Ready or not, Windows Vista will soon be available for your business, home and mobile Personal PCs. Despite many delays, it is already in production and will be available officially in January 2007, but some may have access to it sooner (as early as the end of this month [Nov. 2006] for larger organizations). In addition, there are many, such as myself, you have been running pre-release versions of the software. (I'm running in Windows Vista now while I'm writing this blog article.) 
Many areas of consideration need to be addressed before taking on an upgrade to Vista. (Of course, in 2007, when you buy new computer systems they will normally come with Vista pre-installed, so you probably won't have a choice.) Here are some of what I feel are the more important points when considering whether to upgrade:
1. Hardware. Windows Vista is infamous for it's more demanding hardware requirements. There is a minimum ("Vista Capable") requirement of at least 512MB of RAM and a 800MHz CPU just to run the standard features, but to run the cooler features such as it's Aero Glass display, you will need at least 1GB (1000MB) of RAM, a 1GHz CPU and a high-end graphics card with 128MB of memory ("Premium Ready"). While the advanced features are nice, they are not necessary for normal business applications.
2. Editions. Where Windows XP essentially had a Home and a Professional edition from which to choose, Vista has 5 editions: Home Basic, Home Premium, Business, Enterprise, and Ultimate. Business edition is somewhat equivalent to XP Pro. Ultimate is a combination of all features in the other editions, including media center, plus some special drive encryption protection capabilities. Windows Vista Enterprise will only be available to customers (usually larger organizations) who have PCs covered by Microsoft Software Assurance or a Microsoft Enterprise Agreement (i.e., organization-wide licensing agreements).
3. Compatibility. For most businesses and professionals, it's the application software that is the critical element of any computer system. So, it is important that your application software will run appropriately in Vista. Windows Vista has built-in compatibility modes to allow it to run software that was designed for previous versions of windows. However, there will be problems for many applications and it is important that you either have the capability to upgrade to a newer Vista-ready version of your important application software or you try it out with a test system running Vista before you commit to changing over all your regular PC's. There is also a problem with device drivers (such as software for controlling printers), that hopefully will be resolved when Vista is officially released. Currently, my main network HP Laserjet printer does not have Vista drivers available and I am not able to use it when running Vista.
4. Training. Most people that are comfortable with computers will be able to adapt to the new version of Windows. But that does not mean there will not be a learning curve that you will need to overcome. They layout is different (the start button is the image displayed above) and can be even a little disorienting if you are use to prior versions. The media center (part of the Home Premium and Ultimate editions), while having some neat features, can also present a challenge to fully understand and control. Your technical people will also need significant training and knowledge to understand, prepare, support and take advantage of all the new capabilities.
5. Costs. The cost of Windows Vista itself, if upgrading and not being included in the purchase price of new equipment, is not the main cost. You may need to add more memory or even replace the hardware system. You will probably need to pay for upgrades to newer Vista-friendly versions of your application software. In addition, you will incur learning costs, both in terms of training and also lost time while gaining experience with the system. Technical installation and support will also need to be factored into the costs.
When Will I HAVE to upgrade?
If you are running the latest version of XP Pro and you keep it up-to-date with with security patches and the latest fixes, you can possibly get by for a few years without having to change your current system (assuming no hardware failures and replacement parts readily available). You can even download and install Internet Explorer 7 which comes as standard part of Vista and enjoy the same benefits of its tab windows, RSS reader and improved browsing security, as I have already done. However, the additional security, multi-media features and new hardware compatibilities that are basic to Vista may eventually force you to make a business decision to upgrade.
If you are running a version of windows prior to XP and do not have an inexpense way to upgrade now to XP Pro, then I would plan on upgrading to Windows Vista sometime in 2007 as the older Window's security weaknesses and potential privacy liability exposure for your business, and you personally, will offset any savings advantages you may believe you currently enjoy. In additional, Microsoft has already announced limiting support for prior versions and this will eventually limit the pool of qualified technical personnel that will support your legacy system.
Utlimately, a decision to upgrade to Windows Vista, if not otherwise included as part of a new system purchase, will be based mainly on a desire to benefit from the enhanced software/hardware security and networking features, Vista friendly Office 2007 release, and to take better advantage of the processing power of the upcoming multi-CPU and 64-bit computer systems.
Update: See also Windows Vista - Putting It to Good Use or Should I Even Be Considering It?
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Copyright 2006 by Timon, Inc. All Rights Reserved. Windows Vista Start Logo Trademark of Microsoft Corporation.
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FYI, according to market statistics from a source now owned by Microsoft, 48% of corporate Windows users are still on Windows 2000. Only about 38% are using Windows XP. It will be interesting to see how quickly and to what magnitude that Vista takes over market share. If following trends, Vista it will take longer and yield a lower percentage. However, many of the Windows 2000 may now be needing to upgrade/replace equipment and be ready to make the jump. There will be little incentive for corporate XP users to switch, unless they require some of the features only available with Vista.