eXPerience Required

The hype around the October 25 release of Microsoft's Windows XP has been bewildering. Some peg Microsoft's latest operating system as doing everything short of writing its own memos. Others see the upgrade as a waste of time and money.

As we discovered in our lab tests, the truth lies somewhere in between. XP (priced $99 to $299) has a spiffed-up user interface, bundled freebies such as an enhanced Windows Media Player, a built-in videoconferencing system, and a remote assistance feature that lets troubleshooters patch problems from afar. The most obvious change is XP's dramatic new look and feel. Full of informational panes overlaying a primary-color design scheme, XP provides an abundance of information—maybe too much, especially for novice users. Under the hood, XP is just as stable and as fast as Windows 2000 and remarkably backward compatible—our tests with dozens of old software applications and hardware peripherals found nothing that wouldn't work, even with a beta version of the operating system. Most of the usability enhancements are cosmetic, although we found the new file management system to be a blessing, making it easier to organize and locate files (especially pictures).

While casual users will be impressed, many are already picking at XP's admitted flaws. Notably, Windows XP doesn't support Java by default, the result of a long-running squabble with Sun Microsystems. This means any Web page with Java on it won't display properly unless you have the Java Virtual Machine (JVM). Support for it is available as a hefty 5MB file you are asked to download the first time you visit a Web page containing Java.

XP's draconian copy protection also threatens to make reinstalls and upgrades considerably more difficult. And privacy issues linger over the involved registration process.

Overall, early adopters have been pleased with XP's benefits, particularly the common code base between Home Edition and Professional versions. "It hasn't lost any ground as far as I can tell," says John J. Minnick, an IT manager for Siemens Energy & Automation. The firm uses a number of different operating systems, all of which should communicate easily with XP until its operations in 190 countries are fully upgraded to the new OS. "It's very low-risk," Minnick says. "In fact, it's probably high risk if you don't do it."

But others won't even consider XP in the near future. PeopleSoft, for example, has been implementing an upgrade to Windows 2000 since last year—a vast, complex project the firm hopes to complete by year's end. "Throwing XP into the mix is not something we can consider right now," says Erik Beer, a workstation engineer for the company. "It's not to say we don't see added value in XP; we absolutely do. But it's going to require a lot of development on the back end and answers to a lot of questions that we don't have yet."

Windows XP: Wishful Thinking?

With the tech battlefield littered with casualties, the industry has never needed Bill Gates' cavalry more to rally high-tech spending and boost the economy. But will Windows XP be a cannon or a popgun?

The jury remains out. "It certainly can't hurt," says Gartner analyst David Smith. "The conventional wisdom is that it will really pick up the economy, and that will probably end up being a self-fulfilling prophecy."

Giga Information Group analyst Rob Enderle isn't so sure. "It's the last best hope this year, but the best-case scenario in this economy is that it holds the market flat," he says. Enderle worries that the media will dampen enthusiasm by focusing on antitrust storm clouds as much as XP's benefits. At press time, Microsoft's legal forecast is still mostly sunny.

Decision Maker: Is XP For Me?

UPGRADE IF: You have more people than PCs. XP has multiple sign-on features. You earn a paycheck creating software or applications. The single code base between Home and Professional versions is a boon. Your company runs Windows 95 or 98. You're due for something better. You're a novice. XP is easier to use than previous versions of Windows.

DON'T UPGRADE IF: Your systems lack the power. Realistically, you need at least a 400MHz processor, 128MB of RAM, and 2GB-plus of disk space. Your employees drift toward distraction. XP's Professional version includes tons of nonessential digital media features. You already run Windows 2000. It's close enough to what you're used to that an upgrade probably isn't worth it.

Copyright © 2004 Ziff Davis Media Inc. All Rights Reserved. Originally appearing in Ziff Davis Smart Business.