Your Next PC Will Cost More

by Bob Seidel

I really don't want to start writing all my columns about the upcoming MS Vista OS - really I don't. In fact, I see the whole thing as a ho-hum, but Microsoft is going to make it a media marketing experience. By the way, as I predicted, hardware vendors are now starting to offer free upgrades to Vista if you buy a PC now.

There are some new multi-media features in Vista, but a lot of that is just a base to try to sell you music or videos. You will be able to play High Definition (HD) DVDs, but with the wars over the Blu-Ray vs. HD-DVD formats, you probably won't be buying one of those for a while. There are some features to improve performance, especially when starting up, but again that really hasn't been an issue. Search capability is improved in response to add-ons for Windows XP such as the Google Desktop Search. As mentioned last week, Microsoft is following, not innovating.

But the bottom line is that Vista is coming, and at some point in the future you will be using it. My advice for now is not to consider upgrading. When you buy a new PC, get it then.

The focus of this week's column is the cost factor. I think PCs are going to start costing more, and here is why.

First of all, you should be aware that Microsoft is very definitely in the driver's seat when it comes to specifying what features will be in your next PC's hardware. Each year, Microsoft holds a conference called WinHEC (Windows Hardware Engineering Conference). You can Wiki that for more information. At WinHEC, Microsoft works with engineers and programmers in the business to ensure that PC hardware will support Windows features. Microsoft also certifies PCs (especially for Vista) and hardware with device drivers.

Part of the higher cost factor for your next PC is that Vista requires more RAM, better processors, and has special requirements for your display card to enable DRM (Digital Rights Management). I haven't seen any prices yet on new Vista-compatible display cards, but this is an area of the industry where vast sums can be spent for the latest and greatest card - some of the fancier ones costing $400-$500 just for the card!

But another factor is the cost of Windows Vista itself. Microsoft has just announced the prices, and if you want the top version (Windows Vista Ultimate) the retail price is now $399 - about $100 more than Windows XP. The upgrade price is about $260.

The shear number of Vista versions is also a bit daunting - what to buy? There are going to be five different versions, two oriented towards business, two towards home users, and Ultimate. The big question is: if you buy a packaged PC and it comes with a version that is less than you want, can you upgrade easily? In Windows XP that was an issue as there was no upgrade path from XP Home to XP Professional. If you bought a PC with XP Home and you wanted Pro, you would have to buy a whole new Pro installation - not an upgrade.

Another, more hidden, cost of Vista is support. For business, the education and training of their IT staffs will be extensive. For consultants like me who charge by the hour, the customer is going to be paying the education cost in effect. I am of course going to attempt to minimize that, but it will certainly occur to some degree.

In the long term this will all settle out, with the marketplace as usual determining prices. But I predict a bubble in the short term.

(Bob Seidel is a local computer consultant in the Southport - Oak Island area. You can visit his Website at www.bobseidel.com or e-mail questions or column ideas to him at bsc@bobseidel.com. For specific inquiries, please call Bob Seidel Consulting, LLC at 278-1007.)