Indeed, there's no immediate need to migrate. Core functionality remains largely unchanged, and enterprises running previous Microsoft offerings such as Windows XP and Office 2003 can continue to do so at no additional cost and without the fear that those products will become obsolete anytime soon. Migration will become necessary only when existing tools begin to significantly hamper user productivity, new security threats emerge, or incompatibilities between the company's systems and those of its business partners compromise work flow. The enhanced features promise increased productivity, security, and administrative control. But companies wishing to harness this value will first have to invest in system upgrades and IT staff training, gauge end-user readiness, and investigate licensing and budgeting implications.
Upgrading isn't cheap. A 500-desktop enterprise will pay at least $500,000 spread over three years for an Enterprise Agreement upgrade from existing desktop software to Windows Vista and Office 2007. A scaled-back purchase without Software Assurance (SA), Microsoft's upgrade and maintenance program, and using a standard version of Office 2007will cost the same enterprise at least $275,000 for the rights to upgrade clients. Servers and Exchange 2007 will be extra. For large enterprises, discounts are available for higher-volume purchases.
So, what's the value to the enterprise? Key value drivers are summed up in the chart below. Licensing costs vary depending on the software version desired and the type of agreement selected. The options are many. For example, a fully loaded Enterprise Desktop Platformincluding Windows Vista, Office 2007, SA, and a selection of Client Access Licenses (CALs)starts at $1,380 per user spread over three years. Alternatively, businesses with existing SA contracts may obtain new-version rights for free.