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MS Trying To Spur Vista Sales With Discounts
Ang writes "Is Microsoft having worries about selling Vista already? Ars reports that Microsoft has announced yet another 'discount program' for Vista, but these new discounts work out to only about 10% off list price — not much when you notice that retailers already sell Vista below list. To make matters worse, the discount program would still end up costing you $100 more than the older 'family' discount built around Vista Ultimate in some situations. Ars spends seven paragraphs explaining this convoluted offer. Is all of this complexity supposed to help sell Vista?" If you must buy Vista, it might be advisable to sit on your wallet for a while. The discounts are bound to get sweeter.
Last couple of times I've visited Costco there have been huge and nearly full Vista racks. It's pretty early in a product cycle for Vista to be in Costco... let alone in Costco and not moving.
Microsoft makes most of its money through its OEM deals. I believe the number bandied about is that 80% of its Windows revenue comes not directly from the consumer, but from the "Microsoft tax" on nearly all computers sold. Also, the price MS charges OEMs for Windows is already a lot lower than that charged for an off-the-shelf version. A lot of Microsoft's revenue also depends on businesses and government, not consumers. These "discounts" seem more like the fevered imaginings of a marketing drone who wants to make Windows seem like a "sweet deal". It may not even be a ploy to make more sales in the consumer section, it might be just another trick to increase awareness of the Vista brand; nothing makes consumers perk up their ears like the word "discount", even if they are ultimately not interested in a new operating system.
Is that it doesn't play nicely with AD domains. I know, we tried it and it failed miserably. Microsoft really dropped the ball on this one. I mean, even 2000 and XP could connect to both standard NT domains and AD domains. But Vista has issues, even going so far as completely screwing up the network settings. And friends in the market for a laptop are begging me to downgrade their machines to XP because critical applications they use will NOT run on Vista.
I couldn't help thinking about what $5 billion would buy in the software world. It's hard to compare graphics softwares and OSs but look at it this way you could buy most of the major CG software companies for that and probably pick up some choice 2D software companies to boot. That's a lot of complex software. Was the Vista upgrade worth $5 billion? If I was a shareholder I'd be pissed and want some one to explain. Mac is pulling off more innovative OS upgrades almost on a yearly basis for a tiny fraction of the cost. As a stockholder I'd want some heads to roll because all that wasted money could have gone to paying dividends instead of fat bonuses for a questionable upgrade. Microsoft's primary assest is market share which is formitable but can it last if they don't do better with future upgrades? Vista is a marginal upgrade for the user to XP so in a sense they are five years behind where they should be in development. Investors and customers may let them slide on this one but if the next upgrade doesn't look much better they will have a lot of explaining to do since Mac and Linux are constantly upgrading during the overly long Windows development cycle.