Windows 7 Licensing

[River Valley Computer]

OK - I have searched TN and Googled this until my eyeballs are crossed.

Here is our quandary.

With the advent of the demise of Windows XP in July, 2014 we are brainstorming ideas to assist the large base of customer still we have with Windows XP systems. We have two repair centers located in central Arkansas. I mention that to set the stage. Most of our users, both residential and business, are very frugal (i.e. cheap). They do not want to (or can not) buy new systems or pay to install Windows 7 (or 8) on their existing systems. Admittedly most of the systems would not support those Windows systems.

One concept we had was to buy some newer used systems from recyclers such as Dell OptiPlex 700 and 800 series or newer that will run the newer operating systems. We have several recyclers that we can get th m for $25 - $40 per system most with 2GB and 160-250 GB HDD.

The other concept is to build systems up with new components. We have never felt that built systems are the quality of factory built units unless you use high quality components which droves the price up and then you are at or above what they can buy systems from such as BestBuy, Staples or Waljunk.

I know that this message is going to receive a lot of snide comments but you all must understand our economic environment. The businesses in this are hanging on by their shoe strings to keep going and our residential base the same. They don't have a huge amount of expendable income.

We have been in contact with Microsoft about refurbisher and OEM licensing. I don't thing they could make it any more confusing if they tried.

I did contact Ingrahm Micro who is a Microsoft software distributor. They will take an application - but - they want $100 up front and after 30 days if you buy $1500 or more they will refund the money. I sure wish we could come up with rackets like this.

Has anyone else went through this circus? What did you end up doing? What source(s) do you purchase you Windows OSs from? Are you doing refurbisher or OEM or builder licensing.

So confused.

 

[angry_geek]

You're over complicating things. In order to use those salvaged machines, you'll have to be a registered refurbisher and use proper licenses. Aside from that, you are not responsible for your clients' financial situations. For those that can afford the license fee and labor to upgrade machines, sell it to them. For those that can't, don't. XP is not going to mysteriously shut itself down. Those machines will continue to function just fine as long as the hardware holds out. For your business clients, help them establish a budget and realistic upgrade cycle. For home users, tell them to drive until the wheels fall off or until they can afford new equipment. That's the extent of your responsibility.

 

[Karlin High]

I live and work in a similar environment, one state north of you. Our small store (about 1,100 sq ft / 100 sq meter) is in a town that had a population of 1,822 in the 2010 census. And, I also have customers bring in computers that are just new enough to have Windows XP. (About 3 times in the past 2 years we've had Windows 98 machines show up.)

Many of these customers are nice people. They seem to expect degrading comments on how old their computers are. Instead, they get my standard mantra: "As long as it does what you want, why do you care?"

Like Angry Geek said, Windows XP will still work after support ends. But, don't expect Windows updates anymore. If you have customers like some of mine, who don't have an Internet connection, that's pretty much a non-issue. If they DO have Internet, but not doing much besides email, Facebook, and so forth, maybe consider something like Puppy Linux.

Another concern with XP support ending is finding compatible peripherals. Have you ever tried finding a printer that's compatible with Windows 98? I did, back in 2005 or so. An HP rep on the phone was practically grieving that we were going to return his perfectly-functional printer just because it didn't have a Windows 98 driver. "We know how to make one, but there's certain files we need from Microsoft and they won't let us have them anymore. Let's see... if we call this a REPAIR, we could still do it. How about we ship you a printer in several pieces, assembly required, so we can include the Windows 98 driver?" Thanks but no thanks, sir; we will be returning the printer. I haven't heard if Microsoft is going to do that same thing with XP, but it sure wouldn't be a surprise.

If a customer needs Windows 7 or newer, I'm seeing new computers in the $300-350 USD range on Newegg. Evertek has refurbished machines for around $150 USD. If the profit margin on building new computers is too low, how much different will refurbishing be?

We do use Ingram Micro as a vendor. And yes, there was that $100 thing - which I think we forestalled by placing a $1500 order as soon as our account was set up. Surely at SOME point you'll have a business want at least $1500 worth of gear (a computer, monitor, Microsoft Office, and color laser printer is all it would take) and set up the account then. They're huge; a Fortune 500 company. I've seen items listed in excess of $3 Million USD on their website - waaayy out of my universe. But for certain items, they're the best vendor we have. Those barriers to entry are there to keep retail customers away. And, those are also barriers to entry for your customers. Retail-wise, the only (small) advantage I have over a Newegg is that I am here with products in stock and they are in New Jersey, Tennessee, or California. For Ingram Micro... so what if a customer does find out where I'm getting my things? "You wanna buy from them, be my guest. First, you'll need to set up for sales tax."

So, I guess I was through THAT part of the circus. But never checked out refurbisher licensing.

 

[Markverhyden]

As Loring said, this is not that complicated. It appears you have the hardware source down so you just need to deal with the software.

I'm sure your volume is low so you would be looking at the M$ Registered Refurbisher program - http://www.microsoft.com/refurbishedpcs/RRP.aspx. Sign up for that and buy the s/w from your wholesaler of choice.

Personally I would not do the build your own route. Too many variables. Going with tried and true platforms like the Dell OptiPlex or HP/Compaq business machines means you will have a huge aftermarket supply of parts available at very competitive prices.

Almost forgot to mention. There is a sticky about this at the top of the Microsoft Windows thread.

 

[JustInspired]

As Loring said, this is not that complicated. It appears you have the hardware source down so you just need to deal with the software.

I'm sure your volume is low so you would be looking at the M$ Registered Refurbisher program - http://www.microsoft.com/refurbishedpcs/RRP.aspx. Sign up for that and buy the s/w from your wholesaler of choice.

Personally I would not do the build your own route. Too many variables. Going with tried and true platforms like the Dell OptiPlex or HP/Compaq business machines means you will have a huge aftermarket supply of parts available at very competitive prices.

Almost forgot to mention. There is a sticky about this at the top of the Microsoft Windows thread.

^^^^ this

We recently got approved as Microsoft Registered Refurbishers and we are seeing better profit margins with refurbs.
We are doing nothing less than Optiplex 700 series. Just did two 755s today actually. Nothing special but way better than the single core Celeron things they're replacing.
We've also been doing Dell Precision workstations and Lenovo ThinkCentres.

The Refurbisher program can seem a bit confusing at first but it is worth doing.