In the past, most PC makers offered free upgrades to a new operating system in the months leading up to the launch of an OS. But don't expect one for Windows XP.
Instead, owners of most recently purchased PCs will need to pay $15 to $30 for a coupon to get a copy of XP once Microsoft's operating system is released Oct. 25.
Compaq Computer so far is the only PC marker to break ranks and offer the OS upgrade for free. Compaq announced late Thursday that it will include a coupon with every PC it sells, allowing customers who bought a computer as of Sept. 1 to get the upgrade at no cost.
"The reason Compaq is doing that is probably to maintain the sales momentum, clear out inventory, and to make sure there aren't any impediments in front of the cost," NPD Intelect analyst Stephen Baker said. "The reason everyone else is charging is because they think they can. They're taking the opposite tract: that the extra 20 bucks probably isn't going to change anybody's mind."
"Microsoft and everybody is counting on Windows XP to inspire sales for fourth quarter," ARS analyst Toni Duboise said said. "But charging for the coupons doesn't bode well for the Windows XP marketing blitz that they're doing right now, and I think there is a little bit of a conflict there."
News source: CNet News
Instead, owners of most recently purchased PCs will need to pay $15 to $30 for a coupon to get a copy of XP once Microsoft's operating system is released Oct. 25.
Compaq Computer so far is the only PC marker to break ranks and offer the OS upgrade for free. Compaq announced late Thursday that it will include a coupon with every PC it sells, allowing customers who bought a computer as of Sept. 1 to get the upgrade at no cost.
"The reason Compaq is doing that is probably to maintain the sales momentum, clear out inventory, and to make sure there aren't any impediments in front of the cost," NPD Intelect analyst Stephen Baker said. "The reason everyone else is charging is because they think they can. They're taking the opposite tract: that the extra 20 bucks probably isn't going to change anybody's mind."
"Microsoft and everybody is counting on Windows XP to inspire sales for fourth quarter," ARS analyst Toni Duboise said said. "But charging for the coupons doesn't bode well for the Windows XP marketing blitz that they're doing right now, and I think there is a little bit of a conflict there."
Q: We’ve been hearing stories of trusted employees given last minute notice on layoffs and having security escorts out the building. What’s going on?
A: Employers argue that this is the only way they can handle layoffs. They’re legally able to do that for security purposes. Companies sometimes have to make last minute decisions without a lot of folks knowing. Even so, techies are looking for a little more respect. Employer vs. employee – you could argue who’s right all day. It’s come full circle. Employers were getting a lot of grief a couple of years ago when it was hard to find staff and they’d up and leave after six months, a lot of job-hopping.
Q: Why are companies resorting to these tactics now?
A: This is a tradition in the established tech community. Once companies make technology advancements, reach a certain level or the market is just not there, it’s very typical that companies have to make very quick, sometimes major, layoffs. It’s sometimes cold. Techies are saying, “Look, times are tough, give us two weeks notice, some sort of incentive to come back to your company when times are better or at least appreciate me for my contribution to date”. A recent Techies.com survey found that almost 95% were upset by the way they were laid off.
Q: Any shocking first person accounts?
A: Techies.com had a contest for the best – or I should say the worst – layoff stories. The winner was the case of the disappearing CEO. After awhile, he stopped coming to work and no one knew how to get hold of him. He just gradually ordered layoffs from different places around the country. Finally, when they were down to just the CEO and this one employee, he stopped coming to work, too. Still to this day no one knows what happened.
Q: Severance packages soften the blow. Are people getting these or getting cut off?
A: About 27% of the people techies.com surveyed didn’t receive any severance whatsoever. Usually everyone receives some sort of benefits, though. Usually the rule of thumb is 1-2 month’s severance pay. For the people that have been there a number of years, they will get an added week per year of service. Managers might get six months and senior managers might get up to a year severance. Cisco gave 6,000 employees, from PC operators up to software engineers, at least six months severance pay.
Q: About 75% of displaced workers are not finding new jobs for six months. What’s the next step for these workers?
A: We’ve heard stories of tech workers going to Europe, either moving there or trying to get a work visa. These are usually your younger folk. Some are going back to school for a graduate degree. There has been a great boost at techies.com with our website training with the hopes that they will better qualify for jobs they’re seeking. Companies can afford to be picky these days with all the displaced workers, so you’re seeing more difficult requirements for hiring these techies. You’re just not seeing entry-level positions anymore.
Q: What’s your advice?
A: It’s hard to stay current if you’re laid off for a year and you’re not working or training. My advice to techies has been once you get two months being unemployed, you better start training or finding different ways to market yourself. It’ll probably be another six months to a year before you see another dramatic difference with job openings. Even if you’ve weathered all these layoffs and are still employed, keep updating your skills.
Q: Are you seeing the older generation techies being concerned about retraining?
A: We have found in past surveys that there is a lot of age bias in the tech sector – which is pretty sad. It’s also understandable because a lot of these older workers might have started training when they were 35 or 40, and they might just not have the ambition or the drive to keep learning new technologies.
Q: Are laid off tech workers trying self-employment and contract work?
A: People that have never tried self-employment may have an unrealistically rosy picture of being your own boss and working from home. But there’s not a better field out there than technology to try self-employment. Folks in development programming are fairing better as they don’t have a lot of start-up costs.
To have the most success being self-employed, you mustn’t be bothered working in your leisure time. We find that those who have already tried it will say you don’t get as much money as you’d think you would and it’s a lot more work than you think. I would say to the techie it’s not the best time to try to freelance any of your work. But if you have a regular job and you’re doing web pages on the weekend, then maybe you can develop that into your own business.
Q: What types of tech positions were laid off?
A: The most common positions suffering layoffs were middle managers, IT managers, PC operators, or what are called help desk technicians, entry-level techies. Programmers were big in the layoffs.
Q: Any positions that are more secure than others?
A: One of the amazing things is the position that keeps growing in demand – quality assurance, people who test software. Also, security technicians are in great demand, what with all the viruses exploding onto the scene every day

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