Release of Windows 7 will boost IT spending

Tomorrow’s release of Windows 7 is expected to create a boost in IT spending for retailers and tech support companies, an industry expert says.

The claim comes as a survey reveals two-thirds of Australian businesses are set to upgrade their current systems to the new software, while Microsoft and other IT retailers are expected to earn millions from sales.

Bruce Mills, chief executive of IT consultancy firm 3W, says the release of Windows 7 will trigger a huge wave of spending.

“One of the key issues with the release is that so many people have put off upgrading from XP to Vista because of its flaws, so there is some huge pressure for people to upgrade to the next operating system.”

“Another spending key will be people either getting tech support or buying new computers with Windows 7 loaded. There is no upgrade bath in the corporate environment from Windows XP to Windows 7, so you can’t just put the disc in and do a straight upgrade. So there will be some demand for services in that regard.”

Mills also says the release of Windows 7 will be supported by new advances in technology that will boost sales.

“The other big factor is the uptake of netbooks. You couldn’t run Windows Vista on netbooks, but now Windows 7 has been designed for that purpose and there is likely to be a good uptake.”

Technology research from IDC released a report earlier this year in which it predicted 40 million sales of Windows 7 during 2009, with a total of 177 million units of the software sold by the end of 2010. About 19% of the global IT workforce is expected to be using Windows 7 by the end of next year.

Based on the cheapest version of the software available, total revenue from sales could reach at least $US8 billion by the end of the year, according to IDC’s predictions.

“Windows 7 will be shipping into a relatively harsh environment,” IDC said in its research. “But the launch of a new and better operating system will necessitate new applications, new hardware, new planning, deployment and training, and new services. These will drive much-needed investment that will, in turn, fuel stronger growth in subsequent years.”

The predictions come as a new survey shows over two-thirds of Australian businesses are expected to upgrade to the new software.

The survey, from tech company Data #3, reveals 67% of companies with over 1,000 employees are considering upgrading their computers to Windows 7 within the next six months. Additionally, a massive 83% of companies with between 100-1,000 employees are considering the upgrade.

Data #3 Microsoft services practice manager Scott Gosling, said in a statement that businesses have a good understanding of the new features included in the new software.

“One of the major deployment challenges posed by Windows Vista was application compatibility, as some key corporate applications were incompatible on release.

These challenges were widely reported and are still fresh in many CIOs’ minds. New approaches are available with the release of Windows 7 to address application compatibility challenges for corporate applications.”

“These tools provided by Microsoft give organisations the ability to test application compatibility ahead of time, and provide a remediation mechanism should challenges exist.”