Monday, January 29, 2007

INTERVIEW - Microsoft: Vista enterprise sales "very well"

Microsoft Corp. Chief Executive Steve Ballmer said on Monday corporate sales of Vista are going "very well," and he expects the consumer launch of the new Windows operating system to spur demand for personal computers.

Microsoft began to sell Vista, the first major upgrade of its dominant operating system in five years, to companies last November and will launch retail sales on Tuesday.

Asked by Reuters how corporate sales were going, Ballmer said: "So far, very well. So far I would say the reaction has been incredibly positive."

Vista upgrades the operating system used on more than 90 percent of computers, and features translucent windows to make it easier to view items on the desktop, an improved search system and improved reliability and security.

In the first year of its release, Vista will be installed on more than 100 million PCs worldwide. But because only about 15 percent of existing computers have memory and graphics cards powerful enough to run premium version of Windows Vista, it could trigger a wave of PC purchases.

"There is a pent up set of consumers who are going to get new PCs," Ballmer said in an interview. "We will see an uptick (in PC sales). Sales will be stronger than they otherwise would have been."

Microsoft is set to unleash a marketing blitz with the launch, including a host of events in New York's Times Square and midnight sales at many retail stores.

The world's largest software maker released the operating system, Office and PC server products to corporate and other large customers in November. It is set to make Vista, the cornerstone of a new product cycle at Microsoft, widely available for retail customers on Jan. 30.

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