Earlier this month, Microsoft backtracked from a decision to end support for Windows 98 and other older Windows versions, pledging to continue support until 2006.
While many customers applauded the move, some analysts said that the decision may be more than an act of goodwill. According to recent surveys, about one-quarter of all PCs run Windows 98 or older versions of Windows. "Better to have people stay on Windows 98 than to start investigating things like Linux," said Michael Gartenberg, an analyst at Jupiter Research.
Microsoft maintains that it was just looking out for customers -- mainly in developing markets -- when it extended support for Windows 98, Windows 98 Second Edition and Windows ME.
Of course, the call for Linux on the desktop has been strongest in emerging markets such as China, as some governments, both foreign and domestic, are actively investigating whether to switch from Windows to other operating systems.
Whatever the company's motives, the move highlights a growing area of concern for Microsoft: how can the software maker persuade existing customers -- especially consumers who see their current software as "good enough" -- to regularly upgrade? Excluding new hardware sales, the company derives 42 percent of its revenue from one-time software licenses and upgrades.
Microsoft has historically used two methods to move its customers to a new release of Windows or Office: convince customers of the merits of upgrading or cut off support, Gartenberg said. The looming threat of a support cut off for Windows 98 undoubtedly got some people to upgrade, but as the deadline neared, Microsoft saw that not everyone was going to make the switch.
"A lot of the marketplace said, 'we're not going to be pushed along," Gartenberg said.
Some consumers have machines that just can't be upgraded to run Windows XP. "We have older hardware and are unwilling to invest at the drop of a hat thousands of dollars to refit the hardware," said Mike Flynn, a software consultant based in the Seattle area.
Talkback
I use Win98se and purchased WinXP some 18 months ago but have been reluctant to install it due to negative feedback, "XP is like big brother... I had to buy new hardware when I upgraded', was the general comments from friends.
I thought I would give XP a try by running both Win98 and WinXP on different machines, I also installed a firewall just to keep tabs on what the two OS's were up to!
Without going into great detail the result is this.
XP is being placed in the bin, its not that it doesn't work, it's just infuriating to told by MS what it is and is not going to allow me to do on MY PC!
I will continue to use Win98 for the present but with severe restraint on its access to the net and I'm going to take another look at 'Lindows'.
I have a more relaxed attitude towards Microsoft spying on me. I let it all hang out there. I'll move to alternative OS'es the moment I am restricted in what I want to do.
Chances are that will happen. There are so many ludicrous business models out there that are enforced by technology. (Ink more expensive than inkjet printers, DRM and so on)
Here is wishing our Microsoft user friends the very best of "luck" in the future....
I just knew they would have to review the support for 98, 98SE and Me. It's going to hit Microsoft too much not to continue support.
Also they need to review their prices as a version of XP Home gets you 1p change from £90, way too dear for an ordinary UK home user. I have used it once, the version I had was shipped with all ports OPEN, would you believe, so that when I booted up and got Windows loaded, it connected straight to the Internet and I got it with Blaster and this was before I had chance to install my firewall or anti-virus software so use XP ... NO WAY, Jose!!!!!