! The moon is indeed made of cheese. fr0thy2   | 07/25/08
I think the other guy was closer to Microsoft's real treatment of Customers Breetai   | 07/25/08
Not ready for prime time. sbf95070   | 07/25/08
Too much effort required. Time to find an alternative. joe.smetona@...   | 07/28/08
Still no major organizations moving to Vista jeffs0413@...   | 07/24/08
Ours is... Mike (not Cox)   | 07/24/08
But while yours is... vulpine@...   | 07/25/08
Don't know, I don't work there Mike (not Cox)   | 07/25/08
because... LegendsOfBatman   | 07/28/08
Ditto gsteck   | 07/28/08
Uh... Sleeper Service   | 07/31/08
FYI: dvm   | 07/24/08
We're waiting to see Marcos El Malo   | 07/24/08
Thanks rcfoulk@...   | 07/25/08
Still no major organizations moving to Vista hairyR   | 07/25/08
And how long LiquidLearner   | 07/27/08
Nonesense ... mwagner@...  ZDNet | 07/25/08
That's what I;ve been sayin' Breetai   | 07/25/08
More expensive? mwagner@...  ZDNet | 07/25/08
And look at the Graphics Score you have.... dunn@...   | 07/25/08
"but they are not stupid" Jeremy W   | 07/26/08
Vista is kicking it old school... Mike Cox   | 07/24/08
I wonder if it will work John L. Ries   | 07/24/08
A Mike Cox typo MGP2   | 07/24/08
7.5 TedKraan   | 07/25/08
Amazing what has to be done... John L. Ries   | 07/24/08
Who cares? ye   | 07/24/08
I agree. Business customers arent upgrading cause XP works well otaddy   | 07/24/08
For Business, its the apps that count, not the OS shroutosaur@...   | 07/25/08
Nail on the head gnesterenko   | 08/08/08
Lot's of businesses are still using Windows 2000 mcsystemsgb   | 07/25/08
Slumping Economy LiquidLearner   | 07/27/08
Bingo Cayble   | 07/24/08
Missing out on one person wouldn't make it a failure Michael Kelly   | 07/25/08
The point is: ye   | 07/25/08
Exactly. (nt) TedKraan   | 07/25/08
That's fine, but Michael Kelly   | 07/25/08
If Vista is a failure what does that say about OS X? ye   | 07/26/08
RE: Vista: Whose 'reality' do you believe? lawryll@...   | 07/24/08
You believe Forrester? Based on...WHAT? Cayble   | 07/24/08
"Your post is not based on relevant facts." fr0thy2   | 07/25/08
Based on...WHAT? vulpine@...   | 07/25/08
made up a least one "fact" there, vulpine. rtk   | 07/25/08
Just read the articles, my friend.... vulpine@...   | 07/26/08
Well, when you read 10 anti-ms blogs rtk   | 07/27/08
Based on... Jeremy W   | 07/26/08
I believe MY reality graywz   | 07/24/08
My company has completely rejected the iPhone. ye   | 07/24/08
Everything's an argument, eh Ye? MGP2   | 07/24/08
Did you read the same post I did? ye   | 07/24/08
Ah, the smell of invalid extrapolation... zkiwi   | 07/24/08
Then what was the point of his post? ye   | 07/24/08
What was the point in your post Ye? fr0thy2   | 07/25/08
@fr0thy2: The point of my post was... ye   | 07/25/08
Ye, you are lying again bmerc   | 07/25/08
@bmerc: Look up the word "imply". (nt) ye   | 07/26/08
To catch you hook, line and sinker zkiwi   | 07/27/08
No, *you* look up the word "infer". Zogg   | 07/27/08
You're like a fish Ye fr0thy2   | 07/25/08
Then maybe you really do... jasonp@...   | 07/25/08
See this response of mine: ye   | 07/26/08
Perhaps I need new glasses... 914four   | 07/28/08
HE SAID Cayble   | 07/24/08
They may be planning to skip Vista for Windows 7 ye   | 07/25/08
Wiping VISTA and installing XP johndecoville   | 07/25/08
I suspect Windows 7 will require your company... ye   | 07/26/08
Yes, so spend MORE money Kid Icarus   | 07/25/08
Oh god you guys are funny! Kid Icarus   | 07/25/08
Nope, he didn't say anything remotely like that bmerc   | 07/25/08
My guess his point was about benefits... Solid Water   | 07/24/08
People don't use descriptions such as: ye   | 07/24/08
Well......... James Quinn   | 07/24/08
Jim, its not the politness... Cayble   | 07/24/08
"catastrophic IT log jam in a few short years" fr0thy2   | 07/25/08
Well to be honest..... James Quinn   | 07/25/08
Wonderful rhomp2002@...   | 07/25/08
He posted in the manner he did in an attempt... ye   | 07/25/08
Strangely, I'm reminded how... vulpine@...   | 07/25/08
@vulpine: They are? ye   | 07/26/08
My dear YE...&nbs