Intel and Department of Transportation Avoid Vista Like the Plague

Illustration for article titled Intel and Department of Transportation Avoid Vista Like the Plague

Confirming what everyone pretty much already knew—that Vista upgrades are going to be slow coming—Intel CEO Paul Otellini told attendees at the Bank of America Technology conference that he knew "of no organization doing an upgrade before SP1," adding that "Intel isn't upgrading either (until SP1)."

The U.S. Department of Transportation and FAA are no more progressive, with an "indefinite moratorium" on the "Wow." DoT CIO Daniel Mintz stated that "there appears to be no compelling technical or business case for upgrading to these new Microsoft software products. Furthermore, there appears to be specific reasons not to upgrade." Ouch.

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If the ban is long-term, it could sting Microsoft's pocketbook more than its pride, as InfoWeek notes it "sells millions of dollars in software to the feds annually." It seems like some good Vista news can't come fast enough for Microsoft. Mediocre sales, driver and software compatibility issues, and middling reviews have dominated coverage, and this is after long delays getting it shipped.

Undoubtedly as a result, it hasn't been quite the boon to the bottom line that they had probably hoped. For what it's worth, I think Vista looks nice.

Microsoft Hit By U.S. DOT Ban On Windows Vista, Explorer 7, and Office 2007 [InformationWeek via Fark]

Intel won't upgrade to Vista until SP1 [Between the Lines]

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DISCUSSION

In regards to MicroSoft's earnings, citing their deferred income as proof of high Vista sales isn't exactly fair. Those were sales of Vista prior to any actual user experiences or word-of-mouth. The fact is that after the initial flood of sales, word got out the the OS was not all it was supposed to be (yet) and sales cooled down quickly. Not just Vista sales, either. Almost across the board, PC sales have dropped, as people are reluctant to buy a Vista-Loaded machine until they start hearing good things. (On the other hand, the larger Memory requirements of vista have caused a 9% spike in Semi-Conductor sales)

Also, I think it's very telling that MS decided to raise their Windows support fees from $39 to $59 right after releasing Vista. To me, this is indicative of two things:

1) MS knows that the OS will have a lot of problems and has decided to profit from those problems and

2) MS was looking to the future, knowing that if Vista's sales should flag (as they have) increasing the per-call Windows support by 50% during a spike in software support need will help make up for the difference so that they can still post record profits and keep the stockholders happy.