As Windows 7 launches, tech sector waits and hopes
Can Windows 7 repair Microsoft Corp.'s reputation and trigger enough sales to pull the technology sector out of its financial funk?
That seemed to be the overriding question Thursday as Microsoft officially took the wraps off its latest operating system, much of which was already public knowledge, with more than 8 million testers having used it since January.
In the past, thousands of technology companies could count on each release of a new Windows operating system to deliver its own economic stimulus: Millions of consumers would rush out to buy faster computers and companies would splurge on more powerful computer systems.
This time, the recession has pulled the plug on spending, leaving many to wonder how much of a jolt Windows 7 can deliver to a beleaguered sector.
"Windows 7 represents a significant opportunity for many companies," said Richard Shim, an analyst with technology research firm IDC, "but it's coming at a time when the industry is struggling." IDC predicted that global PC sales in 2009 would be flat at best.
Much rides on the success of Windows 7.
Microsoft is counting on the new operating system to lift its sales, which fell last fiscal year for the first time since the company went public in 1986.
Computer makers and software companies are praying that Windows 7 will set off a wave of demand for their products and services. Even consumer electronics companies see Windows 7-based computers as a way to make their devices more desirable as gateways for on-demand entertainment programs.
The operating system "is something that the entire industry has been waiting for," said Roger Kay, an analyst with Endpoint Technologies who has done consulting for Microsoft. "With almost all corporate buying of technology on hold for the past year, Windows 7 finally gives them something they can sink their teeth into."
Steve Ballmer, Microsoft's boisterous chief executive, certainly hoped so.
"Today is an important day for the computer industry, certainly for Microsoft and, I hope, perhaps even most importantly, for all of the customers around the world," Ballmer said during the company's event.
According to a study conducted by IDC and paid for by Microsoft, for every dollar the Redmond, Wash., company generates by selling Windows 7, other companies stand to reap more than $18.50 by selling products and services related to the operating system.
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