Microsoft gives Windows XP a reprieve

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After much speculation, Microsoft finally confirmed that it is extending sales of its Windows XP operating system (OS) beyond the already drawn out deadline of 30 June 2008.

The software giant had earmarked that date to effectively kill off support for the seven-year-old OS. But ongoing reports that the adoption of its replacement Vista is not as fast as Microsoft expected may have affected its change of decision.

However, corporates firmly wedded to their XP platforms will not be sighing with relief, as the company has only extended the OS's availability to capitalise on emerging markets. Sales of Windows XP Home will continue through original equipment manufacturers (OEMs) of ultra-low-cost PCs (ULCPCs), like the Asus Eee.

Michael Dix, general manager of Microsoft Windows Client Product Management, described the market opportunity: "ULCPCs are a growing class of mobile computers designed for first-time PC buyers and customers interested in complementing their primary Windows-based PCs with companion devices with limited hardware capabilities."

By offering the Xandros distribution of the Linux OS and open source applications, Asus keeps the price point on the Eee low, at around £200 excluding VAT and has met with unprecedented demand since its launch late last year.

A number of other OEMs, like Elonex with its £99 rival, have announced they are to follow suit.

But Dix added that, although the specifications of these machines vary, they typically have smaller screen sizes and lower-powered processors than more expensive mobile PCs. "While originally intended for students and other first-time PC customers in emerging markets, we're now seeing interest in these affordable devices in developed countries as well," he added.

Microsoft said the Home version would be available to run on these cut-down PCs either until 30 June 2010 or up to one year after the release of the next client version of Windows, uninspiringly codenamed Windows 7, depending on which comes later.

But the company has been characteristically vague about a release date for Windows 7, having said it could be out as early as the end of 2009 or the beginning of 2010.

Dix also quashed any ideas of an enterprise reprieve from the move to Vista. "No, there is no plan to extend sales of other editions of Windows XP beyond 30 June. We are very proud of the progress that we have made with Windows Vista over the last sixteen months," he said.

Meanwhile, Intel has also this week shown that is wants to get into the ULCPC game, with its announcement that its new Atom processors due out later this year will be used to power ULCPCs, or what Intel itself calls mobile internet devices (MID).

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