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Dell: Win 7 "Much More Expensive" Than Vista
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Jason Mick / DailyTech
May 20, 2009
'Microsoft is looking to cash in on its upcoming OS's popularity.' -
Microsoft appears to be making all the right moves with Windows 7 -- a revamped and slimmed sequel to Windows Vista -- which is scoring critical acclaim with the press and beta-testing public. The OS is expected to be a hot seller, when it is released in October. And Microsoft is looking to do everything it can to promote a bountiful cash flow.
DailyTech already detailed how the company sought to encourage customers to upgrade their OS purchase, by only allowing 3 applications to run simultaneously in the introductory "Starter Edition". Now new details have emerged from Dell, via CNET's Brooke Crothers, indicating that Windows 7 license prices will be much higher than with Vista.
Darrel Ward, director of product management for Dell's business client product group, states, "If there's one thing that may influence adoption, make things slower or cause customers to pause, it's that generally the ASPs (average selling price) of the operating systems are higher than they were for Vista and XP. In tough economic times, I think it's naive to believe that you can increase your prices on average and then still see a stronger swell than if you held prices flat or even lowered them. I can tell you that the licensing tiers at retail are more expensive than they were for Vista."
For businesses, Windows Vista Business will be replaced with the more expensive Windows 7 Professional. Mr. Ward believes that business partners will be turned off by the price. He states, "Schools and government agencies may not be able to afford (the additional cost). Some of the smaller businesses may not be able to enjoy the software as soon as they'd like."
Despite his concern about the high prices, he says that interest in the new OS is strong and may carry adoption to new highs. He states, "When Vista came out we didn't have the motivation to do the types of services that we're doing now. We didn't have the clear customer demand for such services," he said. "We do have a visible number of customers, large and small, who are actually waiting for Windows 7 and who have already put plans in place to target the transition to Windows 7, they're asking Dell for help. That demand and this opportunity is stronger than it has been in the past."
He praised the XP Mode feature and strong driver support as critical steps by Microsoft to winning business for the new OS. He did, however, say that he believes the drivers for Intel's Active Management Technology, which allows remote access to PCs for security, maintenance, and management, aren't where they should be. He states, "Driver readiness--it looks pretty healthy compared to the past. (There are) some things that haven't been worked out. The WHQL (Windows Hardware Quality Lab) drivers for AMT VPRO is a little behind."
In short, Mr. Ward's remarks reveal intriguing insight into Microsoft's new strategy of boosted Windows 7 prices, and what one of the world's biggest OEMs regard as the new OS's greatest strengths. With the glowing public reception of the new OS, it seems likely to be a hit at virtually any price, and Microsoft is eager to cash in on that potential.
© 2009, DailyTech
cab26715
6 months ago
40 comments
geomar - The companies currently running XP are going to have the SAME problems you just mentioned. They won't be able to upgrade from XP to Windows 7. Heck, by the time they decide to try Vista, Microsoft won't support it anymore.
Companies problems is they take WAY TOO LONG to go from one Windows OS to another, that they are always at least TWO operating system versions behind.
Maybe if they would stop cutting staff in IT and hire a professional A+ certified technician, like ME, they can upgrade faster and perform more testings on new Windows systems in a fewer time period, and not have so many surprises.
I have used ALL Windows operating systems since Windows 3.1 and am currently running Windows 7 RC 64-Bit. I have not have any problems with Vista and Windows 7 RC. The only trouble operating systems I've experienced with Windows was 95/98 (very crash prone).
Have you even TRIED Windows 7, geomar?
Don't comment on something you only READ about (which may be outdated and not entirely true) without actually trying the product for yourself.
geomar
6 months ago
44 comments
Can anyone say Android take-over of the netbook market place? Watch out MS and Linux there's definately a new player on the block and it isn't dumbed down either.
Dumbing down Windows 7 Starter to 3 apps is going to be a big hole in MS's foot that Google would gladly step right through on their way to the bank.
Fred_Ward
6 months ago
4 comments
I gotta say that doesn't deter me much because I havent spent a dime on their software since Windows 98 second edition was released. I would never spend money on Microsoft software. No reason to pay exorbant pricing for something you can get for free.
varunharidas
6 months ago
2 comments
This article looks more like a marketing gymic to me. There are reasons I believe so. Microsoft has always been promoting knowledge slavery, and every operating system has been unfairly priced. The margins on every single piece of MS Operating system is surely extremely high. So nothing better is actually expected from Microsoft.
Coming to the use of an Operating System, I own a Dell Laptop with preinstalled Windows, because Dell had placed the Linux preinstalled Laptop at higher prices than Windows. And this is a pure Business tactic and a near hippocratic move, which ensures higher sales for windows.
But I dont use Vista, I installed Ubuntu (currently 9.04 Jaunty) and it is ages ahead of Vista, probably far superior to Windows 7. And notably, Ubuntu has a Product Life Cycle of 6 months with an auto upgrade and support. There is no additional cost, except the burden of knowledge. Mac users would feel at ease working on linux box.
It would be interesting to know that, NASA does not prefer Windows for their space shuttles, because they probably would not trust lives on Windows. They use Montavista linux , dont get mislead by the Vista in Montavista :) . A clear indication on whom we can trust. The one we get for free or the one which robs us off our cash.
phantasyconcepts
6 months ago
14 comments
Myabe Dell will start making their Linux offerings at a more reasonabe price, and start offering them on home computers and retail outlet computers rather than lashing home users and general consumers to a sinking ship in Washington state.
OfNoConsequence
6 months ago
14 comments
Seems to me that we're getting a lot of smoke and mirrors, but not a lot of facts.
Show us the retail prices! I want to see upgrade and clean install shelf prices for Windows 7.
I also want to see the OEM retail price of Windows 7, not just hear some Dell person blowing smoke. Seems to me that he's trying to affect prices before they're even set.
Justen
6 months ago
212 comments
To add to that list:
Mandriva Linux: $0
Kubuntu Linux: $0
Open Office: $0
Wine: $0
Honestly. Now is a better time than ever to make the switch, especially if you're tight on cash. An AMD-powered system with preinstalled Kubunu, available from many manufacturers in OEM packages now, is close to half the price of an Intel-MS system. I've got my -Mom- running Kubuntu and she is getting along well with it. The only reason I keep Windows around is there aren't any touch-screen drivers for Linux compatible with my Tablet PC (gaming is still a valid excuse as well, Wine/Cedega still has a tough time with some games - but many popular ones work great).
Bootlegger
6 months ago
166 comments
I'm willing to withhold judgement on the pricepoint until I can see some MSRP(Manufacturer Suggested Retail Price) quotes. Until then it is all just speculation.
jimmyshade
6 months ago
20 comments
I found this not sure how accurate/reliable this information is but its food for thought. These prices are exactly the same as similar Vista editions in retail pricing.
Edition / SKU Pricing
Windows 7 Starter $199.95
Windows 7 Home Basic N/A
Windows 7 Home Premium $259.95
Windows 7 Professional $299.95
Windows 7 Enterprise N/A
Windows 7 Ultimate $319.95
I wouldn't be surprised though if the prices for Windows 7 will be higher than what has been stated in conjecture or through rumor since every new product from Microsoft thus far has steadily increased in price. With Linux being $0 dollars and Mac OS generally sticking around $130 bucks for upgrades/complete installs why would you spend the money? The OEM versions won't be much better and buying the retail versions makes little sense as the upgrade versions will only be slightly cheaper. The reality here is we aren't going to know for sure until its released MS has a tendency to change their minds 50-times on pricing.
The worst that can happen is that it comes out priced too high, it doesn't get adopted and companies begin moving in a different direction and MS then lowers the price to meet market expectations.
bretticus
6 months ago
4 comments
I was thinking that I'd actually purchase this when it came out, but I guess I'll stick with Vista. I was hoping to find a system builders price around 100-150. Looks like that was naive of me :)
Dabreax
6 months ago
2 comments
Way to go MS, with all the open source os software out there, when you finally get something right for once, and come up with an os that would most likely be readily adopted by the masses, lets make it more expensive? so less poeple can afford it? and businesses wont upgrade to it? Why not get it out on the shelves at a reasonable price so that everyone is using your products again? Why MS? GREED. Such a shame, it looks like I would have enjoyed running it.
narg
6 months ago
46 comments
OK, so how much more expensive?!?!?! Seems Dell is spinning the press to get $1 more per machine from Microsoft. I bet it's only a single percentage point difference in price. Considering inflation as it is today, I wouldn't gripe. Bad move Dell. Bad move.
And, I agree with the below statement where the headline of this article is overblown. Sad to see such reporting. This isn't a gossip rag, it's tech news. Get it right next time guys? Is that too much to ask? Headline should have been "Dell complains about Windows 7 price" nothing more. Fire the guy who wrote this headline. I'm tired of B.S. like this.
begge
6 months ago
20 comments
I suspect this to be a marketing trick. When the day comes to sell the OS they will check the blogs and news posts about how bad the price is, and then drop it.
nullbody
6 months ago
8 comments
Benefits of actually 'owning' your computer instead of purchasing a pre-built:
1. You can replace any part or upgrade any part instead of having to purchase an entirely new computer or waiting to purchase one.
2. You get exactly the hardware specs you want/need
3. You don't have to know how to build it - microcenter and many computer hardware stores can do that for you.
4. There's no D:\ -only recovery option. In other words, you have the original os install cds/dvds. This means if something goes horribly wrong, which it will with windows, you can just re-install provided you back-up your files frequently. Or learn that lesson the hard way.
5. You can safely explore software. For example, I was waiting for windows 7 to come out to get adobe products and some other software that only runs in windows/macs. I have a need for multiple platforms on one machine, so I place os's on bootable usb drives; i can boot into practically any os i want, on the same machine. Having the original install cds instead of a pre-built, no cd computer makes this possible. How much does all the software I run cost? $0. The only things I can't do on linux right now are things like adobe authoring tools, windows games (for the most part), and maybe some other software that was only built for windows.
I was bouncing back and forth on the idea of getting a mac laptop vs. windows laptop. Why? Price. Now that M$'s os is going for 350-400 bucks; why should I buy a windows-based laptop for ~1000 dollars when I can get the same hardware specs in a mac for ~1200, with much better software...
geomar
6 months ago
44 comments
Looks like the shot in the arm that Linux has been waiting for...every time MS creates a reason not to upgrade Linux wins.
cab26715 NO I don't agree with you, why should Windows 7 cost more than Vista if Vista was broken in the first place? Should you pay for a recall fix on your car? Vista should be a FREE upgrade for current Vista license owners. Some admins took several weeks to upgrade to Vista on new hardware platforms that were promised to run Vista. That delay cost them millions in lost production. I know I was there.
MS and several hardware vendors lied to the buying public about compatibility and upgraded hardware drivers. I'm not talking about retail consumers here but large corporatons and institutions who deploy hundreds of new desktops at a time. No Windows 7 should be a FREE UPGRADE from the Vista WRECK..