IDC anticipates major uptake with upcoming Windows XP release

By IDC for BMI-TechKnowledge
Johannesburg, 28 Sep 2001

Microsoft`s release of Windows XP is approaching and the new product will likely appear in corporate accounts within a few short months of being released, according to IDC.

The global market intelligence and advisory firm is forecasting that Windows XP sales will account for 67% of Microsoft`s worldwide client operating environment (COE) new licence shipments during 2002. On the local front, BMI-TechKnowledge, local IT and telecoms research firm, says the launch of Windows XP is expected to boost the slowing PC market.

Chantel Mann, BMI-T analyst, says: "Hardware vendors in SA are expressing sentiment that there are a lack of upgrades due to software market lagging. Vendors feel that Windows XP will influence the upgrades and stimulate sales," she says. However, BMI-T believes that consumers and businesses will adopt a wait and see approach before making any serious purchasing decisions.

"IDC sees Windows XP as Microsoft`s best solution to date for powering client environments," says Al Gillen, research manager for IDC`s Systems Software service. "Upon release, Windows XP will quickly take over the momentum that Windows 98 and Windows Me have, and much of the momentum that Windows 2000 Professional has in the market today."

Windows XP represents Microsoft`s convergence to a single code base for both consumer and business client operating environment products. While many users are excited about the enhanced capabilities the product offers, others are weary of upgrades, particularly those who will face another round of hardware purchases to support the increased system resources required by Windows XP.

Despite these impediments, IDC believes Windows XP will quickly replace the shipments of existing Microsoft products and continue the company`s dominance in the client operating environments market, although Windows XP is not expected to create a surge in total client operating environment shipments. IDC also believes PC original equipment manufacturers (OEMs) will move very quickly to offer Windows XP as the only choice on consumer machines. For businesses, Microsoft`s new volume licensing terms will both encourage and mandate that businesses obtain the most current technology for their client operating environment purchases, which after 25 October will be Windows XP.

BMI-TechKnowledge Group (BMI-T)

BMI-TechKnowledge (BMI-T) is Africa `s leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and the Internet. Formed over 14 years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year.

BMI-T has an active ongoing research publications business that has consistently published research-based market analysis covering many facets of the IT, telecommunications and emerging media sectors. This knowledge base provides the platform on which we build our customised research and consulting, including assignments such as market entry strategies, product entry strategies, channel and distribution analysis and African research.

IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and e-business trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts world-wide markets and trends to deliver dependable service and client advice.

More than 700 analysts in 43 countries provide global research with local content. IDC`s customers comprise the world`s leading IT suppliers, IT organisations, e-business companies and the financial community. Additional information can be found at www.idc.com.

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