On TV.com: Why Is Everyone in TV High School SO OLD
BNET Business Network:
BNET
TechRepublic
ZDNet

October 9th, 2008

Look who’s buying Vista Home Basic (hint: it’s not home users)

Posted by Ed Bott @ 4:02 pm

Categories: Microsoft, Windows 7, Windows Vista

Tags: Dell Computer Corp., PC, Microsoft Windows Vista, Small-business Buyer, Microsoft Windows Vista (Longhorn), Microsoft Windows, Operating Systems, Software, Ed Bott

Who’s buying new PCs with Windows Vista Home Basic? Judging by the name, you’d assume those OS editions would be loaded on underpowered machines headed for tract homes in the burbs and studio apartments in the city. But you’d be wrong.

Based on my observations of the PC market over the past year or two, I think consumers have rejected Home Basic in favor of Home Premium. But small, budget-conscious businesses have embraced the low-end OS.

budget_business_small.jpgIn one large sample I looked at, nearly three out of every five machines destined for small business included Windows Vista Home Basic. Small-business buyers are apparently able to look past that name, and PC makers are happy to accommodate them. The primary appeal of Home Basic isn’t technology, it’s cold hard cash. Vista Home Basic runs Windows apps just fine, and it’s dirt cheap. Dell, one of the world’s two largest PC suppliers, in fact, is pushing Home Basic as the preferred option for many computers aimed at the small business market.

Take Dell’s Vostro 200, which is aimed squarely at the small-business market and starts at $269 with a Celeron 430 processor, 512MB of RAM, and no monitor. A much more capable machine with a Core 2 Duo processor, 2GB of RAM, and a 19-inch monitor sells for $449. All three machines in this line come with Windows Vista Home Basic. To upgrade to Vista Business or downgrade to XP Pro is another $99, which represents a huge percentage of the system cost.

The phenomenon is equally pronounced if you look at the Vostro notebook line, where more than half of all available configurations, 13 out of 24, include Vista Home Basic. By contrast, Dell’s consumer notebook line offers 34 separate configuration, of which only three start with Vista Home Basic. The remaining 90% come with Vista Home Premium (only one model includes Vista Ultimate by default).

You can see the same mix of Windows versions if you go to a business-focused reseller like CDW and look at a list of the cheapest available desktop computers, sorted by price in ascending order. Five of the 10 PCs on the list, including models from HP Compaq and Lenovo, come with Vista Home Basic. (Once you get past those low-end PCs, however, almost all computers sold at CDW include Vista Business.)

So how popular is Vista Home Basic, and who’s buying it?

Who’s buying Vista Home Basic? See the details by segment –>

Pages: 1 2

Ed BottEd Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications. See his full profile and disclosure of his industry affiliations.

Email Ed Bott

Subscribe to Ed Bott's Microsoft Report via Email alerts or RSS.

  • Talkback
  • Most Recent of 143 Talkback(s)
Small numbers
If you look at the "n" in each chart, the number of PC's sold, the number is much smaller for budget PC's. Some 684, compared to over 2000 for the other categories. In total, this makes for few Home Basic PC's sold.... (Read the rest)
Posted by: jorjitop Posted on: 11/13/08 You are currently: a Guest | | Terms of Use
Makes sense  CobraA1 | 10/09/08
Same thing with XP Home  Pliny the Elder | 10/09/08
Makes sense to Cobra  dcdavy | 10/09/08
Or maybe they're just smarter than you.  Sleeper Service | 10/10/08
I'm sorry, am I supposed to be having some sort of troubles?  CobraA1 | 10/10/08
small business  TedKraan | 10/10/08
Most businesses have less than 10 employees.  CobraA1 | 10/10/08
And most employees work at big companies...  TedKraan | 10/10/08
Not when that logic is flawed.  Bozzer | 10/12/08
Not when it means that you're changing the subject  flatliner | 10/12/08
I did switch the topic..  TedKraan | 10/13/08
@Bozzer: Interesting..  TedKraan | 10/13/08
Problems? Vista Home Premium, No.  pixelated | 10/10/08
Everybody networks  mswift@... | 10/13/08
makes sense to me too  TedKraan | 10/10/08
Actually...  Ed BottZDNet Moderator | 10/10/08
I've been instructed personally  TedKraan | 10/10/08
A handful of stories is not equivalent to a market trend.  CobraA1 | 10/10/08
On the other hand..  TedKraan | 10/10/08
Or to put it another way...  Ed BottZDNet Moderator | 10/10/08
Touche indeed  TedKraan | 10/10/08
You did indeed, Ted  Ed BottZDNet Moderator | 10/10/08
You stand corrected  helmsc@... | 10/10/08
Legit?  Ed BottZDNet Moderator | 10/10/08
I buy legit XP Pro all the time for $69.  gvincent@... | 10/10/08
Stolen, counterfeit, or diverted. But not legit.  Ed BottZDNet Moderator | 10/10/08
Wrong Again Ed  jns@... | 10/10/08
The XP option is easy to find  Ed BottZDNet Moderator | 10/10/08
Why didn't you  Kid Icarus-21097050858087920245213802267493 | 10/10/08
Space  Ed BottZDNet Moderator | 10/10/08
Funny  dbisse@... | 10/10/08
Makes sense, but not always good sense  ShadowGIATL | 10/09/08
2 questions  Michael Kelly | 10/10/08
Re: 2 questions  ShadowGIATL | 10/11/08
Well a few problems...  JT82 | 10/10/08
98 on a Domain  btidwell | 10/10/08
XP Home on a domain  Real World | 10/11/08
98 on a Domain (and XP Home)  ShadowGIATL | 10/11/08
98 on a Domain (and XP Home)  etherspy | 10/12/08
Never underestimate the power that be.  ShadowGIATL | 10/12/08
Market Share vs. Installed Base Redux  DannyO_0x98 | 10/10/08
x64  yagijd | 10/11/08
Small numbers  jorjitop | 11/13/08
RE: Look who's buying Vista Home Basic hint: it's not home users  g_keramidas@... | 10/09/08
Really?  Sleeper Service | 10/10/08
none..  TedKraan | 10/10/08
So why not buy a Linux...  Sleeper Service | 10/10/08
Supplier  TedKraan | 10/10/08
Not normally offered...  storm14k | 10/10/08
Not legal  Ed BottZDNet Moderator | 10/10/08
There never was a...  TedKraan | 10/10/08
There is, but not to small business  GuidingLight | 10/10/08
With really small businesses  TedKraan | 10/10/08
So your argument is...  Sleeper Service | 10/10/08
Yup wink  TedKraan | 10/10/08
You don't understand volume licensing  Ed BottZDNet Moderator | 10/10/08
I guess i don't..  TedKraan | 10/10/08
Answer  Ed BottZDNet Moderator | 10/10/08
Not legal  ShadowGIATL | 10/12/08
You're wrong  Ed BottZDNet Moderator | 10/12/08
It was more of an opinion really...  ShadowGIATL | 10/12/08
Sometimes we are wrong...  ShadowGIATL | 10/12/08
none..  etherspy | 10/12/08
This is exactly..  TedKraan | 10/10/08
You really need to learn a few things...  Ed BottZDNet Moderator | 10/10/08
fascinating..  TedKraan | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users  jamesrayg | 10/09/08
Just for clarity  AndyCee | 10/10/08
Vista Basic is OK  pwright2@... | 10/09/08
Basic is fine  dbisse@... | 10/10/08
College kids can get Windows Server 2008 for free  LBiege | 10/09/08
Called Dreamspark  logic_earth | 10/09/08
In 2010 there should not be a need for a Basic SKU  Mr. Dee | 10/09/08
And you're suprized?  wolf_z | 10/10/08
Basic Saved the Day  ravi16aug@... | 10/10/08
But... but... but...  Sleeper Service | 10/10/08
Check this..  TedKraan | 10/10/08
Does not indicate that it is a legal install  GuidingLight | 10/10/08
it's made too complicated  TedKraan | 10/10/08
Never seen that set of dialogs  Ed BottZDNet Moderator | 10/10/08
How about this scenario  dbisse@... | 10/10/08
True for Academic, not for business  Ed BottZDNet Moderator | 10/10/08
Oh really?  GoPower | 10/10/08
It is if You Don't use the XP Home Version  windozefreak | 10/10/08
Yep!  GoPower | 10/10/08
Nos os fast  CrashPad | 10/11/08
geez  TedKraan | 10/11/08
What is your argument then...  CrashPad | 10/11/08
unpredictable...  TedKraan | 10/11/08
RE: Look whos buying Vista Home Basic hint: its not home users  Gis Bun | 10/10/08
Precisely..  TedKraan | 10/10/08
Half right  Ed BottZDNet Moderator | 10/10/08
Skewed Article  itanalyst2@... | 10/10/08
i think i have a vista license too  TedKraan | 10/10/08
I covered that in the article  Ed BottZDNet Moderator | 10/10/08
True, But...  itanalyst2@... | 10/10/08
Site licenses  dkerber@... | 10/10/08
You don't understand volume licensing  Ed BottZDNet Moderator | 10/10/08
Ya'll are a bunch of whiners...  JT82 | 10/10/08
Found one  TedKraan | 10/10/08
Correct  JT82 | 10/10/08
Intel is deploying Vista..  CrashPad | 10/11/08
RE: Look who's buying Vista Home Basic hint: it's not home users  balaknair | 10/10/08
I said this a couple days ago here...  Narg | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users  Digitalcomet | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users  dkerber@... | 10/10/08
It still sucks (nt)  storm14k | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users  enawn | 10/10/08
It's not surprising at all ...  mwagner@... | 10/10/08
They're replacing it with XP  johnnydoe1894 | 10/10/08
Wrong  Ed BottZDNet Moderator | 10/10/08
Overpaying isn't  TedKraan | 10/10/08
Yes, but...  Ed BottZDNet Moderator | 10/10/08
What I Would Like to See  melekali | 10/10/08
ABOUT BASIC!!!!  chaz15 | 10/10/08
Windows already does these things:  ye | 10/11/08
.O  outpostprime | 10/13/08
ALSO  chaz15 | 10/10/08
Desperation breeds strange bedfellows...  mikifinaz1@... | 10/10/08
What kinds of problems did you have?  ye | 10/11/08
How about...  Resplendent | 10/10/08
RE: Look who's buying Vista Home Basic hint: it's not home users  dobick@... | 10/10/08
Pressing the CAPS LOCK key again switches it off.  Sleeper Service | 10/10/08
The not silent minority..  CrashPad | 10/11/08
Another Ed Bott Attempt To Paint Vista As A Success  chessmen | 10/11/08
Yup keep lying,, that'll work  tonymcs@... | 10/12/08
NO Aero !!!! And Great !!!!! Faster !!!!  a_munir@... | 10/12/08
Why the sharp contrast consumer vs business?  3dguru | 10/12/08
RE: Look who's buying Vista Home Basic hint: it's not home users  kershawfamily@... | 10/12/08
only one version of Mac OS X (non server)  chadpengar | 10/13/08
Only one Mac hardware vendor  cquirke1 | 10/14/08
RE: Look who's buying Vista Home Basic hint: it's not home users  Jim5506 | 10/13/08
The real deal however is Ubuntu it's FREE!  mikifinaz1@... | 10/13/08
If small businesses are adopting Vista Home Basic...  trentreviso | 10/13/08
Vista isn't just for 'Now'  cquirke1 | 10/14/08
Vista doesn't fit.  trentreviso | 10/14/08
Who gets to choose?  cquirke1 | 10/14/08
RE: Look who's buying Vista Home Basic hint: it's not home users  pjjtlc | 10/15/08
RE: Look who's buying Vista Home Basic hint: it's not home users  pjjtlc | 10/15/08
I would not expect ...  Ed BottZDNet Moderator | 10/15/08
Truth is the company I work for  anonymous_dan | 10/19/08
RE: Look who's buying Vista Home Basic hint: it's not home users  Mike062 | 10/24/08
Vista SP1  nix_hed | 11/11/08

What do you think?

SponsoredWhite Papers, Webcasts, and Downloads

Click Here
advertisement

Recent Entries

Premier Vendor Content Whitepapers, webcasts & resources from our Power Center Sponsors
advertisement

Archives

ZDNet Blogs

White Papers, Webcasts, and Downloads