In a blow to businesses that need to purchase more than a
handful of new computers between now and Windows 7's October 22
release date, Microsoft has limited the number of machines that can
be upgraded to its new operating system for free to 25.
Microsoft has made little mention about the limit, which is
drawing heat from some notable industry watchers. Gartner analyst
Michael Silver recently published a research note provocatively
titled, "Enterprises Should Demand Windows Upgrade Option."
"Microsoft has limited the number of free Windows 7 upgrades
that can be claimed via its Windows Upgrade Option," wrote Silver.
"Organizations need to understand their Windows 7 requirements and
obtain rights for the best value," Silver said.
Microsoft recently fleshed out details of the Windows Upgrade
Option program for the first time. Consumers who purchased a
Vista-based personal computer as June 19 are eligible to upgrade
the system to Windows 7 at no or little cost when the latter ships
in October.
"Anyone who buys a PC from a participating OEM or retailer with
Windows Vista Home Premium, Business, or Ultimate on it will all
receive an upgrade to the corresponding version at little or no
cost to customers," wrote Microsoft's Brandon LeBlanc, who
disclosed the details in a blog post.
Silver said Microsoft may be limiting the number of PCs eligible
for upgrades in order to goose sales of its Software Assurance
licenses to businesses. Under Software Assurance, companies pay
between $100 and $150 per PC for the right to unlimited upgrades at
no additional cost for three years.
"Gartner believes that Microsoft designs these program
limitations to persuade organizations to enter Enterprise
Agreements, enroll licenses in Software Assurance or purchase
upgrade rights to run Windows 7," Silver wrote.
Microsoft blamed weak business sales in part for a 16 percent
falloff in Windows sales in the most recent quarter.
Silver said companies that need to buy more than a couple of
dozen PCs between now and October 22 should press their PC
manufacturer for the right to upgrade later at no cost. "Larger
OEMS administer their own programs, have latitude to do this and
have made exceptions for organizations in the past," said
Silver.
Gartner has advised businesses to evaluate their desktop and
application footprint before moving from Windows XP or Vista to
Windows 7 in order to avoid upgrade chaos.