Ballmer: Windows 7 worth the investment

Microsoft's CEO acknowledged the tough environment but said its new OS can help businesses save money

Microsoft CEO Steve Ballmer put on his sales hat Tuesday and made a case for why businesses should upgrade to Windows 7, despite an economy in which many IT budgets have been frozen or are lower than in years past.

"It's a different environment today than the environment we all sat in a year-and-a-half ago," Ballmer told a roomful of business customers at an event in San Francisco.

Microsoft had no idea at that time that it would be launching three major products -- Windows 7, Windows Server 2008 R2 and Exchange Server 2010 -- into such an uncertain economic climate.

"I can't tell you that this was the economy we thought we were going to live in," Ballmer said.

Overall, the CEO's comments betrayed a few chinks in the usual armor of confidence that cloaks Microsoft executives when discussing their projections for next month's global release of Windows 7.

Ballmer took a poll of the people in the room to find out if IT budgets at companies were up, down or frozen. While a scant few said they were up, most said they were down or frozen, a trend Ballmer said he knows will make it difficult to convince people to purchase new software.

Calling the current IT climate a time for "new efficiency," Ballmer said companies are looking to do more with less and will likely free up IT budgets only to purchase products that allow workers to collaborate more efficiently and take costs out of business.

He tried to position the three upcoming products, but Windows 7 in particular, in this light, saying they would help customers achieve innovation and cost savings in their businesses.

Ballmer cited customer case studies the company prepared with analyst firm Gartner, intended to show how the new OS can help businesses save money in three key areas. The studies were first released a couple of weeks ago in an earlier promotional push for Windows 7.

According to the report, companies achieved annual costs savings of $US36 to $US45 per PC on the service desk; $US25 to $US98 per PC for desktop management; and $US28 to $US61 per PC in deployment and provisioning.

Microsoft promoted Windows 7's predecessor, Vista, with similar case studies. But many businesses ultimately shied away from Vista because they considered it sub-par, and much of Microsoft's marketing efforts around Windows 7 have been focused on repairing that damage.

"Vista was a nightmare," said Brent Allard, a studio technical support manager for Electronic Arts, who was at Microsoft's customer event Tuesday.

But EA has been using Windows 7 for some time as an early adopter, and Allard said Microsoft seems to have put right the flaws in Vista and developed an OS that is relatively bug-free, efficient and useful to EA's business.

Ballmer acknowledged that many businesses are long-overdue for a PC and OS refresh, because many are still using Windows XP or even Windows 2000.

Still, the improvements in Windows 7 and the need to upgrade soon are no guarantee that businesses will free up their budgets for Windows 7, and Ballmer seemed mindful of this.

But he said the triptych of products Microsoft highlighted at the event are the company's best effort to help customers do more with less, and that strategic investments in software will ultimately help businesses save money.

"Now is one of the most challenging times ever in the IT business," Ballmer said. "These are three products that are really super-well-suited to the new efficiency. Now we really get to show our stuff."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftWindowsWindows 7steve ballmer

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Elizabeth Montalbano

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?