With small notebook PCs (sometimes called netbook PCs) now accounting for about 10% of PC sales worldwide (up to 20% of PC sales in some geographies according to leading retail sales analysts), I’m starting to get more and more questions about what a buyer should look into as he or she is shopping for a small notebook PC.

Ultimately, it depends on how you need to use your small notebook PC. While a small percentage of people are choosing to use these devices as their only computer, most are finding them better suited as a “companion PC” to a traditional desktop or notebook (for example, I use my Dell Mini 9 as a “companion PC” to my desktop PCs at work and at home). They are great for staying more conveniently connected on-the-go (for example: browsing the web on the train home from work, sending email from a coffee shop, or just getting office and/or personal tasks done).

There’s a small notebook PC out there for everyone depending on budget and hardware needs – but sometimes the different choices can get a little overwhelming.

To help out, I’ve pulled together a “checklist” of basic questions that you’ll want to think about before handing the cashier your credit card:

1. Is it easy to use?

This question may seem obvious, but when you think about it, it’s probably the most important one on this list. How are you going to be using your small notebook PC? Are you using this as a companion to your primary desktop or laptop PC? If so, then you’ll want it to have the same interface and experience as your primary machine so you can seamlessly move back and forth without any confusion or hassle and easily transfer and share files between your computers. You’ll also want to be sure that it can easily connect to a wireless or 3G broadband network so you can instantly get online wherever you are. And of course, make sure that there’s a built in tool, like Windows Instant Search, to help you instantly find your, music, photos and files…after all, your computer isn’t very handy if you can’t find your stuff on it!

2. Will it work with my stuff?

Think about what software you expect to use on your small notebook PC. Check for compatibility with your cameras, printers, music players, webcams, and anything else that you expect to connect, such as a GPS unit or mobile phone. Windows supports nearly 3,000 printers, over 700 digital cameras, 240 webcams, and 180 digital video cameras, as well as hundreds of more specialized devices. It also runs more than 10,000 applications, and it’s the only OS that runs Microsoft Office, iTunes and Quicken. This means that whatever it is you use, chances are it works with Windows. It’s also a good idea to make sure that your computer works with free, easy to use tools for email, blogging, chatting, working with photos and movies, online storage, and syncing your stuff between your PCs. I use Windows Live Essentials and Windows Live SkyDrive to do these things on my computers.

3. Is it the right size?

While screen and keyboard size are personal decisions, I can tell you that many of today’s small notebook PCs come with 9” or 10” screens for a good reason. Machines this size offer a better balance between lightweight portability, having a screen big enough to be productive with more than one window at once, and a keyboard that’s comfortable enough for most people’s hands. My Dell Mini 9 has a 8.9” screen. The size doesn’t bother me much but if I were to go out and buy another small notebook PC, I would likely go with a 10” screen. If you find that even 10” is still too small for you though, there are a number of larger but still lightweight notebooks at pretty affordable prices that may work better for your needs over a small notebook PC. If you do decide to go that route, check out the Windows Laptop Scout, which will help you find exactly the right machine for your needs.

4. Does it have the hardware horsepower I need?

When it comes to hardware, there are four key areas to consider – screen & keyboard size, processor speed, RAM, and storage. Screen and keyboard size we covered earlier, but in terms of the processor, look for a machine with at least a 1GHz CPU, and for RAM, get at least 1GB. 1GB of RAM is what my machine came with, but I added another 1GB to it for an extra performance boost. Many models allow you to add at least an extra stick of memory. If you buy a small notebook PC and want to give it more power down the road, having this ability is quite nice.

Storage is largely a personal call, and how much you need really depends on what you expect to do with your small notebook PC. If you want to put your pictures and music on it, then you probably want a 120GB or larger Hard Disk Drive. If you’re just looking to do basic email and web browsing, you might go for a smaller Solid State Drive (typically, these are 8-32GB). SSDs often run cooler and quieter, and may use less power, which means they can potentially get you a bit of boost in battery life. My Dell Mini 9 came with a 16GB SSD, but I found that it wasn’t enough space for me so I replaced it with a 32GB SSD. I also purchased a 320GB My Passport Essential from Western Digital I carry around with me everywhere as well for the added storage.

I recommend checking out CNET’s reviews, as well as the great information, reviews and tips on Liliputing to help you find a small notebook PC with exactly the specs you want.

5. Will I be safe online?

You’re probably going to be online quite a bit, so you’ll want to make sure you can browse, chat, and share safely. Key security features to look for in both your OS and browser are comprehensive phishing and Cross-Site Scripting filters along with ClickJacking protection to help guard against identity theft, built-in spyware and malware protection, comprehensive parental controls, a built-in firewall, and a private browsing model. As an FYI – Internet Explorer 8 in combination with Windows Live Family Safety can do all these things for you.

6. What level of support do I need?

Making sure that you can get the right kind of support when you need it is critical. It’s a good idea to get a small notebook PC that has built-in features to keep your gear up and running, such as automatic self-diagnosing tools and a comprehensive built-in system to help you automatically get security, OS and software updates, without having to track them down yourself and manually install them 1-by-1. When you do run into a need for assistance, you’ll also be better off with multiple support options including online resources, a call-in tech support center, or in-person help at a repair shop or retailer.

Hopefully, if you’re on the market for a new small notebook PC this checklist of questions will come in handy in helping you with your buying decision!

On the eve of the Computex, the largest computer exhibition in Asia and the second largest in the world, we got word that PC World, the largest electronics retailer in the UK, is de-assorting (i.e., getting rid of) all of the Linux small notebook PCs in their stores and going all-Windows. It’s pretty big news from across the pond that they’re making this move, but what’s even more important is the “why” behind the decision.

In April I wrote about why Windows market share on small notebook PCs has jumped from under 10% in February 2008 to 96% a year later (that number has increased since then...more on that below), and PC World agrees with our thinking. You can read the entire PC World press release, but to save you some time, I’ve pulled out the key points:

1. PC World is removing Linux small notebook PCs and going all-Windows in their stores in response to customer demand. They want Windows because it’s the only OS that gives people the choice, compatibility, familiarity and simplicity they need.
2. Most consumers today are looking for a small notebook PC in the 10” range because it offers a great combination of portability and usability (as in, it’s small enough to take anywhere, but big enough to work on comfortably).
3. The last year has shown that small notebook PCs are NOT replacement PCs; rather, they’re companion PCs that consumers use to get a full PC experience on the go.
4. Windows 7 will make small notebook PCs even more compelling and more attractive to consumers because it makes connecting with other PCs, working with documents, and enjoying pictures, music and movies easier than ever before.

Jeremy Fennell, Category Director at PC World, sums things up perfectly at the end of the release:

Despite initial hype that netbooks would move more users onto the Linux platform, Microsoft has emerged as the preferred operating system because Windows makes it easier to share content, and provides customers with a simpler, more familiar computing experience on the move. Based on this insight, all the netbooks in our stores will feature Microsoft Windows, larger screens and keyboards, and greater colour choices to satisfy customers demand for performance, design and familiarity.

Customers demanding Windows for its ease of use, compatibility and simplicity isn’t unique to the UK – it’s happening here as well. The latest data from NPD’s retail tracking service showed that Windows now account for a whopping 98% of all small notebook PCs sales at retail in the US.

I think it’s important to note that all of this momentum is happening before Windows 7 is even out! When Windows 7 does arrive (and brings slick new stuff like HomeGroup, Aero Peek/Snap, PlayTo and Remote Media Streaming, Windows Media Center that lets you watch and record TV, and more), I think the demand for Windows on these devices will increase even more. What do you think?

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.

It’s hard to believe it’s been a year since we first started to see netbook PCs running Windows come to market.

Little did we know that these devices would evolve so much in such a short time. A year ago, they were Internet-centric devices defined mainly by their tiny size and low cost. An interesting concept perhaps, but sales didn’t really take off until the category evolved into the more capable small notebook PCs we see on the market today.

For example, early Internet-centric models typically offered a 7 inch screen, very small keyboard, slow legacy processors, 512MB of RAM or less, and 1-4 GB SSD storage, whereas typical configurations today have 9 and 10 inch screens, near full-size keyboards, 1GB RAM and up to 160GB storage. Netbook PCs have now extended far beyond Internet browsing to be truly full-functioning small notebook PCs.

Initially, some in the industry viewed low-cost netbook PCs as a new challenge for Microsoft and an opportunity for Linux to make inroads in the consumer market. Some believed consumers wouldn’t want or need their netbook PC to be a full-featured PC. In fact, the exact opposite turned out to be true – a number of analysts and researchers following the space see ample evidence indicating customers really DO want netbook PCs to work like their larger brethren – and that the way the vast majority of consumers make that happen is by buying a netbook PC with Windows.

As a result, the growth of Windows on netbook PCs* over the last year has been phenomenal. We’ve seen Windows share on these PCs in the U.S. go from under 10% of unit sales during the first half of 2008 to 96% as of February 2009, according to the latest NPD Retail Tracking Service data. 

*Netbook PCs are small notebook PCs with a screen size 10.2" and smaller and a price under $500.

Not only are people overwhelmingly buying Windows, but those that try Linux are often returning it. Both MSI – a leading netbook PC OEM – and Canonical – the vendor supporting the commercial distribution of Ubuntu Linux - stated publicly they saw Linux return rates 4 times higher than Windows. Why such a disparity? Because users simply expect the Windows experience. When they realize their Linux-based netbook PC doesn’t deliver that same quality of experience, they get frustrated and take it back. Here’s a telling stat: In the UK, Carphone Warehouse dropped Linux-based netbook PCs, citing customer confusion as a reason for a whopping 1-in-5 return rate.

Why are consumers choosing Windows? Because its’ easier to use, just works out of the box with people’s stuff, and ultimately offers more choice.

It’s easier to set up, easier to use, and easier to maintain – Over the last 25 years, we’ve learned a lot about what people want out of an OS, and we’ve built Windows to meet those needs, including:

• There’s a wizard to help with just about anything, so you’ll never need to go to the command line and manually configure things.
• Techs all over the world speak Windows, which means it’s easy to get help either online or in person.
• It’s easy to stay up-to-date since Windows releases updates, patches and fixes on a regular, predictable schedule. And you can set your machine to download and install them automatically!

It just works with people’s stuff - A few examples of Windows unmatched compatibility are:

• Windows supports nearly 3,000 printers, more than 700 digital cameras, more than 240 webcams and more than 180 digital video cameras.
• Windows supports the broadest array of PC applications and games.

There’s more choice - 90+ partners ship Windows-based netbook PCs today, so you can get exactly the machine you want at exactly the price you are willing to pay.

Looking forward, we can confidently say that no matter how netbook PC hardware evolves, we’re gearing up to ensure that Windows 7 will run great on them. As we mentioned at PDC, we’ve been testing Windows 7 on netbook PCs since before Windows 7 was feature complete, and our plan is to enable these small notebook PCs to run any edition of Windows 7. From what we’re hearing, our partners are excited to get Windows 7 on these PCs as well.

The last year has been an interesting one, and seeing what’s happening in the marketplace already, and what we’re expecting in the next year, we fully expect the next generation of small notebook PCs will deliver even richer experiences and greater utility. That means that more than ever you’ll be able to find a small notebook PC that exactly fits your lifestyle and interests, just like you can with any other kind of Windows PC.