Windows 7 will Boost IT Spends: Analysts

by Abhinna Shreshtha    Oct 06, 2009

As the global economy begins the long climb back to normalcy, analysts and hardware players see Windows 7 playing a big role in hastening the process.

Anurag Purohit, AVP for Religare Capital Markets explains, "The possibility of an upgrade cycle next year is higher, considering that corporates skipped the transition to Windows Vista in 2007 stretching the replacement cycle to four-five years as compared to three years earlier."

Microsoft has already tied-up with its hardware partners to provide customers the option of purchasing Windows Vista-based PCs and installing Windows 7. Also, many OEMs have plans to release Windows 7-compatible notebooks.

Hardware manufacturers like Intel, Dell, AMD, etc. all have pinned their hopes on Windows 7 being the messiah that will provide the much-needed fillip to corporate IT spending. In fact, in a recent sales call, Michael Dell, CEO of Dell, said its customers are already planning next year’s IT budget around Windows 7.

This sense of optimism is not restricted to just OEMs. Purohit predicts that positive effects could also be seen on IT service providers with demand especially for testing, transitioning, application customization and infrastructure management services.

But is the IT ecosystem pinning their hopes on a still intangible possibility? IT spending has no doubt improved from the beating it took last year. Hardware sales have improved in Q1′09, with the major players looking more positive for coming quarters, and the same being true of Indian IT service providers. Software sales are also expected to bottom out by Q3′09 end, according to Purohit.

Intel CEO Paul Otellini recently said that there are 800 million desktops installed currently, out of which 45% are more than three years old, creating a huge potential market for Windows 7. But the question still remains - how many companies will actually go for a Windows 7 upgrade?

A recent survey of 1,000 companies by ScropLogic determined that nearly 60% had no plans to deploy Windows 7. The chief reasons being lack of time and resources and concerns over compatibility. Indian CIOs, too, seem to be adopting a ‘wait and watch’ policy. Though they have not ruled out a possible upgrade, it hardly seems likely that there will be many Indian companies jumping for a switch to Windows 7 come October 22.