Now that the dust has settled on the introduction of the much-anticipated operating system, Windows 7 has to pass the performance, reliability and compatibility tests that spur sales and drive upgrades. With the complexity and cost of upgrading, Microsoft may still have some convincing to do before the enterprise market adopts the software.

"Corporate contentment with current Windows XP and Windows Vista desktops and lack of a specific business application to drive an upgrade are difficult issues for Microsoft or any vendor to address," said Laura DiDio, principal analyst at ITIC.

The Complexity Issue

Microsoft's initial solution is proactively addressing compatibility issues and working with hardware partners who are offering aggressive promotional discounts to woo corporations and consumers alike to embrace Windows 7. The question is: Will it be enough to overcome the complexity issue?

"Complexity is worrisome for all customers, from the smallest SMBs to the largest enterprises," DiDio said. "The majority of customers who elected to remain on Windows XP will have a more complex upgrade path than those moving from Windows Vista."

Indeed, Microsoft has worked hard to make upgrading as easy as possible with deployment tools and toolkits, as well as troubleshooting tools. Microsoft also developed a broad and deep ecosystem readiness program complete with technical training workshops for independent software vendors.

The Budget Issue

Although compatibility tools and corporate due diligence can go a long way toward overcoming the complexity of a Windows 7 migration, DiDio said finding the budget to purchase new Windows 7 licenses is an onerous task for cash-strapped companies.

"Corporations that purchased Microsoft Enterprise Agreement (EA) licenses and those who purchased Microsoft's Software 11 Assurance maintenance and upgrade plan do receive a free upgrade to Windows 7," DiDio said. "All others must find the monies to do so, and that is problematic given the harsh economic climate."

As DiDio sees it, consumer and academic prices for Windows 7 are extremely competitive and aggressive. Students in the U.S. and Canada, for example, can purchase the OS for $30. However, she added, corporate upgrade prices remain steep and even prohibitive for businesses that did not purchase EA agreements or Software Assurance.

"We highly recommend that Microsoft initiate promotional and discounted pricing for corporate and volume-licensing customers. Corporate suggestions that Microsoft give special price breaks to Vista customers has merit, and Microsoft should consider doing it for at least a limited time as a goodwill gesture," DiDio said.

"This would serve to spur upgrades in the immediate and intermediate term, benefiting Microsoft customers and Microsoft itself. And it would also help to staunch defections to rival platforms, most notably the Apple Mac, which has been making modest gains in the enterprise at Microsoft's expense."