Microspeak: Pricing uplift


In a conference call with investors last year, investor relations general manager Colleen Healy described the effect of business editions of Windows thus:

As we shared with you previously, Windows Vista business generates over five times the pricing uplift over Windows Vista Home Basic than does Windows Vista Home Premium.

Also known as profit.

Comments (24)
  1. tzagotta says:

    After all, "profit" is a bad word. :o)

  2. Sunil Joshi says:

    It’s more likely it means revenue than profit. To calculate the difference in profit, you will also need to work out the difference in the cost of developing, marketing etc. Business, Home Premium and Basic. Prices alone tell you the difference in average revenue.

  3. Paul Williams says:

    I look forward to my bank account uplift every two weeks.

  4. Yeah, whatever says:

    They need more like an airlift to get my salary into the bank.

    Using a scale model aircraft.

  5. s/business/Business/

  6. blah says:

    Typical managerial jibbery-droo. Downright misleading verbiage.

  7. Ulric says:

    I’m not sure it means profit.

    I think that’s the point :)

  8. James Day says:

    Makes me wonder what the uplift is for the XP downgrade program. A required upgrade here for supported access to the corporate network as of the end of this month.

    Also interesting, and annoying, that other vendors are hooking into limiting their applications according to Vista version, increasing the OS switching cost further.

    Home use with large drives and lots of cores is looking like the first place I’ll have any (unforced) reason to want Vista.

  9. ::Wendy:: says:

    are you sure its not the rate at which the profit increases? its not clear…

  10. Boris says:

    As of 1245 PDT on June 17, this post is the first Google search result for "pricing uplift".

  11. Specifically, it seems to be referring the revenue margin.

  12. Worf says:

    @Sunil Joshi:

    Except, all versions of Vista are on the DVD shipped from Microsoft. That way you can do the upgrade by downloading a license key and you Vista is now magically upgraded to whatever version you purchased.

    Snarky comment: Sorry, XP is not on the Vista DVD. Though, that’s supposed to be a freebie if you have Vista.

  13. Dean Harding says:

    Worf: Putting it all on one DVD saves you some manufacturing cost, but it doesn’t save you the cost of developing the business-specific features, the cost of marketing those features, or any of the other costs involved.

  14. Aaargh! says:

    "Sorry, XP is not on the Vista DVD. Though, that’s supposed to be a freebie if you have Vista."

    If you buy a PC that comes with Vista, and upgrade it to XP, does MS still count it as a Vista sale ? They should be able to detect the upgrade from Vista to XP because they both have to be activated online. But how is this counted ?

  15. Abhishek says:

    Aaargh!, I’m not sure MS will appreciate you calling the Vista to XP install path an ‘upgrade’. ;-)

  16. Someone says:

    @Abhishek: I think he was trying to be funny.

  17. Economist says:

    He was trying to be funny, but he did not succeed.

    What I don’t get is why Microsoft hasn’t given in to calls to sell a Windows 2008 Workstation.  XP = the original Coke, Vista = New Coke, Windows 2008 = Coke Classic.  Put a dozen SE engineers on it and celebrate the Second Coming of Windows.

  18. Ulric says:

    err.. just run Vista with the Classic theme if you don’t like the New Coke UI.. :P

  19. A.B.Leal says:

    The Uplift War, by Brin (David, not Sergey) – en.wikipedia.org/wiki/The_Uplift_War

  20. Wang-Lo says:

    Some common phrases will need upgrading to achieve true interoperability:

    "…learn Web design for fun and pricing uplift."

    "…volunteer at a non-pricing-uplift organization."

    "…calculate your gross pricing uplift margin."

    "…my employer has a great pricing-uplift-sharing plan."

    and "profit/loss center" will become "pricing-uplift/costing-downdraft center" or some such.

    -Wang-Lo.

  21. Wang-Lo says:

    Matthew 16:26: For what doth it pricing uplift a man, if he gain the whole world, and suffer the loss of his own soul?

    -Wang-Lo.

  22. Aaargh! says:

    "@Abhishek: I think he was trying to be funny."

    No I wasn’t. Upgrade doesn’t necessarily mean "higher version number", it could also mean (according to wiktionary): "to replace an existing object with something better" which perfectly fits the description of replacing Vista with XP.

    Maybe "less bad" would be even more accurate. I was just wondering if the number of sales MS claims for Vista reflects the true numer of active Vista installations and not just the people who bought a Vista license because it came with the system and who used the upgrade-to-XP option. They certainly have the possibility (through the activation mechanism).

    "Put a dozen SE engineers on it and celebrate the Second Coming of Windows."

    I don’t think the current Windows OS can survive for much longer, they need to restart from scratch. Windows is old, and it shows. And I don’t mean "18-year-old single malt whisky old" like Unix, I mean "my rust-bucket of a car is falling apart on me" old. The bit rot shines through in the UI and the API’s (see e.g. this blog’s archive).

    So while I would welcome a win2k8 WS for the short term, I’m really curious to see what MS will do in the long term, breaking backwards compatibility will dissolve their user base in one go, but staying backwards compatible will make Windows slowly fade into oblivion.

    All in all, it’s going to be an interesting decade or two :)

  23. Triangle says:

    "So while I would welcome a win2k8 WS for the short term, I’m really curious to see what MS will do in the long term, breaking backwards compatibility will dissolve their user base in one go, but staying backwards compatible will make Windows slowly fade into oblivion."

    Until there is a viable alternative, Windows is probably not going anywhere.

  24. Aaargh! says:

    "Until there is a viable alternative, Windows is probably not going anywhere."

    Seeing the popularity of Linux on cheap netbooks, Apple’s ever increasing market share. More and more applications moving to being webapps (== os independent). I say there are many alternatives.

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