Office 2003 Faces Slow Growth: Merrill Lynch

by CXOtoday Staff    Dec 03, 2003

Only about 35 percent of large businesses plan to acquire Microsoft’s Office 2003 software next year, according to a survey of chief information officers conducted by Merrill Lynch.

The survey was conducted among CIO’s at 75 U.S. companies and 25 European ones.
A total of 65 percent replied that they didn’t not plan to upgrade, a fact that Merrill Lynch attributed to complex new server-based functions in the new version, including capabilities based on Extensible Markup Language (XML).

The upgrade cycle seems to be moving slowly, as customers are waiting for new XML-based technologies to establish a hold in the broader market, according to the survey.

However, Microsoft said that the initial sales of Office 2003 are in line with its expectations. The survey results are in accordance with predictions accompanying the launch of Office 2003 in October, when analysts noted that businesses would need to do significant testing and resource planning before taking advantage of XML functions and other server-based tools.