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December 04, 2006

Vista... last of its kind?

The upcoming release of Vista has been anticipated by computer users for nearly 5 years. It is a new Operating system which supposedly contains all the updates you ever need. However, there is speculation that competition and rapidly-evolving technology will make this release the last of it s kind… ever.

Microsoft has enjoyed what many consider to be the largest monopoly in the world. However, companies such as Google and Linux are contributing to breaking it down. Google has expanded to offer many of the services Microsoft touts on its operating systems for free, with development and release supported by as revenue. Linux has also made some component of their operating system free. This greatly reduces the amount that Microsoft can charge for it new Operating systems. Also, because of the rapid evolution of technology today (much, much quicker that it was in the past), it is very illogical for consumers to wait years to get their software and OS updated. Most people enjoy and would rather have numerous, smaller updates that are available as new technology and improvements and created.

Consider the cost incurred by Microsoft to create the Vista Operating System. Some estimate that 10,000 employees worked specifically on this project for five years at an average salary of 200,000 per year. That gives it a cost of over $10 billion. This compares to the cost of some of the biggest engineering project in history, including the Manhattan Project (which created the Atomic bomb). They also claim, however, that Microsoft with still be able to post an operating profit on the project of about $11.5 billion. This is because Microsoft has such a significant monopoly on the market and there is no parallel competitor for Microsoft to have to worry about. That many not be the case in the near future, however, and it would be prudent for Microsoft to start paying attention to that now.

If Microsoft does in fact decide to go the route of Google and Linux and offer many smaller updates over shorter time intervals, it would be greatly beneficial for both the consumer and the company. Consumers won’t have to wait as long to get updates and their software could reflect the most-current technology and Microsoft won’t fall behind Google and Linux or lose any of its large market share. Also, Microsoft could enjoy a steady stream of revenue; despite the large amount of money invested into Vista, the stock has remained flat over the past 5 years. This would allow Microsoft to continually invest in developing technology and stay at the forefront of the Computer Technology industry.

The information used for this article and be found at teh website

Posted by grturner at December 4, 2006 12:48 PM

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