Microsoft partners cautious about Windows 7 cash cow

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Microsoft partners cautious about Windows 7 cash cow

After the hype that surrounded Vista, Microsoft partners are taking a wait-and-see approach despite IDC’s rosy predictions for they will make off the back of Windows 7.

According to CRN, IDC thinks that for every dollar of revenue that Microsoft gets from US sales of Windows 7 until the end of 2010, partners will reap $18.51 in related products and services revenue.

Partners stand to make $110 billion in products and services around Windows 7, according to IDC.

However, those partners say they heard all this before. In late 2006 Redmond commissioned a study from IDC that estimated that for every dollar Microsoft earned from Vista, partners would earn $18 in associated revenue. Vista did not make anything like that for partners, who found that few of their customers wanted to migrate from Windows XP.

Larry Piland, president of Datel Systems said that smaller customers did the upgrades themselves and needed little help while many of the larger ones did not upgrade.

Matt Scherocman, vice president of consulting services at PCMS IT Advisor Group, said that Vista never met his company’s expectations for driving partner services. He said that while Microsoft software does push sales, he has never seen the sort of volumes that Redmond had predicted.

While most partners think that Windows 7 will fare much better than Vista, despite the economic gloom, it appears that they do not think they will be laughing all the way to the bank as Redmond claims.

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