14 DAY TRIAL // Windows XP is the only product available of the operating system market capable of rivaling Windows Vista, and Microsoft's indecision when it comes to pronounce it expired will backfire in 2008. In the coming year, Windows Vista adoption will be hurt by a Windows platform released all the way back in 2001. By 2008, Windows XP will be seven years old, and a worthy competitor to Windows Vista, according to Microsoft. The coming year will prove that Windows XP is far from expired when it comes to customer perception and that the operating system which hit the shelves on October 25 2001 is alive and kicking, and stealing Microsoft customers away from Windows Vista.
At the end of the past week, Microsoft made public record annual revenue, surpassing $50 Billion. Additionally, the Redmond company, revealed that Windows Vista and the Office 2007 System have had a major impact on the $51.12 billion revenue of the past fiscal year, and the $13.37 billion revenue of the quarter ended on June 30. "This fiscal year marked the general availability of Microsoft's flagship products, Windows Vista and the 2007 Microsoft Office system. Revenue growth was primarily driven by solid customer acceptance of these products," Microsoft stated.
"Surpassing $50 billion in annual sales is a testament to the innovation and value that our product groups delivered into the marketplace, as well as the outstanding execution by our field sales, marketing teams and partners to bring that value to life with our customers," said Kevin Turner, chief operating officer at Microsoft. "In fiscal year 2008, we will continue to drive growth through new product offerings, such as Windows Server 2008, Visual Studio 2008, SQL Server 2008, Office PerformancePoint Server 2007, and Microsoft Dynamics Live CRM."
"Our results this quarter cap off an extremely strong fiscal year for the company," said Chris Liddell, chief financial officer at Microsoft. "We have healthy core businesses and are strategically investing in growth opportunities, which will build on our success and contribute to continued double-digit revenue and earnings growth in fiscal year 2008."
But in the coming fiscal year, there will be another product that will generate profit for Microsoft in the detriment of Windows Vista. The Redmond company announced that it expects strong sales from Windows XP in 2008. "We fine-tuned the Vista/XP mix for next year" Liddell said cited by PC World. "We changed it from 85 percent to 78 percent. Now, it's a lower number for Vista, but it's still a very high number overall from our perspective, so 78 percent Vista mix in terms of sales next year."
Going from an 85/15 split for Windows Vista/Windows XP sales in the 2008 fiscal year to a 78/22 split in sales, represents an illustration of the market reality that XP is selling, and selling well even in the context of Windows Vista.