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November 17, 2006
Publicity or Piracy Prevention?
Article: Microsoft backtracks on Vista transfer limits.
Before mid-October, 2006, Microsoft had some pretty strict rules regarding transfers of its newest operating system, the anticipated Windows Vista. According to the license terms, purchasers of boxed copies of the new operating system would be restricted to transferring Vista to a computer only once. Such severe limitations, which Microsoft hoped would prevent piracy, caused a stir from current Microsoft customers, especially “hobbyists who frequently upgrade the components of their PC, in some cases triggering Windows to consider the machine a new PC.”
Because of the reaction from the public, Microsoft modified the policy on October 16, 2006, reverting to essentially the same transfer rules that apply to Windows XP. The new policy allows to “transfer their license to a new PC an unlimited number of times, provided they uninstall and stop using it on the prior machine.” This limit does not apply to newly purchased PCs that are already equipped with Vista. There are separate rules for those who purchase Vista along with such hardware (this is actually the majority of buyers), and usually these rules prohibit transferring entirely.
In my opinion, Microsoft responded correctly to the public by reversing the transfer license on retail copies of Vista. Considering the incredible delay in bringing Vista to the public and the negative word-of-mouth, it can’t afford to piss people off, especially avid users and computer nerds who are highly profitable customers. That said, part of me wonders (maybe I just like conspiracy theory) if Microsoft anticipated such an uproar in response to the new transfer rules. Perhaps they don’t care if publicity for Vista is negative, as long as it’s publicity. Maybe all they wanted was to make themselves seem conscious of and responsive to consumers’ concerns and preferences. Could they seriously have thought such a tough rule would fly?
The success of Vista is going to have serious implications for the future of Microsoft, which is facing stiff competition from free, open source alternatives like Linux. That said, Microsoft has quite a soft cushion to fall back on in the short run. According to InformationWeek.com, a recent “poll of 761 IT decision makers found that 20% expect to adopt the OS within a year and a total of 86% currently planning to adopt Vista eventually.” But in order for Microsoft to maintain market share and healthy earnings in the long run, most of those people who do implement the OS need to like it, or they are in trouble.
Posted by alathans at November 17, 2006 12:20 PM