[b]With Windows 7, Microsoft Aims To Put Vista Behind It[/b]
October 28, 2008: 12:15 PM EST
Microsoft Corp. (MSFT) on Tuesday announced the latest version of its Windows desktop operating system, even as it two-year-old predecessor, Vista, struggles to make inroads.
The operating system, known simply as Windows 7, was shown at a developers conference in Los Angeles that attracted developers writing software compatible with Microsoft's Windows operating system.
Windows 7 attempts to address some of the perceived weaknesses of Windows Vista that have contributed to a largely negative reception. For example, the operating system is designed to launch much faster than its predecessor. Microsoft has also modified the "task bar," allowing users to get more detailed information about an application's status without launching it.
Windows 7 also dispenses with a built-in email application, photo editing and movie editing packages.
The new operating system represents an attempt to scale down the size of programs that run personal computers and is, in part, a response to complaints that previous versions were bloated with features that slowed computer performance.
Microsoft declined to say when the product would be commercially available, but showed a demonstration to developers Tuesday and said it would make a beta, or pre-launch test release, available by early 2009. The fully-fledged package is expected to launch in late 2009 or early 2010.
Generating enthusiasm for Windows 7 is critical for the Redmond, Wash.-based software giant, which gets 30% of its $60 billion in revenue from the business unit which produces its desktop operating system. Windows is the company's most profitable product.
The initial negative reaction to Vista at its launch in 2006 was exacerbated by confusion among Microsoft's customers and hardware partners around the launch timetable, a mistake Microsoft wants to avoid with Windows 7.
"When Vista went out, a lot of people weren't quite ready," Mike Nash, who works on Windows development, said Monday.
Windows 7 comes a day after Microsoft unveiled Windows Azure, the company's entrance into "cloud computing." Azure is a development platform that will allow software developers and customers to store their applications on Microsoft's servers. It points the way towards a broader shift from the desktop computing Microsoft has dominated and into a market where there is much more competition.
Windows 7 also launches as the global economy is facing a deep and lengthy recession.
Microsoft has already acknowledged the weakening economy will have an effect, and last week the company sharply downgraded its growth expectations for the business unit, citing a weakening economy.
Microsoft shares recently rose nearly 2% to $21.50 as part of a broader rally in the stock market.
Windows Vista continues to struggle in the corporate marketplace. Many information technology departments preferred keeping Microsoft's last operating system, Windows XP, on their computers. Gartner, an IT research firm, has said many large organizations have held back from changing their systems over to Vista.
-By Jessica Hodgson, Dow Jones Newswires; 415-439-6455; jessica.hodgson@ dowjones.com
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