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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Windows 7 may help kickstart delayed corporate spend Wed Oct 21, 2009 11:41pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Gabriel Madway and Ian Sherr SAN FRANCISCO (Reuters) - Computer makers hoping for Microsoft Corp's new Windows 7 operating system to free up a long-awaited corporate spending spree may have to wait until the second half of next year. As the world's top software maker prepared for its biggest product launch in a decade on Thursday, analysts said PC vendors already stood to benefit from a hardware refresh cycle next year. Microsoft's new, supposedly more stable platform should serve as further impetus to upgrade aging machines. Industry watchers say Windows 7 may also have a short-term impact on PC sales to consumers -- potentially a slight benefit to consumer-oriented players such as Hewlett-Packard and Acer Inc. But many large businesses will look to 2010 and beyond to buy, preferring to wait and see. "Vista was so bad that nobody moved to it," said Needham & Co analyst Richard Kugele. "Now, with the operating system no longer being a stumbling block, you can actually deal with the hardware problem and be comfortable that the OS isn't an issue." The expected refresh cycle that is being touted by the likes of HP and Dell Inc would likely take place regardless of Microsoft's new offering, analysts say. That's because of a pent-up need to replace old hardware -- a cycle put off as budgets shrank in the downturn. But no one knows how robust it will be. Research group Gartner expects commercial PC sales to rise 10 percent in 2010 and an additional 13 percent in 2011, as businesses replace 4- and 5-year-old computers. Early, positive reviews for Windows 7 should give businesses a further nudge. As Vista ends its nearly three years of life on the shelf, only 10-15 percent of enterprises have migrated, analysts say. The rest remain on the 8-year-old Windows XP. The entire computer food chain, from chipmakers like Intel Corp and Advanced Micro Devices to disk drive makers like Seagate Technology, stands to benefit from a robust push by companies to replace PCs. "They have to replace these aging machines," said Gartner analyst Mikako Kitagawa, adding that Windows 7 might accelerate the upgrade cycle for corporations. GOING UP THE FOOD CHAIN HP's shares are up more than 30 percent this year and Dell's nearly 50 percent, as the PC market recovery takes hold and investors anticipate a bump in corporate spending on computers next year. Goldman Sachs expects IT spending to rise 4 percent in 2010 to 320.4 million units, reversing an estimated 8 percent slide this year. It sees PC unit growth of 9 percent in 2010. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Google, labels partner on music search: sources Also On Reuters Blog: Believers of 2010 GOP majority in "la la land": Dems Analysis: Insider trading wire taps sign of things to come Full Coverage: Reuters Washington Summit 2009 More Technology News Microsoft launches Windows 7, eyes PC sales rebound | Video Microsoft, Google seal Twitter search deals Google, labels partner on music search: sources Like Windows 7, Vista got good reviews too RIM launches new Bold, but challenge looms for Storm | Video More Technology News... Video Windows 7 ready for launch Play Video More Video... Related News Like Windows 7, Vista got good reviews too 21 Oct 2009 Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Modern man a wimp says anthropologist CORRECTED - Like Windows 7, Vista got good reviews too WRAPUP 2-US Congress cranks up pressure on insurance industry Pakistani brigadier, driver killed in shooting Windows 7 may help kickstart delayed corporate spend | Video Microsoft launches Windows 7, eyes PC sales rebound Microsoft launches Windows 7, eyes PC sales rebound | Video China's growth quickens but policy stays on hold Deserted shopping mall bleak symbol of Fed bailout Gates pledges nuclear umbrella to counter N.Korea Most Popular Articles RSS Feed Video Obama aims to aid small business Seven more die in Rio drug violence Windows 7 ready for launch Shortage of vaccine as H1N1 spreads Pakistan army's Taliban battle video Detroit housing market still hurting Suspect charged in mall attack plot IAEA gives Iran deal draft Pakistan violence hits life, trade NASA rolls out new rocket Most Popular Videos RSS Feed commentary Apple defies gravity You have to be very dark-hearted to see clouds ahead for Apple, but there are two areas where doubts might arise. Commentary Video: Microsoft rebounds with Windows 7 Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Labs | Journalism Handbook | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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