Microsoft Thursday launched Windows XP, the latest version
of its operating system, with much fanfare and a flurry of
events, designed to generate interest in what the company
calls the most revolutionary change in its desktop operating
system since 1995.
Touting Windows XP's greater reliability,
compatibility and security, company officials in South Florida
and around the world hope the new operating systems will bode
well for software and PC sales in a sluggish economy.
The main event was in New York where a huge
Microsoft banner graced Times Square. Bill Gates, Microsoft's
chairman, enlisted the help of New York Mayor Rudolph Giuliani,
game-show host Regis Philbin, and rock star Sting, who gave
a free concert in Bryant Park in mid-town Manhattan.
In South Florida, about 1,200 people braved
early morning traffic Thursday to get a first-hand look at
Windows XP at an event staged at the Signature Grand in Fort
Lauderdale.
The local event brought out retailers such
as Office Depot, partners who build and sell solutions on
the operating system such as North Miami's Citrine Technologies,
major computer manufacturers such as Dell, Gateway and Compaq
and local system builder Alienware, which makes gaming computers.
A 1 1/2-hour presentation by Jeff Thoman,
solutions sales supervisor for Microsoft's Gulf States district,
wowed the crowd with Windows XP's razzle-dazzle capabilities.
The program adds features for editing digital
photos, listening to music and videoconferencing. It offers
plug-and-play support for a slew of digital gadgets such as
digital cameras and MP3 players.
XP is built on a more stable underlying code
- meaning fewer crashes - and is compatible with excisting
systems and software, which should find fans among corporate
users.
"Microsoft's goal is to provide access
to information, anytime on any device," Thoman said.
"In Windows XP, the multimedia benefits are enhanced.
But it also gives you a lot more stability," said George
Danao, Gateway's marketing manager for Florida.
"Compatibility is the big feature for
business users, " said Richard DuBois, a sales consultant
supervisor at Office Depot.
Indeed, that compatibility is what has made
a believer out of Marc Goldberg, who is the director of network
services for Boca Resorts. The company, which owns five hotels
and runs six country clubs has been going through a pilot
program with Windows XP. Goldberg said the new operating system
is reliable, secure and fast, but most of all, it's compatible
with some of the company's existing software.
"The financial people don't care that
it makes my job easier to do. But they do care that it will
save money."
Boca Resorts has already ordered 200 licenses
for the new operating system, he said. That's music to Microsoft's
ears - and money in the till.
Upgrading to the XP Home version costs $99;
the XP Professional upgrade costs $199. The full XP Home and
Professional versions cost $199 and $299 respectively.
Industry analysts aren't convinced that users
will jump immediately to purchase the new software. Gartner
Group, a Boston-based research firm, estimated Microsoft will
sell 5.4 million copies of XP on new PCs by the end of this
year, 4.4 million of the home edition and 1 million of the
business version. In 2002, Gartner expects sales will increase
to 56.9 million - 41.5 million home and 15.4 million business
copies.
"Companies are going to take longer to
evaluate the software and decide what to do with it, "
said Gartner analyst Mike Silver. Gartner's estimates don't
include upgrades.
Demand for Windows XP is a fifth of what it
was for Windows 95 when it was released, said Rob Enderle,
an analyst at Giga Information Group. However, initial sales
aren't disappointing.
Microsoft said 150,000 copies have been deployed
so far, and companies have committed to another million.
At the Best Buy store in Sunrise, Shahrooz
Eslahi, a services supervisor, said more than 100 copies of
XP have been sold by mid-afternoon.
"Sales have been better than I expected.
There have been lots of promotions," he said, noting
there were offers of free memory, an MP3 player or music CDs
with a Windows XP purchase Thursday.
At the CompUSA store in Deerfield Beach, Diana
Heileman, Microsoft's business manager for the South region,
said about 80 customers were lined up late Wednesday night,
waiting for the stroke of midnight when sales of Windows XP
would begin. She saw buyers of the software as well as folks
taking advantage of other promotions.
Microsoft isn't leaving much to chance to
get the word out - and create a buzz - about the new operating
system.
The company is spending $200 million
to promote the product and staging pubilicity events, just
as the company did for Windows 95.
