Microsoft Recommends Windows 7 Home Premium for Netbooks
Earlier this week, Microsoft formally announced the various Windows 7 SKUs, or product editions, and a brouhaha quickly ensued. There were the inevitable comparisons against Mac OS X which essentially has one edition consumers can purchase. Questions arose around netbooks because they’re capable of running the Ultimate edition, but consumers won’t want to buy an OS that adds a disproportionate amount of cost to lower priced hardware. Good questions all, but some of this is much ado about nothing, at least from a consumer perspective. Today, there’s some focused clarification by Brandon LeBlanc on the Windows 7 Team Blog that merits a closer look, especially as it pertains to netbooks.
Let’s start with the many editions of Windows 7. For sake of argument, I’m going to assume that you’re in what Microsoft considers a developed country. That rules out Home Basic. And since you’re a consumer (remember, that’s the focus here), you have no chance to purchase Windows 7 Enterprise. So now from six possible editions we’re down to four already. That should reduce 33% of the whining. 
Digging deeper, the Windows 7 Starter Edition and its limitation of running three simultaneous applications at a time isn’t something you can buy off a shelf. You can’t because it’s only sold through OEMs. Might you see this license type included with a PC from a Dell, HP, Acer or [insert computer brand here]? Sure, but it would very likely be on value-based systems. You might see it offered on some netbooks, but I expect two things if that happens. One, these systems won’t sell well or they’ll see higher return rates. Two, these systems will offer Windows 7 Starter Edition at the same price as a Linux system, i.e.: this keeps cost down (one of the Linux benefits), but still offers the familiar look-and-feel of Windows. Personally, I think this edition was created as a business decision, not a technical one. I see this as meant to eek out a little more revenue instead of losing it to Linux-based systems. I’m not necessarily in agreement with the decision to offer it, but quite honestly, I don’t expect it to affect me (or most of you) in the slightest.
And then there were three. That leaves Home Premium, Professional and Ultimate. In terms of marketing muscle, Microsoft is putting most of it behind the first two. Ultimate is nice and runs well on a netbook, but the vast majority of netbook owners don’t want or need what Ultimate adds. It’s simply not worth the cost premium on a bit of $350 hardware: the extra features aren’t very consumer-focused. So you can get it, but you won’t likely see ads for it. And if you’re already running Windows 7, you can quickly and easily get it through the Windows Anytime Upgrade feature. I can’t share specifics on the upgrade process, but I’ve read other observations stating that it can be done in less than 10 or 15 minutes. I’ll go out on a limb and say it can be done even faster than that.
This brings up a point worth mentioning and it’s something that Brandon reiterates too: all of the Windows 7 features are included with every edition. They’re on your PC if you’re running Windows 7; you simply need to run the WAU to pay for and unlock an upgraded edition. There’s no need to insert a disk or worry about not having an optical drive for your netbook. And as you move up the ladder, each edition is a superset of the prior. That means any upgrade is a true upgrade: you won’t lose any of the features you had, you will only gain features. One hope I have is that Microsoft allows you to remove the code for the higher edition features, given that some netbooks have limited storage capacity. I’d gladly accept the inability to use WAU if I could gain a few hundred megabytes or a gigabyte of hard drive capacity.
So now, we’re essentially down to two: Home Premium and Professional. Microsoft recommends the former for consumers while the latter is aimed at enthusiasts and small business customers. These are the two editions you’ll see on store shelves and they will be the two offered on the vast majority of new systems. That’s it.
With two left, where does that leave netbooks? Here’s a direct quote from Brandon, emphasis mine:
“Many of you have been asking about how to think about SKUs and very low-end notebook PCs or “Netbooks”. All SKUs of Windows 7 will work on many of these devices, with Windows 7 Home Premium as the recommend SKU on small notebook PCs with sufficient hardware.”
Again, I have no doubt some netbook OEMs will offer the limited Starter Edition of Windows 7, but they won’t be top sellers for the reasons I mentioned. There is the caveat of “sufficient hardware” but I don’t see that as an “out” either. Windows 7 runs more than adequate on the common Intel Atom netbooks currently available. It’s been proven by us, by sites around the web and even emphasized by Microsoft when Steve Sinofsky took a Windows 7 netbook on stage at last October’s WinHEC. The current minimum recommended specs for Windows 7 (subject to change, of course) list a 1.0GHz CPU, 1GB of system memory, 16GB of storage capacity, DirectX9 support and 128MB of video memory for Aero. By and large, many of today’s netbooks fit the bill and surely tomorrow’s will too.
Valid questions like “couldn’t Microsoft have made it simpler?” or “why do we need six versions to choose from?” are sure to continue, but after today I’m moving on. Case closed. The consumer and netbook choice isn’t as complex as some would make it to be. I’d rather just get the edition that works best for me and my hardware so I can have fun and be productive with my netbook.
Besides, we have more important issues and challenges in mobile technology than this, don’t we? I’d prefer to focus on those because they’re things I can address, tweak, change or potentially control. I’ll likely take some heat for this opinion, but the way I see it: I have zero control of what product editions that Microsoft offers, so I’m not going to waste my time or energy on it. It’s that simple to me, and it can be for many of you to0. Think about it this way: knowing what you know about your computing needs and the availability of the six editions, how much of an issue it really?
All I can say is Amen! Thank you for getting to the heart of the matter. Most users dont/wont be using most of these versions anyways. It will be the usual Home Edition vs Professional. Its been like this for a while now. Why would it change just because it going on a netbook platform. Thanks again.
I agree with Kevin’s perspective that there should be the ability to streamline the OS to free disk space. It’s my understanding that Win 7 requires 16GB of disk space. That doesn’t leave much for programs and user files on computers with 32GB (or smaller) drives.
in the typical self-centered American attitude. i dont think most people who responded negatively were concerned they would be confused about which version they would be choosing. they were interested in Windows as a “whole” & how they could take steps to unify their brand versus continuing to segregate.
it’s ashame bloggers like Kevin & so many others fail to see the point as they are primarily concerned only about how will it effect “them” & others like them.
You totally skipped something very important. I realize neither you or anybody else probably have details, but what about the COST? MS is giving away XP for $25-$35, maybe even less. Are they going to do that with Home Premium, or will you only get the Starter “Insult” Edition for that price while they charge the typical $80-$100 OEM price for Home Premium even on a netbook? So we’ll go from a negligible Windows cost that is about 10% of the product price and allows us to get these nice devices for $300-$400, to an inflated Windows tax at upwards of 20-25% of product price causing the same devices to cost $400-$500. THAT is the big question mark.
Maybe some people don’t care about price and think it reasonable to pay anything more than ~$400 for a netbook (a la HP), but I think most people are looking for value in these devices and they SHOULD remain consistently and significantly cheaper than low-end notebooks. I don’t think people who want to make a reasonable $300-$400 netbook purchase should have to go from getting along fine with XP to third-class Windows citizens unless they fork over to protect MS’s margins. I think that will drive some more sales of Linux configurations.
@TurtleWhisperer,
Not only are you being offensive but I think you’re just plain wrong. This has nothing to do with Americans and most of the comments on this and other sites have been from people who are confused or think others will be confused by the different versions.
Judging by your post in the recent SKU thread I’d say that you are amongst the most confused.
Disclaimer: I am not and never have been an American and I don’t and never have cared about the multiple versions of Windows.
TurtleWhisperer,
Why would you read and then comment on an article that you don’t care about. Clearly your not only unintelegent but your not very knowledgeable about technology. The different versions of windows are very important to tech savvy people because the technology in them differs so greatly (ie windows 7 starter can only run 3 programs where windows 7 ultimate can run a multiple operating systems through a “virtual PC”) If you dont care about the content of the article and your not smart enough to realize the significance of the content then dont post a comment.
There is also nothing offensive in the article or the posts.
Why would netbook users give up XP that can run as many application you want, to change to Windows 7 that will be limited to 3 application at a time?
That’s like giving up your car that runs good and get’s 25mpg to get a new car that only gets 3 mpg!
“if I could gain a few hundred megabytes or a gigabyte of hard drive capacity”
Seriously, Kevin, a 32GB SD card or USB thumbdrive can be bought for under $75 today and works on every netbook. A cakebox of 8GB DVD discs goes for maybe $40. SSD drives are becoming cheaper and bigger. No need to even mention 1.8 and 2.5 inch platter drives.
Yes, XP/linux can fit on an 8GB drive easily, and does really enforce the cloud computing philosophy. But if you’re NOT in the cloud, I certainly wouldn’t buy any netbook today with less than 32GB for a windows OS and apps. If it’s space you need for OS, apps AND your files, I wouldn’t even go below 60GB.
Why would anybody penny-pinch with Windows 7 on a puny 16GB system when you can buy much MUCH more in storage. Pick a different netbook with more storage maybe.
Jake has a good point. But my buddies [hot little college coed] daughter bought a Linux netbook to lug around the campus so that she doesn’t drop her MacBook Pro. In the class room, they probably would only need one or two apps at a time. The Win7 netbook could turn out to be a cheap alternative to the average college laptop top. as it is more affordable and portable. Could VoIP be involved too? Perhaps. It may give the other laptops a run for their money, especially in today’s economy.
Luscious, considering I used to use an XP netbook with a 4GB SSD module, I can easily get by with less storage.
My point wasn’t about netbook storage capacity or penny-pinching. I was simply thinking about efficiency in terms of what needs to be on the drive and what doesn’t. If something doesn’t need to be there, I personally don’t want it there. It’s the same reason I remove the various language support files from OS X. Don’t want ‘em and don’t need ‘em wasting space. Thanks for the budgetary lecture though! 
Let’s face it… despite the “retail” pricing of Windows, no one has EVER paid retail price for Windows on a new system. OEM’s always get significantly discounted pricing on Windows, often as low as $50-60/copy.
Upgrade costs are never completely unreasonable either, and there are tons of ways to find inexpensive copies (and even legitimately free copies in some contest giveaways).
The only people who are going to be spending a fortune are the ones who have a system that doesn’t have Windows at all or just doesn’t bother to shop around, and you can’t reach out and slap every consumer for being stupid.
Anyway, I think encouraging Home Premium is the right move. It’s probably going to be the same pricing structure that Vista Home Premium and XP Home have been. I still think there are too many editions with unnecessary distinctions, but despite the disapproval, Microsoft is moving forward with that plan. At least they’re playing it smart and only pushing the ones that will really matter.
$50 is a lot for a $300 system.
Also for clarification XP licenses are sold for $10 for netbooks
Jake, The Windows 7 Starter is the version that can run only 3 applications. This version WILL NOT be sold to consumers. The two versions that WILL be sold directly to consumers are the Windows 7 Home Premium and the Windows 7 Professional. With these two versions you can run as many applications as your memory will allow.
No offense Kevin, but my aim was not to lecture you at all.
I agree with you concerning OS efficiency – a lean and compact install is so ideal for the limited storage space on the cheapest netbooks. But even on the strictest systems an OS can get bloated over time thanks to windows updates, registry nuisances, hidden cache files, restore points, etc… You know the drill.
XP sure may work on a 4GB drive, but considering that OS was released over 7 years ago, when Joe Average’s notebook sold with a 20GB 4200RPM drive, I’d say the storage requirements for XP were very lean, especially the streamlined installs some folks did using the first USB thumbdrives. Personally, I would not struggle with 4GB to install XP, and I would feel too restricted to see much real use from a system with that little storage headroom.
I can understand your uses differ from mine, no arguments there, but considering the cheap cost of notebook (and netbook) storage today, that extra 1GB or so an OS might use for overhead will only make a very negligible dent on your system drive, and shouldn’t impact at all the way you use the device.
And while you and I can both delve deep into the OS and tinker to our hearts content, many users don’t have that knowledge and may simply choose a netbook with a bigger drive, especially after they have experienced the compromises they’ve had to make by using a 4GB netbook.
Sorry for going so off topic here, I just don’t think 1GB more or 1GB less is an issue when the requirements mention 16GB. Windows 7 will require a netbook with greater storage than XP, it was to be expected.
I’m curious to know at what level the tablet and touch facilities become available.
When Vista came out I bought the Home edition expecting to use it on a tablet, but, of course, tablet facilities not available on that edition.
Also, I’m curious to know whether there have been any further tablet refinements in Windows 7.
Whatever happened to”Vista”, it seems to have only supplanted “XP” these last eighteen months or so; and is Windows 7 going to have the same irksome tool-bar change that led to so much criticism. This does seem to be a good market to ask consumers to make many market change in operating systems–especially as there is so much “2000″ and “XP” in use– I see no real demand for it.
Kevin, you’re just buying spin here. “Microsoft recommends you run Windows Home Premium” can be easily reinterpreted as “Microsoft recommends you buy our $75 product instead of our $25 product.” Really!
Starter Edition is obviously a steaming turd that will frustrate experienced users and confuse (and frustrate) inexperienced users. In fact, the only way SE is usable is if . . . you run all your apps through a browser! An amusing side effect of Microsoft’s money grab here.
The other interesting thing is that XP Home, an 8 year old OS is just fine with most consumers. That won’t change with Win 7–there’s still nothing there that makes users say “I need this over XP”. Wonder how long before they take away the XP Home choice, which will be likely be favored by for most netbook buyers at $50-$75 less.