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CNET.com: Slow adoption of new Office, Windows hurting Microsoft

Dec 15, 2000, 18:32 (22 Talkback[s])
(Other stories by Joe Wilcox)

"While the company's dominance in operating systems galvanizes competitors and government trustbusters, more than a third of the company's revenue comes from desktop applications, primarily various versions of the Office suite."

"But Thursday's unexpected profit warning from the software giant underscores a chilling reality: Office 2000 sales aren't taking off as expected, being dragged down by slower-than-anticipated adoption of Windows 2000...."

"Before Windows 2000 was launched in February, Gartner projected that 15 percent to 20 percent of Windows 95, Windows 98 and Windows NT desktops would be converted to the newer version by the end of the year. The market researcher now expects a conversion rate of less than 10 percent."

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