Thanks to everyone’s feedback, we’re happy to announce that Windows XP Mode has RTM’d today. We expect to make the final release of Windows XP Mode available via the Microsoft Download Center on October 22nd. OEMs will be able to offer Windows XP Mode on their PCs based on their manufacturing schedules.

For more information on Windows XP Mode, including feature highlights and quotes from some of our partners, I recommend reading this blog post.

Windows XP Mode is designed to provide small business and mid-sized businesses running Windows 7 Professional (or higher) the ability to run Windows XP productivity applications that may not be natively compatible with Windows 7. We expect many Windows XP applications to be compatible Windows 7 however Windows XP Mode is meant to serve as an added safety net so small and mid-sized businesses can migrate and run Windows 7 without any road blocks. Windows 7 Professional is designed to meet the needs of small and mid-sized businesses.

Last month we made Windows 7 available to customers with Software Assurance and to MSDN and TechNet Subscribers. Today I am happy to announce two more ways for businesses to get Windows 7 for their deployment and evaluation.

Volume License Availability, at a Discount
Starting today, businesses can order upgrades to Windows 7 from a Microsoft Volume License Reseller. This option is for businesses that don’t already have Windows Software Assurance and want to upgrade their existing business PCs to Windows 7. There are two editions of Windows 7 available through Volume Licensing:

• Windows 7 Professional: Designed for small and midsize organizations, Windows 7 Professional provides a PC experience you can count on, helps you get more done, and helps safeguard your work. Today, we are also starting a 15% discount on Windows 7 Professional upgrade licenses that will run until February 28, 2010. Contact your Microsoft reseller to take advantage of this offer and confirm availability in your area (discount is offered on Microsoft pricing to its channel partners; pricing offered by partners may vary).
• Windows 7 Enterprise: If you have an active Software Assurance agreement or purchase one with your Windows 7 Professional upgrade licenses or new PCs with Windows 7 Professional, you can deploy Windows 7 Enterprise. Designed for enterprises and businesses that want to optimize their desktop IT infrastructure, Windows 7 Enterprise will help make users productive anywhere, enhance security and control, and streamline PC management.

Windows 7 will run on most PCs businesses have today. More information on tools to help with your upgrade to Windows 7 is available at www.windows.com/business/upgrade. Additionally, we recommend that customers with Software Assurance purchase the Microsoft Desktop Optimization Pack (MDOP) to aid in their enterprise OS management. The MDOP subscription currently includes six technologies that help reduce the TCO of a Windows 7 desktop. MDOP simplifies application deployment and lifecycle management and provides a solution for resolving application incompatibility through virtualization. MDOP also increases IT responsiveness and user uptime through robust diagnostics and monitoring capabilities, and increases IT control by providing asset tracking and group policy change management.

Keep in mind that Windows Volume Licensing upgrades are only available for PCs that already have a qualifying Operating System, such as Windows Vista Business or Windows XP Professional. For a list of qualified versions of Windows 7 operating system licenses, download the Windows 7 and Optimized Desktop Volume Licensing Guide available on http://www.microsoft.com/windows/enterprise/how-to-buy.aspx.

Windows 7 Enterprise 90-Day Trial
If you are an IT Pro who does not have a Software Assurance Volume Licensing agreement and are not an MSDN/TechNet subscriber, you can download the Windows 7 Enterprise 90-Day Trial. This is something many of you have asked for as a means to continue evaluating Windows 7 in your environment prior to deployment, and I am pleased to announce that you can download it starting today from the from the Springboard Series site on TechNet. Read all the details about this trial edition in Stephen Rose’s post.

Businesses now have access to multiple resources they can use to plan their deployment or begin upgrading their PCs to Windows 7. Beginning October 22, 2009 all customers will be able to purchase new PCs with Windows 7.

Back in April, we introduced the Windows XP Mode beta and after a few months of incorporating your enthusiastic feedback, today we are announcing the availability of the Windows XP Mode Release Candidate.

Download: Windows XP Mode Release Candidate

As you may know, Windows XP Mode is specially designed for small and medium-sized businesses to help ease the migration process to Windows 7 by providing additional compatibility for their older productivity applications. The newly updated Windows XP Mode now works with the RC and RTM versions of the Windows 7 Professional, Ultimate and Enterprise SKUs.

Before I get into what has changed from beta to RC, I’d like to take a moment to clarify what Windows XP Mode is designed for, and highlight the point that in many cases Windows XP Mode will not be necessary. Windows 7 has a strong compatibility story with Windows Vista, and many applications that currently run on Windows XP-based or Windows Vista-based PCs should just run natively on Windows 7 – allowing you to take advantage of better performance, better management and better security built into Windows 7. In most cases, we recommend running applications natively in Windows 7. Windows XP Mode provides what we like to call that “last mile” compatibility technology for those cases when a Windows XP productivity application isn’t compatible with Windows 7. Users can run and launch Windows XP productivity applications in Windows XP Mode directly from a Windows 7 desktop. I also strongly recommend that customers install anti-malware and anti-virus software in Windows XP Mode so that Windows XP Mode environment is well protected. For customers that manage several Windows PCs running Windows XP Mode and want to simplify management tasks, we offer Microsoft Enterprise Desktop Virtualization (MED-V) as part of the Microsoft Desktop Optimization Pack.

New Features in Windows XP Mode RC

Based on feedback from the Windows XP Mode beta, we’ve made several improvements to the usability of Windows XP Mode for small and medium-sized business users:

• You can now attach USB devices to Windows XP Mode applications directly from the Windows 7 task-bar. This means your USB devices, such as printers and flash drives, are available to applications running in Windows XP Mode, without the need to go into full screen mode.
• You can now access Windows XP Mode applications with a “jump-list”. Right click on the Windows XP Mode applications from the Windows 7 task bar to select and open most recently used files.
• You now have the flexibility of customizing where Windows XP Mode differencing disk files are stored.
• You can now disable drive sharing between Windows XP Mode and Windows 7 if you do not need that feature.
• The initial setup now includes a new user tutorial about how to use Windows XP Mode.

Customer and Partner Comments on Windows XP Mode

We are very excited that our customers and our partners see the value of Windows XP Mode. We collected testimonials from some customers testing Windows XP Mode; you can view videos from some of these customers here.

Many PCs can take advantage of Windows XP Mode, thanks to hardware capable of virtualization. 

PC manufacturers are using Intel processors with Intel Virtualization Technology on virtually all of their Intel systems aimed at small- to enterprise-size businesses. All PCs using Intel Core 2 processors with Intel vPro technology include Intel Virtualization technology. You can verify that an Intel processor has Intel Virtualization Technology here.

In addition, by Windows 7 launch all AMD CPUs shipping to customers, except Sempron, will include hardware virtualization. Here is what Margaret Lewis, Director of Commercial Software and Solutions from AMD says about supporting hardware virtualization and Windows XP Mode:

With XP Mode, Microsoft has built-in client virtualization technology that makes it easy to install and run Windows XP applications directly from a Windows 7-based PC, allowing users to enjoy the benefits of Windows 7 while maintaining support for legacy applications. AMD has worked closely with Microsoft to deliver highly optimized virtualization platforms and this new operating system continues the maturation of client virtualization while making use of AMD innovations.

We are also working with OEM partners to include Windows XP Mode preinstalled on new PCs.

Michelle Pearcy, director of Global Software Marketing at Dell, discusses the importance of integrating with Microsoft for Windows XP Mode:

Our customers expect their applications to simply work, regardless of their selected operating system. Windows XP Mode provides them with the confidence to migrate to Windows 7 while maintaining access to mission critical applications. Dell worked closely with Microsoft on the development of Windows XP Mode and provided input so that our customers can easily transition to Windows 7, which is a safer, more secure and efficient operating system.

Carlos Montalvo, Vice President of Experience Marketing on the Personal Systems Group at HP, talks about how HP intends to take full advantage of Windows 7 with their products:

For more than two years HP has collaborated closely with Microsoft on the development of Windows 7, contributing important innovations. HP is working to ensure our customers can take full advantage of the latest Windows 7 technologies such as offering our small and medium business customers the flexibility to run legacy applications. Our latest high performance multi-core enabled Windows 7 PCs will take advantage of Windows XP Mode once it is released.

Peter Schrady, Vice President and General Manager of Software, Peripherals and Enterprise Products at Lenovo discusses optimizing their PCs for Windows 7 and Windows XP Mode:

We’ve optimized our Think-branded PCs for Windows 7 and Windows XP Mode so businesses can enjoy the latest computing platform while still being able to use legacy applications that are supported only in Windows XP. Giving users seamless integration in a virtual environment is another way we’re working together to support commercial customers that have limited resources to spend on IT.

At the beta, there were concerns about the licensing for anti-virus and security software under Windows XP Mode and as we progressed to RC, we worked closely with those partners. Today, Kaspersky and Symantec confirmed their software will be supported in Windows XP Mode in addition to running on Windows 7 natively. We continue to work with additional anti-virus and security vendors to ensure their software will also support Windows XP Mode.

Here’s what Alexey Kalgin, Director of Product Marketing on the Corporate Business Division at Kaspersky Lab says:

By working with Microsoft, we are confident that Kaspersky Lab will provide XP users running Windows 7 in a virtual environment with an excellent security option that is easy to manage, and protects their valuable data without slowing them down. With the continued dramatic increase in malware and web attacks, our mission is to provide the best security possible for end-users and keep them educated and aware about the evolving threats.  Our Kaspersky Lab technical prototype for Windows 7 has been installed by more than 950K people since January. Thanks to collaboration with Microsoft, we have received an exceptional amount of valuable feedback from testers that will enable us to ensure that our products are fully compatible and permit everyone to safely take advantage of the new and unique features of Windows 7.

Blake McConnell, Senior Director, Product Management, SMB Security Solutions, Symantec, discussed the importance of running security software in Windows XP Mode:

Symantec has a long history of securing, managing, and assuring the availability of millions of desktops, laptops and servers running Microsoft Windows and other Microsoft applications. Symantec security products will give customers running Windows XP Mode on Windows 7 the peace of mind that their systems are up-to-date and protected from complex security threats including malware, spam, and viruses.

Please note: Windows XP Mode RC requires RC or RTM version of Windows 7 Professional, Ultimate or Enterprise. It also requires additional 1 GB of RAM, 15 GB of available disk space, and processor capable of hardware virtualization with AMD-V or Intel VT turned on in the BIOS.

Most people buy a PC preinstalled with the edition of Windows that meets their unique needs. However, for some customers their needs may change over time.

With Windows Anytime Upgrade (or WAU), we make it super easy and convenient for the small number of customers who’s PC needs evolve to need a higher edition of Windows 7.

There are a couple of specific situations where we think WAU will prove useful:

Windows 7 Starter to Windows 7 Home Premium: $79.99

A customer may purchase a netbook thinking they would use primarily it for email. Over time, they find they are using that netbook as their primary every-day PC. That person decides they want their netbook to do more. If the netbook is running Windows 7 Starter (or Windows 7 Home Basic in select markets), WAU makes it super easy to upgrade to Windows 7 Home Premium. Moving to Windows 7 Home Premium will allow that customer to take advantage of features such as Aero Peek and other enhanced functionality in the Windows Taskbar in Windows 7 such as Taskbar Previews. Desktop themes are also enabled and so is Remote Media Streaming.

Windows 7 Home Premium to Windows 7 Professional: $89.99
Windows 7 Home Premium to Windows 7 Ultimate: $139.99*

* You’ll note that we’ve reduced the price of moving from Home Premium to Ultimate 12% in the US as compared to Vista pricing

Another case where WAU may come in handy is when a person wants the ability to connect to a business network (a “domain”). Using WAU to move up to Windows 7 Professional enables the customer to take advantage of the ability to join a domain and use Windows XP Mode to run older programs. When using WAU to move to Windows 7 Ultimate, you’ll get everything from the other editions plus BitLocker to keep your USB devices encrypted and secure and the ability to run your PC in any of 35 different languages (via Language Packs).

After Windows 7 is released to market on October 22nd, you will be able to buy a retail package that contains an upgrade key at a store near you for any of the 3 paths I highlighted above.

If you live in Australia, Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, the UK or the US (13 countries) – you will be able to purchase the upgrade from Microsoft online directly within Windows 7.

Whether you buy a WAU retail package from a store or online directly within Windows 7, the upgrade takes as few as ten minutes. This is because it only requires an upgrade key (no media). Your current programs, files, and settings will remain intact.

For a rundown of the Windows Anytime Upgrade experience, click here.

Now let’s talk about the Windows 7 Family Pack. Last week I confirmed we were doing a family pack for Windows 7 consisting of Windows 7 Home Premium for installation on up to 3 PCs.

Today, most homes have more than one PC in them. When you run Windows 7 on more than one PC on a home network, you can do more with features like HomeGroup. HomeGroup allows people to connect to PCs on their network and share files, music and photos with the whole family – easily. The Windows 7 Family Pack is an easy and affordable way to get all your PCs in your household running Windows 7 through licensing to install Windows 7 Home Premium on up to 3 PCs.

The Windows 7 Family Pack will be available starting on October 22nd until supplies last here in the US and other select markets. In the US, the price for the Windows 7 Family Pack will be $149.99 for 3 Windows 7 Home Premium licenses. That’s a savings of more than $200 for three licenses. This is a great value and we’re excited to be able to offer it to customers.

Today we have some news to share around Windows 7 including answering what may be some of the “hottest” questions people have as we head toward General Availability (GA) on October 22nd.

I had the opportunity to sit down with Brad Brooks, Corporate VP for Windows Consumer Marketing, to talk about today’s announcements.

Announcing the Windows 7 Upgrade Option Program & Windows 7 Pricing

Special thanks to Brad for taking the time to talk through these details with me. You’ll find a transcript of the video here.

As Brad discussed in the video, today we’re announcing details for the Windows 7 Upgrade Option Program, pricing, and a special pre-order offer for select markets.

But first, I want to talk a little bit more about GA and the worldwide availability of Windows 7. We’ve really focused a lot of our efforts on getting the product out to as many people around the world as quickly as possible. OEMs will start shipping PCs with Windows 7 in all language versions beginning on GA, October 22nd.

And for our retail software, we’ve made significant strides in terms of timing. Gone are the days when it could take months for all language versions to be available. In fact – we’ve narrowed the gap to just over ONE week!

On October 22nd, Windows 7 will be available in the following 14 languages: English, Spanish, Japanese, German, French, Italian, Dutch, Russian, Polish, Brazilian Portuguese, Korean, Simplified Chinese, Traditional Chinese and Chinese (Hong Kong).

Then on October 31st, the remaining 21 languages will become available: Turkish, Czech, Portuguese, Hungarian, Swedish, Danish, Norwegian, Finnish, Greek, Ukrainian, Romanian, Arabic, Lithuanian, Bulgarian, Estonian, Slovenian, Hebrew, Thai, Croatian, Serbian Latin, and Latvian.

Windows 7 truly is a global release and I’m excited to be able to tell my international friends that when I say Windows 7 will be available for the holidays – I mean everywhere in the world.

But, you don’t have to wait until GA to get a new Windows PC. In fact, we know many people need that new PC sooner – for back to school specifically. And we have the answer for people who need a new PC now but still want to get Windows 7 and that’s the Windows 7 Upgrade Option Program, which kicks off tomorrow, June 26th! 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 of Windows 7 at little or no cost to customers. The Windows 7 Upgrade Option Program will be available until January 31st, 2010 – and is global! For more information on taking advantage of the Windows 7 Upgrade Option Program, visit www.windows.com/upgradeoffer.

Another one of the most common questions I get is: how much will Windows 7 cost? Well, today we’re sharing these details.

For Windows 7, we are reducing the price on our most popular retail product for customers, the Home Premium Upgrade, by approximately 10% (depending on the market). In the U.S., this means a customer buying Windows 7 Home Premium upgrade will pay only $119.99 instead of the $129.99 being charged today for its predecessor.

Overall, customers will be paying less and getting more with Windows 7. This includes fun new features such as HomeGroup, Device Stage, Aero Shake, Snap, Peek, Jump Lists and our completely redesigned Windows Taskbar (one of my favorite new features in Windows 7 today). These new features make your PC simpler and much easier to use.

So here’s the low-down on pricing for Windows 7. The estimated retail prices for upgrade packaged retail product of Windows 7 in the U.S. are:

• Windows 7 Home Premium (Upgrade): $119.99
• Windows 7 Professional (Upgrade): $199.99
• Windows 7 Ultimate (Upgrade): $219.99

And the estimated retail prices for full packaged retail product of Windows 7 in the U.S. are:

• Windows 7 Home Premium (Full): $199.99
• Windows 7 Professional (Full): $299.99
• Windows 7 Ultimate (Full): $319.99

This means that Windows 7 Home Premium full retail product is $40.00 less than Windows Vista Home Premium today.

As Brad describes in the video, for Europe, we will not have a separate upgrade SKU for the packaged retail product versions of Windows 7 at GA. But we will be offering upgrade pricing on our full licenses to make sure that European customers who want to upgrade have the pricing options available in the rest of the world.

Finally, as a way of saying thank you to our loyal Windows customers, we are excited to introduce a special time limited offer! We will offer people in select markets the opportunity to pre-order Windows 7 at a more than 50% discount. In the US, this will mean you can pre-order Windows 7 Home Premium for USD $49.99 or Windows 7 Professional for USD $99.99. You can take advantage of this special offer online via select retail partners such as Best Buy or Amazon, or the online Microsoft Store (in participating markets).

This program begins tomorrow in the U.S., Canada and Japan. The offer ends July 11th in the U.S. and Canada and on July 5th for Japan or while supplies last. Customers in the UK, France and Germany, can pre-order their copy of Windows 7 starting July 15th and will run until August 14th (or supplies last) to ensure folks don’t miss out on this. Act fast if you want to be the first in line to get Windows 7 at this screaming deal! Note: The special low pre-order price will vary per country.

For more information on this special pre-order offer, click here.

I am really excited to be sharing these Windows 7 announcements with you today. Because of the great feedback we received from you, we are confident we are poised to deliver a great product this fall!

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.