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February 13, 2009 11:53 AM PST

The case for the $50 Windows 7 upgrade

by Don Reisinger
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Windows 7

The $50 Windows 7 Upgrade?

(Credit: Microsoft)

According to CNET News reporter Ina Fried, Microsoft might release Windows 7 in 2009, although the company's representatives still won't say whether that rumor is true.

In conjunction with that report, Fried also said that Microsoft is putting the "finishing touches on a program to offer Vista buyers a free or low-cost update to Windows 7. That program could kick off as early as July, sources said."

TechArp published what it says are Microsoft's latest plans for its Windows 7 upgrade. The publication says that anyone who purchases Vista between July 1, 2009, and January 31, 2010, will be eligible for a free upgrade to Windows 7. Windows Vista Home Premium users will receive Windows 7 Home Premium, Windows Vista Business users will get Windows 7 Professional, and Windows Vista Ultimate users will receive Windows 7 Ultimate.

TechArp's findings are interesting, but they don't answer a key question: how will Microsoft treat all those Vista users who purchase its operating system prior to July 1, 2009? Ostensibly, they will be forced to pay an upgrade fee, which if it's anything like Vista's upgrade costs, could be as little as $99.95 or as much as $219.95.

That's expensive. This time around, Microsoft should set a flat fee of $50 for a Windows 7 upgrade.

When Windows Vista was released, XP had been on store shelves for five years and Microsoft's new operating was a stark contrast to the software it was replacing. Vista looked different, worked differently, and was expensive. Very expensive.

Microsoft needed to see a return on that investment and charged a relatively high price to upgrade from XP to Vista. It wasn't cheap, but it was understandable: Vista was a major upgrade.

But soon after its release, consumers and the enterprise realized that Vista wasn't an ideal operating system. In fact, more than two years after its launch, Vista has yet to capture 30 percent market share in the OS space, while XP still commands a 64 percent share. Worse, less than 10 percent of enterprise computers in North America and Europe are running Vista. Suffice it to say that Vista isn't very well liked.

And that's precisely why Microsoft should extend an olive branch to current Vista owners and offer them an upgrade to Windows 7 for $50, regardless of the version they purchased.

What would it hurt? Sure, Microsoft might lose some revenue initially, but once those Vista users migrate to Windows 7 and realize how much better of an operating system it is, Microsoft will ensure that all those users will be the first in line to buy the next Windows OS. In essence, that $50 upgrade is guaranteeing greater future revenue.

Over the past two years since Vista's release, Microsoft's public image has been hit hard. Part of that is due to Apple's successful "I'm a Mac and I'm a PC" ad campaign, and part of that is due to the fact that Microsoft lost support when it released Vista and consumers saw it for what it was: a bloated mess. What better way to repair its image than to offer a highly affordable upgrade to Windows 7?

Microsoft shouldn't look at Windows 7 as a money-maker when trying to capitalize on Vista users, but as an opportunity. Microsoft has an opportunity to say to Vista users, "hey, look, we screwed up with Vista and we know you may be upset with it, so here's our offer: buy up the comparable version of Windows 7 for $50. It's our way of saying 'Thank you for sticking with us.'"

Sometimes, it's better to acknowledge a mistake and extend an olive branch than continue on without considering the ramifications of doing nothing. Microsoft has an opportunity with Windows 7 to repair strained relationships with consumers and businesses. It can't miss it.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.



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Add a Comment (Log in or register) Showing 1 of 2 pages (29 Comments)
by alskiontheweb February 14, 2009 5:49 AM PST
As an early adopter of Vista, I can't agree more. If 7 comes around and they want more than $50 for it (even that's a lot for having to suffer with Vista for two years), I'll be switching over to Ubuntu. As it is, I will be introducing Ubuntu to the household in an attempt to get my family off windows because my wife is sick of having to reboot the Vista machin in order to print to a network printer that mysteriously disappears off the machine.
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by colamix February 14, 2009 6:18 AM PST
Finally a sensible article on the debacle that is Vista and what can be done to repair the damage caused to consumers who financed Microsoft's project. I'm in graphic arts and can't begin to tell you how horrible this OS is at managing memory, multitasking and file manipulation. The retailer upgraded my new work horse to XP, but I came very close to returning it and switching to MAC over Vista's failure to perform. I still own the Vista license so yeah, a cheap upgrade to Win7 would somewhat compensate for the grief and lost productivity.
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by Seaspray0 February 14, 2009 8:19 AM PST
"consumers saw it for what it was: a bloated mess." <br /> <br />It's more stable, it has better security, etc., etc., but the biggest problem for vista is that it's "a bloated mess." It consumes to many resources. Windows 7 is what vista should have been. I agree with you, Don. I'd like to see the upgrade price set at $25 for an online download and key purchase.
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by politimmy February 14, 2009 9:09 AM PST
Why not just upgrade to Ubuntu? I did going on 2 years ago and I am not looking back. I guess the saying 'you get what you pay for' just does not apply, when Vista is involved. My family was thrust right into Ubuntu. They kicked and screamed, but no body wanted to not have a computer. Six months later no one is complaining. And I have not had to do any of the never ending tasks that Windows is noted for. No registry cleanings. No defragmenting. No spy/ad/malware attacks. A virus is something for a doctor in my house now and the conficker worm is not even a concern for me. You can use the $50 to take an online course to learn Ubuntu and never pay for an OS again.If it is good enough for the NSA, FBI, DHS, US Military, Google, Amazon,etc, etc, etc, then it's good enough for me. Or for anyone.
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by DLWilson61 February 14, 2009 1:09 PM PST
I have been saying this same basic thing ever since Microsoft announced Windows 7. In Nov of 08 I was forced into getting a new laptop as my old one died. The only ones available that could do what I needed were Vista systems. Most of the problems I have had were inconveniences as apposed to real problems, but I would jump at the chance of getting a low cost upgrade to Windows 7 and get out of Vista for good.
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by dertotevogel February 14, 2009 3:05 PM PST
Here's my conspiracy theory... Most Windows OS's involved the year of the release in the name starting with 95. Vista was released in 07. New version of Windows is Windows 7. Maybe MS sees this as the correction of an error. If so, they might just have mercy on us Vistabled users.
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by malice930 February 18, 2009 8:20 PM PST
Windows XP was version 5, Vista is version 6, and then Windows 7
by William_Cousert March 24, 2009 10:11 AM PDT
Wasn't Windows 2000 version 5? (it replaced NT 4.0).
by lloydb39 February 15, 2009 9:48 AM PST
Whoopee do. How about a discount on Windows 7 for those of us who had sense enough to stick with XP?
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by wesisw_ February 15, 2009 5:21 PM PST
Don't count on it. If your computer is still running XP, it's probably about time for a new computer, in which case the cost of the OS is a non-issue unless you're building your own. If Microsoft really wants to get people to switch to Windows 7, they should offer a $50 upgrade to Mac users (not that' I'm one).
by istopdeath February 15, 2009 5:24 PM PST
What percent of vista and windows 7 bloatware is N.S.A code?
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by Marc1000 February 16, 2009 2:04 PM PST
by wesisw_ February 15, 2009 5:21 PM PST <br />"Don't count on it. If your computer is still running XP, it's probably about time for a new computer." <br /> <br />I have a new computer. I have XP just like the 90% of enterprise users as reported above. As of today Dell will pay you $99 to run Vista rather than XP on a Latitude notebook. Thousands refuse the money. How about that for a damning commentary? <br /> <br />by istopdeath February 15, 2009 5:24 PM PST <br />What percent of vista and windows 7 bloatware is N.S.A code? <br /> <br />Now THAT is an interesting question. Did anyone notice how the whole Clipper Chip / gov't spyware battles of the 90s suddenly disappeared the moment MSFT settled the gov't antitrust litigation?
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by calpolycrew February 17, 2009 11:47 PM PST
I always hear people complain and complain about Vista this and Vista that...but to be honest, I've been using Vista since day one and only initially had a problem with it. I'm a pretty tech savy guy and I know Vista is a big memory hog true, but 2 gigs and 40 bucks later along with disabling the UAC which took all of four clicks, Vista worked beautifully. I'm running Vista Ultimate 64-bit addition and have never had a problem with it or my peripherals working with it, so I wonder, who are these people who keep complaining and complaining? Its funny to me because most people that I spoke with who ragged on Vista, heard it from someone else and had never used it, which is kind of distrubing. <br /> <br />Yet when my friends come over for movie or poker night, they are amazed at how easy I can stream HD movies with surround sound, music ,or pictures of last nights shenanigans to my 50' plasma using a Media Center Extender all with Vista, they think I'm lying to them and can't believe it because all they hear is that Vista sucks. The only thing I think Microsoft did wrong was reacting way to late after being destroyed by Apple in their marketing strategy, which gave Vista such a bad reputation. When Windows 7 comes out I dont care how much it will be, I'm getting it!
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by blobbles32 February 24, 2009 2:06 AM PST
Sure.<br /><br />Try setting up multiple users and switching between them. I have myself and my girlfriend as users and when I switch from her logon to mine, I have about 2 minutes before the whole machine slowly grinds to a halt. Probably the UAC, which I want to leave on.<br />I have had to reinstall vista - twice. One day, it just stopped booting and would hang on the Microsoft Windows "progress bar" at startup. No explanation as to why. The second time, I could get in, but I would get blue screened (which I thought was impossible) every half an hour or so.<br />I am a programmer and for a long time I was writing VBA code in office 07 on vista. I had a crash, on average, twice a day. That's a lot of lost work. This I put down to Vista's poor memory management. I switched to an XP PC with the same service pack and install of office - a crash once every month or so.<br />Often when I plug an ipod or another MP3 player or a pen drive into Vista, it doesn't know what the hell to do and asks me to install drivers for the device. Previously it has recognised the device. The solution to this is often - pull out the device - plug it back in. Whallaa, now vista knows what it is.<br />Vista stops me from running games that require a bit of memory. The only decent game I have got on it is halflife 2. And I have 2gig and a fast hard drive. This is more of a complement to halflife than to vista.<br />You want me to keep going?<br /><br />I liked the look of vista, but it really is a dog with fleas of an operating system. I am now on XP at work, but have vista on my home machine. I will soon be installing Ubuntu so I don't have to have any more ***** when I just want to surf the internet or watch a movie. If they don't offer a decent upgrade to windows 7, I will stop using MS altogether and get a PS3 for gaming.
by lifelonglego February 24, 2009 5:33 PM PST
Reply to Blobbles32 <br /> <br />Are you crazy? setting up multiple users was super easy and switching between them was even faster, even when I had zune, ms word, IE, Chrome, etc. running. Why would UAC slow down your computer? UAC definetly isn't the problem. When windows stops booting, put the vista disk in, and it will make your computer boot again. Why would you think blue screens don't exist any more? That is probably the most ridiculus and far-fetched idea I have ever heard. By the way, a crash every month is pathetic. If your computer runs that poorly on any operating system, you just don't know how to use and/or manage a computer. The SPEED of your HARD DRIVE is not nearly as important as your processor and display card. Also, you think Ubuntu will be any better, you're in for a disappointment. Not only will Ubuntu try to find drivers for all of your devices, it won't find them, making it impossible to use many of your devices, especially if you have an Ipod. And Office. Say good bye to Visual Basic, and Visual Basic for Applications(VBA). neither can be used with ubuntu. You've probably gotten used to the new fluent interface ofthe Microsoft office 2007 System. That isn't available on ubuntu either.Good luck watching a movie on ubuntu. Even if you could get hardware acceleration(Which isn't gonna happen), the chances of you having a compatable dvd player, AND being able to get decent dvd playing software are 1 in a million.You shouldn't say you're going to switch to ubuntu when you ahev no idea all of the pains you are going to have when you switch. Within a week of the switch you will be back knocking on vista's door, begging for a respite from the hassles of linux. Don't think that I am someone who is just saying bad things about linux without trying it. I have installed various editions of ubuntu on various seperate occasions, and my experiance has bean either horrible, or very bad.
by wangbang February 26, 2009 9:29 AM PST
Yeah, I agree--I'm also running Vista Ultimate 64 and it runs beautifully. When I initially assembled a new machine for it, I had some lockup problems that I thought was due to the memory I bought, but I had forgotten to check for an updated bios for my Gigabyte motherboard. Sure enough, they had (quite a few) newer bios, and when I updated it I have not had a problem since.
by denny4881 March 25, 2009 1:51 AM PDT
yeah, its easy for you to say since you're using Vista Ultimate, i am using Vista Bussines and i can tell you how anoying the system is. consider to scrap it to xp, but what do you know, i bought that damn expensive Vista already.
by nslax18 February 19, 2009 10:31 AM PST
I just purchased a laptop within the last month, only one company that I find reliable and cost effective(HP) offered a downgrade to XP disk for an additional fee. I did not end up purchasing HP and decided to bite the bullet with Vista. Now, they announce they're pulling the plug? I find this article extremely irritating. Being the manager in a business, if I make a mistake, I must atone for it. I cant say oh I will give you this for half price. I must replace it. I feel that due to the fact that I was not offered the option (custom built or off the shelf) for an XP OS machine, they should have to replace this at no cost to vista users.
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by E McCann February 20, 2009 8:53 AM PST
Of *course* I skipped Vista. 1.0 version of a rewrite? XP has been working on my hardware - and so's the Windows 7 beta, nicely. With the recent service packs, I wouldn't turn *away* from Vista if I were buying a new PC or laptop (of course, I build my own, typically,) but I'd certainly wait 'til the timeframe they're talking about upgrading at this point - if not wait 'til Windows 7's official release.
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by denis9834 February 20, 2009 10:29 AM PST
yeah if the upgrade is to expensive i'll be switching to windows 3.11
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by sofatiger51 February 21, 2009 3:48 AM PST
$50 as an upgrade is still expensive in my book considering Vista is an expensive inferiror OS program. Ron is right when he said Windows 7 is an opportunity for Microsoft to extend an olive branch to current Vista owner. Unless Windows 7 is offered as free upgrade to early Vista adapter, I decided already that my next computer will be a MAC. No more Windows, no more new Office, no XBOX and no Zune. It is Microsoft obligation and survival to keep customers happy and satisfied. The choice is entirely Microsoft's.
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by TurboGeak February 23, 2009 5:41 AM PST
I think this will trump even Mac's OS X and hopefully Microsoft will grab back most of its credibility back. I heard nothing but great reviews about Windows 7. A 50 dollar upgrade isn't a bad price for what Windows 7 is.<br /><br />Now if the can just fix the Xbox crisis....
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by William_Cousert March 24, 2009 10:04 AM PDT
If Microsoft really wants to do Vista users a favor, release all Windows 7 features as a free service pack. No upgrade would be necessary. Everyone with Vista would automatically be upgraded to Windows 7 via Windows Update. <br /> <br />Those who want a Windows 7 DVD could buy one for less than $50. It would make reinstalling easier (no service packs to install).
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by denny4881 March 25, 2009 2:16 AM PDT
I am a loyal Windows OS user, for me/those who already bought expensive Vista which system can't be depent on and lacking elsewhere compare to stable XP and furthermore have to pay for an upgrade to Windows 7 is totally regretfull, so is this mean Vista user are left behind and have to bare the cost of failure?
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by mannykin April 18, 2009 1:22 AM PDT
I'd be happy with a $ 50 charge to exchange my vista ultimate copy for a Win 7 ultimate copy.
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by ironstine8 April 23, 2009 2:05 PM PDT
Ive have been using XP Professional and Vista Ultimate in my home on two different machines now for over 18 months as my wife does not embrace change very well albeit it payed dividends with her work when it was 98 and XP before that............Vista has been a pig so far with soft ware conflicts the number one culprit closely followed by new peripheral software a close second usually resulting in a lot of the new hardware support soft wares bells and whistles being lost for a basic Vista driver .<br />$50.00 seems reasonable although I think with the premium I payed to MICROSOFT for the "Ultimate" this should be Free/cheapest with a descending scale down to "Home" for the 7 upgrade.............................. Then again ,After reading these and many other posts from around the world maybe Microsoft should be embracing this as an opportunity to convert market share by marking this as a "Update"............30% Market share is not what I expected of Vista to date ,I can see what captured the board and Bill Gate otherwise I would not have persisted, Although It just has not delivered to date the POW we got from 95 to 98 or 98 to XP.<br />Market share is what will keep Microsofts revenue proactive on the global scale into the next decade or two ...............lets hope that the man himself and the bean counters can realize this fact.<br /> Aussie Allan
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by TrantaLocked June 3, 2009 2:25 PM PDT
Microsoft's gift to us is a free year of Windows 7. The RC is out and it is pretty close to the real, commercial deal. Getting to use a basically finished OS for free for a year is one thing, then adding free updates and support for an RC makes this deal amazing. Microsoft is so involved with Windows 7 right now they may even make a service pack for the RC before the actual Windows 7 launch. They are already making updates for the 7000 and 7100 builds, which is very kind on Microsoft's hand. <br /> <br />And the termination of the RC in a year foreshadows that Windows 7 will officially launch around that time (March-June range), because Microsoft wouldn't want to be making updates for the 7100 build and the actuall OS at the same time, and plus it would be unfair to users who buy the program and still be others using it for free. <br /> <br />I am hoping the upgrade package to Windows 7 will be cheaper, like $50 as you say, but Microsoft is not required to give us a gift of a completely free upgrade to the full release. There is the factor like you were saying that Vista let down many users and many people either stuck with XP or changed to a Mac. To get people to tag on to Windows 7 tight like every one did with XP, the OS needs to be fast, reliable, checked for bugs, and priced lower to attract a wider range of consumers. <br /> <br />I think, honestly, Microsoft is going to own this one and win back the hearts they lost. Vista is not a bad OS, in fact it is a great upgrade over XP, but all the first impressions happened before SP1 when the program really was failing. Now with SP1, (and the recent SP2) Vista is faster and much more compatible. <br /> <br />I KNOW Microsoft is doing really well with Windows 7 because 1) They are taking their time with the relase, 2) The RC is out, meaning what I said before AND for Microsoft to gain info WAY ahead of time to make sure the official release is perfecto, 3) Windows 7 RC is already almost completely compatible, with what I have been testing it with. 4) Windows 7 RC is faster than Vista, (requires less RAM) and has a more solid build, meaning Microsoft really put in the time to make sure the OS is lean, mean, and clean. <br /> <br />When Windows 7 comes out I predict that the market share numbers will go off the charts, and Mac OSX will bite the dust. Microsoft is back. <br /> <br />-Brian
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by Rawnchie14 June 26, 2009 8:32 AM PDT
Thank you, some sense in this web of crap.<br /><br />What ever will people do without Vista to bash? Dig really deep for something else to complain about I guess. Considering all the problems Microsoft had with all of their stuff over the last 3 years, I honestly think they've rebounded quite well - considering all of the propaganda strewn across the web/media and the "cool to hate M$" mentality.<br /><br />First the RROD, then Vista - what a mess (even though I dodged both bullets) to come out of it, minimizing the damage from their mistakes, and campaigns to tear them down. (Shoot even the EU tried to get theirs)
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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