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April 2nd, 2008

Report: Office 2007 demand 'healthier than thought'

Posted by Mary Jo Foley @ 10:17 am

Categories: Corporate strategy, Office, Office 2007, Office 2010/Office 14, Service Pack, SharePoint Server, Vista, Windows client

Tags: Microsoft Office 2007, Microsoft Office, Office Suites, Software, Mary Jo Foley

There is quite a bit of difference of opinion as to when and whether business users should upgrade to Windows Vista, but Office 2007 isn’t suffering from the same fate.

According to Forrester Research (which has really been cranking out the studies in the past few days), businesses are deploying Office 2007 at a rapid clip. More than 40 percent of the 259 IT decision makers in North America and Western Europe that Forrester surveyed already have deployed Office 2007.

“The adoption of Office 2007 appears a lot healthier than what people thought,” said Kyle McNabb, principal researcher for the study. “Lots of enterprises are adopting it with Service Pack 1.”

Other findings from Forrester’s “The State Of Microsoft Office 2007 Desktop Adoption” study (which is only available to subscribers to Forrester’s research service):

  • The majority of those surveyed plan to deploy Office 2007 within the next 12 months (21 percent immediately, 43 percent within 6 months and 29 percent within 12 months)
  • SharePoint Server 2007 is being deployed at almost identical rates and often in tandem with Office 2007.
  • Of those surveyed, 43 percent said Office 2007 rollouts were tied to upgrades in PC hardware
  • *The release of Office 2007 SP1 “removed a hurdle keeping many from moving forward in calendar year 2007.”

According to conventional wisdom, many businesses prefer to deploy new versions of Windows and Office at the same time to reduce costs associated with upgrading to a new release. With Windows Vista and Office 2007, however, that rule doesn’t seem to be holding true. As part of the findings of a different survey released earlier this week, Forrester has found business adoption of Vista to be sluggish, with adoption of Vista by enterprises growing “a little more than five percentage points during 2007 to end at 6.3%.

(Microsoft doesn’t break out for public consumption the percentage of Vista sales that have gone to businesses vs. consumers.)

I asked McNabb whether any IT pros surveyed as part of this study expressed any ambivalence about waiting for Office 14 vs. upgrading to Office 2007. After all, Office 14 is still rumored to be a 2009 release. McNabb said those who were weighing this choice were “very much in the minority,” a fact he attributed to “Microsoft telling many customers not to expect major changes in the desktop with Office 14.”

And what about Google Apps? Any IT pros surveyed looking seriously at a completely Google-hosted alternative to Office 2007?

“Enterprises are looking at Open Office and Google, but they are not yet looking to move to them,” McNabb said. “Less than one percent are giving any real fuel to (Microsoft) alternatives.”

Mary Jo FoleyMary Jo has covered the tech industry for more than 20 years. Don't miss a single post. Subscribe via Email or RSS. You can also follow Mary Jo on Twitter.

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  • Talkback
  • Most Recent of 23 Talkback(s)
Numbers can be misleading...
While (almost) all the comments here are positive, the numbers can be misleading. We have many 2007 licenses, but we don't install 2007 now and the few we did install at one time come back to bite us ... (Read the rest)
Posted by: MWPollard Posted on: 04/16/08 You are currently: a Guest | | Terms of Use
And so it should be  karma.slap@... | 04/02/08
Well, most of it is tightly fit together,  HypnoToad | 04/02/08
It might be better, but it is different  ac567@... | 04/03/08
RE: Report: Office 2007 demand 'healthier than thought'  g_keramidas@... | 04/02/08
Fair comment but...  MyBlueRex | 04/02/08
RE: Report: Office 2007 demand 'healthier than thought'  ibarskiy@... | 04/02/08
It's probably more  alaniane@... | 04/07/08
RE: Report: Office 2007 demand 'healthier than thought'  rramirez@... | 04/02/08
Despite lacking some obvious innovations, it's actually a worthy upgrade.  HypnoToad | 04/02/08
My productivity has definately gone up!  Martin_Australia | 04/02/08
RE: Report: Office 2007 demand 'healthier than thought'  tonymcs@... | 04/02/08
Why not? Office 07' has been truly innovative  quikboy | 04/02/08
Office and IPod are products in search of suckers  Linux Geek | 04/03/08
I'm tired of the "Office Tax"!!!!!  Narg | 04/03/08
Zero Cost????  High Plains | 04/03/08
Tried It and Liked It  spindruiz@... | 04/03/08
office 2007 vs 2003 and 2008-mac  hansonjb | 04/03/08
Another View - from from experience with both  peter.lilburn@... | 04/03/08
Love Office 2007  frankwick | 04/03/08
RE: Report: Office 2007 demand 'healthier than thought'  felicia@... | 04/03/08
If you need to have the worksheet  alaniane@... | 04/07/08
RE: Report: Office 2007 demand 'healthier than thought'  NCWeber | 04/04/08
Numbers can be misleading...  MWPollard | 04/16/08

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