Dell: Windows 7 is too expensive

 

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By Barry Collins

Posted on 18 May 2009 at 07:41

A Dell marketing executive claims that Microsoft is hiking up the cost of Windows 7 licences, pushing the next-generation operating system out of the reach of some users.

Microsoft is yet to release official pricing details for Windows 7. But Dell's director of product management, Darrel Ward, says Microsoft is charging PC manufacturers more for Windows 7 than it did for Vista, which could have a knock-on effect for new PC sales.

"If there's one thing that may influence adoption, make things slower or cause customers to pause, it's that generally the ASPs [average selling price] of the operating systems are higher than they were for Vista and XP," he tells CNet.com.

"In tough economic times, I think it's naive to believe that you can increase your prices on average and then still see a strong swell than if you held prices flat or even lowered them. I can tell you that the licensing tiers at retail are more expensive than they were for Vista."

Ward predicts some organisations will have to think twice before rolling out Windows 7, despite its many advantages over Vista. "Schools and government agencies may not be able to afford [the additional cost]," he says. "Some of the smaller businesses may not be able to enjoy the software as soon as they'd like."

The Dell man is concerned the price hikes could slow the momentum that is building behind Windows 7. "When Vista came out we didn't have the motivation to do the types of services that we're doing now. We didn't have the clear customer demand for such services," Ward says.

"We do have a visible number of customers, large and small, who are actually waiting for Windows 7 and who have already put plans in place to target the transition to Windows 7, they're asking Dell for help. That demand and this opportunity is stronger than it has been in the past."

Microsoft was unavailable for comment at the time of publication.