Windows Server 2003 Migration: A Window Into Other Opportunities

With the end-of-support date for Microsoft Windows Server 2003 fast approaching, solution providers say the migration itself is actually not a big moneymaking opportunity as much as it's a door-opener for conversations regarding other services.

"It's not going to be a massive percentage of revenue in itself," said Stephen Monteros, vice president of business development and strategic initiatives at Sigmanet, a $160 million Ontario, Calif.-based solution provider and Microsoft partner. "What it does, though, is it opens the door to other conversations on other opportunities such as networking and things like that. It won't be a huge percentage of revenue on its own, but it gets the conversation started on other opportunities."

Monteros said he expects about 20 percent of Windows Server 2003 users will stay on the platform past Microsoft's July 14 end-of-support date. He noted that Sigmanet is seeing a "handful" of migration customers each week but forecasts there will be a "flood" of business in that area after July 14 when Windows Server 2003 users start to see firsthand the issues that come with having an unsupported operating system, mainly around security.

[Related: 10 Keys To Upgrading Windows Server 2003]

For customers ready to make a change, Sigmanet often spotlights the need to update applications and help customers decide between moving to the cloud or Windows Server 2012.

"All we can do is help them with the business side because they are facing a fork in the road," Monteros said. "We see what options they want. Manufacturers, for example, have specialized apps that they run in-house. It's proprietary and requires maintenance. Typically for them it would be wise to migrate to Server 2012. There is always a concern the apps won't run, and that’s why you test them. Then you can bring people in to do coding and make modifications. Typically the decision is to keep it in-house."

In addition to application updates, Sigmanet is finding opportunities to beef up customer networks and introduce the idea of adopting cloud computing, whether it's with Microsoft Azure, Amazon Web Services or another platform.

Microsoft partners said they don't see most users dragging their feet on prepping for the end of support date, but some are, as they don't want (or can't afford) to spend the money required for a successful migration.

"The biggest holdbacks are people who commit to very large assets that require older servers," said Joseph Awe, president of TechBldrs, an Exton, Pa.-based Microsoft partner. "The others are ones that have line-of-business apps that run well on that space. I think it's definitely expensive to get the apps to run on new servers. [They're saying], 'If I don’t have to spend a million on something, let's not.' "

Of the 60 Windows Server 2003-based servers TechBldrs services, 55 of them should be at least be running on Server 2008 by July, Awe said. With the heightened awareness created by massive security breaches over the past two years, customers understand the need to keep their servers up to date, he said.

Joe Balsarotti, president of Software to Go, a St. Peters, Mo.-based Microsoft partner, said that he has all of the company's regular customers on a server upgrade cycle in which they update their software every five or six years. He said that all customers are off Server 2003 already because of this, but any customer who still uses it is doing so because of financial reasons.

"If they can't afford it, it doesn’t matter what Microsoft or a trusted adviser says. If it's not in the budget, it's not in the budget," Balsarotti said. "If a business is barely making it, and the server still works, then they'll roll the dice. When they come across an issue that will affect the business materially, then they'll deal with it."

PUBLISHED MAY 27, 2015