Microsoft Corporation (MSFT) generates millions on Windows XP still

Posted Apr 15, 2014

Microsoft Corporation (NASDAQ:MSFT) stopped selling Windows XP in 2010, but is still generating millions of dollars from the twelve-year-old operating system. Around 44% of businesses still depend on Windows XP, according to Fiberlink. Microsoft is generating millions of dollars through custom support contracts where Microsoft will still fix bugs found in XP for them.

Microsoft capped a custom support contract at $200,000 for the first year, said Gartner analyst Michael Silver in an interview with Computerworld. Microsoft increased the price of Windows XP support at $200 per device with a large increase for year two and year three of custom support contracts.

An IT professional said that Microsoft quoted his company $1 million for year one, $2 million for year two, and $5 million for year three to support XO on 5,000 machines.

Some of the large contracts that Microsoft already signed include:

– U.K. government – £5.548 million (around $9.2 million) to cover XP, Office 2003, and Exchange 2003

– IRS – The IRS is paying Microsoft under $500,000 for around 58,000 XP machines.

– Banks – there are a number of banks that are paying Microsoft an unknown amount of money for custom support for ATM machines.