Beyond Binary

There are a whole bunch of reasons why Windows 7 should appeal to businesses, but one threat--the still-sluggish economy--could overshadow all of those reasons to move to the new operating system.

"I think they have a really good product at a really bad time," Directions on Microsoft analyst Michael Cherry said in a telephone interview this week.

Among Windows 7's business-oriented features is "XP Mode"--a downloadable add-on that lets applications that won't work natively in Vista or Windows 7 run in a free, virtualized copy of Windows XP.

(Credit: Microsoft)

While Cherry says that there is definitely a lot to like about Windows 7, the release comes at a time when IT budgets are shrinking and companies are trying to limit new technology projects, even ones as badly needed as updating aging stables of desktop and notebook PCs.

"Even if they like it, I don't know how fast it is going to go when it is ranked against all the things IT has to do against a shrinking budget," Cherry said.

Among the things that should appeal to businesses about Windows 7, Cherry said, are its improved compatibility and performance, Windows XP Mode and a DirectAccess feature that allows for automatic virtual private network-like connections to a corporate network anytime a PC is connected to the Internet. (See chart below.)

Windows 7 goes on sale to consumers and small businesses on October 22. However, large businesses with volume licensing deals can get access even earlier, although most will wait before putting it on anything other than test machines. Gartner analyst Michael Silver said that, as with other releases, most businesses will take a year or 18 months before starting to deploy Windows 7. However, he added that "we've had a surprising number of calls with organizations, some very large, planning to move fairly early."

With little appetite for widespread spending to beef up old machines, Cherry said that many businesses may just upgrade to Windows 7 as they buy new machines. "I'm not sure that isn't going to be the majority way that this is handled," Cherry said, pointing out that would still be an improvement from Vista, where most companies wiped the operating system off of new PCs and instead installed Windows XP.

One quibble that Cherry has is with the way that Microsoft bills Windows 7 as a major upgrade even though so little has changed under the hood.

"I think they confuse major with important," Cherry said. "It's an important update. It's one you want to take advantage of."

Windows 7, Cherry said, is noteworthy simply because it addresses many of Vista's shortcomings and makes the key improvements that Vista brought now accessible and attractive to businesses.

In many ways, he considers Windows 7 to be the "R2" release of Vista, borrowing the nomenclature Microsoft uses to describe updates to its server products. That's not a bad thing, he said, noting that server customers have rather liked the way Microsoft alternates between minor and major releases.

"R2 has been a very solid approach for (Windows Server)," Cherry said, "and people know what they are getting."

As an indication of just how close Windows 7 is to the border between minor and major, the server version that was developed simultaneously is being designated as Windows Server 2008 R2--a minor upgrade.

Cherry said that perhaps Microsoft should just embrace Windows 7's "minorness."

"You really don't want two major releases in a row," he said, arguing that the major architectural changes made with Vista are akin to pouring new concrete. "It needs time to cure. It needs time to settle in," he said. "It doesn't mean that, as an interim release, Windows 7 isn't important."

(Credit: Directions on Microsoft)

Apparently Microsoft isn't doing everything with Windows 7 differently from how it did Windows Vista.

As was the case with Vista, Windows 7 will get its formal launch in the Big Apple. CEO Steve Ballmer will preside over the October 22 event, with the usual array of hardware partners showing off their latest wares.

Microsoft used a human billboard to help mark the New York launch of Windows Vista.

(Credit: Caroline McCarthy/CNET News)

But that's not the only Gotham event for Microsoft in October. The company is also doing a consumer open house at the Park Avenue Armory, led by Robbie Bach, on October 6. Microsoft plans to highlight everything from the Zune and new phones to hardware products like keyboards and mice.

Microsoft is hoping to turn that event into an annual event.

New York was also the site of Vista's launch, which included a fancy lunch at Cipriani with the press, a human billboard as well as a trip to Best Buy for Steve Ballmer.

Microsoft finalized the code for Windows 7 last month. It will hit retail shelves and start showing up on new PCs on October 22, though some large businesses with volume licenses can already get the code if they wish.

There's nothing like trashing the competition.

The Free Software Foundation is using the launch of Windows 7 to try to convince businesses to dump Windows in favor of an open-source operating system.

(Credit: Free Software Foundation)

And that's exactly what the Free Software Foundation plans to do on Wednesday, staging a demonstration in Boston where it will encourage businesses to throw away Microsoft Windows in favor of free alternatives.

In addition to the public display, the foundation is sending letters to the CEOs of Fortune 500 companies, warning that Windows is a threat to their businesses' privacy, security, and freedom.

Although the demonstration and letter center around Microsoft's imminent release of Windows 7, Free Software Foundation Executive Director Peter Brown says the protest has to do with Microsoft's approach in general and not with the specifics of Windows 7.

"Any time Microsoft tries to push them to a new version, it's a good time to make that case," Brown said in a telephone interview on Tuesday.

With Windows 7 getting fairly positive reviews, Brown said he knows it could be tougher to garner public support than was the case with the oft-criticized Vista.

"There's kind of this attitude of 'Well, it's better than Vista,'" Brown said, "so we are kind of working against the grain."

But, he said, the stakes are high--and it's about more than just which operating system gains market share. Brown points to Amazon.com's recent deletion of e-books from the Kindle as an example of the kinds of action that could become commonplace if the world becomes more filled with digital rights management technologies.

"That's the kind of power that proprietary software gives to these corporations," he said. "When we give that power, sooner or later somebody comes knocking, whether it is the government or the corporations themselves. Free software is kind of the answer to that."

Although the letter focuses on Microsoft, he said the group is also concerned with other products, including the new Snow Leopard operating system from Apple, which goes on sale on Friday.

"It's not just Microsoft," Brown said. "It's a problem generally for society that we should accept proprietary software when there is an alternative."

While Microsoft's Windows 7 will go on sale in just about two months, there is still a little time to get a free copy of the operating system.

Well, at least a free test copy of Windows 7, anyway. Users have until Thursday morning to download the "release candidate" version of the software--the final test version of the operating system. It's a good option for those who have a spare machine to try out the software or for Mac users looking to experiment with running Windows either in virtualization software or via Boot Camp.

(Credit: Microsoft)

Microsoft has provided free, unlimited downloads of the release candidate version, but plans to halt distribution after Thursday (Update: I'm told the bits will stop flowing at 8 a.m. PT on Thursday, so I'd get started by tomorrow at the latest)

"After that date, you will still be able to register your product and get registration keys but, the media will no longer be available for download," Microsoft's Brandon LeBlanc said in a blog posting this week.

Even for those that get the software, the free ride only lasts so long. The release candidate will only work through early next year. The software will expire entirely on June 1 and, starting March 1, it will begin shutting down every two hours to remind users that the end is nigh.

As for the software itself, although it is not the final version, I used the release candidate for months and found it to be quite stable and reliable. For those who are looking to ultimately use the software, though, I recommend just biting the bullet and upgrading to the final release.

Folks will also want to remember that to move from the release candidate to the final version requires a clean installation of the operating system, meaning backing up one's data, reinstalling Windows 7, and then restoring the data and reinstalling any applications.

(Credit: Microsoft)

The wait for Windows 7 will soon be over--at least for those in Microsoft's MSDN and TechNet developer programs. Members of those two groups will have access to the new operating system starting on Thursday.

Another group--large businesses with volume license deals for Windows--will get access to the code on Friday, while other large businesses will be able to get the software starting September 1.

Consumers and small businesses, meanwhile, will have to wait until the product's official launch on October 22, when the product will start shipping on new computers and hit retail shelves.

Microsoft finalized the code for Windows 7 late last month. CNET colleague Seth Rosenblatt's official review of the operating system can be found here, and I've embedded his video review below.

Another date worth pointing out is August 20--the last day to download the free "release candidate" version of Windows 7. Although it won't last forever, it's a good way for those with some technical know-how to try out Windows 7 for free.

Microsoft's proposed "ballot screen" that would let users in Europe choose which browser they want on their PC.

(Credit: Microsoft)

It looks like there won't be a browserless version of Windows 7, after all.

Microsoft said late Friday that it won't ship the Windows 7 "E" version of Windows even though Europe has yet to sign off on its revised plan. The plan calls for the company to ship Windows 7 with Internet Explorer, but present a ballot screen in which users in Europe can decide whether they want Internet Explorer or another browser.

The software maker had originally proposed shipping Windows 7 in Europe without a browser at all--the so-called "E" version of the operating system. However, European regulators indicated that might not satisfy its concerns.

Microsoft announced last week that it was open to the "ballot screen," but said that it would wait to can the browserless "E" version until European regulators approved its plan.

The software maker said late Friday that it decided to ship the same version of Windows 7 for Europe after PC makers complained that having to use the browserless version of Windows 7 for a short period of time would be a pain.

"In the wake of last week's developments, as well as continuing feedback on Windows 7 E that we have received from computer manufacturers and other business partners, I'm pleased to report that we will ship the same version of Windows 7 in Europe in October that we will ship in the rest of the world," deputy general counsel Dave Heiner said in a statement.

The commission had said it "welcomed" Microsoft's move, also giving the software maker some confidence that it could ship Windows 7 with the browser included. If the commission accepts Microsoft's proposal, it will fully implement that proposed ballot screen to Windows 7 buyers in Europe.

"One reason we decided not to ship Windows 7 'E' is concerns raised by computer manufacturers and partners," Heiner said. "Several worried about the complexity of changing the version of Windows that we ship in Europe if our ballot screen proposal is ultimately accepted by the Commission and we stop selling Windows 7 'E'. Computer manufacturers and our partners also warned that introducing Windows 7 'E', only to later replace it with a version of Windows 7 that includes IE, could confuse consumers about what version of Windows to buy with their PCs."

The move also solved a challenge for Vista users in Europe, who under the previous plan would have had to do a clean install to move to Windows 7. It also allows Microsoft to sell an "upgrade version" of Windows 7 in Europe. Microsoft had previously said it would only sell a full version of the OS, though it had said it would sell that at the upgrade price, at least for a time.

Those who pre-ordered Windows 7 "E" through a recent discount offer will get the full version, as Microsoft had promised. However, Microsoft plans to now sell Windows 7 upgrades in Europe and also offer a higher-priced full version (for those without an earlier copy of Windows)--similar to what it is doing in the rest of the world.

REDMOND, Wash.--Microsoft said on Friday that it will charge $149 for the family pack version of Windows 7, which allows users to upgrade up to three PCs to the Home Premium edition of the operating system.

(Credit: Microsoft)

The software maker had previously said it would offer the family pack, but had not said how much it would charge. (It actually inadvertently confirmed the family pack by referencing it in the licensing terms of a test version of Windows 7 that leaked onto the Internet.) The family pack covers those moving from XP or Vista to Windows 7.

Microsoft also announced pricing for the Windows Anytime Upgrade option, which lets users move from one version of Windows 7 to another.

Microsoft said that the move from Windows 7 Starter to Windows 7 Home Premium will cost $79.99. That is one of the key upgrades Microsoft is hoping to sell by convincing Netbook owners that they really want more of the Windows features.

Among the other prices, the move from Windows 7 Home Premium to Windows 7 Professional will cost $89.99, while going from Windows 7 Home Premium to Windows 7 Ultimate will cost $139.99. Although that last move is pricey, it still represents a 12 percent drop in the cost of going from Windows Vista Home Premium to Vista Ultimate.

Because the move involves only entering a new product code, Microsoft said the Anytime Upgrade in Windows 7 can be done in as little as 10 minutes. With Vista, the move also required the use of a special Anytime Upgrade disk.

In the U.S. and 11 other countries, upgrade codes can be purchased at a store or online.

Microsoft noted in some of its communications that the family pack is available "while supplies last." Given that Microsoft would seem to be in a position to make as many boxes as it wants, I pressed the software maker to understand how limited this offer will be. A company representative would only say that it is a new offer that Microsoft is testing and declined to elaborate on the time frame or the number of copies it was limited to.

This post was updated at 3:33 p.m. PST with more information about supply.

Microsoft on Wednesday said it has finalized the code for Windows 7, paving the way for the new operating system to make its way onto retail shelves and new PCs in time for its October 22 launch.

The software maker is hoping the response to the new operating system differs from the lukewarm reviews and compatibility challenges that marked the release of Windows Vista, which hit the market in January 2007. In contrast to Vista, Windows 7 has been marked by the company consistently hitting its deadlines and receiving largely positive feedback along the way.

"That is our final engineering milestone in what has been a three-year journey," said Mike Angiulo, general manager for planning in the Windows unit.

Windows 7 relies on the same underpinnings as Windows Vista, but adds a lot of features aimed at making the operating system both look and perform better.

Visually, it does a better job of managing open windows through an improved taskbar and a feature that lets users peek at one particular window or see the desktop that is hidden below all of the windows. On the performance side, it boots up and shuts down faster, and can run better on Netbooks and low-end machines.

Whereas Vista suffered several delays and saw its feature set change significantly in the years it was being developed and tested, Windows 7 looks very similar to the early developer preview version first shown at last October's professional developer conference.

"It feels great to be here on time," said Tami Reller, the Windows unit's chief financial officer, who recently added marketing responsibility for Windows as well.

Microsoft plans to offer Windows 7 in a number of different versions ranging from a low-end "starter edition" to an ultra-high-end "ultimate version." However, it expects most people in the U.S. and other developed markets to run either the Home Premium or Professional editions.

The company has been conservative in talking publicly about the product, waiting until features or dates were largely set in stone before discussing them widely.

Things were also fairly calm in the "shiproom"--the conference room inside Microsoft's Redmond headquarters where the Windows team meets to discuss outstanding bugs and issues before executives ultimately sign off on that the code is final.

(Credit: Microsoft)

With Vista--which was a more major update to Windows--it was a place of contentious debates up to the last minute about which issues needed to be fixed and which could be addressed later.

"When you are going through the end game, sometimes it is really bumpy; sometimes it is not," Angiulo said. "It's been really mellow this time."

Microsoft hasn't changed the code for Windows 7 since July 13, with much of the past 10 days spent just waiting to make sure long-term testing turned up no significant issues.

"After we produce a build, all the different teams will go through their test path," said Iain MacDonald, the general manager of the Windows Server unit. Microsoft also on Wednesday finalized the server version of Windows 7--a modest update known as Windows Server 2008 R2.

The actual build that Microsoft is using as the final one--build 7600.16385--has already leaked to the Web--several days ahead of Microsoft's confirmation that it was, in fact, the final version.

One of the last notable changes to Windows 7 was the incorporation of changes that were made to Windows as part of the last monthly "Patch Tuesday" bug fixes.

Angiulo said closer cooperation with computer makers, as well as the predictable schedule, has meant that a wide variety of new PCs should be ready to launch with Windows 7 in October.

"The (PC makers) have been working on a variety of systems--super-amazing thin and mobile systems," he said. "They are also working on really inexpensive low-end machines and all-in-ones.

Microsoft is also hoping, particularly since the underpinnings are similar to Vista, that users won't find the same sorts of compatibility issues that cropped up when that operating system first hit the market.

The entire PC ecosystem--from retailers like Best Buy to computer and hardware makers--are all hoping that Windows 7 can provide a boost to what has been a rough year.

"Our customers are very excited about Windows 7," Dell's Jim Ginger said. "We know because they tell us."

Update: Here's a video from Microsoft of the formal sign-off at Redmond.

Microsoft's European online store was apparently taken down by the amount of demand for a Windows 7 pre-order program that just kicked off there. A similar promotion in the U.S. ended July 11.

(Credit: CNET)

A discounted offer for Windows 7 appears to be selling out quickly in Europe.

In addition to an apparent sellout at some Amazon sites and at spots in Germany, Microsoft's European online store was apparently overwhelmed by demand, meaning that those who turned up to buy the software were instead greeted with a multilingual error message.

"Due to the eagerly anticipated Windows 7 pre-order offer we're experiencing a higher level of demand on our website than usual," Microsoft said in the English-language posting. "This means you can't access the site right now and we're sorry about that. We'll be back up and running as soon as we can so please try again soon to get your hands on a copy of Windows 7!"

The European pre-order deal, which offers roughly half off the cost of Windows 7 Home Premium and Professional is slated to run from July 15 through August 9, although Microsoft is capping the number of copies that can be ordered. A similar pre-order offer in the U.S. ended July 11, although supply appeared to be ample here for those who wanted it.

Microsoft hasn't said how many discounted Windows 7 pre-orders it is willing to offer either in total, or in any particular region. In Germany and France, Microsoft is selling pre-orders of Home Premium "E" edition at 49.99 euros ($70.59) , with Windows 7 "E" Professional selling for 109.99 euros ($155.31). In Britain, the Home Premium version is selling for 49.99 British pounds ($82.10), while Professional edition is priced at 99.99 pounds ($164.21).

Things are a little different in Europe given that Microsoft is selling the operating system without a browser there. As a result, for now Microsoft is not offering an "upgrade" version of Windows 7 "E" but is instead selling the full boxed version (which does not require a prior Windows installation) at the upgrade price.

All users will also have to do a clean installation, even if they are upgrading from Windows Vista, as well as getting a copy of their browser of choice. Microsoft will offer copies of Internet Explorer, combined with Windows Live programs, on a separate disc for those who want it.

Microsoft didn't comment directly on the sellouts, but said in a statement that it and its partners "are excited with the great response from U.S. and international consumers for the Windows 7 pre-order discount program."

"We will continue to work with our partners and expect to have other great offers in the future as we lead up to and beyond general availability," Microsoft said.

The software maker said it is "looking into the status" of its European online store.

Microsoft is due to finalize Windows 7 any day now, with the product scheduled to land on store shelves and new PCs on October 22.