Microsoft Corporation (MSFT) Will Still Make Millions From XP

Microsoft Corporation (MSFT) Will Still Make Millions From XP
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Microsoft Corporation (NASDAQ:MSFT) will still make millions of dollars from Windows XP, the more than a decade old version of its Windows operating system despite the fact that it stopped selling the software in 2010 and recently ceased supporting it.

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According to Fiberlink, a mobile device management company, Windows XP is still used in approximately 44% of businesses. Microsoft Corporation (NASDAQ:MSFT) ended the support for the software on April 8, 2014 after issuing its final security update.

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Michael Silver and Stephen Kleynhan, analysts at information technology research and advisory firm Gartner estimated that around 10% to 15% of all enterprise PCs will still run the Windows XP.

Microsoft offers custom support

Some of the largest companies still using the software secured a custom support contract from Microsoft Corporation (NASDAQ:MSFT) to continue to provide security updates and fixes for their PCs.  Microsoft Corporation’s (NASDAQ:MSFT) custom support contract had been capped at $200,000 for some time and its clients were allowed to pay quarterly.

In a recent interview with Computerworld, Silver noted that Microsoft Corporation (NASDAQ:MSFT) changed its custom support pricing into a per device model of $200. The software giant and reinstated its floor and ceiling price of $200,000 and $500,000, respectively.

According to Silver, the custom support for Windows XP is “certainly not pretty.”  The quotation for the Windows XP custom support ranges from $600,000 to $5 million for the first year.

Microsoft secures huge custom support contracts

Microsoft Corporation (NASDAQ:MSFT) already secure huge amount of custom support contracts, particularly from the British government, which entered a £5.548 million agreement to provide security updates for PCs powered by Windows XP, Office 2003, and Exchanges 2003.

The software giant also obtained a multi-million contract from the Dutch government to provide support for more than 300,000 computers. In addition, the Internal Revenue Service (IRS) of the United States entered a $500,000 agreement to receive security updates for its approximately 58,000 Windows XP computers.

Different banks worldwide also obtained custom support contracts from Microsoft Corporation (NASDAQ:MSFT) for their ATM machines powered by Windows XP, according to Reuters.

Via: BI

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Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
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