If I was an Intel or AMD boss, I would be most upset with Microsoft right now. Here is the dominant software company that will have taken more than five years to release its next generation operating system and it won't even force users to upgrade their hardware, except perhaps for some more RAM and a graphics processor. 

Right now, I'm writing this on my ageing Pentium 4 running at 1.6 GHz, with 1 GB RAM and a SCSI Raid disk system with mirrored 150 GB disks (I recently upgraded my standard 40 GB disk because I store loads of data and I need a professional level of reliability). I currently have Windows XP Service Pack 2 installed and the system runs well. My system easily surpasses the minimum requirements of the top of the range Vista, except for my graphics card.

As far as I can tell, from what Microsoft says about Windows Vista, all I need is to install a Direct X 9.0 graphics compatible processor with 256 MB on board to have myself a Premium-Ready Vista PC. The graphics card will cost me a few hundred and, if I decide to upgrade to 2 GB RAM, that will pry a couple of hundred more out of my pocket. However, I won't have to upgrade my motherboard and this not the sort of news that Intel and AMD want to hear. What they want is to sell loads of their new dual-core processors in new boxes to irate PC users who have been forced to upgrade their hardware in order to get their new Microsoft product.

Now of course, we all know that where Microsoft is concerned, minimum requirements are way below what is usually needed to run one of its operating systems with acceptable performance. However, in the case of Vista, given the five year time lag, the benchmarks are lower than what many of us expected. Could we be seeing a slight weakening of the so-called Wintel alliance here?

Microsoft has just about reached saturation point for Windows and Office in its traditional markets. Vista and Office 2007 are going to be tough enough sells as it is without placing additional financial burdens on PC users. Notebooks of course will drive a large percentage of Vista sales but that market seems to be plateauing as well.

Thus we see Microsoft trying desperately to pry itself into emerging markets like India and China, both of which have large populations with scant resources to spend on highly configured hardware. Is Microsoft going to ask them to spend up big on new high powered boxes so that it can run its new operating system? Hardly - and that's bad news for the chip makers. {moscomment}