There has been a lot of press over the past week or so about Microsoft Windows 7 and netbooks. Specifically, CNET in the UK wrote that they had confirmed that Microsoft would be providing a version of Windows 7 specifically designed for netbooks.
Microsoft responded to Computer World: “We have not made any announcements regarding Windows 7 SKUs.”
Microsoft’s response reminded me of those Watergate-era Nixon Administration “non-denial denials”. They did not deny that they were going to introduce a netbook-specific version of Windows 7.
Last July, in an article about how netbooks (which were referred to as Ultra Low-cost PCs or ULPCs back then) would disrupt the computer industry, I wrote:
Microsoft’s low-cost XP licensing program for ULPCs is not a long-term fix for the company. It is like putting a band-aid on your skin cancer. It keeps the public from viewing the wound, but it doesn’t make the problem go away.
Microsoft still has a problem. If they force netbook manufacturers to pay full license cost for Windows 7, then the manufacturers will pass along the increase to buyers. This will make the Linux versions more attractive.
So Microsoft must offer an ultra low-cost version of Windows 7 for netbooks. They only question is which features will be stripped out to justify the difference.

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