Upgrading to Windows 7 isn't Cheap

A recent Gartner report showed what many of us already knew: Moving to Windows 7 from XP is expensive.

By sjvn  42 comments

I've upgraded old XP PCs to Windows 7 and I've bought new PCs equipped with Windows 7. Either way I've found that it's not cheap. Now, Gartner, the research company, has worked out just how expensive upgrading to Windows 7 can be for enterprises. In one word, moving to Windows 7 can be described in one word: "Ow!"

Charles Smulders, Gartner's managing VP believes that "Corporate IT departments typically prefer to migrate PC operating systems (OSs) via hardware attrition, which means bringing in the new OS as they replace hardware through a normal refresh cycle. Microsoft will support Windows XP for four more years. With most migrations not starting until the fourth quarter of 2010 at the earliest, and PC hardware replacement cycles typically running at four to five years, most organizations will not be able to migrate to Windows 7 through usual planned hardware refresh before support for Windows XP ends."

In other words, Smulders claims you're going to update faster than you had budgeted for. That presumes, of course, that you've budgeted at all for upgrading your desktops. Times are hard and I know many companies where the 'upgrade' plan is to run PCs until they break.

That said, Gartner still thinks businesses have three Windows 7 upgrade options. These are:

Accelerate PC Replacement Plans

The plus side with this plan is that you know these machines will work with Windows 7. I recommend buying new Windows 7 PCs to replace older XP PCs myself.

It's also believe it or not, probably the cheaper way to do it. According to Gartner, "Assuming a 10,000 PC environment, where all PCs are replaced, Gartner estimates that the migration cost per PC will be between $1,205 and $1,999, depending on how well-managed the environment is. While the overall cost to migrate is lower than other scenarios, the down side is that the capital costs account for about 60 percent of the total replacement cost, so the capital budget will be larger than in the upgrade case." That sounds about right to me.

Upgrade Installed PCs

Here Gartner states that "Using existing PCs will reduce the capital costs of migration, but will not reduce the labor costs of migration. Assuming the same setup as above - a 10,000 PC environment, where all PCs are upgraded - the migration cost per PC will be between $1,274 and $2,069, depending on how well-managed the PC environment is. This assumes that 25 percent of the machines will need a hardware upgrade to run the OS."

The problem here is that "While the capital costs are reduced in this case, upgrading an installed PC simply postpones the inevitable replacement for two to three years. Users will need to be migrated twice, rather than once, during a four-year period."
I disagree with this. From my experiences with upgrading XP PCs to Windows 7, the labor costs are going to be higher than Gartner's estimates. Indeed, I think it will be a lot more expensive. I've think $1,500 to $2,500 is far more likely.

Gartner also recommends a Partial Migration. This isn't what it sounds like. This isn't moving just some PCs to Windows 7 while leaving others.

Instead, Gartner suggests that "For task workers, such as data-entry roles (these account for about 15 percent of the population in a typical organization), migrating from a PC to a hosted virtual desktop (HVD) environment is an alternative to PC migration. It would potentially speed up deployment, because it is one image deployed centrally. However, an HVD does not solve the budget issues, because of the incremental cost of the data center and network infrastructure needed to run an HVD. Also, it does not solve the IT support staff issue, since they will be involved in the HVD rollout."

What Gartner doesn't suggest, is that is no reason to spend cash on Windows licenses or an HVD. For task workers an inexpensive or free Linux desktop is a perfect fit. There should be no Windows specific applications at this level, the capital costs are low, there's no need for a hardware upgrade, and, unlike Windows, there's no need for expensive PC security software. You don't need to be a Linux fan to see that this makes hard business sense.

Another option that Gartner doesn't explore is just sticking with XP to the bitter end. After all, that may be a while in coming. Microsoft recently extended XP's life. 2016 sounds like a fine year to me to look into another operating system for my desktops.

These last two options of mine also have the real advantage of being dirt-cheap. This is not a small consideration. Steve Kleynhans, Gartner 's research VP said in a statement that "Based on an accelerated upgrade, we expect that the proportion of the budget spent on PCs will need to increase between 20 percent as a best-case scenario and 60 percent at worst in 2011 and 2012. Assuming that PCs account for 15 percent of a typical IT budget, this means that this percentage will increase to 18 percent (best case) and 24 percent (worst case) which could have a profound effect on IT spending and on funding for associated projects during both those years."

And, where I ask, do you think you're going to get the money for that? Exactly. You don't have it do you? I think your real IT budget plan for PCs for the coming years is to deploy Linux on the low-end or at higher desktops if you have Linux-savvy staff, and stick with XP for everything else. After all, it's not like you have the budget for anything else do you?

42 comments

Anonymous 49 weeks ago
The company is still paying the tech for the hours required to perform the upgrade. Who's the freak gonna do your "copy everything back and install relevant software" tasks for just 0$ in two days? Building Self Esteem
Anonymous 1 year ago
IPV4 is soon to be replaced with IPV6: And I know you didn't forget; but in the interim we are migrating to 802.1x. Guess what Linux doesn't support?
Anonymous 1 year ago
The "upgrade cost" of porting our Win XP platforms to Win 7 is sort of unknown.It takes about a week to move our Visual Studio development environment, web design and multimedia software from a Win XP platform to Win 7. This includes reformatting all hard drives, porting all the data, re-installing all the software, finding all the original DVD's and their keys, addressing all the issues of licensing/moving software from an old platform to a new platform, chasing missing / installing revised device drivers, porting all the favorites, custom shortcuts AND debugging the new system. It is truly a VERY time consuming operation.Cost? A week of mantime plus op system? Probably $3,000+/-. And this doesn't cover the frustration factor!We have ported one of our seven development platforms. I suspect the next six will get ported when they totally crater and are replaced by new PC's. I doubt our developers will undertake this process again without a real incentive, i.e.: a real need for Win 7. At present we haven't seen a need... Win XP is stable and more than adequate for the job.
Anonymous 1 year ago
It's worse than that.A friend bought a new HP computer, with Windows 7, but had to upgrade to the "Professional" version (for $200) because the provided version wouldn't run Office programs he needed for work. When his computer would constantly BSOD when he plugged in his new iPod, HP said he was no longer covered by their warranty, because he "was not using the original OS", even though he upgraded through them!
Anonymous 1 year ago in reply to Anonymous
You are such a liar. What kind of Office program could these be? Do you realize that all editions of Windows 7 are based on the same foundation with some exceptions where functionality is concerned depending on the environment? If you are talking about Microsoft Office, versions 2007, 2003, and the latest 2010 run on all editions of Windows 7. The most likely feature your friend needed for work was the ability to join a Windows Server domain to access company resources, which is normal. If your friends computer was running Windows 7 Home Premium the cost of doing an upgrade to Professional is actually $89, since that is the cost of an Anytime Upgrade from Home Premium to Professional. * Windows 7 Starter to Windows 7 Home Premium: $79.99 * Windows 7 Starter to Windows 7 Professional: $114.99 * Windows 7 Starter to Windows 7 Ultimate: $164.99 * Windows 7 Home Premium to Windows 7 Professional: $89.99 * Windows 7 Home Premium to Windows 7 Ultimate: $139.99 * Windows 7 Professional to Windows 7 Ultimate: $129.99So, you are telling a big untruth. Imagine the lies you are telling in the rest of your post? I have a 32 GB iPod Touch I use with my Windows 7 PC to sync my music and I do not have a single problem with it. Maybe because your friend is so dumb about upgrading, he probably is just as dumb when it comes to using the iPod. Its possible a simple upgrade of iTunes or upgrading the iPod firmware will resolve the problem. This is also an Apple product we are talking about.
Anonymous 1 year ago
I'd like to know what the folks at Gartner are smoking, so I can avoid it.... Most companies don't replace massive amounts of computers on a regular basis, instead computers trickle down the food chain. Take computer number 2345 at Company X. It's started out in a VP's office when brand new in 2000, six months later the VP got a new one and 2345 moved to his secretaries office, six months later it went to someone in IT (2001), a year later it moved to a clerical office(2002), where it was in regular service until 2005 when it moved to someone who just needs to read the occasional email, but otherwise doesn't use computers, it will get retired this year, simply because they have enough newer computers around that they can replace it. I've worked a lot of places, and a lot of workers have never had a new computer.
Anonymous 1 year ago in reply to Anonymous
So many people responding here can't see that the costs Gartner have suggested are valid. I work in a 10000+ desktop corporate and they DO replace ALL the PC's in one project. A new SOE (Standard Operating Environment), is built, months of application viability testing is done on a specific and set hardware base. You have to have the same hardware across the organisation to make it even vaguely manageable in organisations of this size.I can see a lot of people here do have IT experience, but all in small to medium size shops. Corps with 10000+ desktops don't do things by halves. These companies have multi billion dollar turnovers. But just because of that doesn't mean they need or want to waste their IT budget on tools that are not required.If application viability testing is done on both Linux and Windows and passes on both. The cost differential between the two is massive. Linux is far far cheaper, far more stable, far more secure and far simpler to work with.I understand why Windows proponents push it the way they do. Most of them rely on the profit that can be made from pushing commercial MS based product. They rely on the service calls, the BSOD's, the instability. It all pays their mortgages. Replace it with something that works, doesn't break and is easy to maintain and their livelyhood is gone. So you can't blame them for defending the gravy train the way they do.Of course, there is money to be made through innovation and service in the Linux world. They'll just have to learn something new and work at it for a change, rather than sitting back reading a novel whilst waiting for the virus scan to complete.I'm certain if there was a run of the mill simple to execute and easy to charge for method of abusing their customers with Linux then they'd all suddenly be advocates for that too.Sadly for them, corporates and individuals alike are waking up to the way they've been ripped off for so many years and are choosing a better path.Better get to learning Linux guys. Your Windows knowledge will soon be worthless. Perhaps you could get a lawn mowing route?
Anonymous 1 year ago
Shrewd people at Microsoft. Most people can't tell the difference between "software" and "hardware". So when a PC stops working right, most people will think "the _computer_ is not working right". Most people cannot comprehend that something invisible (software) is controlling their PC so they will blame it on the manufacturer of the PC (the brand name they can see), leaving Microsoft off the hook.
Anonymous 1 year ago
What is the definition of genius? Genius is defined as the personal trait that makes something complicated easy. A Linux system administrator demonstrates genius when he/she can leverage the skills of his/her users by helping them get access to the power of the Linux system.
Anonymous 1 year ago
The comment by "BOYCOTT SVJN" sums up the apathy of consumers, IT proffesionals, many IT journalists and the media in respect to desktop computing.Microsofts OS's and software are products. I am not aware of any other products that are accepted the way these are. I am not aware that any businesses or consumers would accept one choice to buy a car, a TV, baked beans, paper, paper clips, car insurance etc etc.The very people that should be challenging for change won't or can't.For that reason I will not be boycotting this site.Steve.

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