Microsoft layoffs: Is Vista to blame?
Fri Jan 23, 2009 1:56PM EST
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In Microsoft's public speeches and press releases, CEO Steve Ballmer has portrayed Windows Vista as nothing short of a wild success, an operating system that has sold millions of copies to adoring fans worldwide.
Alas, reality has finally come into sobering focus: Microsoft's recent earnings report show not just a $900 million revenue shortfall vs. earlier projections, but a serious weakness in one critical part of its business: "Software client revenue" (aka Windows Vista and remnant sales of XP), where sales are down 8 percent vs. last year. In comparison, the company showed growth in some of its other businesses, including the Xbox division (up 3%) and the server business (up a whopping 15%). Also to blame in the poor results: online services (such as Hotmail) and, of course, the Zune, which hemorrhaged $100 million in the last quarter as sales fell off a cliff.
But overall softness aside, all eyes are on Vista, traditionally the source of a massive portion of the company's revenues and profits. The main problem of course is that the sale of Windows is closely tied to the sale of PCs, and with PC sales on the decline due to general economic conditions, sales of Vista have fallen as well.
That begs the question, though, of what degree the poor reception of Vista has been a driver for said decline in PC sales. Gartner has compared Vista to the embarassment of New Coke, noting that many businesses and individuals -- and probably many of you out there -- are skipping Vista and sticking with Windows XP until Windows 7 comes out. With just a year to go until the new OS, there's really no reason to upgrade now, and that bodes poorly for sales in the year ahead.
Of course, none of this is likely to be comforting to the 5,000 Microsoft employees losing their jobs in what is the company's first major layoff in history.
What will Microsoft do? Soldier on, and finish up the glowingly-previewed Windows 7 as quickly as possible, I'd imagine. What should it do? How about offering free XP downgrades for all Vista users (both new buyers and existing ones) in order to salvage what's shaping up to be a grim 2009.
Comments on Microsoft layoffs: Is Vista to blame?
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2 Posted by alexgannis on Thu Sep 3, 2009 2:50PM EDT Report Abuse
Right blame window vista because people are getting laid off it wouldn't be because our economy is bad right now and people aren't spending as much. Window Vista have already been taken too many rap, As far window xp goes it will be forgotten and useless in the next couple of years
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3 Posted by texasjeepguy@sbcglobal.net on Thu Sep 3, 2009 10:01PM EDT Report Abuse
I've personally put off buying a new computer because we are being forced to go to Vista. Even if I downgrade on my own to XP, then I would have to look for all the drivers myself. Not an appealing task to most computer users.
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4 Posted by rogueist on Thu Sep 3, 2009 8:49PM EDT Report Abuse
They should announce that they are going to continue to sell Windows XP until 2020, stop all VISTA sales altogether, and wait until Windows 7 is really FULLY debugged and has 100% compatablility with EVERYTHING from Windows XP. In the meantime, I work on my MacBook Pro - except for a very few utilities that I absolutely must run Windows for (old devices, old drivers), I am totally done with Windows.
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5 Posted by alexgannis on Thu Sep 3, 2009 2:50PM EDT Report Abuse
Sure blame window vista it wouldn't be because our ecnomy is bad right now and people are not buying as much anymore. Window Vista have taken too much bad rap already as far window xp goes after the next year or two it will be forgotten and useless. A lot of major company are laying off people.
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6 Posted by prsnrnr on Thu Sep 3, 2009 8:20PM EDT Report Abuse
I don't think Vista is entirely to blame. Just one of many factors. As usual, Microsoft rushed the launch of a new OS and suffered the consequences. Why launch yet another when the new one is still problematic for many users? Furthermore, what sense does putting your "old" OS on all "new" Netbooks make? Essentially, MIcrosoft will be responsible for providing support for three different, buggy, security-deficient OS's at once. Microsoft is a weird company. No wonder everything they sell is over-priced... In Vista's defense, it does have potential as a stable OS. If only it weren't so needy, system resource-wise...
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7 Posted by mathuetax on Thu Sep 3, 2009 7:11PM EDT Report Abuse
I strongly doubt the layoffs we're seeing have much to do with Vista but are more coupled to the nearly worldwide economic decline. Certainly Vista wasn't ideal, though I can't see how MS could have made the changes without causing pain. Whether the Vista issues were user created or MS is sort of under the bridge now. With Win7 however, since the break has been made I expect that it will do quite a bit better. My beta copy, while it is CERTAINLY beta, works reasonably well. Will Win7 harm Apple, I doubt it, though it might slow adoption. I don't see this as bad though as Apple needs to get some breathing room to grow, it's not had this much of the market in possibly two decades and it's been bending under the strain a bit.
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8 Posted by mlwhiteinc@sbcglobal.net on Thu Sep 3, 2009 7:23PM EDT Report Abuse
I am sick & tired of all the cry babies complaining about Vista. I have been using Vista on my HP slimline. No big problems. No problem with drivers for older equipment. Drivers for older versions of windows worked just fine. I remember when each edition of windows came out particurly 98. Everyone had to upgrade memory and many times the computers. Xp is a good OS and Vista could have been better, but I found Vista is a far easier system to use. I can understand why Industry users were reluctant to use Vista because of compatibility problems and cost , but that doesn't justify consumers reluctance to use it
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9 Posted by rrcipolla on Thu Sep 3, 2009 8:53PM EDT Report Abuse
You used "begs the question" incorrectly and colloquially.
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10 Posted by ssssreal on Thu Sep 3, 2009 9:39PM EDT Report Abuse
People who are still beating the Vista dead horse have either 1) never used it, or 2) "heard that it was bad" and jumped on that band wagon without a clue as to what Vista does or doesn't do. I run Vista 64-bit on my home PC and it smokes Windows XP. MUCH more functionality, manages resources ten times better than XP, and definitely better eye candy. For people complaining about lack of drivers, that is SO 2007. I installed Vista in early 2008 and haven't had one driver issue with it - not one. It does require a little tweaking to get it running to your personal preferences, but go to any Vista tweak site (like tweakguide.com) and you'll find all the tips you need to get the best functionality out of Vista. Lastly, for those who think that Windows 7 is some brand new deal, it is nothing more than a souped-up version of Vista. Time to get over it, people.
1 Posted by magpagbst on Thu Sep 3, 2009 7:03PM EDT Report Abuse
. . . with the bad taste of vista in everyone's mouths, i do not foresee a significant initial rush toward windows 7. . . especially on the business end as xp is still very stable . . . and with the economy the way it is, there won't be too many budgets that will allow for a software upgrade . . .