Netbooks could be Microsoft's revenue hope for Windows 7

Geoff Spick
09 March 2009, 2:00 PM


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With netbooks being the only kind of system making any sales headway, Microsoft will be going all out to generate revenue with Windows 7.



If you buy a netbook your choices are really Linux or Windows XP. By the end of the year, Windows 7 will be a further option. However, what you'll find is a cut down Starter version of the OS installed, with the full edition tucked away waiting to be activated at the touch of a credit card. To encourage this upgrade, users will only be able to run three applications at a time with the netbook version.

In theory this isn’t too bad, that could be a web browser with your web mail in one tab and your favourite sites on others, a game of online poker in one and the word processor that you should be working on as the third application. However, look at your desktop now -- it's likely you've got a couple of other things running too.
Dell's sexy Inspiron Minis will soon ship with Windows 7

However, netbook users will be buying these machines on the basis of their budget – wouldn't we all rather have a shiny new Mac Book! So, it may be quite a while before they have the money to upgrade the OS, if at all, or may end up being quite happy only running a couple of applications at a time.

Microsoft may be confident in this approach, and even with a moderate uptake of the upgrade offer, given the huge sales of netbooks, it could still help boost Windows sales and improve Microsoft's bottom line. Others don't seem so sure, a Bloomberg article lists quite a few doubters, including Intel boss Paul Otellini.

Effectively, Microsoft is using the Starter version as a foot in the netbook door to prevent Linux (and oddly, Windows XP) getting a wider hold in the netbook market. It, realistically, can hope that a decent flow of upgrades will help its revenue, but if Microsoft is hoping for a torrent of upgraders, it could be a long time waiting.

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Tin (User):

How on earth are MS going to differentiate between some vendor supplied app that sits in the taskbar and regular apps?
If they are going by taskbar "slots", then on average, 3 isn't enough even on a low spec netbook: Browser, Email client, IM program.... Ooops. No room for anything else (including Windows Update dialogs?)

And WTF will happen when a background IM program tries to load a message window, or a user happens to go "new window" instead of "new tab" in the browser?

Tip for MS: Stop trying to gouge money from people in a market where Linux started the whole concept. Otherwise people WILL go back to Linux in that market.

09 March 2009, 3:37 PM (4 years ago)report abuse Send to a friend reply

Raindog (New user):

Quoting Tin:
How on earth are MS going to differentiate between some vendor supplied app that sits in the taskbar and regular apps?

What constitutes an app? I'm sure MS will have a very unique aproach to that.

Cripple-ware who needs it. Vote with your feet.


Quoting Tin:
Otherwise people WILL go back to Linux in that market.

Many never left, and seeing MS stunts like this probably never will.

You can bet it will the same price gouge that is Home editions. Whats the upgrade cost to take an OEM home edition to a pro edition? Yep full retail price.

Those shiny impulse bargains soon turn out not to be bargains at all. When the bundled license for Windows 7 turns out to be for Windows 3.5 Buyer beware!


09 March 2009, 4:49 PM (4 years ago)report abuse Send to a friend reply

Jeff (New user):

Quoting Tin:
If they are going by taskbar "slots"


My understanding is that it will be based on running processes (and background processes are counted as well), so you could still have a 100 firefox windows if you wanted, but on the downside you could only have 3 tabs in chrome...

11 March 2009, 2:42 AM (4 years ago)report abuse Send to a friend reply

franko12345 (New user):

Is an anti virus plus malware plus all the other checkers windows users use count as applications? If so win 7 won't be good for anything. It will be to busy trying to defend itself.

09 March 2009, 4:15 PM (4 years ago)report abuse Send to a friend reply

AndyCee (New user):

From what I hear, anti-virus isn't included.

09 March 2009, 9:55 PM (4 years ago)report abuse Send to a friend reply

Bring ON LINUX (New user):

"Effectively, Microsoft is using the Starter version as a foot in the netbook door to prevent Linux (and oddly, Windows XP) getting a wider hold in the netbook market"

Umm good luck with that MS..... Bring on Linux with any application WITHOUT your CR Card!!!

09 March 2009, 5:05 PM (4 years ago)report abuse Send to a friend reply

Halcon (User):

This time around, Microsoft thinks is going to make money on all fronts, crushing all opposition, how very opportunistic approach!

09 March 2009, 6:22 PM (4 years ago)report abuse Send to a friend reply

MJD (New user):

"wouldn't we all rather have a shiny new Mac Book!"

No, I wouldn't rather have a Mac Book. Price isn't the only factor... some people just want a more portable laptop for basic functionality. Is there a 8 - 10" Mac Book that I am unaware of?

I have a HP mini-note and as long as it was executed properly wouldn't have a problem with only three apps running.

10 March 2009, 5:50 PM (4 years ago)report abuse Send to a friend reply

Martin Gifford (New user):


I can see Apple's ad already:

Customer: "I'd like Windows 7 please."
Salesperson: Which one? Starter, Basic, Home, or Business?
Customer: "Just Windows 7."
Salesperson: "Oh, do you mean the whole thing?"
Customer: "Yes..."
Salesperson: "That's Ultimate. That'll be $795 (Aus $). Thank you."
Customer: "Um... Is that the one with GarageBand? My son wants to use Garageband."
Salesperson: "Ah, that's a Mac. There's only one Mac OS. Ultimate if you like."


10 March 2009, 7:42 PM (4 years ago)report abuse Send to a friend reply

Raindog (New user):

Quoting Martin Gifford:
I can see Apple's ad already

You really should get out more. Make fresh air and a balanced diet part of your daily routine. Hallucinations are something you need to be speaking to your GP about immediately.


11 March 2009, 7:53 AM (4 years ago)report abuse Send to a friend reply

Martin Gifford (New user):

Raindog, I don't understand the point of your post.

People will be annoyed and disoriented by all the versions of Windows 7. Apple can easily amplify that annoyance and disorientation. They can have a field day with this issue. And Apple will want to attack Windows 7 early because Windows 7 seems to be popular among the beta testers. The meme I would go for is that there are multiple versions of Windows 7 and that the full version is too expensive.

11 March 2009, 12:30 PM (4 years ago)report abuse Send to a friend reply

Raindog (New user):

Quoting Martin Gifford:
Raindog, I don't understand the point of your post.

It was a humorous dig at zeal some will use to promote the operating system they favour.


Quoting Martin Gifford:
People will be annoyed and disoriented by all the versions of Windows 7.

I agree! The marketers have well and truly overstepped what is acceptable.


Quoting Martin Gifford:
Apple can easily amplify that annoyance and disorientation.

Amplify? Apple could well be in a good position to lure some disgruntled users into purchasing apple as an alternative, as could others. But how is apple going to amplify MS's problems?


Quoting Martin Gifford:
They can have a field day with this issue. And Apple will want to attack Windows 7

That is where I and many other will have a problem, if Apple's selling feature is to run down a competitor then they haven't got too much good to say about their own products. Running down a competitor is poor form, you don't build positive brand perceptions with cheap shots used car salesman type tactics.


Quoting Martin Gifford:
Windows 7 seems to be popular among the beta testers.

More popular than the reactions to Vista for sure.



Quoting Martin Gifford:
I would go for is that there are multiple versions of Windows 7

Multiple versions is not always a bad thing. The problem is more the way Windows defines their versions, and their bait and switch tactics which make migration of versions expensive.


Quoting Martin Gifford:
that the full version is too expensive

That expense is relative, a full version of Windows 7 on a PC is likely still going to be lower cost the a roughly equivalent MAC + OS X. Cost would not be a good angle for Apple when presenting their product as an alternative.


11 March 2009, 12:58 PM (4 years ago)report abuse Send to a friend reply

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