There has been a lot of talk recently about Windows 7 Starter, so I thought I’d dive a little deeper into what it means to have this edition of Windows 7 running on a small notebook PC (a.k.a. a netbook).

Today, the Starter edition of Windows is designed for entry level PCs and available only in certain regions. We first introduced a “Starter edition” with Windows XP, and did again with Windows Vista. Starter comes with limitations, such as being able to run only 3 concurrent applications on a PC at a time (this excludes background processes such as anti-virus applications, wireless and Bluetooth, and system tools like Explorer and Control Panel).

There of course will also be Windows 7 Starter edition, but based on the feedback we’ve received from partners and customers asking us to enable a richer small notebook PC experience with Windows 7 Starter, we’ve decided to make some changes compared to previous Starter editions.

For the first time, we will be making Windows 7 Starter available worldwide on small notebook PCs. We are also going to enable Windows 7 Starter customers the ability to run as many applications simultaneously as they would like, instead of being constricted to the 3 application limit that the previous Starter editions included.

We believe these changes will make Windows 7 Starter an even more attractive option for customers who want a small notebook PC for very basic tasks, like browsing the web, checking email and personal productivity.

It is important to note that Windows 7 Starter still includes only a subset of the features offered in the higher editions of Windows 7 such as Windows 7 Home Premium, Windows 7 Professional and above. Windows 7 Starter does not include:

• Aero Glass, meaning you can only use the “Windows Basic” or other opaque themes. It also means you do not get Taskbar Previews or Aero Peek.
• Personalization features for changing desktop backgrounds, window colors, or sound schemes.
• The ability to switch between users without having to log off.
• Multi-monitor support.
• DVD playback.
• Windows Media Center for watching recorded TV or other media.
• Remote Media Streaming for streaming your music, videos, and recorded TV from your home computer.
• Domain support for business customers.
• XP Mode for those that want the ability to run older Windows XP programs on Windows 7.

After using Windows 7 Starter out myself on my Dell Mini 9, I loved the advancements that it inherently offered versus Windows XP but also concluded that I wanted more. I like to personalize my Dell Mini 9 the way I want it (because I like showing it off and take it everywhere because it’s so small). I also use it to watch videos and listen to music. Because I also have a portable DVD drive, I also sometimes watch movies on my Dell Mini 9 as well. I believe that the majority of consumers will want a version of Windows 7 – like Home Premium - that will make their small notebook capable of all the things that you could do with an “traditional” PC, like playing movies, working with documents, listening to music, working with photos, and even playing games.

As we continue to say since we announced the Windows 7 editions in February, all editions of Windows 7 have been optimized to run on the broadest range of hardware ranging from small notebook PCs all the way up to high end gaming machines. Windows 7 Starter should not be considered “the netbook SKU” as most machines in this category can run any edition of Windows 7. Many of our beta users have installed Windows 7 Ultimate on their small notebook PCs and have given us very positive feedback on their experience.

I’ve since moved to Windows 7 Home Premium on my Dell Mini 9 and am glad I did.

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.

Today, I wanted to take a closer look at the Windows 7 SKUs since there has been some discussion about them for the last couple of days. By the end of this post, I want you to know exactly which edition of Windows 7 is right for you and help you understand how we approached addressing the large amount of feedback we received.

Our SKU line-up is based on listening to feedback from customers and partners and here is what they have told us and how we are addressing their feedback in Windows 7:

1. Customers wanted clarity on which version of Windows is the right version for them.  So…Windows 7 will be offered primarily in 2 editions: Windows 7 Home Premium and Windows 7 Professional.

2. Customers wanted upgrading to a different SKU to be easier.  So…for Windows 7, we are using a single image for all SKUs. This means the bits for all the editions are already on your computer if you are running Windows 7.  With Windows Anytime Upgrade, users can unlock and upgrade to a different SKU much easier than before.

3. Customers did not like losing features when upgrading to a different SKU.  So…in Windows 7, each SKU is a superset of the previous SKU. No features are lost on upgrade.

4. One size does not fit all—particularly with a billion users and thousands of partners around the world.  So…we are addressing the specialized needs for customers in specific markets with Windows 7 Starter, Windows 7 Home Basic, and Windows 7 Enterprise.

Let me dive a little deeper into these 4 areas and what it means for you.

Our marketing efforts, when they begin for Windows 7, will reflect an emphasis on Windows 7 Home Premium and Windows 7 Professional. With the continued hardware advancements made since the launch of Windows Vista, we think 80% of end users will choose one of these two SKUs.

• Windows 7 Home Premium: Recommended Choice for Consumers
• Windows 7 Professional: Recommended Choice for Enthusiasts and Small Business Customers

Essentially, when Windows 7 hits store shelves consumers will see Windows 7 Home Premium and Windows 7 Professional as the choice they will need to make.

We also make it easy for customers to change down the road. So let’s say I purchase Windows 7 Home Premium and want to upgrade to Windows 7 Professional. With Windows Anytime Upgrade I can, as it makes upgrading to another version of Windows 7 much easier now that we have a single image for every SKU. Users will be able to unlock upgraded editions of Windows 7 without original media or additional software as everything they need in order to upgrade will be on their PC already.

Because each SKU is a superset of the previous SKU for Windows 7 that means each higher edition SKU will also include every feature the lower edition SKUs has. Windows 7 Professional will have every feature that Windows 7 Home Premium has plus other business-oriented features such as the ability to join a domain.

Not every customer has the same needs. In general, we discovered that most think we should have about 2 or 3 SKUs but there isn’t much agreement what “the right” SKUs should be. So we are accommodating specialized needs for customers in specific markets. You could also think of these as niche offerings. A small percentage “niche” (like 2%) of the overall customer base is still many millions. That feels pretty big to me and we wanted to make sure we had the right solutions for them. We think it is important to respond to the needs, so we have:

• Windows 7 Starter: Something that our OEM partners asked for is to have an offering for folks that will do very limited things with their PCs and for PCs with limited hardware capabilities. Windows 7 Starter only allows up to 3 applications to run at once. This is something that will be offered only through OEM partners.
• Windows 7 Home Basic: Another offering that our OEMs asked for was a basic offering on Value PCs in emerging markets. This is something that will also only be available through OEM partners. 
• Windows 7 Enterprise: An offering asked for by our best and largest enterprise customers which has all the advanced security and manageability capabilities which also includes BitLocker data protection. This is something available only through Volume License agreements. 

And, for those who want everything we have Windows 7 Ultimate.

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. I have a Dell Mini 9 running the Windows 7 Beta (which is Windows 7 Ultimate) just fine. Brad Brooks, Corporate Vice President for Windows Consumer Product Marketing, talks more about Windows 7 on Netbooks here in this Q&A with Microsoft PressPass.

Today, 1 billion customers use Windows and the needs of our customers span a wide range. We have been listening and learning to make sure we are addressing the full range of needs while simplifying/clarifying the choices.  Our SKU strategy reflects Windows 7’s ability to work well on a variety of PCs as well as meets the needs of our customers.

So which edition of Windows 7 fits your needs? I expect for the majority of you it will be either Windows 7 Home Premium or Windows 7 Professional. For me, I think Windows 7 Professional looks perfect for my needs.

Today Microsoft PressPass spoke with Windows General Manager Mike Ybarra who revealed our SKU strategy for Windows 7. For those of you interested, click here to read the details.