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Dell: Windows 7 price a concern

Dell: Windows 7 price a concern

The high asking price of Windows 7 may hurt its adoption in the long run according to Dell's Darrel Ward.

Windows 7 might be getting good write-ups from the technology press, but there could be at least one barrier to its mass adoption come release day: price.

In a telephone interview conducted between CNet and Darrel Ward, Director of Product Management for Dell's Business Client Product Group – and isn't that a mouthful – Ward was audibly concerned that the price Microsoft's next generation operating system Windows 7 would hamper consumer take-up.

During the interview, Ward said that “one thing that may influence adoption, make things slower or cause customers to pause, [is] that generally the average selling price of the operating systems are higher than they were for Vista and XP.

Ward went on to say that, in these difficult economic times, Microsoft was “naïve to believe that you can increase your prices on average and then still see a stronger 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.

Explaining that he believed that the high cost at launch would hamper early adoption from “schools and government agencies” along with smaller private businesses, Ward was worried that Microsoft's choice to sell the product at a premium compared to previous Windows releases would mean “some of the smaller business may not be able to enjoy the software as soon as they'd like.

Despite this, Ward revealed that Dell has “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,” proving that there are at least some customers for whom price is no barrier.

Have you been put off by the high price that Windows 7 will fetch at retail, or is it worth it to upgrade from Windows XP or Vista? Share your thoughts over in the forums.

43 Comments

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ch424 19th May 2009, 10:11 Quote
All that "higher average price" means is "they're not selling a home basic version any more" which is a very good thing, because home basic is rubbish.
alpaca 19th May 2009, 10:16 Quote
i was waiting for win7 too... but price will surely be a barrier to me. hope i can find a student licence or something...
and basic is rubbish indeed
Kasius 19th May 2009, 10:25 Quote
How predictably ms
impar 19th May 2009, 10:31 Quote
Greetings!

I am confused.

At what prices will W7 sell?

Not 100 for the "home" version, 150 for the "professional" version and 200 for the "kitchen-sink-included" version?
Taffy 19th May 2009, 10:44 Quote
MS are not fools, by seeing the numbers taking up the "tryouts" for a year and getting used to it after the debacle of Vista then they have virtually a captive market, and can charge a premium that is why , at this moment, I have not installed the "free" version of 7 in my new build
fodder 19th May 2009, 10:58 Quote
Interesting comments coming from a company that charges the same for an opensource run machine as a Vista run machine.

(I like Dell BTW, just never been able to work that one out).
Kúsař 19th May 2009, 11:03 Quote
Sometimes I wish software developers started making more software/games for Linux. I've been seriously thinking about switching to Linux, really...I'm tired of M$ monopoly behaviour.
decromin 19th May 2009, 11:17 Quote
Quote:
Originally Posted by Kúsař
Sometimes I wish software developers started making more software/games for Linux. I've been seriously thinking about switching to Linux, really...I'm tired of M$ monopoly behaviour.

Hmm .. M$, eh? I thought that meme died years ago ...

Oh, and woe be it for a company to set the price of it's software ...
perplekks45 19th May 2009, 11:30 Quote
Is that the typical "But I wanted it cheaper!" talk you always get from someone?
Or is it Dell trying to make sure THEY can charge you more when you buy a WIn7 license?
Or did MS really raise their prices?

Wait, we'll all know at the end of the year! Goddamnit, calm down. MS won't charge you 50% more all of a sudden. Maybe 5%, and I'd pay 5% more for 7 than I'd have to pay for Vista....
Da_Rude_Baboon 19th May 2009, 11:36 Quote
I can see them raising the OEM prices as i'm sure the majority of people who bought vista purchased an OEM copy.
Fod 19th May 2009, 11:48 Quote
Quote:
Originally Posted by Kúsař
Sometimes I wish software developers started making more software/games for Linux. I've been seriously thinking about switching to Linux, really...I'm tired of M$ monopoly behaviour.

Vote with your feet then. Seriously, I'm sick of people threatening to THINK about doing something, especially when it's something as superficial as an operating system choice! But nooo, it's made out to be a world-changing event that will HARM THE EVIL CORPORATIONS MORE THAN THEY CAN BEAR. Yes! You, fellow ubernerd, are our voice! By sounding your dissent you will bring balance to the force and strike a mighty blow for fair pricing everywhere! Or, you'll just sound like a whiny idiot. Try linux by all means, just don't feel like you need to loudly justify such a move with pithy excuses. Just shut the hell up and do it already, it's not a freaking huge deal.
perplekks45 19th May 2009, 11:55 Quote
Quote:
Originally Posted by Fod
Vote with your feet then. Seriously, I'm sick of people threatening to THINK about doing something, especially when it's something as superficial as an operating system choice! But nooo, it's made out to be a world-changing event that will HARM THE EVIL CORPORATIONS MORE THAN THEY CAN BEAR. Yes! You, fellow ubernerd, are our voice! By voicing your dissent you will bring balance to the force and strike a mighty blow for fair pricing everywhere! Or, you'll just sound like a whiny idiot. Try linux by all means, just don't feel like you need to loudly justify such a move with pithy excuses. Just shut the hell up and do it already, it's not a freaking huge deal.
QFT.
Kúsař 19th May 2009, 12:30 Quote
OK, you're right. I have already seen Ubuntu in action and I'll give it a shot. It's fairly customizable and I really like it.
I didn't wan't to sound like anti-MS-fanboy, definitely not.
But you can't just boot Linux and play Crysis, can you? Maybe games developed by id software...
b5k 19th May 2009, 12:43 Quote
Now, I consider my £80 odd I spent on XP Pro to be a worthy investment for how long I've used the license. I disagree with Microsofts business model in some ways, but damn they're successful. I would switch to Linux in a heart beat if it weren't for two things.
1) Games. I play ETQW and Quake Live which are made by id Software, so that's not a problem. It's running steam and the steam games with in that become a problem for me. I love L4D to bits. :) Not sure how Cadger (sp?) performs over XP, but it's more hastle than I currently have to go through to do my stuff.
2) Audio Applications. Linux has an array of Music Production tools, but I've been using Ableton Live for years now and I believe it's got the best innovation and creation system of any. Considering they haven't made a version for Linux yet, this is the true thing preventing my move. I need 100% assured compatibility with my audio hardware and software and that's why I stick to Windows.

It'd be lush if someone formed a complete standard across the operating system board (Nix, Mac, Win) that would mean any application could run on anything. Hopefully then the competition would come down to performance rather than compatibility...but until then I'll just have to "cope". :D
smc8788 19th May 2009, 12:59 Quote
Quote:
Originally Posted by ch424
All that "higher average price" means is "they're not selling a home basic version any more" which is a very good thing, because home basic is rubbish.

But none of the systems Dell sells actually ship with Home Basic - even their lowest end desktop and laptop models ship with Home Premium, so I don't see how that is the issue.
thEcat 19th May 2009, 13:09 Quote
I'm still waiting for a compelling reason to change from XP. All I'd get from upgrading the 20 something pc's at work is a major support headache, there would be zero benefit for the company. At home the situation is much the same, I have a copy of Vista, I built a pc especially for it and it sits unused. I have a dual boot XP/Win7 pc but I seldom have reason to boot Win7, indeed to me Win7 is to Vista what the new clothes were to the Emperor, scarcely enough improvement to cover its embarrassment.

A few things that would persuade me to make an early switch to Win7 on my main pc :
Seamless upgrade to avoid the hassle of installing my apps.
Price, say Home Premium £50, Ultimate £100. Anything over £100 and I have far better ways of spending my cash.
The mass abandonment of DX9 by the games industry.
Faultless XP and possibly Win98 emulation, granted the Virtual Machine technology may allow this but I'll wait the reviews.
gavomatic57 19th May 2009, 13:12 Quote
Quote:
Originally Posted by Taffy
MS are not fools, by seeing the numbers taking up the "tryouts" for a year and getting used to it after the debacle of Vista then they have virtually a captive market, and can charge a premium that is why , at this moment, I have not installed the "free" version of 7 in my new build


I'm not so sure. I've downloaded the RC, installed it, uninstalled it and went back to Vista. Windows 7's problem is that it is really just Vista with a KDE4-alike front end. I like Vista, but I've already paid for that. I'm not paying for it again.

I've already migrated mostly to Ubuntu, I just boot Windows to play games. When Vista support ends, I'm gone.
Paradigm Shifter 19th May 2009, 13:33 Quote
Quote:
Originally Posted by smc8788
But none of the systems Dell sells actually ship with Home Basic - even their lowest end desktop and laptop models ship with Home Premium, so I don't see how that is the issue.

While this isn't indicative of what Dell sell direct... the Dell Inspiron systems that my local Tesco sell come with Vista Home Basic. I think they're a specific SKU for Tesco to flog to people who don't know better, though, as they're not a spec that you can buy on the Dell site. :)
ch424 19th May 2009, 13:59 Quote
Quote:
Originally Posted by smc8788
But none of the systems Dell sells actually ship with Home Basic - even their lowest end desktop and laptop models ship with Home Premium, so I don't see how that is the issue.

Yeah they do - just go to the dell site and click on the cheapest Inspiron 15 - it comes with home basic and they want £30 to upgrade it to home premium... I still see your point though - it doesn't affect many systems.
Rkiver 19th May 2009, 14:05 Quote
I use multiple OS at home and in work, and all of them have their good and bad points. Overall Windows 7 has been a positive experience for myself, and I would not be against purchasing it in the future. However I currently use Vista Ultimate 64 on my home machine and it does all I need. I wont be upgrading to 7 just yet.
nicae 19th May 2009, 14:42 Quote
Quote:
Originally Posted by b5k
Now, I consider my £80 odd I spent on XP Pro to be a worthy investment for how long I've used the license. I disagree with Microsofts business model in some ways, but damn they're successful. I would switch to Linux in a heart beat if it weren't for two things.
2) Audio Applications. Linux has an array of Music Production tools, but I've been using Ableton Live for years now and I believe it's got the best innovation and creation system of any. Considering they haven't made a version for Linux yet, this is the true thing preventing my move. I need 100% assured compatibility with my audio hardware and software and that's why I stick to Windows.
That's an issue for me. I have no idea about audio apps for Ubuntu (An article named something like "Leaving Redmond in 24 hours" on TGDaily mentioned one) but will investigate into that as soon as I get the instruments =)
Your item #1 isn't much of a concern. I would love to get rid of that addiction ASAP! ;D
Quote:
It'd be lush if someone formed a complete standard across the operating system board (Nix, Mac, Win) that would mean any application could run on anything. Hopefully then the competition would come down to performance rather than compatibility...but until then I'll just have to "cope". :D
/dream_mode
M$ has 90% of the market and will change it's core functionality anytime of the day to make it harder for people to leave it's sheep herd. I'm impressed VMWare manages to have so much compatibility, to be honest.

I've begun my transition to Ubuntu with VMWare, actually. I have a Linux machine within my WinXP to ease the pain. I might install a virtual WinXP machine as well to test files for viruses and so forth. If anything is erratic, I simply delete the machine and start over. No harm done! =)
Icy EyeG 19th May 2009, 14:55 Quote
Quote:
Originally Posted by decromin
Hmm .. M$, eh? I thought that meme died years ago ...

It should have, specially when people realize it can be applied to Appl€ and £inux as well...
(I think I saw this for the first time here in these forums last year...)
perplekks45 19th May 2009, 15:26 Quote
1st) You can dual boot, many seem to forget that.
2nd) 7 is more than Vista with new frontend.
scarrmrcc 19th May 2009, 17:09 Quote
Quote:
Originally Posted by perplekks45
1st) You can dual boot, many seem to forget that.
2nd) 7 is more than Vista with new frontend.

oh, dual booting makes W7 cost less.....i forgot.
perplekks45 19th May 2009, 17:15 Quote
That's not what I meant but sorry if it wasn't clear.

#1 was aimed at all those people justifying not to use Linux because there are no [whatever] applications.
smc8788 19th May 2009, 17:39 Quote
Quote:
Originally Posted by ch424
Yeah they do - just go to the dell site and click on the cheapest Inspiron 15 - it comes with home basic and they want £30 to upgrade it to home premium... I still see your point though - it doesn't affect many systems.

Ah, I missed that one

But yeah, very few systems (apart from those uber-cheap ones) are sold with Home Basic, and quite rightly in my opinion. It's just unnecessarily bad.
perplekks45 19th May 2009, 17:43 Quote
Question now is: What is the bigger market, the cheapest crap ever sold to humanity with Basic or the slightly more expensive stuff with Premium?
B3CK 19th May 2009, 18:05 Quote
Ya even at CES this year, during their Win 7 demo, they were all about avoiding questions about fixing or upgrading the OS to include more functionality, to bow to the user ability crowd. Whats the point in being able to "show desktop" three new and different ways; when there was already a show desktop button. And above that, they kept saying it was due to space constraints, but still sat there and hid behind, "it's what customers asked for" instead of fixing multi monitor support.
Screw em, i wouldn't pay more than $25 to upgrade to it. My xp, vista, Ubuntu, and BSD all have a show desktop button that works just fine. As to speed, well, 1-3 secs difference is just fine by me; if I need faster load times or processing, I'll spend my money on hardware thank you.
Ending Credits 19th May 2009, 18:11 Quote
If It sucks that I'm paying a £100 licence just to play games, granted it has other features but I only use a couple of those day to day. Thanks for the one MS!
leslie 19th May 2009, 21:14 Quote
What did you expect from M$?
Every time M$ has done a pricing study to see how much they can get away with charging, they have charged the maximum amount.

You could also think of this as punishment for a lack of Vista sales. Since we didn't buy that, we pay more for this. Mr. Gates (and thus M$) doesn't care if you like him, he only cares that you need him. I know many will take offense and I don't want to start a war, but let's be honest, XP is showing it's age, Vista is a dud, Mac is not viable in most offices, Linux is not viable (for most people) at home. Win7 will be the one to dethrone XP.
b5k 19th May 2009, 22:57 Quote
Quote:
Originally Posted by perplekks45
1st) You can dual boot, many seem to forget that.
2nd) 7 is more than Vista with new frontend.
I don't see the point in a dual boot. If I've got Windows XP I'll just use it, how does switching between two operating systems change my problems? I either want one or the other.
perplekks45 20th May 2009, 10:33 Quote
Nevermind... :(
leslie 20th May 2009, 11:52 Quote
Quote:
Originally Posted by Ending Credits
If It sucks that I'm paying a £100 licence just to play games, granted it has other features but I only use a couple of those day to day. Thanks for the one MS!

Buy a console, then you can pay twice as much to play games.
Fod 20th May 2009, 12:27 Quote
Quote:
Originally Posted by leslie
What did you expect from M$?
Every time M$ has done a pricing study to see how much they can get away with charging, they have charged the maximum amount.

You could also think of this as punishment for a lack of Vista sales. Since we didn't buy that, we pay more for this. Mr. Gates (and thus M$) doesn't care if you like him, he only cares that you need him. I know many will take offense and I don't want to start a war, but let's be honest, XP is showing it's age, Vista is a dud, Mac is not viable in most offices, Linux is not viable (for most people) at home. Win7 will be the one to dethrone XP.

for the last time.
stop substituting $ with S. it's a bloody company, they make money. that's what companies do.
b5k 20th May 2009, 12:59 Quote
Quote:
Originally Posted by perplekks45
Nevermind... :(
Don't sigh at me...Makes me feel stupid. :(
nicae 20th May 2009, 13:38 Quote
Quote:
Originally Posted by b5k

I don't see the point in a dual boot. If I've got Windows XP I'll just use it, how does switching between two operating systems change my problems? I either want one or the other.
I'd rather use VMWare instead of a physical partition for a second boot. But both solutions should kill off most of your application problems.
What it does not solve is the price matter, and if price wasn't a problem, then we wouldn't be having this discussion =)

I've never felt the need to move off Windows like I do now.. Maybe they aren't wrong when they keep saying it's the Linux year (at least at heart) :\
perplekks45 20th May 2009, 15:19 Quote
Sorry b5k. :)

What I meant to say was that all those whiners should just suck it up and dual boot instead of making up excuses why they can't use Linux. If you REALLY want to use Linux [be it Ubuntu, SuSE, KDE, Debian or whatever] but some of your applications won't run then you could dual boot or as nicae said use a VM. That was the point I was trying to make.

Oh, and I agree 100% with Fod. ;)
leslie 20th May 2009, 22:55 Quote
Quote:
Originally Posted by Fod
for the last time.
stop substituting $ with S. it's a bloody company, they make money. that's what companies do.
Hey Fod, which do you think people found more annoying, my use of the $ or your using gigantic text to make it an issue?:|


Yes, they are in it for money, but there is also this long forgotten thing called ETHICS. Which they lack.


P.S.
I thought the $ seemed appropriate for the thread considering the subject, I don't normally do that, maybe I should make it a habit seeing as how it evoked such an over-reaction. Have a nice day. :D

(My apologies to the rest of you for driving the tread off topic)
Fod 21st May 2009, 13:52 Quote
wait just a moment. since when did charging a price which the vast majority of people are prepared to pay become unethical?
normal people call this practice 'good business sense'.
gavomatic57 21st May 2009, 14:25 Quote
Some say MS have dubious business practices and in some cases they are right, but the idea that they are worse than the likes of Apple makes me laugh. Apple are by comparison a disgrace, they just failed to take as much market share and aren't seen as "the big bad".
Fod 21st May 2009, 15:10 Quote
Quote:
Originally Posted by gavomatic57
Some say MS have dubious business practices and in some cases they are right, but the idea that they are worse than the likes of Apple makes me laugh. Apple are by comparison a disgrace, they just failed to take as much market share and aren't seen as "the big bad".

it's not just that. large companies at the top of their game, making stupid amounts of money can be popular - look at nintendo, everyone loves them and they are the runaway winners of this generation's console war.

the MS thing in my opinion is pretty much a fashion among uneducated people who have begun to show an interest in technology. i don't mean to say that MS is some pariah; an undeservingly persecuted messiah of the tech industry. it does on occasion put the odd foot hilariously wrong, and has had to be slapped down for the odd anticompetitive practice before (although let's not get started on the latest EU ruling; utterly flawed from the get go but anyway). but to suggest that the practice of pricing a product to a level that the market itself has deemed appropriate as unacceptable? well, that's just a big slice of failcake.
perplekks45 21st May 2009, 20:47 Quote
Calm down, Fod. :p
But you're right, MS only do it because they know that it's how much customers are willing to pay.

And about the [silly] comment how mean MS are to always use the upper border of their "how expensive can we make our stuff" research: WTF?! Wouldn't you do EXACTLY the same?! I mean, if you can make £50 a piece without pissing too many people off, would you settle for £20? If so, you'll never leave that shelf-restocking job at Sainsbury's, sorry.
leslie 21st May 2009, 21:15 Quote
They can price where they want, they have that right. As for willing, that is arguable, how many companies are stuck in the windows loop? They can get away with it because many have no option. Go buy a new laptop, how many OS choices do you have? Many have no idea Mac even exists, much less the few Linux laptops (which for some odd reason cost the same).

The last time I bought parts for 4 computers without any copies of Windows my wholesaler freaked out, worried the B.S.A. would come down on him. It didn't matter if it was legitimate, it is expected that you will buy Windows and if you don't you are either a pirate or you better have a corp. license.

It's not that people are willing to pay that much, it's that people will pay that because they have little choice.
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