Intel chief Paul Otellini says the corporation is holding off installing Windows Vista on its corporate PCs. Otellini made the announcement at a Morgan Stanley Technology Conference in San Francisco.

"Vista will play out like XP did," said Otellini. "People won't upgrade the OS on the machine, they will buy it on a new machine when they need to do that. I think people will like Vista as they play with it - it's nicer and prettier."

The CEO also thought that Vista uptake would be slow until the release of the first Service Pack, reports IT World .

"I know of no organisation that is going to adopt it before Service Pack 1 is out. That's in the second half of this year and that includes us. Starting in the second half of this year we'll do a modest deployment, and continue into next year."

"That's the large company approach for all the people I've talked to."