The Financial Impact of Windows Server 2003 End-of-Life

If you’ve been keeping up with our blog, then you know that the world is still reeling from Microsoft’s decision to pull the plug on its popular Windows XP operating system last year. But, the software giant apparently isn’t done. Microsoft is striking yet another blow to the industry in 2015, on July 14^th to be exact, as that is the day the company will end technical support for its Windows Server 2003 operating system.

This news has computer manufacturers like HP and Dell striving to bridge the gap as upgrades will be required once the Windows Server 2003 end-of-life date passes. And, leading experts are saying that this change could very well have a multi-billion dollar impact on the industry.

Transitioning From Windows Server 2003 End of Support

According to a Microsoft partner called Insight, there are approximately 23.8 million copies of Windows Server 2003 running on 11.9 million physical servers worldwide. If all of those existing servers were to be upgraded, it would cost more than $10 billion. The reason is because companies are not only going to be buying new servers, but they will also be upgrading their servers to the newest Windows Server operating systems. This means that they will also require equipment removals and installations, not to mention upgrading entire business software infrastructures as antiquated software will not be compatible with the newer operating system.

While many may view this as Microsoft’s effort to try to get ahead of its forecasted weak profit and revenue expectations, the truth is that Microsoft won’t be the one cashing in the most on this change. The reality is that when it comes to Microsoft’s server products, 75% of the revenue goes to the company’s partners because the money is in renewals rather than in new licenses.

But, Microsoft still has a strong financial opportunity with the ending of support for Microsoft Server 2003. The company is recommending to its customers to use its cloud service, Azure. In addition, Microsoft recommends for companies to upgrade their current versions of Office to Office 365 to help make their infrastructures run smoother. The company will also likely see an increase in sales of its Active Directory account management software and, of course, its consulting services to help companies make the transition to the new OS.

Time to Upgrade: How to Get Rid of Your Old Servers

If your company is going to be upgrading its old servers in the wake of the Microsoft Server 2003 end-of-life date, you will need to have a reliable solution for managing those expired assets. At Liquid Technology, our computer liquidation services can help you manage those assets quickly and easily. We offer state-of-the-art data destruction and e-waste disposal and recycling with complete chain of custody documentation, so you can have peace of mind knowing that your data will be completely destroyed and your e-waste will be handled in accordance with all current EPA recommendations.

Call us today at 800-797-5478 to speak with one of our liquidation experts and we can help you prepare for the big changes coming July 14, 2015.