Small Biz PCs: Choices, or None At All?

The problem, simply stated, is the operating system. Many computer makers offer Windows XP Home as the default operating system on some or even all small business models. Microsoft never really intended Windows XP Home for use by businesses. The more costly Professional version has domain networking capabilities that are essential to accessing a server. The growing business adding a server will find that the money saved on Windows XP Home will become a costly upgrade.

Windows Vista could and should change the situation, but it's uncertain how many small business computers will ship with Windows Vista Business rather than Windows Home Basic (or what I call Windows Basic). Many PC manufacturers are reluctant to release system configurations ahead of Windows Vista's official availability, presumably January 30.

On Thursday, Microsoft will officially launch Windows Vista for businesses, but for acquisition through volume licensing. Most small businesses do not purchase software by volume-licensing contract (although retail purchase options will be available on Thursday). For small shops that need new PCs now--or over the next two months--choices are perplexing.

You Can Have XP Home, or XP Home
Dell's small business Website illustrates the breadth of the current problem. The direct vendor offers 11 distinct desktop SKUs, all of which ship with Windows XP Home. The Professional version costs an extra $99 per PC. Dell also offers a workstation, which does ship with Windows XP Professional. For notebooks, Dell offers more Professional default installations. Three of the 12 SKUs ship with Windows XP Home as default operating system. Windows XP Professional ships as default on one sub-SKU of another six models. Two additional Dell notebooks--the Latitude D620 and D820--come with Professional on two of the three sub-SKUs.

Lenovo also offers Windows XP Home as the default on all 3000 and ThinkCentre desktops--five distinct SKUs. The Professional version is a $79 upgrade. Lenovo notebooks also favor Home. The 3000 series C and N models come with two sub-SKUs, each with one Home and one Professional. For ThinkPad, Windows XP Home is default on each of the five sub-SKUs for the Z, R and X series. The T series comes with four sub-SKUs, two each with either operating system. The 3000 desktop and ThinkPad Z series are targeted to small businesses, said a Lenovo spokesperson.

Gateway offers significantly more small business Windows XP Professional SKUs than either Dell or Lenovo. The operating system is standard on all small business models, whether desktops or notebooks.

Five of the six pre-configured HP Compaq dx2200 or dx2250 microtowers come with Windows XP Professional and all pre-configured dx5000 series PCs.

Qualifying Windows Vista Capable HP computers are eligible for an upgrade, for the cost of shipping, under the Windows Vista Express program, which Microsoft announced in October. HP offers no XP Home PCs classified as Windows Vista Capable.

"Nearly all of our 2006 HP Compaq Business notebooks and all of our newer desktop models...will be available in Windows Vista Premium Ready configurations, and select business desktop, notebook and workstation models will be available pre-loaded with Windows Vista Business at Vista general availability," said an HP spokesperson.

Measured Vista Capabilities
However, not all the small business PCs are Windows Vista Capable, nor are all systems so labeled fully supportive of the new operating system. HP's small business site explains:

"Not all Windows Vista features are available for use on all Windows Vista Capable PCs. All Windows Vista Capable PCs will run the core experiences of Windows Vista, such as innovations in organizing and finding information, security, and reliability. Some features available in premium editions of Windows Vista--like the new Windows Aero user interface--require advanced or additional hardware."

Lenovo's similar notice is more revealing:

"Windows Vista Home Basic requires an 800MHz x86 or x64 central processor, 512MB of system memory, a high end graphics processor with 32MB of video RAM, a 20GB hard drive with 15GB of free space, a DVD-ROM drive (internal or external), Internet access and audio output capability. In order to take full advantage of Windows Vista or the more advanced versions of the operating systems such as Windows Vista Premium, systems may require upgrades and/or separately purchased hardware, drivers and software."

Most of Lenovo's laptops ship with only 512MB of memory, which means, based on the PC manufacturer's own guidelines, they would not meet the requirements for Windows Vista Home Premium, Ultimate or Business. Lenovo is offering optional, free 512MB memory upgrades until December 11 or while supplies last. Lenovo also ships only 512MB of memory on most desktops and 256MB--below even Windows Basic's minimum--on some models.

By the same criteria, most HP models would not meet the minimum requirements for Windows Vista Home Premium or Business, even where a free upgrade from Windows XP Professional is available.

Perplexing Choices, and Lots of Uncertainty
The upgrade process illustrates some of the perplexities surrounding Windows Vista. Microsoft designed the operating system to scale down performance and features to the hardware's capabilities. Small businesses upgrading fairly new PCs may not appreciate that some features wouldn't be available.

As of this writing, Dell Windows Vista Express options remained uncertain. Dell could not be reached for comment, and its Website offered unclear information on whether or not small business PCs with Windows XP Home qualified. Previously, Microsoft indicated that XP Home could be upgraded to Windows Basic for half the upgrade price. Dell's Website did offer Windows Vista Express upgrade information from other XP versions.

Lenovo is offering a full rebate on the purchase of either Windows Basic or Windows Home Premium. Small business PCs shipping with Windows XP Home would qualify for the offer. Neither option is ideal, although Premium is the better deal, as both operating systems lack some business features.

"Windows Vista Basic is a step down from XP, Home, relatively speaking," said Roger Kay, founder and president of Endpoint Technologies Associates. "Microsoft has made Basic less attractive to drive traffic to Windows Vista Business" (Disclosure: Some of the companies covered in this post are Endpoint clients, Kay acknowledged).

Windows Business would be a better would be upgrade option, even for additional cost.

As for January 30, none of the PC manufacturers would yet release planned configurations. Based on current pricing practices and expected OEM cost of Windows Basic compared to Windows Business, many small businesses can expect to be offered an operating system inappropriate for their operations. Windows Vista Business or Ultimate would have features most appropriate for small businesses.