The release of the next generation of the Windows operating system has created a carnival atmosphere in the IT industry - with long queues at the door, cheers and whistles, and an air of anticipation at the Beijing 798 Art Zone show, where Windows 7 was the star attraction.

The applause from Intel, Lenovo, Hewlett-Packard and Dell representatives, along with others from software, Internet, personal computer, chip and hardware companies was audible.

They are betting that the new Windows 7 update will boost demand for information technology products and applications, hastening the industry's recovery from the global financial crisis.

"It could be one of the first large IT projects after the global financial crisis," Jens Butler, a principal analyst at Ovum, a UK-based IT consulting firm, said of Windows 7. "Microsoft could be the system integration industry's savior."

Windows 7 is the most significant upgrade in the global personal computer industry in the past eight years since Windows XP was launched in 2001. In the interim, the Windows Vista system drew more raspberries than raves.

More than 1 billion people, or 95 percent of global PC users, install some form of Windows systems in their computers, which provides a revenue trigger for computer makers like Lenovo Group Ltd, Hewlett-Packard Inc and Dell Inc.

Unlike its predecessor Vista with its large number of new features, Windows 7 is intended to be a more focused, incremental upgrade to the Windows line, with the goal of being fully compatible with applications and hardware. With more than 8 million beta downloads and 40,000 hours of customer use, the early feedback has been positive, said industry officials and analysts.

Windows 7 features highlights such as multi-touch support, redesigned, improved home networking and media-sharing functions.

More spending

An update of the Windows system often requires a more powerful central processing unit, a bigger capacity hard disk and a more complicated graphic chipset. That's why Windows 7 is set to up the ante for chip makers, memory vendors and display equipment vendors like Intel Corp.

Each 1 yuan (14 US cents) of spending on Windows 7 will generate an income of 27 yuan for the IT industry in China, Simon Leung, Microsoft China's chairman and chief executive, said during the Windows 7 launch ceremonies in Beijing. That's higher than the equivalent average of 18 yuan worldwide, according to International Data Corp, a United States-based IT consulting firm.

In China, PC makers such as Lenovo, the No. 1 vendor in the domestic PC market, and Acer Inc are riding the Windows 7 tide with high expectations.

Windows 7 will bring a new era to the PC industry and it's expected to fuel the demand for replacement PCs, said Lenovo Group Chairman Liu Chuanzhi.

His company is expecting to be profitable next year due to demand generated by Windows 7, Liu told a forum in Shanghai last month.

"Every upgrade of the operating system, if successful, is expected to create more explosive demand for new PCs," said Arthur Chen, Acer's director for the east China region.

The Windows 7 is expected to fuel PC sales at the end of this year because users are still testing the system and the market is not fully developed, Chen said.

Minimal impact

In the fourth quarter, Windows 7 will have minimal impact on worldwide PC sales, according to Gartner Inc, a US-based IT researcher.

Acer, which replaced US-based Dell as the world's No. 2 personal computer maker in the third quarter, said it expects sales on China's mainland and in Hong Kong to surge more than 50 percent in 2010.

In China, Lenovo has launched Windows 7 ThinkPad laptops, while Acer is introducing netbooks with Windows 7 this month.

Windows 7, which also features a higher level of display, will fuel the sales of well-designed, high-definition and quick response monitors, according to US-based display equipment maker ViewSonic.

Windows 7 has also added features specifically for Chinese consumers, who purchase about 40 million PCs annually. The system supports China Mobile, China Unicom and China Telecom networks, better recognition of handwritten Chinese and the domestic standard for digital and high-definition TVs, Leung said.