Microsoft introduces Windows 7: A better version of Vista

Excerpts from What's Hot on CNBC-TV18 Watch the full show » Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

Help is finally at hand for those who have been cribbing about the faults of the Windows Vista Operating System loaded on their computers in the form of Windows 7--the latest operating system from the Microsoft stable.

So will Window 7 be a game changer?

Answering that question, Diptarup Chakraborti, Principal Research Analyst, Gartner, said that Windows 7 is definitely a marked improvement in Microsoft's earlier product Vista. "This product is really taking care of a lot of the glitches in Windows Vista." However, he also added that Windows 7 will not jumpstart IT sales.

Here is a verbatim transcript of the exclusive interview with Diptarup Chakraborti on CNBC-TV18. Also watch the accompanying video.

Q: After the failure of the Vista, Microsoft is really hoping that this will be the big launch that will help retool its fortunes. How optimistic are you?

A: This product is really taking care of a lot of the glitches in Windows Vista. But Microsoft also has to contend with the fact that the manner in which personal computers (PC) are being used by the consumer is also shifting. It is not shifting in a major way now. However, people are looking at browser-based operating systems and so on, which is just taking place with a dominant market share in the PCs which might get impacted.

Microsoft is facing a challenge that it has never faced before. But overall, Windows 7 is definitely a marked improvement on their earlier product Vista. So, it should spell good news for Microsoft. Q: The hope is that this is going to be a product that is not just going to be a game changer as far as Microsoft is concerned, but it is also going to jump start IT spending significantly. What is the Gartner view on that?

A: Gartner does predict that in 2010, globally, there will be a 3.5% growth over 2009, which was by far the worst in history for IT spending. Gartner does not believe Windows 7 will jumpstart that. Windows 7 will not lead to incremental PC sales either. There is growth happening, which is already witnessed in PC sales, in hardware sales across the globe, including India, which obviously will result in increasing sales of Windows 7. But to say that Windows 7 will jumpstart IT sales won't be happening.

Q: What does this actually mean in terms of competition as far as Microsoft is concerned? We know that Google is trying to launch something on a cheaper basis on a similar platform. In terms of taking on competition, just how aggressively does this position Microsoft at this point?

A: Microsoft is definitely looking at this competition very seriously. Microsoft has seven versions of Windows 7 including the starter edition, which is a low cost version of Windows 7. Right on its launch date, which usually comes right after the starter edition, follows the original version much later. So, they are very clear that they are going to compete aggressively in every space that they are in. More importantly, it is already netbook ready, which is clearly picking up in the market. So, Microsoft has learnt its lesson.

Another thing is that this version or upgrade came within three years; they preponed its release. The Vista came after four- and -a half years after the XP, which says that Microsoft is ready. It is willing to accept that they made some mistakes with their earlier product and rectify them as they go. Vista is one of the proofs that they are really serious to take on the competition.