Microsoft announces Windows 7 in beta 8 January, 2009 By Paul Weinberg

"There is obviously a bit of hype coming from Microsoft. But the majority of the hype and the majority of the positive feedback that I hear from a variety of different angles, comes from users or testers. People who have actually tested the beta -- journalists, analysts, people who would be critical by nature."

The frame of reference for the early adopters is the disappointment around the current Microsoft Windows Vista operating system, stated Warren Shiau, lead analyst, IT research at the Strategic Counsel.

"Circumstances have created a situation where Windows 7 benefits greatly from all that's gone down with Vista," he told eChannelLine.

"I've been using the Windows 7 beta too, and from an individual user's perspective it's really nice, especially considering the beta status. Peripherals, accessories, gizmos, etc. have been plug-and-play; it's been stable; it didn't take any more than a day to adapt to the look and feel; it's fast; it looks good; the organization features are great."

Nevertheless, Microsoft cannot sit on its laurels even though Windows has an eighty per market share in terms of operating systems in IT, argued Bill Moran, research director at Ptak Noel & Associates.

"Microsoft's profitability on Windows growth has gone from double digits to low singles."

He pointed to how Microsoft was ill prepared for the slowdown in PC sales when it appeared that the only hot hardware commodity on the market going into 2009 is the netbook, which contains "feeble" hardware to keep its prices down.

At the same time, he continued, Microsoft Vista is designed for powerful computing hardware. "Vista can be sluggish if you don't have enough real memory on the machine."

Microsoft is promising to rectify that problem with Microsoft Windows 7 in order to maintain its market share in the netbooks, up against machines carrying either Linux or older versions of Window, Moran said.

He suggested that this may be a temporary problem as second and third generation netbooks with stronger processing power down the road become more powerful. "If hardware continues to get cheaper as it has done, this could help Microsoft a lot."

This time around, it appears that Microsoft Windows 7 will be more compatible with a greater number of software drivers for computing hardware devices on the market than Vista was.

"There were an awful lot of drivers that were not included [under Vista]. Microsoft got a black eye, even though strictly speaking it wasn't their entire fault," recalled Moran.

Also, the reason for less hype around Microsoft Windows 7 is that the operating system has less prominence these days in the face of virtual desktops and web based office applications, Moran stated.

He noted that thin clients and desktop virtualization will eliminate the need to put the operating system on every office PC and instead relegate it to the central server.

"You get away from knowledge workers. Clerks who don't need a real mix of applications, and such, you have reduced the requirement for Windows."

Microsoft also announced the global availability of Windows Live, a free suite of communications and sharing applications. The vendor is seeking to boost the Live Search Engine, a competitor to Google and Yahoo with a new deal with Dell.

Dell's PCs will include a special Live Search browser toolbar and Windows Live programs, including Microsoft's email and instant-messaging applications. That deal replaces a relationship between Dell and Google.

Moran suggested that other PC vendors will follow with similar agreements. "I am impressed. Everybody said that since Microsoft had not cut a deal with Yahoo it would never be able to compete with Google. Now, this looks like a major blow for Google."

Reprinted by permission of Integrated mar.com (integratedmar.com), EchannelLine © Copyright 2009 Integratedmar.com Corporation.