Cowen and Company and CMP Channel Group's CRN Release Windows Vista Study

Adoption of New Operating System Expected to Be Faster among SMB Prospects than among Large Enterprises

PRNewswire-FirstCall
NEW YORK and MANHASSET, N.Y.
Feb 20, 2007

NEW YORK and MANHASSET, N.Y., Feb. 20 /PRNewswire-FirstCall/ -- Windows Vista adoption will begin faster among small and medium business (SMB) prospects than among large enterprises, according to the new Vista Adoption Study, featuring joint research from Cowen and Company and CMP Channel Group's CRN.

In either case, it will be mid-year before serious Vista investment begins, the research finds. The data indicates that the majority of upgrades for either customer set are slated to begin in the second half of 2007 or the first half of 2008, once buyers are satisfied that promised security features are stable and legacy application compatibility testing is completed.

The largest inhibitors to earlier adoption for companies of all sizes are worried about application compatibilities and the cost and impact of the migration process, the Cowen/CRN Vista Adoption Study finds. Generally speaking, enterprises show more concern around software stability and business impact of change, while SMBs are more concerned with expenses such as hardware upgrades.

The study also shows that awareness of Vista among consumers is high, with most pointing to multimedia and improved graphics as reasons to invest in an operating system upgrade.

The Cowen/CRN Vista Adoption Study combines the results of parallel Cowen and CRN surveys undertaken in late January focused on the U.S. market. The CRN survey was conducted among 170 solution providers that sell information technology and make IT recommendations to only small or midsize companies. Cowen surveyed 300 enterprises focusing on those with 1,000 or more employees and conducted a separate survey of 500 consumers.

The CRN survey finds that 33 percent of solution providers expect SMBs to begin upgrading in the second half of 2007, with another 29 percent pointing to the first half of 2008 as the timeframe for broader adoption to begin. Only 10 percent expect customers to wait beyond 2008. The need for normally scheduled PC refreshes and application compatibility testing topped the list as the most influential factors that will determine when SMB customers upgrade to Vista, the survey finds.

"IT solution providers are excited about the many different dialogues that the Vista launch allows them to start with their customers around applications such as project collaboration. Improving security also continues to be an important touch point, and it appears Vista will inspire continued IT spending with SMBs in this area," said Heather Clancy, editor of CRN and vice president of the CMP Channel Group.

Cowen's survey of enterprises finds that 16 percent of them anticipate they will begin upgrading in the second half of this year, while 18 percent plan to begin the process in the first half of 2008. Fully 43 percent, however, have no firm plans yet regarding Vista adoption. Consumer results show that 65 percent of consumers are aware of Vista and approximately one in eight consumers that were aware of Vista may have deferred a PC purchase in the six months before the release of Windows Vista.

"Large enterprise customers continue to indicate a more cautious view towards Vista adoption as compared to SMBs. However, the SMBs are likely to have an outsize influence on Vista adoption rates -- given that SMBs typically account for 75 percent of all PC shipments into U.S. corporations. SMB and consumer market adoption of Vista are likely to result in accelerating PC growth in late 2007 and 2008," said Walter Pritchard, senior analyst and managing director at Cowen and Company.

About CRN (http://www.crn.com/)

CRN provides solution providers and technology integrators with the crucial information and analysis they need to drive their company's sales. As an advocate for and voice of the IT channel, solution providers turn to CRN first for immediate information. With nearly 25 years of experience, CRN is the most trusted source for channel professionals. CRN can be found on the web at http://www.crn.com/.

Cowen and Company, LLC

Cowen and Company, LLC, is a wholly owned subsidiary of Cowen Group, Inc., a mid-sized, publicly traded investment bank dedicated to providing superior research, sales and trading and investment banking services to companies and institutional investors in key growth sectors of the economy, primarily Healthcare, Technology, Alternative Energy, Media and Telecommunications, and Consumer. Cowen and Company, LLC is a registered broker dealer and a member of SIPC.

About CMP Channel Group (http://www.cmpchannelgroup.com/)

CMP Channel Group is the one stop shop customers turn to in order to meet their global sales channel objectives from access to execution. Through use of its print products which include CRN and VARBusiness, their accompanying websites, the broader ChannelWeb network, the Group's XChange worldwide face-to-face conferences and the Institute for Partner Education & Development (IPED), vendors are able to accelerate sales through the channel. CMP Channel Group provides a worldwide answer to advertising, branding and marketing services, lead generation, market intelligence, branded and custom events, education of solution providers and best practices for vendors.

About CMP Technology (http://www.cmp.com/)

CMP Technology is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion.

Contacts
  Kate Spellman              Jean Calleja
  CMP's Channel Group        Cowen and Company
  516.562.7383               646.562.1888
  kspellman@cmp.com          jean.calleja@cowen.com

SOURCE: CMP Technology

CONTACT: Kate Spellman of CMP's Channel Group, +1-516-562-7383,
kspellman@cmp.com; or Jean Calleja of Cowen and Company, +1-646-562-1888,
jean.calleja@cowen.com

Web site: http://www.cmp.com/
http://www.crn.com/

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