Will Windows 7 Save the Reputation of Microsoft's OS Business?

Date:   Wednesday , November 04, 2009

Microsoft finally released the much hyped and awaited Windows 7 Operating System on October 22 2009. Though the tech community with the first impression has showered rave reviews on the OS, it is yet to be confirmed whether the initial euphoria was caused by the frustrated Vista experience or the yearn to move beyond the XP. However, one must not forget that a lot of pre-release hype also contributed to the rave reviews that the newly launched OS has been receiving. And indeed, riding on this pre-created hype, Windows 7 managed to cross Vista sales within the first eight hours of its launch. In fact, its pre-order booking on Amazon even crossed previously held record by J.K. Rowling’s Harry Potter and the Deathly Hallows. So can Windows 7 save the tarnished image of the Vista?

It was during the early months of 2008 that Microsoft began stoking the hype for Windows 7. First, the software giant told the blogosphere that it would launch its new operating system on 27 October. Later, it launched an ‘Engineers Windows 7’ blog providing tit bit details about the OS. Further, it invited developers for a pre-release communication on Windows 7 at the Professional Developers Conference and the Windows Hardware Engineering Conference a week later.

This year, Microsoft started out with a strategy that has been commonly used by Amway and Tupperware sellers for long: asking people to hold house parties to showcase its products. For the first time, Microsoft offered interested people around the world to organize house parties to showcase the OS, the incentive being a free Windows 7 Signature Edition. In addition, a video advertisement of the Windows 7 launch party, featuring a group of people in the kitchen explaining the concept of the party, was designed and released as a marketing effort. Although some scoffed at this concept, the strategy worked as many hosts reported that their parties were a big success.

A Right Timed Launch

The Windows 7 launch was much required to put an end to Microsoft’s long operating system (OS) nightmare. For Microsoft, releasing a faster and better operating system than the little appreciated Windows Vista, which did a lot to harm the company's reputation, would be the best way to move forward and forget its infamous vista episode.

The Vista blow has been so bad that until Windows 7 Microsoft never really recovered from its unsuccessful launch. Chief Executive Steve Ballmer himself stated this as the company was gearing up for the release of Windows 7. "We got some uneven reception when Vista first launched in large part because we made some design decisions to improve security at the expense of compatibility. I don't think from a word-of-mouth perspective we ever recovered from that," Ballmer had said. "I'd be hopeful that we see a bit more rapid pick-up, particularly people who are upgrading the software without touching the hardware, than maybe we have had in years past," he optimistically wished.

Luckily for Ballmer, the reception of Windows 7 has been good, with reviews being mostly positive. So, whether it is features like advances in touch and handwriting recognition, support for virtual hard disks, or even cooler features like ‘Snap’ that allows users to resize open windows by simply dragging them to the edge of the screens, Windows 7 couldn’t have come at a better time.

Positive Reviews?

Many reviewers are giving the new operating system the thumbs up, as PC makers make use of the hype surrounding it. Acer, Lenovo, and HP launched their laptops and personal computers loaded with Windows 7 on the same day. In fact, Lenovo is offering ThinkPad and Idea-branded PCs with Windows 7. The company also announced new ThinkPad SL410 and 510 budget laptops, which include troubleshooting tools that ease system maintenance and tasks like data backup and recovery.

And yet, in the midst of all this, one should not forget that like Windows 7, Vista too had got good reviews. Analysts had written favorable assessments and reviews for Vista, especially praising its new visual design and increased speed and compatibility with older computers. After reading the reviews at that time, one would have thought Vista to be a success for sure.

Some analysts are already complaining that Windows 7 too has flaws. Lacking direct upgrades from XP and failing to have a smooth transition from XP due to the lack of upgrade option, are just some of the problems. "After the issues with Windows Vista, and knowing that the vast majority of users - both consumer and enterprise - are still relying on Windows XP, it seems like a direct upgrade path is a necessity. Many users may be frustrated by the lack of upgrade path and having to do a fresh install, reinstalling all of the other software and migrate user settings. Microsoft has provided tools to ease the pain, but this is still the biggest cause for a negative portrayal or backlash related to Windows 7," says Tony Bradley of PC World.

According to Microsoft, the upgrade option is not available in Windows 7 setup while installing on a computer that runs Windows XP. However, users have the option of using Windows Easy Transfer to migrate files and settings from Windows XP to Windows 7 on the same computer. The basic requirements of a PC to run on Windows 7 are 1GHz processor, minimum 1GB of RAM, and 16GB hard drive space. This means that any hardware that worked with Vista will work for Windows 7 too.

The users may also find that their existing printers, wireless routers, webcams, and other peripheral hardware devices don't work with the new OS. This means that they either have to stop working on that hardware or look for new compatible hardware. But even worse, the most controversial and much maligned feature of Vista, User Account Control (UAC) is also a part of Windows 7. It was designed to prevent unauthorized execution of code by displaying a pop up warning every time a change is being made to the system, whether by the OS or by any third party application. However, many Vista users complained of getting too many warnings, and it proved to be a huge annoyance for users installing new applications frequently.

The biggest issue seems to be the price of Windows 7. Microsoft is charging $199.99 for the Home Premium version of Windows 7, or $119.99 for users seeking to upgrade from older versions of the OS. Although prices in India seem to be comparatively low, consumers are not too happy either. In India, the Home Basic package will cost about Rs. 5,899, while the Windows 7 Ultimate (high-end version) will be available for Rs. 11,799. The pre-loaded computers too might not be the best option. While HP India will retail Windows 7 –pre-loaded PCs between Rs. 27,990 and 90,000, its pre-loaded Windows 7 notebooks will be priced at Rs. 39,990 onwards. Acer PCs with Windows 7 OS will be priced between Rs. 15,000 and 35,000, while the notebooks will be priced at Rs. 21,000 to 70,000.

As Microsoft's release coincides with one of the worst phases in global economy, some analysts believe that the tough economic climate may impact the sales of Windows 7. Piracy too is a big challenge for Microsoft. For instance, even before the official release of Windows 7, authentic looking pirate copies of the OS were available in China for as little as $3. According to Reuters, Windows 7 has been openly available in China's grey market for over a month now.

It is the very failure of Vista that has led to Microsoft’s current position of vulnerability. Hence the success of Windows 7 becomes even more critical for the software giant as its standing as an operating system developer is on the line.