Windows Server 2003 'debuted strongly'

NEWS

Microsoft plans to use an analyst meeting on Thursday to proclaim, among other things, strong sales of its Windows Server 2003 operating system. In the first 90 days since the operating system went on sale, the company has sold more than three times as many copies as the server version of Windows 2000 sold during its first three months, said Bob O'Brien, group product manager for Microsoft's Windows Server division. "That's like great... especially in this economy," O'Brien said in an interview. The fact that Windows 2003 outsold its predecessors is a because of many factors, including new licensing programs in which some companies have already, in essence, paid for the upgrade. The decision to upgrade is more a question of whether the software is ready for prime time than a financial decision. And most customers are still in the testing phase, with plans to migrate most servers still several months away, at least. At the same time, server software sales were up significantly in the last quarter, generating $1.93bn (£1.20bn) in revenue, up from $1.64bn in the same quarter a year ago. And Microsoft is counting on Windows Server 2003 to spur upgrades from large companies, many of which are running the 7-year-old Windows NT 4 server OS. Analysts have predicted that a good part of Server 2003 sales will come from companies using NT 4. The server unit is not the only one that Microsoft is calling on to account for itself. The company is increasingly looking for each unit to be self-sufficient. It has recently appointed separate financial chiefs for each of its seven divisions and is expected to go into further detail on each of its businesses on Thursday. Historically, two Microsoft products -- Windows and Office -- have accounted for the bulk of company profits, with other ventures, such as MSN and Windows CE, accounting for a fraction of sales and posting losses. Yusuf Mehdi, corporate vice president of Microsoft's MSN unit, is also expected to unveil some of the features to be included in the next version of the MSN service The company is also expected to talk a fair bit about its $49bn cash hoard, although chief financial officer John Connors has said that the company does not plan to announce a big dividend boost or cash payout at the analyst event -- something some investors have been clamouring for. The company may also offer additional insight into its decision to switch from awarding employees stock options to offering actual share grants. As for the company's server unit, O'Brien expects Server 2003 to continue to outsell its predecessors. Microsoft's NT 4 took 16 to 18 months to sell a million copies and Windows 2000 Server took nearly a year, but O'Brien said if Windows 2003 keeps selling "on the same trajectory, we will hit that mark well before a year." Microsoft is claiming more than 120 early customers, with new names to be added to its list, including the Universal Underwriters Group, the Austrian Ministry of the Interior and T-Systems, the IT provider for Deutsche Telecom. The company says it is taking share from all fronts, including more than 8,000 Web sites that once ran Linux and are now powered by Windows Server 2003. But most business is expected to come from existing Microsoft customers that are moving to newer software. O'Brien knows that companies won't be upgrading all at once. Many of those buying the software today are dipping their toes in the water. By next year, more will be ready to get their feet wet, by establishing plans to move a particular location or line of business over to the new operating system. As a result, part of Microsoft's pitch is that Windows 2000 and Windows Server 2003 will get along well. "We wanted a great coexistence experience," O'Brien said.

See the Windows News Section for the latest news, reviews and briefing papers on everything from Windows NT and 95 to service pack releases for XP. Let the editors know what you think in the Mailroom.

Post your comment

In order to post a comment you need to be registered and logged in.

You can also log in with Facebook. Log in or create your ZDNet UK account below

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy. Questions about membership? Find the answers in the Community FAQ

ZDNet UK Live

Well it seems there is something a number of us agree on. Why is the Ubuntu Unity launcher so ugly? I thought perhaps it was something to do with...

3 hours ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint

Duplicate comments are not made intentionally. Its very good to know that now you are keeping check on this problem because sometimes a commenter...

12 hours ago by Freebies202 on Microsoft fixes blog comments, speeds up blogs with open source

"the very significant number of users" and "many (most) of us" - you have no evidence for these statements. It is a fact that most users are saying...

20 hours ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint

Another grammar faux pas is the improper use of "you". When sitting down down in a restaurant, for example, I get cringe when the waitress...

22 hours ago by Marg Menzies Harrison via Facebook on 10 flagrant grammar mistakes that make you look stupid

And NOW, folks, for Canonical's next trick... Kubuntu is late. Here's a pencil. Draw your own conclusions. cf.:...

22 hours ago by zdnetukuser on Linux Minterface

@kevinmchapman. The discussion here reflects the very significant number of users who really do like the traditional menu system and who wish to...

1 day ago by Moley on A tale of two distros: Ubuntu and Linux Mint

Er, no... It is an efficient means of finding the application/file/setting you need in one place. The icons are a simply a fallback for when you...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint

Isn't the provision of a text based search an admission by the developers that the mass of icons approach does not work? I don't need to use a...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint

"Unity and GNOME 3 both abandon the old text-based cascading menus in favour of a graphical icon-driven system." Point truly missed. Both use a...

1 day ago by kevinmchapman on A tale of two distros: Ubuntu and Linux Mint

whs001 - Thank you, I'm glad you liked the article. I absolutely agree with you on your first point. I should perhaps have made it clearer that...

1 day ago by TerryRK on A tale of two distros: Ubuntu and Linux Mint

If we allow corporate interest to dictate the way our government circumvents due process against foreign entities then we should accept the same...

1 day ago by Dennis Nilsson via Facebook on ACTA stumbles in Germany

I totally dislike pirating of works, I fear that artists will be deterred from creating works if they think that they are going to get ripped off....

1 day ago by GHar123 on ACTA stumbles in Germany

How dare film makers, artists or anybody that invests in creativity stop us pirating their works for free. I want to be able to walk into my local...

2 days ago by JCB33 on ACTA stumbles in Germany

@GrueMaster. I prefer horses for courses rather than one size fits all. I, and I suspect most other computer users, do not really wish to have...

2 days ago by Moley on A tale of two distros: Ubuntu and Linux Mint

The product that scares me every time I have to use it is the Office 2007 version of Excel. The first bug that I found was applying the median...

2 days ago by greycynic on Ten flawed products that derail productivity

Nice review and very informative. One thing I'd like to add (in reply to whs001's 1st question), the main reason to have the same interface from...

2 days ago by GrueMaster on A tale of two distros: Ubuntu and Linux Mint

I'be been using Mint 12 since the RC came out, and I am far more happy with the Cinnamon, the Mate, and, yes (with extensions), theGnome 3...

2 days ago by Frederick Wrigley via Facebook on A tale of two distros: Ubuntu and Linux Mint

Excellent article. One small correction, though--although a fresh installation of Linux Mint 12 will, indeed, provide the user with a version of...

2 days ago by bdantas on A tale of two distros: Ubuntu and Linux Mint

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

2 days ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material

In related news, the ISPs club together to get the members of the Home Affairs Select Committee (ya goofed on that part, ZDNet UK) copies of "The...

2 days ago by Alan Ralph via Facebook on MPs urge ISPs to take down terrorist material

Featured white papers

Latest jobs

Windows Server 2003 'debuted strongly'

Daily Newsletters

Topics

Related stories

Microsoft warns again on Windows

Windows 'cheaper than Linux'

Windows Server 2003 gaining sites from Linux

Heart of England NHS begins massive digitisation plan

Hard-drive woes hit PC shipments in fourth quarter

Post your comment

ZDNet UK Live

Latest in IT Strategy

Heart of England NHS begins massive digitisation plan

Hard-drive woes hit PC shipments in fourth quarter

Featured white papers

Latest jobs

PHP Web Developer - html, css, javascript

Java Developer, Online Gaming, London

Quant Dev, Hedge Fund, FX, Excel VBA

Inside ZDNet UK

A tale of two distros: Ubuntu and Linux Mint

2012 Predictions: VCE FastPath, VI SAN Probe & Hadoop

BlackBerry Bold 9790

Make faster, smarter decisions using BI

Ten factors that make Ubuntu 11.10 a hit

Toshiba Portégé Z830-10P Review

BT's archive: Pictures from the vault

News & Analysis

Reviews

Blogs

Resources

About Us

Member Services

Special Features

Advertising Features

ZDNet UK / News and Analysis / Business of IT / IT Strategy

Windows Server 2003 'debuted strongly'

Daily Newsletters

Topics

Related stories

Post your comment

Get ZDNet UK's daily newsletter

Enter your email address to sign up

ZDNet UK Live

Latest in IT Strategy

Featured white papers

Latest jobs

Inside ZDNet UK

Resources

About Us

Member Services

Special Features

Advertising Features