Office 2007: Don't Wait for Vista

Conceptually, Office and Windows are conjoined products. Many businesses wouldn't have one without the other. Not since 1995 versions simultaneously shipped has Microsoft given enterprises so much reason to consider both together.

Rather than sizzling, however, sales synergy is drizzling. Analysts' early estimates indicate brisker business uptake of Office 2007, with many enterprises planning to wait until perhaps next year to seriously begin Vista deployments.

"Although Microsoft made a big deal about Vista and Office shipping together, there's really very little synergy between the products," said Paul DeGroot, lead desktop strategies analyst for Directions on Microsoft. "Vista was still shape-shifting toward the end of the Office dev cycle, so the Office team couldn't do much integration with it."

Factors undermining sales synergy between the products:

• Hefty system requirements mean that most businesses must either upgrade or replace PCs before deploying Vista. IT organizations can deploy Office 2007 on existing hardware.
• Office launched as a finished product, while Vista is continuously updated—at the least, for hardware and software compatibility—via Windows Update. Many businesses are holding off Vista upgrades until release of Service Pack 1.
• Microsoft used different task-based user interface motifs for both products. There aren't huge benefits from using Office 2007 and Vista together.
• Unlike 1995, when many businesses were still deploying first-time PCs, operating system and productivity suite decisions are often made separately. Most IT managers I have spoken to say that they make operating system decisions based on applications; a decade ago, oftentimes the operating system predicated application decision.

Microsoft makes up for some of the missing Office 2007-Vista synergy by way of the productivity suite's strong server software connections, such as Exchange Server 2007, SharePoint Server 2007, SQL Server 2008 and Windows Server 2008. Server dependencies mean increased upfront acquisition costs for some businesses, however particularly those without upgrade protection via Enterprise Agreement or Software Assurance.

For example, basic collaboration and document management functions and advanced search capabilities require SharePoint Server 2007. Business intelligence capabilities require multiple server-side software, including SharePoint 2007, SQL Server 2008 and Windows 2008. The latter two products are scheduled for availability sometime next year. Each new server product adds base software cost plus CALs (client-access licenses).

While many enterprises shouldn't hold off Office 2007 deployments for Vista, server-side dependencies would be a reason to wait. Collaboration, communications and document management capabilities would be good reasons to deploy 2007 versions of Exchange Server, Office and SharePoint. However, Windows Server 2008 may be worth delaying deployments. Microsoft's 2007-2008 release cycle pushes an integrated vertical server-to-desktop stack. Windows Server 2008 is the foundation for building other pieces of the vertical stack, including new Exchange and SharePoint versions.

Businesses looking for basic productivity gains will find plenty out of the box, because of Office 2007's revamped user interface. If the UI changes meet basic employee productivity needs, there is no need to wait for Vista (where there is little additional benefit) or newer server software (where there may be benefits the organization doesn't need).

As for the future, stronger Office and Windows synergy may be coming.

"Far more promising would be the next versions of each product, which will probably be a more stable version of Vista and a version of Office that really leverages the OS," DeGroot said. But he doesn't expect to see such synergy until 2010 or later.

Related Posts:

• Questioning Office 2007 Priorities, Microsoft Watch, July 17, 2007
• Software Assurance Storm Warning, Microsoft Watch, July 9, 2007
• Uh-Oh! No Vista Vista SP 1 This Year?, Microsoft Watch, June 20, 2007
• 'Longhorn' Server Comes When?, Microsoft Watch, June 5, 2007
• Vista License Sales in Context, Microsoft Watch, May 17, 2007
• 'Longhorn' Named Windows Server 2008, Microsoft Watch, May 15, 2007
• Microsoft's 'Big Bang' Is When?, Microsoft Watch, April 26, 2007
• Vista Missed Its Cue—Now What?, Microsoft Watch, March 23, 2007
• Early Office 2007 Retail Sales Exceed Predecessor, Microsoft Watch, February 13, 2007
• Windows Vista: More Work in Progress, Microsoft Watch, January 4, 2007
• Users Praise, Raze Windows Vista, Microsoft Watch, December 21, 2006
• How Microsoft Wrapped the 'Ribbon' in a Bow, Microsoft Watch, December 3, 2006
• Windows Vista: Work in Progress, Microsoft Watch, November 21, 2006