The failure of Vista continues to cast a deep shadow on the Microsoft's fresh launch, especially among the business users. Most enterprise customers skipped Windows Vista reportedly due to the numerous technical glitches that the OS had. According to reviewers, the operating system suffered from frequent hangs and crashes, and incompatibility with certain software and hardware.

A section of analysts believes that `Vista's reputation' may hamper Microsoft's efforts to convince enterprises about the Windows 7 improved features.

Ahead of the launch, Microsoft chief executive Steve Ballmer said that the company's reputation never recovered from the poor performance of Vista. Ballmer said Microsoft's reputation took a beating after the release of Vista in 2007, an operating system which caused computers to hang indefinitely, among many other technical glitches.

Price is seen as one of biggest issue that may dampen the Windows 7 release. Microsoft is charging $199.99 for the Home Premium version of Windows 7, or $119.99 for users seeking to upgrade from older versions of the operating system. However, India pricing seems to be comparatively low.

In India, the Home Basic package will cost about Rs 5,899, while the Windows 7 Ultimate (high-end version) will be available for Rs 11,799. In the US, the high-end version costs $320 (Rs 15,000).

Microsoft Vista Home basic costs around Rs 3,500, Home Premium version is priced at Rs 4,800. Microsoft Vista Business costs around Rs 6,400 while Microsoft Vista Ultimate is priced at Rs 9,500.

PC makers HCL Infosystems, Acer and Hewlett Packard have already started shipping Windows pre-loaded PCs and notebook computers. HP India will retail Windows 7-preloaded PCs between Rs 27,990 and Rs 90,000. HP's preloaded Windows 7 notebooks will be priced at Rs 39,990 onwards.

Acer PCs with Windows 7 OS will be priced between Rs 15,000 and Rs 35,000, while the notebooks will be priced at Rs 21,000-Rs 70,000. HCL Infosystems' Executive Vice President George Paul informed that HCL will price it between Rs 16,000 and Rs 55,000, whereas the notebooks would cost Rs 22,000-Rs 80,000.

Microsoft’s big release coincides with one of the worst phases in the global economy. The past few months have witnessed a downfall in the spending as cost-cutting became the mantra for businesses around the world.

Though most companies see a recovery on the horizon, they still see no big jump in corporate budgets. The companies globally continue to remain cautious and are tightly guarding their purses.

Certain analysts believe that the tough economic climate may impact the sales of Windows 7. At the same time, PC makers like Lenovo are betting on the new operating system to revive the falling computer sales.

Another big challenge for Microsoft is to deal with piracy. Even before the official release of Windows 7, authentic looking pirate copies of the OS were available in China for a mere $3.

According to Reuters, Windows 7 has been openly available in China's grey market for over a month now. Shopkeepers in Shanghai’s Xinyang market are said to be offering all versions of Windows 7, in both Chinese and English for just 20 yuan ($2.93). This compares with the list price of up to $320.