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My whole provincial (state) government just did the same thing. I was reading an article on MS fiscal results and this is pretty wide-spread because XP is no longer supported and 8 is both more expensive and isn't perceived as an improvement over 8 as far as businesses goes.

MS has no qualm with this, they are making untold millions. As long as governments/businesses are not upgrading to Linux or iOS it's all gravy to MS. They fact they they aren't on Windows 8 is a bonus as that means they'll all need to upgrade again that much sooner.