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Thu, Oct 25, 2001 - Page 24 News List

New features carry hidden costs

AP , SEATTLE

A Malaysian man surfs the Internet behind a pirated copy of Microsoft's new Windows XP at a computer shop in downtown Kuala Lumpur yesterday. The pirated copy carries a price tag of 5 ringgit (US$1.30). Microsoft Windows XP will be launched in Malaysia today.

PHOTO: AP

Windows XP offers cost-conscious computer users an attractive package. For about US$100, users can upgrade to a system that looks better, runs smoother and includes more consumer-oriented features than ever.

But many consumers will be surprised to find that Microsoft's new operating system, due out in the US today, may prompt additional, unanticipated costs.

Fun new features like video-enabled instant messaging, digital photo editing or the souped-up music and video player will require users on older computers to buy more memory -- and perhaps even a bigger new hard drive among other upgrades, analysts say.

And to benefit most from an operating system built for life online, users may also crave high-speed Internet access.

"I think for the most part people will not realize that those other costs are things that they're going to want to get," said Steve Kleynhans, a vice president with the tech research firm META Group.

The bill for the average user may end up running as high as US$200 per computer, said Rob Enderle, an analyst with Giga Information Systems.

It's not unusual for a major new operating system to run best on a relatively new, or recently improved, machine, said Kleynhans, who praises Microsoft for warning users about that likelihood.

"In previous releases, many times they were unrealistically claiming that you could run it on any older hardware ... and ended up with an awful lot of unhappy customers," he said.

A new operating system has also traditionally been an opportunity for hardware and software makers to push users to buy new versions of products they already own.

Companies may decide that it's not worth the cost of writing drivers, the software tools that make hardware work with Windows XP, for older machines and peripherals, Enderle said, especially if they can get people to buy new products.

That strategy paid off in the boom years of the tech economy, but may backfire in these lean times, especially after the Sept. 11 terrorist attacks.

"If all other things were equal it would provide a bit of a positive end to what in the PC industry has been a pretty dismal year," Kleynhans said of Windows XP's release, "but I'm not clear that is going to happen."

As well, there are many desktop staples, such as antivirus software or firewall security protection, that even owners of computers purchased this year will be forced to upgrade with the new system.

"This is sort of a quantum leap," said Sarah Hicks, vice president of product management for Symantec, which makes the popular Norton system maintenance and security products and will require all Windows XP users to buy a new version of their software if they upgrade. "The internals of the operating system are just completely different now."

Hicks said the company expects a spike in business from Windows XP's new users, but is offering a rebate to users who are upgrading to soften the blow to customers.

Microsoft is predicting that Windows XP will have a slow burn, building its customer base -- and helping other products build theirs -- over months and years rather than weeks as in releases past.

There are other reasons besides the economy that users may not upgrade immediately, Enderle said.

Some consumers have been alarmed after running a Windows XP compatibility test on Microsoft's Web site that evaluates their computer -- and encountering a laundry list of incompatibilities, ranging from printers to handheld devices.

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