PLEASANTON, Calif.-While Microsoft's Windows 8 was designed to enhance the PC experience with a touch screen and tablet-friendly application, adoption rates have been slow, especially with credit unions.
"I have spent limited time using Windows 8 on a home PC without a touch screen," noted John Gracyalny, VP-information technology for Safe America Credit Union. "While I understand Microsoft's strategy in wanting to deliver a common user interface over its range of products, for us keyboard and mouse types, it seems an unnecessary complication. Of course, I'm also perfectly happy at a DOS prompt."
For many credit unions, the issue is that Windows 8 can not be operate as a standalone product. Due to existing technologies driven by the third-party software processes, such as core system applications and lending applications, issues of incompatibility exist.
"These systems are not yet compatible with Windows 8, many of these vendors are recently completing their support of Windows 7," said Chris Sachse, principal at Horsetail Technology, a Baltimore-based IT services firm. "Additionally, there is a lack of added benefits. Windows 7 is full of features and is a stable operating system. Windows 8 doesn't offer any benefits to the credit unions that they are finding appealing enough to make the shift."
Upside, Downside
With 24,400 members, 65 employees, eight branches (two of which are inside SEGs), the $300-million Safe America CU isn't opposed to adopting Windows 8 or any similar platform that would streamline operations. However, Gracyalny points to the same concerns outlined by Sachse.
"We upgraded all workstations and laptops to Windows 7 last year. The upside is that Microsoft finally got the security aspects right, and we have semi-virtualized the desktops, which means all desktop displays and default file storage areas are now on a shared server rather than local hard drives," said Gracyalny. "There are no significant downsides; it appears to be as viable a long-term workhorse as Windows XP was for us."
In recent months, Horsetail Technologies has worked with three credit unions to evaluate a potential upgrade to Windows 8. Two of the credit unions were operating Windows 7 and the other had a mixed environment of Windows XP and Windows 7.
"After a careful evaluation of the application compatibility and the web browser computability, we felt the risk or workarounds that would be required to transition to Windows 8 would be unnecessary," said Sachse. "The benefits don't outweigh the risks and Windows 8 doesn't provide enough motivation to take on the added risk at this point."
While Windows 8 has received mixed reviews, it has experienced slightly better adoption rates than 2007's Vista, which was an upgrade to Windows XP. Net Applications measures the number of times a specific operating system is detected on its monitored websites, and in March it reported that Windows 8 accounted for 3.17% of web usage, which was an increase from February's 2.67%. However, Windows 7 represented 44.73% with Windows XP 38.73%.
Nevertheless, vendors and third-party providers have taken note of the issues surrounding Windows 8 compliance issues. To this end, proactive measures are underway in certain regions. "Our core vendor has announced it will support Windows 8 with the next release of their graphic user interface (GUI) platform, scheduled for later this summer," said Gracyalny. "We will be installing Windows 8 on a couple of test PCs in April to determine if there are any showstoppers, as we are considering using Windows 8 tablets to replace laptops for remote use."
Gracyalny oversees three other IT personnel at Safe America CU. Together the team supports approximately 115 desktops and laptops. An upgrade to Windows 8 would be no small undertaking. "I would expect if we were to migrate to Windows 8 it would be a similar scope to our Windows 7 upgrade from XP last year, one technician half-time for three months," said Gracyalny. "But I would be surprised if we ever migrate to Windows 8. As stable as Windows 7 has been, it is more likely we would wait for Windows 9 and upgrade in three or four years."
The Longer View
This longer view approach is in line with Sachse's analysis of the industry. "I don't think that Windows 8 is a 2013 or even early 2014 project. Credit unions are not looking to be on the bleeding edge of technology, rather they lean towards security and stability. Windows 7 delivers that quite well."
When asked where he sees the future of credit unions and Windows 8 related technology, Sachse responded: "I envision an open concept banking environment where member service representatives have tablets or touch screen computing devices that can perform transactions, accept signatures, share screen images and ultimately. Windows 8 makes this possible and when that vision can be realized, we will see a shift in the adoption of Windows 8."
