Will XP Mode Be Tough Sell For Small Businesses?

finally make the jump to Windows 7

XP Mode, a virtual Windows XP SP3 environment running under Windows Virtual PC, will deliver the best experience on new hardware, says Scott Woodgate, director of Desktop Virtualization and Microsoft Desktop Optimization Pack (MDOP). XP Mode requires PCs with at least 2 gigabytes of RAM and 15 gigabytes of free hard drive space, and it won't run on anything other than virtualization-enabled processors from Intel and AMD.

Microsoft recommends that companies buy new PCs from OEMs, because they'll steer customers to PCs capable of running XP Mode and pre-install Windows Virtual PC and the virtualized XP environment, according to Woodgate. Microsoft will also offer XP Mode with the retail box version of Windows 7 as a separate download.

Microsoft isn't offering a direct XP-to-Windows 7 upgrade path. But the fact that hardware prices are dropping quickly, particularly in terms of memory and processors, could help sway small businesses that may be on the fence about upgrading, says Mark Crall, president of Charlotte Tech Care Team, a Charlotte, N.C.-based Small Business Specialist.

"Most companies that decide to upgrade to Windows 7 will do so on new hardware, and they won't have to buy a premium PC in order to run XP Mode," Crall said. "Microsoft is simply setting the right expectations with respect to hardware."

The problem for Microsoft is that businesses of all sizes are holding off on big projects until the economy shows signs of improvement, which suggests that XP Mode may not have the impact on Windows 7 migration that Microsoft is hoping for in the small business space.

"All capital expenditures are considered big for small businesses right now, and I don't see customers thinking much about what they're going to buy next." Crall said.

Another looming expense associated with XP Mode is two versions of Windows running at once doubles the security software requirements for PCs and presents a bigger target for attackers.

What's ironic about XP Mode's hardware requirements is that Microsoft has been touting Windows 7's ability to run on all kinds of hardware, which was a major source of irritation for Vista users.

Brad Kowerchuk, president of Bralin Technology Solutions, North Battleford, Saskatchewan, doesn't think small businesses will accept the added complexity of running XP Mode. "Small businesses will move to Windows 7 when they are ready for their next hardware refresh, and not before," said Kowerchuk.

Microsoft will release a beta of Windows XP Mode when it offers the Windows 7 Release Candidate to MSDN and TechNet subscribers on April 30, and to the public on May 5.

While XP Mode is aimed at small businesses, Microsoft Enterprise Desktop Virtualization (MED-V), slated for release in Q2 as part of the next Microsoft Desktop Optimization Pack (MDOP), gives larger companies the ability to run XP applications virtually from within Windows 7 and Vista. But this functionality, which Microsoft gained in its May 2008 purchase of Israel-based startup Kidaro, is only available to Software Assurance subscribers.