Study: Vista to Create Jobs, Spur Revenue
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A Microsoft-sponsored study says that Windows Vista will generate some $70 billion in revenue and create up to 100,000 jobs in the first year of its release. The report also forecasts rapid and widespread adoption of the OS.
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special coverage Aiming to re-create the excitement of Windows 95, Microsoft is trying to turn Vista into its next big win.
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In a move to ease business migration to its latest operating system, Microsoft released six new Vista deployment tools on Tuesday. But at least one analyst believes the tools might actually lead to businesses delaying deployment.
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In the first year of Windows Vista's release, Microsoft Corp. is expecting businesses to adopt it much faster than any other version of Windows.
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Windows Vista, Microsoft's new operating system, goes on sale to business customers.
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(InfoWorld) - Microsoft tried to dazzle the antitrust regulators in Brussels on Thursday with new research that illustrates how immense the effect of Windows Vista will be next year on Europe's IT industry and the broader economy. Microsoft warnedÂ earlier this week that the launch of Vista might be delayed in Europe because of the regulators' concerns about its impact on competition. On Thursday it used research conducted by IDC -- and sponsored by Microsoft -- to illustrate how much Vista is set to benefit Europe in terms of revenues and jobs next year. Within a year of going on sale, IDC said, Windows Vista will be installed on more than 30 million computers in the six E.U. countries included in the study: Germany, France, the U.K., Spain, Poland and Denmark. More than 100 million computers worldwide will run Vista within a year of its launch. The predictions come from a research paper titled "The economic impact of Microsoft Windows Vista." Vista-related employment will account for more than 20 percent of all IT jobs within a year of its arrival, IDC predicted. That translates into around one million IT professionals in the six countries, including 100,000 new jobs by the end of 2007, assuming that Vista is launched on time at the beginning of next year. The European Commission, Europe's top antitrust regulator, is concerned that new features planned for Vista, like its improved security software, willÂ fall foul of the same antitrust rulesÂ the company was found guilty of breaching two and a half years ago with its bundling of Windows Media Player. Jean-Philippe Courtois, president of Microsoft International, said the impact of Vista will be much greater than the direct benefits to Microsoft. "The economic opportunity Windows Vista creates for small and large companies across the region is clearly much more significant," he said at a press conference to unveil the study. But some commentators saw the unveiling of the IDC research as a way of pressuring the Commission to back off. Last week, four members of the European Parliament wrote to competition commissioner Neelie Kroes warning her not to scupper the launch of Vista. "It looks like operation shock and awe," said one person following Microsoft's antitrust travails in Europe, who asked not to be named. Microsoft is "losing the legal argument, so it's turning to political means to maintain its abusive monopoly," said the person, who is close to some of Microsoft's nearest competitors. For every euro ($1.27) Microsoft generates in its own revenues from Vista, other firms in the six countries that are involved in distributing the OS, building applications for it or servicing computers using Vista will generate â¬14 (17.76) in sales, IDC said. These companies should sell "over â¬32 billion ($40.6 billion) in products and services revolving around Windows Vista," IDC said. "Rapid and widespread adoption of Windows Vista means that its launch ... will have a pronounced positive impact on local economies throughout Europe," IDC said. The six countries in the study account for over 65 percent of all IT spending in the European Union, Croatia, Norway, and Switzerland. (IDC is owned by International Data Group, the parent company of IDG News Service.)
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About half of businesses surveyed are in some phase of updating to Windows Vista, a CDW study finds.
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(InfoWorld) - A new IDC report on the impact of Windows Vista on the industry claims Microsoft's business partners stand to benefit more financially from the OS than Microsoft itself will in 2007. According to the report on the U.S. economic impact of Vista, for every one U.S. dollar Microsoft makes on Vista in 2007, Microsoft partners that offer software, hardware and services related to Vista will make $18. "If there's a surprising thing to people, it's how extensively a Microsoft piece of software ripples out through the ecosystem," said John Gantz, one of the IDC analysts who wrote the report. "Microsoft, as a software vendor, casts a bigger shadow than its revenues." IDC analysts Al Gillen and Marcel Warmerdam co-wrote the report, released Monday, which was commissioned by Microsoft. The report also said that 35 percent to 45 percent of new PCs that ship to enterprises in 2007 will run Vista. "Some thought [adoption] would move faster," Gantz said. "But to me, that's relatively quick." However, he added that most of the Vista adoption in the enterprise will come from new PCs, not upgrades to enterprise computers that are running an earlier version of Windows. And 2008 will be the year Vista really takes hold in the enterprise, with about 80 percent of PCs being shipped to businesses running the OS, and nearly 40 percent of the enterprise installed base running Vista, Gantz said. According to the report, Vista will be good not only for the wallets of Microsoft partners in 2007, but also for the IT industry in general. The OS should produce more than 100,000 new jobs in 2007, according to the report. IDC said that within the U.S. in 2007, as many as 200,000 IT companies that produce, sell or distribute products or services running on Vista will employ more than 660,000 people. Another 1.15 million will be employed at companies using the OS. And more than 60 percent of the growth in Windows-related employment will be driven by Vista, according to the report.
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Microsoft is pumping out a global $500 million Vista advertising campaign which is expected to serve 6.6 billion impressions in the first few months. Marketing stunts and sponsorships will include a human billboard with 16 dancers, party in Times Square, LeBron James in the TV ads, and CEO Steve Ballmer will greet customers at Best Buy [...]
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As expected, the PC industry is ready with new Vista computers after years of delays. But the immediate impact on the PC market could be muted.
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Microsoft Corp.'s new Windows Vista operating system spurred a 67 percent increase in personal-computer sales at U S retail stores in its first week on the market, according to research firm Current Analysis Inc.
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Microsoft's Office suite continues to be a cash cow for the company, even as interest in its Vista operating system may be lagging, according to market research from NPD Group.
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Microsoft beat Wall Street expectations for both revenue and EPS (earnings per share) for its fiscal 2008 second quarter, attributing its strong quarter to sales of core client products, such as Windows Vista and Office 2007, as well as Exchange and SharePoint server software.For the quarter ended Dec. 31, Microsoft reported revenue of $16.37 billion, an increase of 30 percent year over year and a number that solidly beat the $15.95 billion in revenue that Thomson Financial analysts had estimated. Last year for the same period, Microsoft reported $12.54 billion in revenue.Diluted earnings per share were $0.50, an increase of 92 percent over the $0.27 in EPS reported last year, and $0.04 higher than Thomson Financial estimates of $0.46. Operating income for the quarter was $6.48 billion, an increase of 92 percent from the $3.47 billion reported for the same period last year.Microsoft&#39;s year-over-year percentage growth is higher than normal due to a deferral of $1.64 billion in revenue and operating income, as well as $0.11 of diluted earnings per share from the second to the third quarter of fiscal 2007. This deferred revenue contributed to the higher-than-average second-quarter percentage growth. Without these deferrals, second-quarter growth rates for revenue, operating income and earnings per share would be 15 percent, 27 percent and 32 percent, respectively, for the quarter reported Thursday.Ahead of Microsoft&#39;s announcement, analysts had expected the company to report a strong quarter even among economic uncertainty and fears that the U.S. economy is entering a recession.Microsoft&#39;s client business, on sales of Windows Vista, was especially strong in the quarter, with $4.34 billion in revenue compared to $2.59 billion in revenue a year ago. According to Microsoft, its client business has grown 20 percent on average since Windows Vista was made available nearly a year ago, and the company believes Vista began hitting its stride for adoption among customers and partners in the second quarter. According to Microsoft, it has sold more than 100 million licenses for Vista.Looking ahead to the next quarter, which ends March 31, Microsoft said Thursday that it expects revenue in the range of $14.3 billion to $14.6 billion; operating income in the range of $5.6 billion to $5.7 billion; and diluted earnings per share in the range of $0.43 to $0.45.For the full fiscal year ending June 30, Microsoft expects revenue in the range of $59.9 billion to $60.5 billion; operating income in the range of $24.2 billion to $24.4 billion; and diluted EPS in the range of $1.85 to $1.88.
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By Benjamin J. Romano, Seattle Times  Dec. 11--As Microsoft revs up the Windows Vista marketing engine, it's touting the economic boon the software is expected to bring to the rest of the technology industry.
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By Bob Mims, The Salt Lake Tribune  Jan. 31--Microsoft's retail launch of its new Vista computer operating  system was marked Tuesday not with a bang, but with something more than a  whimper.
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Demand for the Vista Windows system and other products helps Microsoft to quarterly profits of $3.03bn, up 11% on last year.
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Bigger help desks, good news all round The launch of Microsoft's Vista will create 100,000 jobs in the US, the same as that claimed for Europe, but will bring in almost twice as much cash - some $70bn.â¦