"In the face of strong competition, Evangelism's focus may shift immediately to the next version of the same technology, however. Indeed, Phase 1 (Evangelism Starts) for version x+1 may start as soon as this Final Release of version X."

--Microsoft, internal document [PDF]

Summary: Windows Vista is a confirmed failure, but Vista 7 is already nipping at its heels

WINDOWS Vista is long dead and buried. A look at news headlines from the past week reveals only one headline about "Vista", whereas "Windows 7" matches 26 headlines. As the quote at the top begs to show, Microsoft is too busy talking about future products rather than what's available today.

India Times has published this new article which attempts to explain what caused Microsoft to lose so much business. From the introduction:

Microsoft reported a disappointing 29 per cent slump in fourth-quarter profits after a year in which its revenues fell for the first time ever since 1986. The company's earnings sank to $3.05 billion, or 34 cents per share, from $4.3 billion, or 46 cents per share, in the same period last year. Now the company plans to go on a 'crash diet' programme where it plans to curtail all expenses to go slim.

PC World came out with its own set of reasons why Microsoft's profits are tanking. Here's a look at some of these which somewhat explain why the Redmond giant plans to go on a strict diet regime.

Vista is right there at the top -- the top of the listed problems, that is. Not good for a flagship product, eh?

In related news, hardware companies are complaining about Vista, which cost them a lot in terms of sales.

Microsoft Vista blamed for memory glut

[...]

The chairman of Taiwanese memory company Transcend has blamed Microsoft Vista for being responsible for a supply glut.

MarketWatch has an article about that too.

Suppliers of DRAM chips "overforecasted Vista demand," said iSuppli analyst Nam Hyung Kim, referring to Microsoft Corp.'s new PC software operating system released to corporations last November and to consumers in January.

It is going to be the same with Vista 7, which is already upsetting people for the same reasons as Vista. Baffled by the company's hideous upgrade paths, Mossberg complained about Vista 7 the other day and for someone who is close to Microsoft to say it out loud, this is rather significant.

This whole sticky situation is leaving the door wide open to GNU/Linux. It's no longer the choice between different versions of Windows (or "PC" versus "Mac"), even if the Microsoft-influenced DHS [1, 2, 3, 4] continues to act as though getting a better deal from Microsoft is the best one can do in this scenario. From the news:

The Department of Homeland Security says it will save $89 million in software licensing fees by renegotiating contracts with Microsoft and Oracle--a move that should be considered by other government agencies.

They should check Free software options. Public money should not be spent putting national resources in the hands of corporations. If companies wish to sign deals with Oracle and Microsoft, that's their problem and their loss. Just like BECTA, governments like to brag about "savings" rather than "spendings" in order to justify the passing of tax money to companies that thrive in lock-in and price-fixing. ⬆