Microsoft may be set to extend Windows XP 's availability for low-cost laptops and a new generation of handheld devices, but it won't give the aged operating system a general reprieve from its June 30 retail and OEM cut-off, analysts said Tuesday.

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"Not likely," said Directions on Microsoft analyst Michael Cherry, citing Microsoft's need to push Windows Vista.

"XP has had one reprieve already," said Michael Gartenberg, an analyst with JupiterResearch. "And there are ways they can extend the life of the technology without extending the life of the XP brand."

Last September, Microsoft gave Windows XP a five-month stay, saying it would continue selling the operating system to large computer makers and at retail through the end of June, rather than call it quits Jan. 31, 2008, which had been its original plan.

Tuesday, reports surfaced that said Microsoft would also relax the June 30 deadline for low-cost laptops, such as the Asus Eee, and the low-priced pocket devices which plan to use Intel's Atom processors. Those laptops and devices will lack the horsepower to run Windows Vista.

"There's clearly a need for something like XP in the mobile or ultramobile market, where it shines relative to Vista," Gartenberg said.

Cherry agreed that Vista has no place on low-powered hardware but said Microsoft was in a tough spot. If Vista's specifications preclude its use on laptops in the $200 to $300 range, as they certainly do, and Microsoft doesn't want to cede the turf to Linux, its only choice is XP. Yet Cherry said Microsoft would put XP to bed if it could.

"Regardless of what happens, at the end of the day we've got XP, Vista -- all five versions of it -- and then Windows 7 coming along," Cherry said. "How long can they keep maintaining three big globs of code?"

But if the people are expecting Microsoft to lengthen the lifespan of Windows XP for all users, they're dreaming, Cherry continued. "I think it's likely that Microsoft will extend the deadline, but I don't think everyone will like what it is. They won't keep it alive for all."

Cherry again cited the difficulty of maintaining the code base for XP at the same time it makes the case for Vista and develops Windows 7. He also dismissed the fact that last September, Microsoft promised to make Windows XP Starter Edition available in emerging markets -- generally defined as countries like China, India, Russia, and the like -- through June 2010. "There's a difference between maintaining something like XP Starter and XP for anyone who wants it," Cherry argued.

Interest in Windows XP's longevity has been driven by several factors, including the approaching June 30 deadline and the imminent release of another service pack, but the biggest reason users seem to want XP to live is a general reluctance to upgrade to Windows Vista.

Earlier this week, Forrester Research released results of monthly surveys during 2007 that polled more than 50,000 enterprise computer users. According to the surveys, Windows XP usage remained constant throughout the year at slightly over 89 percent of all Windows users in businesses. Windows Vista, meanwhile, grew from nearly nothing to just over 6 percent, but appeared to get its gains at the expense of Windows 2000, not the dominant Windows XP.

A Forrester researcher said the data hinted that companies might hang on to Windows XP until the next iteration, Windows 7, is available in late 2009 or early 2010, skipping Vista altogether.

Gartenberg acknowledged the pressure to push out XP's drop-dead date came from Vista's troubles. "In the past you could argue that the latest and greatest from Microsoft was better. But for many people and businesses, that just doesn't fly this time.

"It boils down to the simple question," he continued. "If Microsoft can't convince their customers to move to Vista, will they will be able to kill XP?"

After weeks of speculation, it appears that the general public will soon be able to get its hands on the first beta of Microsoft's follow-up to Windows Vista. A message on the MDC (MSDN Developer Conference) site states that all attendees of the upcoming MDC events, a series of Microsoft-sponsored road shows running from early December through mid-February, will receive a Windows 7 Beta 1 DVD in the mail "when they become available."

Microsoft isn't giving an exact delivery date for the Windows 7 beta, but some reports speculate the disc will be ready before January 13.

[ InfoWorld's Randall C. Kennedy and OSNews' Thom Holwerda debated the best way to assess Windows 7's changes ]

Some bloggers, the few who've actually tested the pre-beta code, have voiced concerns about the Windows 7 feature set. Infoworld's Randall C. Kennedy, for instance, recently declared that Windows 7 was essentially a slightly tweaked version of Vista. Other reports have praised-with some reservations-Windows 7's interface improvements, such as a vastly remodeled Windows Taskbar.

Microsoft has indicated that Windows 7 will likely be ready by late 2009 or early 2010, and given the lack of spectacular new features in Vista's replacement, there's no reason to think that Redmond won't meet that timeline. Certainly, the average Vista user would be thrilled if the hated User Account Control security feature would simply go away. Early indications are that it won't, but UAC will undergo some major changes in Windows 7.

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IT vendors may be growing increasingly desperate amid the global economic downturn, but customers must employ a range of tactics -- not just bullying -- to extract cost savings from them, a group of Forrester Research analysts said during a client teleconference Wednesday.

Companies simply can't use a shotgun-style approach and expect to succeed, said software licensing analyst Duncan Jones: "Anything that is undifferentiated, like a general letter that goes out [to vendors] saying we've got to cut everyone's maintenance by 10 percent? That's not going anywhere."

[ For more on how to deal with the recession, check out InfoWorld's special report: IT and the financial crisis. ]

Analyst Paul Roehrig, who focuses on outsourcing and IT services, said it is difficult and awkward to extract price concessions on a signed contract.

"Either you're begging or threatening.... Those [tactics] tend to work, but only for a short time," he said, adding, "unless you're really overpaying, there's really not that much room in the provider's margin where they can lower the price point without changing the service level."

And if a customer does succeed in lowering its services costs, "the vendor is going to immediately substitute junior people," said analyst John McCarthy, whose coverage areas include offshoring.

Instead of begging for a rate cut, customers could instead ask their vendors to assign more seasoned workers to their projects, resulting in productivity gains and cost savings, McCarthy said.

Meanwhile, the tactics are different for software licenses and maintenance agreements, according to Jones.

"One of the problems is, you're dealing with a software rep who has different goals than you. He needs to sell new licenses and has no interest in helping you cut costs," he said. "But if you get up higher in the organization, there are going to be people who care more about the long-term relationship, and there's flexibility there."

That said, now is the time to push for bigger discounts on new licenses, as sales representatives "are desperate to meet their number by end of the year," Jones added.

Companies could even indicate they'd be happy to let any outstanding deals float over into 2009, he said: "That will probably be too late for the rep, so try it as a tactic and see how much flexibility you've got."

Also, customers could use money they're prepared to spend on new software as leverage, Jones said: "Anything you're trying to get, like cutting maintenance on products you're not using, you might be able to get that as a quid pro quo for spending in another area."

Beyond maximizing their buying power, companies should save money by determining which software assets no longer need a maintenance contract, Jones said: "You save costs with minimal impact on the business, but you put pressure on other vendors because it shows you're seriously looking at everything."

A similar approach should be taken to IT services contracts, Roehrig said. "If you're asking for the highest levels of service, you're going to be paying top dollar, when the reality is that the enterprise can function just fine with not everyone having gold-plated service."

Companies should also try to get more value out of outsourcing in general through strategic hiring, he said. "If I had money as a client to invest in one thing ... I would get someone who really knows how to manage a service provider. Some of the best outsourcing deals I've come up against have really good people who know how to get a service provider to do what you want."

Customers should also seek to lower the total number of service providers they contract with, leading the way to bigger volume discounts, Roehrig said. But he noted that this can be difficult for heavily federated organizations to accomplish.

It's also possible to save money by actually helping one's vendor cut costs, according to Jones.

If four divisions within a company are negotiating separately with a vendor, they should consider consolidating those relationships, he said: "I would go to the vendor and say, how can I earn cost reductions by dealing with you in a centralized fashion?"

Microsoft on Wednesday unveiled a free plug-in for Firefox to translate Open XML documents, an update to its document translator, and a toolkit for Java developers that was built under the umbrella of its Document Interoperability Initiative.

The group released the OpenXML Document Viewer as an open source project on its Codeplex Web site. The viewer translates documents in the Open XML format, which became an ISO standard in April after much contentious debate , to HTML so they can be viewed on a browser. The viewer, which is still in the preview stage, eliminates the need for a user to install Microsoft Office or any other productivity tool set.

[ Discover the top-rated IT products as rated by the InfoWorld Test Center. ]

The first implementation developed by MindTree and Microsoft works with Firefox 3.0 running on Windows or Linux and translates font types, images, text styles, diagrams, tables, and hyperlinks. In early to mid-2009, the project will add support for Opera and add server-side features.

The software was released during a Document Interoperability Initiative (DII) meeting this week in Belgium.

Microsoft created DII in March with the help of Novell, Mark Logic, Quickoffice, DataViz, and Nuance Communications. The goal was to foster interoperability between document formats, most notably Open XML and the Open Document Format (ODF).

"Basically this is Microsoft sincerely going out and following up with what they did with OpenXML," said Peter O'Kelly, principal analyst with O'Kelly Consulting.

As part of that follow-up, Microsoft plans to support ODF in Office 2007 SP2, which is slated to ship next year.

On top of the Firefox plug-in, DII released Version 2.5 of the Open XML/ODF Translator , which supports Office 2003, 2007 and XP. The new version includes a set of ODF 1.1 compatible templates and chart enhancements for spreadsheet programs.

The templates provide preformatted documents, such as a business letter or fax sheet, that are based on either ODF or Open XML and allow predetermined conversions between formats.

DII also introduced an software developer kit for Java developers that aids in working with Open XML documents. The project aligns with the Apache POI project, which provides Java libraries for reading and writing in Microsoft Office formats.

All the DII software was released as open source projects.

"We have been seeing that a lot of people now understand that what is most important is the end user," said Jean Paoli, general manager of interoperability strategy for Microsoft. "Since for maybe a year now, we are seeing far less passion about the format issue and more rationality."

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Scotland is to host two pioneering datacenters, with plans being announced to build an eco-friendly cloud centre in Inverness, and the world's largest computing facility in Lockerbie.

A new business park, a "sustainable village" with hundreds of homes and what is claimed to be the world's largest datacenter, are to be built in the south-west of Scotland under an ambitious £800 million development plan.

[ Find out more on being environmentally responsible while saving money. And stay up to date on green tech with InfoWorld's Sustainable IT blog, with our Green Tech Topic Center, and with the Green Tech newsletter. ]

The Peelhouses datacenter in Lockerbie, which is being built by Scottish firm Lockerbie Data Centres, will use green energy generated from wind turbines and a new bio-mass power station.

The entire facility will be spread over 250,000 square metres, including the development of 800 new homes in the village. Waste heat generated by the banks of computer servers will be reused to heat the new village as well as the existing town, and the business park

Scottish IT services company Alchemy Plus, with backing from Microsoft, has revealed plans to build a £20 million cloud computing center on the Inverness harbour. Inverness was chosen as an ideal site for the large computing facilities because of its cold climate, which Alchemy intends to harness to reduce the need for cooling.

[ Learn more about what cloud computing really means from InfoWorld's cloud computing primer. ]

The 20,000-square-foot facility is billed as Scotland's first eco-friendly computing facility, with the heat created by the center being used to warm nearby businesses, including a nearby hotel.

The Inverness center will operate on a cloud computing model, enabling users to subscribe on a monthly basis for the IT resources their businesses uses. Alchemy claims this companies that took part in an 18-month pilot saw an average cost savings of 28 percent.

Lockerbie Data Centres still waiting for planning permission of its plans, but chief executive John Hume said he had already received interest from a number of IT firms keen to get involved with the project.

Hume said: "The worldwide shortage of suitable data storage and the high demand for local affordable housing presents a unique opportunity for Scotland and local residents."

"With global demand for data storage expected to double by 2012, demand already outstrips supply."

Chief executive of Alchemy Plus, Peter Swanson, echoed similar sentiments on the demand for datacenter space. "The current economic downturn is driving a rapid shift towards cloud-based services which offer greater economy and flexibility."

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VMware has introduced View 3, the updated version of its virtual data infrastructure (VDI) offering. The company claimed that the new product would reduce desktop storage demands by as much as 70 percent.

In addition, the company said that it could "decouple" a desktop from specific locations to create a personalized view of that desktop, accessible from any other device -- so that a desktop could now be visible from a laptop in another office.

[ Read about VMware's VDI Storage Considerations guide. And stay up to date on the latest virtualization developments with InfoWorld's Virtualization Report blog and newsletter. ]

Jocelyn Goldfein, VMware's global manager for its desktop business said that the move supported the current trend towards mobile working. "Users are no longer tied to a desk," she said. "They use PCs, thin clients, notebooks or even smartphones."

Goldfein said that View3 was part of the vClient initiative announced at VMWorld. She said that the company was now looking at the desktop in the same way that it had looked at the datacenter. "The problem with desktop virtualization is that you still need a device. When you consolidate in a datacenter, you can get rid of 90 percent of the servers, you can't do that with the desktop." She added that View 3 would help bring virtualized desktops to devices.

The main element in View3 is View Composer. This uses a new technology called Linked Clone to generate many virtual desktops from a master image. Only desktops could be created in seconds and centrally controlled by View Manager.

Tommy Armstrong, VMware's senior marketing manager for enterprise desktops said that View 3 users would be able to provision many machines with common software -- for example, Windows, with that "golden master" as VMware calls it. He said that this could also be used for patch management.

In addition, the company has released Offline Desktop, a feature that provides the means to securely move virtual desktops between the datacenter and a local laptop or desktop. The company claimed that this would enable users to "check out" a virtual desktop onto an ordinary PC, such as a laptop, run the virtual desktop locally, and then check it back in to the datacenter.

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