A move by Microsoft to extend support for an older version of Windows underscores a new reality for the software giant: Convincing customers to upgrade is becoming much more difficult.
Earlier this month, Microsoft backtracked from a decision to end support for Windows 98 and other older Windows versions, pledging to continue support until 2006.
While many customers applauded the move, some analysts said that the decision may be more than an act of goodwill. According to recent surveys, about one-quarter of all PCs run Windows 98 or older versions of Windows. "Better to have people stay on Windows 98 than to start investigating things like Linux," said Michael Gartenberg, an analyst at Jupiter Research.
Microsoft maintains that it was just looking out for customers--mainly in developing markets--when it extended support for Windows 98, Windows 98 Second Edition and Windows ME. Of course, the call for Linux on the desktop has been strongest in emerging markets such as China, as some governments, both foreign and domestic, are actively investigating whether to switch from Windows to other operating systems.