January 8, 2003

Microsoft Bails Out The PC Market - no support for Windows 98 or NT on 30 June

My spin: Listen, I would not suggest you get worried over this. If you're PC's are running just fine AND you have a reliable consultant or other technologist to lend you a hand, don't upgrade JUST because Microsoft will no longer support your product. If you want to upgrade because Windows XP or 2000 are better products then go for it!

NEW YORK - This summer, millions of businesspeople will be upgraded against their will. And no, we don't mean their flight plans.

Microsoft (nasdaq: MSFT - news - people ) will officially end technical support for Windows 98 and Windows NT 4 on June 30. The financial implications for Microsoft and others could be significant, even in the short term.

Pacific Crest Equities estimates there are 300 million PCs worldwide running these older operating systems--195 million in corporations and 105 million in homes.

Pacific analyst Brendan Barnicle believes that 25% of these enterprise customers and 17% of home PC buyers will replace their systems in the first half of this year, leading him to raise his earnings-per-share estimate for Microsoft's fiscal third quarter, which ends March 30, by 2 cents, to 49 cents. Consensus estimate for the quarter is 47 cents per share. (full story)

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