There’s been a lot of talk in the community about what Windows 7 offers consumers. Today, I’d like to highlight the enterprise value of the product and how it reflects what customers and partners told us enterprises need most.

With Windows Vista, we learned a lot about how involved our customers and partners like to be in the development of an OS – in a nutshell, early and often. With Windows 7, we changed the way we developed the Windows OS in order to be more responsive to that feedback. As such, early on we identified three main principles to our new process:

• Planning: Our team spent six months on planning Windows 7 in a “vision phase.” We analyzed trends and customer needs before building features. We also focused more on end-to-end business scenarios, rather than solely on features and technologies.
• Predictability: We committed to giving our customers and partners a timeframe for our release and stuck to it. We remain on track to ship Windows 7 within three years of the Windows Vista release. We also only shared information about Windows 7 when we had a higher degree of certainty which has resulted in minimal changes from earlier disclosures.
• Early Ecosystem Engagement: We engaged with partners during the early stages of Windows 7 development, rather than waiting for the traditional beta timeframe. This has allowed for a more seamless experience and greater compatibility in all areas.

There are three key areas we look at in our development process: industry trends, in-depth discussions with top customers and partners, and extensive quantitative customer research.

I won’t go into details except to remind you of trends with the most significant impact on IT today: costs, consumerization, reducing carbon footprint, contingency planning and compliance. As a result of the continued economic deterioration, most businesses are thinking about cost. IT is under pressure to deliver efficiencies in their environments and greater ROI on technology expenses – we recognize this through personal experience and input from our customers and partners.

We spent a great deal of time talking and engaging with our customers and partners in order to really understand what’s on their mind. Knowing where their challenges lie and what tools they need to be successful helps us deliver an OS that meets their needs and is a valuable investment, which is critical when IT budgets are tighter than ever.

This engagement came in two forms – qualitative and quantitative.

Our qualitative outreach consisted of over 100 of our top customers through five programmatic engagement vehicles:

• Desktop Advisory Council: Twenty-seven active IT leaders across a variety of industries including some of the world’s largest manufacturers, banks, insurers, telecoms, energy companies and professional services firms. We used their input for overall direction and feature decisions.
• OEM Engagement: Leading manufacturers from around the world. This gave us an opportunity to inform and set direction, while receiving their feedback.
• Ecosystem Engagement: Members of the Windows Ecosystem Readiness Program received access to builds and toolkits for Windows 7. They also gained access to Windows 7 and Windows Server 2008 R2 labs for partners.
• Technology Adoption Program: Strictly engineering-focused, customers in TAP committed a large investment of their time and resources in test deployments of Beta and pre-Beta code. Their help enables us to validate features in real-world situations, produce bugs and generate feedback.
• First Wave Program: Customers who are already in progress with deploying Windows 7 Beta in their environment. This group provides real time feedback on their experience deploying Windows 7 Beta and helps us see what an enterprise deployment looks like.

For our Quantitative Research, we engaged extensively with almost 4000 customers in developing and emerging markets. This research surfaced the top areas of concern: Risk Management, Compliance and Mobility. Key findings included:

• 56% said they needed help protecting corporate data on laptops. This validated our decision to include BitLocker in Windows 7 Enterprise, and to extend its capabilities to the portable hard drives that can be just as dangerous and more loosely monitored than laptops.
• 61% expressed a deep concern about ensuring their users install and use only authorized applications (for fear of security breaches from unauthorized applications). This helped prioritize our plan to develop AppLocker.
• 49% wanted to make it easier for remote workers to access corporate resources, bubbling a plan up for Direct Access capabilities.

So how did this affect Windows 7?

Windows 7 Enterprise mirrors what we learned during our planning and research phase and resulted in three big areas of investment:

• Making users Productive Anywhere is a focus on the mobile user community and empowering users with seamless access: We built technologies into Windows 7 such as BranchCache, Direct Access, Federated Search, and Enterprise Search Scopes to enable users to access to their data and applications anywhere and anytime.
• Improving Security and Control is a focus on protecting data, enabling compliance and giving IT better control: With this in mind we designed BitLocker To Go, which protects data stored on portable media, such as USB drives. This enables IT to only allow authorized users to read data or portable media, even if the media is lost or stolen. Additionally, AppLocker provides a mechanism for administrators to specify via Group Policy exactly what is allowed to run on their systems.
• Streamlining PC Management is a continued focus to drive the cost of managing a Windows environment down: Windows 7 makes managing and deploying desktops, laptops and virtual environments much easier. IT Pros can use the same tools and skills they use today with Windows Vista for Windows 7. New scripting and automation capabilities through Windows PowerShell 2.0 help reduce the costs of managing and troubleshooting PCs.

And we’re not finished! Research on Windows 7 overall continues today as we receive feedback from our Beta testers. We’ve received over 500,000 Send Feedback reports on Windows 7 Beta. Thanks to our dedicated customers, we have hundreds of fixes in the pipeline. This is a testament to how we’re taking your feedback and inputting it directly into Windows 7.

With Windows 7, we’ve advanced our vision for an Optimized Desktop to allow administrators the ability to balance flexibility and control in helping end-users work better in their environments. Windows 7 Enterprise, along with Microsoft Desktop Optimization Pack (MDOP), delivers Microsoft Windows Optimized Desktop vision to customers: it gives users anytime, anywhere access to information they need to get their work done; while providing tools for IT to support their business securely, protect corporate data, achieve cost efficiencies, and take advantage of the virtualization trends in the client computing arena.

To summarize, customers tell us the economy is bringing new levels of scrutiny to how they manage costs, mitigate risks and make their people more productive with less. We get it. Windows 7 Enterprise is about helping both IT Pros and end users manage an intensifying – and often opposing – confluence of pressures.

Throughout the Windows 7 development process, we’ve been committed to creating an OS that is designed for the way people actually work. We’re convinced Windows 7 has an exciting and powerful offering for our business customers, but we want to hear from you. If you are one of our enterprise customers considering Windows 7, our guidance to you is to start testing and planning now and send us your feedback. If you haven’t been considering Windows 7, we think there are compelling reasons for you to take another look.

You may have caught Brandon’s post last week looking at our SKU strategy for Windows 7. In addition to the guidance we provided earlier today for commercial customers looking at deploying Windows Vista, I want to also take a closer look at Windows 7 Enterprise specifically and what it means for our largest commercial customers.

Windows 7 Enterprise edition is designed to address the needs of our enterprise customers who have needs around advanced data protection, enabling user productivity and streamlining their PC management. Windows 7 Enterprise is part of the Windows Optimized Desktop offering, which also includes the Microsoft Desktop Optimization Pack (MDOP) tools and will only be available to customers with Microsoft Software Assurance on their Windows client licenses.

If you are an enterprise customer with Software Assurance on your existing Windows licenses when Windows 7 is released, then you automatically get the rights to deploy Windows 7 Enterprise to PCs in your environment. Additionally, customers who buy Windows 7 Professional and add Software Assurance will also have rights to deploy the Enterprise edition.

For our enterprise customers, we’re especially excited about the following Windows 7 Enterprise features that deliver greater efficiency and cost savings:

• DirectAccess: Windows 7, along with the network technologies in Windows Server 2008 R2, provides this network technology that enables the user to seamlessly access corporate network resources when on the Internet, without having to create a VPN connection.
• BranchCache: Windows 7 together with Windows Server 2008 R2 offers an alternative to alleviate the problems of slow connectivity, delivering increased network responsiveness of applications and giving users in remote offices an experience more like working in the head office. When BranchCache is enabled, a copy of data accessed from an intranet web site or a file server is cached locally within a branch office.
• Enterprise Search Scopes: allows IT administrators to populate links to the commonly used internal sites -- for example, SharePoint sites – to the Windows Explorer UI or to the Start menu or in Windows 7, using Group Policy. These links simplify access to the target internal data sources on the network for business users.
• BitLocker & BitLocker To Go: protect data on PCs and removable drives, with manageability to enforce encryption and backup of recovery keys. Windows 7 extends BitLocker protection to USB storage devices while making the original functionality even easier to use. Note: BitLocker for PCs and BitLocker To Go for removal hard drives such as external USB drives.
• AppLocker: is a flexible, easy-to-use mechanism that enables IT professionals to specify exactly what is allowed to run on user desktops. It restricts unauthorized software while allowing applications, installation programs, and scripts that users need.
• Virtual Desktop Infrastructure (VDI) Optimizations: delivers desktop functionality in Windows 7 using virtual machines hosted on servers—a solution known as Virtual Desktop Infrastructure (VDI). VDI enables users to access their desktops remotely as well as the ability to reuse virtual machine (VHD) images to boot a physical PC. Windows 7 provides for better user experience in VDI scenarios, with better graphics, audio and local device support.
• Multi Lingual User Interface: the Language Packs in Windows 7 Enterprise enable you to support up to 36 different languages using a single Windows master image, rather than creating a separate image for each language used in the organization.

Other benefits to Windows 7 Enterprise include:

• Subsystem for UNIX-based Applications (SUA)
• License rights to run up to four additional copies of Windows in virtual machines
• License rights for network booting of Windows

Because each high edition SKU is a superset of the previous SKU, Windows 7 Enterprise includes all end user features available in Windows 7 Professional, as well as the DVD Playback Codec and Windows Media Center.

More information about Windows 7 Enterprise is available at: http://www.microsoft.com/windows/enterprise/products/windows-7-enterprise.aspx

Windows 7 Enterprise is another example of Microsoft’s commitment to delivering continual innovation to enterprise customers through Software Assurance. While we expect these features will be of greatest interest to our enterprise customers, any Windows client Software Assurance customer will have the rights to deploy the Enterprise edition. We look forward to sharing more information about Windows 7 Enterprise and what it has to offer our business customers.