Microsoft takes the wind out of Windows 7's sails

Microsoft operates in mysterious ways, there's no doubt about that. While I expected there to be multiple versions of Windows 7, I thought Microsoft had listened to customers and would take the opportunity to weed out some of less than useful SKUs. Not so: Windows 7 will come in no fewer than six versions.
That means two business versions (one for SMEs, another for Big Corps with Software Assurance deals), two Home versions (one for "emerging markets" only) and good old Ultimate that has everything and the kitchen sink thrown in, bar perhaps some of the corporate stuff.
These will all be at different price points no doubt, and volume licensing deals. Power users will avoid anything else apart from Ultimate of course, but won't the lower-grade versions annoy customers buying computers with them installed, and who face further costs to upgrade to a more feature-rich SKU? All the different versions will be more complex to and costly to manage for OEMs too.
It's possible that Microsoft stands to make more money from Windows 7 thanks to the different versions, but doesn't it come at the expense of irritating customers who do not want the additional complexity or cost?
The last version, Windows 7 Starter, is curious too. At a recent presentation at Microsoft's Auckland office, a bunch of journos including yours truly were shown some netbooks running Windows 7. Quite happily and snappily too, I should add, with machines in the 1GHz CPU range and with 512MB to 1GB of RAM. That was a pleasant surprise, as it shows Microsoft has been paying attention and sorted out one of the biggest complaints about Vista, namely it's avaricious resource hunger.
If I read the Windows 7 SKU list right, Windows 7 Starter is aimed at the cheap, low-powered netbooks above. However, it's limited to running only three concurrent applications which would seem to make it less than useful, even on feeble netbooks. In that scenario, what does a customer who wants to run more than three apps on his/her netbook do? Upgrade to a better version, maybe, but that'll cost $$$, defeating the reason for buying the cheap netbook. That's assuming the better versions will run on low-spec machines, as the current beta ones do. In that scenario, won't the netbook purchaser just head for the nearest Linux distro, which won't have an artificial three-app limit and which won't break the bank?
Seems a shame that Microsoft manages to undo some of the good promises for Windows 7 with a complex and confusing number of editions, some of which appear to be rather pointless.
Update Had some feedback via Twitter from Rafael Rivera Jr of WithinWindows fame, on the versioning. Rafael says the "consumer-facing" SKUs will be Home Premium, Professional and Ultimate. Starter on the other hand will be for emerging markets only, in countries like India. It's not netbook-specific, apparently. Humm...
Other related posts:
Windows Live Essentials betas seem good, but oh so flaky
Today’s incomprehensible Windows security warning
Today's strange Internet Explorer 8 error message
Comment by freitasm, on 4-Feb-2009 12:06
Unlike Windows Vista though each version adds on top of the previous one. So Windows 7 Ultimate is not really needed for home use - unless you are a power user connected to a business network,
Windows 7 Starter is mainly for small notebooks. Who really wants Media Center on a underpowered machine? It is a very niche product.
Windows 7 Home Basic is only available for emerging markets so it's not for you, me or a large part of the market.
The much coveted Windows Media Center is now available in Windows 7 Home Premium, which should be the version most consumers will get with their new PCs.
Windows 7 Ultimate really makes sense only for power users connected to a business network or that require extra security with data encryption.
Comment by Nathan Mercer, on 4-Feb-2009 12:16
New Zealand isn't classed as an "emerging market"
Home Premium will be the most widely used version in NZ
FWIW Media Centre is in Vista Home Premium as well, this isn't new
Comment by chiefie, on 4-Feb-2009 12:36
Nathan, when will there be an official announcement from Microsoft? Or at least a complete features matrix comparison of all editions?
The way I read it is, as:
Starter < Basic < Premium < Professional < Enterprise/Ultimate.
Now each one of the greater edition is superset of its lesser edition, right?
I read that Professional and Enterprise also have Media Centre, but it can join domain, bitlocker etc (business oriented stuff)? Where Enterprise differ to Professional edition primarily the ability to boot from VHD (as well it's only through Volume Licensing)?
The difference between Ultimate and Enterprise is largely the availability, retail vs volume license respectively?
Comment by chiefie, on 4-Feb-2009 12:38
Juha, for NZ market: I think anyone can find Home Premium, Professional and Ultimate from retail stores.
Home Premium will suit many people out there that doesn't need domain network.
Otherwise Professional will suit that.
And if one wants more, for example ability to boot from VHD, then Ultimate is available for those will seek out, on retail. Otherwise Enterprise is same as Ultimate but differ in the way they're available from.
Comment by Phillip Quinlan, on 4-Feb-2009 12:50
Hi,
"...and good old Ultimate that has everything and the kitchen sink thrown in, bar perhaps some of the corporate stuff."
Windows 7 Ultimate has everything (including all "corporate" stuff) as each higher version will always be a 'superset' of any lower version. As Ultimate is the most feature rich version you can get, it will have every single feature of its lower counterpart versions.
Comment by sbiddle, on 4-Feb-2009 12:51
I'm even more confused now after reading everybody's ramblings! :-)
Comment by sbiddle, on 4-Feb-2009 13:00
Any word on whether NZ will become an official country for the Anytime Anywhere product?
Comment by Brett Roberts, Microsoft NZ, on 4-Feb-2009 13:11
The average PC user doesn't see any of the 'complexity'. They walk into a Noel, Dick or Harvey store and the salesperson there hopefully does an OK job of aligning their needs with the available hardware/software product set.
Philips probably have a hugely complex SKU set for LCD monitors covering the commercial, industrial, military, medical and consumer markets but the average buyer looking for an LCD monitor for home only sees a small subset of the complete range range. No doubt there is a blogger somewhere who is concerned about the complexity of Philips' SKU strategy but the reality is that the issue simply isn't an issue for the Joe and Jane Public.
Comment by stuartm, on 4-Feb-2009 14:37
My biggest gripe with Windows versions is that most business customers aren't able to get Bitlocker without signing up to expensive volume licensing agreements with Software Assurance, or purchasing the ridiculously expensive Ultimate edition. Most small businesses in NZ (and quite a few larger ones too) purchase computers with OEM operating systems installed, and are missing out on features designed for businesses because of intentional licensing restrictions from Microsoft.
There should be one version for businesses and this should include all of the business-related features.
As for the home versions... we should never come across either Starter or Home Basic in NZ, so hopefully those won't be relevant to us. But there really only needs to be one version for home users, and this should be able to adapt to different hardware configuration on the fly - instead of excluding the Aero theme just due to licensing restrictions.
Comment by allan, on 4-Feb-2009 20:18
So if we are saying that Windows 7, "each higher version will always be a 'superset' of any lower version", this means there won't be any mutually exclusive features then unlike Vista? - e.g. I purchased a laptop with Home Premium, but really wanted offline file access to files from my Windows Home Server. This is available in Business, but of course no Media Centre then.
Comment by sbiddle, on 4-Feb-2009 20:34
@Juha - I meant Windows Anytime upgrade. The ability to upgrade your Windows install by purchasing an upgrade online.
NZ is not a supported country at present with Vista.
Comment by paul151, on 5-Feb-2009 22:09
Great article Juha I'm hooked into your rss now :-)
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Comment by garvani, on 4-Feb-2009 12:06
I believe the starter edition is for the one notebook one person type of netbook, the really low powered ones that we dont get in NZ, not your typical acer aspire one netbook.
At the microsoft presentation in wellington windows 7 ultimate beta was running fine on an aspire one with office 2007 and norton antivrirus, it was running surprisingly well considering it only has 1gb of ram and a atom 1.6ghz processor.
Imo all you will be offered is windows home premium and professional, all the other editions are redundant for your average consumer.. There is no need for your average joe to want or need ultimate, not even your prosumer, all the added benefits this time revolve around encryption, bitlocker and applocker.. Home premium and professional both have media centre, and all the girly features most people will want.
I believe microsoft has got it basically right in the versions they are offering.
My view of it is as follows:
Emerging markets - starter and home basic ( i don't think you will be able to purchase either of these in nz)
Home user - Home professional or business (if you have domains etc at home)
Small-medium business - Professional and enterprise
Big corporate - enterprise or ultimate