HP CEO: Vista Never Had Its Moment in 2007

It’s clear that OEMs just don’t fear Microsoft like they used to. From a recent CIO article:

Wondering what’s happened to momentum for Microsoft’s Vista operating system in corporate America? Fact is, enterprise IT has continued to decline the Vista plate like it’s an undercooked holiday casserole. Listen to what Hewlett-Packard CEO Mark Hurd said yesterday: HP never saw a “Vista moment at any time over the past year,” he told reporters on a conference call to discuss HP’s fourth-quarter earnings.

HP was happily announcing that revenue for its personal systems group has spiked to $10.1 billion; that’s up 30 percent compared to fourth quarter a year ago. But that success sure isn’t because businesses planned a Vista upgrade and refreshed systems at the same time.

On the contrary, Vista did not play into HP’s sales uptick, Hurd declared. That uptick is all about sales in emerging markets including China, he says. In fact, HP says that revenue from Brazil, Russia, India and China increased 37 percent; it’s now nearing 10 percent of HP’s $104.3 billion in sales.

I can practically see the steam coming out of Steve Ballmer’s ears when he hears Hurd say this out loud. This isn’t the way Vista was supposed to play.

Just a few short years ago you would not have had the CEO of a company like HP admitting something like this, even if it were true. With growth coming from emerging markets such as BRIC and viable alternatives becoming available, the stranglehold Microsoft had on most OEMs is fading fast. That’s good for the OEMs and good for the consumers. It’s good for just about everyone but Microsoft, really. Real competition looks like it may come sooner than many would have thought.


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