Microsoft down about slow XP take-up

While Microsoft is pleased with robust sales of new PCs that come loaded with Windows XP, the company has been less than satisfied with the rate at which large companies are installing its latest operating system.

Kevin Johnson, Microsoft's group vice president for worldwide sales and marketing, said in a recent interview: "In the area of deployment, I don't think that's met my expectations."

An executive at one Microsoft customer, computer security firm SecureMethods, explained that there just isn't enough in Windows XP to justify the time and costs of upgrading. Rather than pay for a companywide licence to use the latest version of Windows, SecureMethods just takes whatever OS comes installed on new PCs.

Paul Clark, CTO of SecureMethods, said "we don't actively upgrade computers", adding that PCs have a life of three to four years. "When we buy new laptops, if they come with XP, that's great. We don't buy [new] licences."

With more than 90 per cent of the world's PCs running some form on Windows, Microsoft has long considered its chief competition to be its installed base - convincing customers that they need a new OS can be a tough sell. That's been especially true with XP, which after two-and-a-half years on the market is installed at about 62 per cent of businesses with revenue of $50m (£27m) or more, according to Jupiter Research.

Ina Fried writes News.com