A closer look at the Windows 7 SKUs

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.

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Comments

  1. Posted on: February 04, 2009 at 10:44PM  

    I think MS has rationalised the choice of W7 SKUs ell. While some wanted just 2-3 versions, one has to understand MS compulsions and different customers varying needs.

    Just curious about one thing: Will there be Ultimate Extra's in W7 Ultimate edition, or has that concept been dropped? Does MS plan to focus on them or would they go the Vista Ultimate Extra way ? ;)

  2. Posted on: February 04, 2009 at 10:50PM  

    Two observations about the SKU divisions

    1. Language packs require a premium SKU, despite the fact that a huge number of customers are bilingual in their work and personal lives. In emerging markets this is possibly even MORE true than in some developed markets.

    2. It's quite common for MS KB articles to address problems by providing cures or work-arounds listing steps that require Windows functions from a higher SKU (e.g. the policy editor). MS needs some joined up thinking on these matters.

  3. Posted on: February 04, 2009 at 11:24PM  

    So, does this really mean that Professional is a superset of Home Premium? This is different from Vista, where Business and Home Premium where parallel SKUs, each containing features the other didn't, and reversed from XP where MCE (the equivalent of Home Premium) was essentially a superset of Professional.

    Also, if Professional already contains both business- and entertainment-oriented features, what exactly does Ultimate bring to the table that Pro already doesn't have, and that justifies an entire new SKU?

    As for me, I'll probably go with either Professional or Ultimate, depending on what the actual difference between the two is.

  4. Posted on: February 05, 2009 at 12:13AM  

    The most important thing for me despite being only a Home user is which SKU will be able to do the full image backup? As we are all testing the Ultimate version now which contains the Image backup, is there going to be a repeat of this feature only being avaiable in the Ultimate version or will the Home version also have this feature.

    I ended up having to upgrade to Ultimate with Vista just simply to gain being able to do a full image backup to my external drive.

    I am keeping my fingers crossed Brandon that this feature will be enabled in the Home version of Windows 7 as well.

  5. Posted on: February 05, 2009 at 12:25AM  

    What a difference a name makes. I'm still not completely happy (I would much prefer if Home Premium was just called Home and if Home Basic was just called Basic, as that is what I will refer to them by for this comment) over some of the naming, and furthermore, I'm not sure what to think about Starter being available in the States, but my kneejerk reaction is bad.

    Enterprise is ignorable due to its target, and unlike certain logic troubled "tech" journalists I won't count 64 bit versions as a different SKU. Furthermore the superset decision really hits home with me. For the most part there are only two versions of Windows 7 now, and that's great, and for the really hardcore, there is Ultimate too. I'm fairly happy with the choice Microsoft made here, and my only complaints are the naming of the Home versions (still) and the new decision to take Starter to this market.

    This combined with a good pricing structure (I've got an idea or two on my blog, but I doubt Microsoft would use those) which Microsoft should be able to put together, will really fix the versions problem that faced Vista. Taking it down to just one home version was a step back in the right direction, and going back to supersets is really, really nice.

  6. ux1
    Posted on: February 05, 2009 at 2:05AM  

    What hitmouse said: I really don't understand why you want to put such a high price on the MUI feature.

    Personally I much prefer the english version of Windows, because I work with it every day, but that is not the case for my family. Why not allow one extra MUI language pack for Home Premium?

  7. Posted on: February 05, 2009 at 2:12AM  

    The previous Marekting efforts resulted in millions being spent outside of the company that did nothing, so I hope new people are in  charge this time.  How'd you like to have been layed off after seeing Seinfeld's millions?

    Dear Microsoft,

    I didn't write this.  Kind of harsh but I can find some agreement.

    There are a lot of large American companies in deep trouble in this troubled economy. Some are on the verge of collapse. Others are spending billions in bailout money on expensive junkets and parties. Most, including you are laying off.

    A lot of this is unavoidable in such a terrible economy. But some of it is deserved, which brings me to your case. SIX FLAVORS OF WINDOWS SEVEN? Are you out of your fricking mind? Do you really think people want to pay EXTRA to run more than 3 apps at a time when they can get a Linux CD free in a magazine that only costs $4? Are you nuts? Six flavors?

    Meanwhile, that little kid down the block. You know. That upstart little kid down in Cupertino who buried your Zune without lifting a finger? That kid. Well that kid has figured out how to make ONE flavor of OS do everything from a handheld to a phone to a server and you are trying to palm off 7 flavors of one OS? Take this flashlight, install the heaviest batteries you can find and GO BEAT THE IDIOT OVER THE HEAD WHO DECIDED YOU NEED SIX FLAVORS OF WINDOWS SEVEN.

    Sincerely,

    Your Customer.

  8. Posted on: February 05, 2009 at 2:22AM  

    I can't understand the reason Microsoft doesn't want to release a single SKU, Windows 7. With a single SKU people can choose only functionalities they really want (I'd like MUI support, full image backup support and BitLocker support while I don't need Media Center).

    I didn't like Windows XP versioning, I don't like Windows Vista versioning and I won't like Windows 7 versioning.

  9. Posted on: February 05, 2009 at 2:23AM  

    "Not every customer has the same needs. ... 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:"

    Is that what made XP the success that it is?

  10. Posted on: February 05, 2009 at 2:38AM  

    Following on from earlier comments, don't understand why the multi-language features is not in home, this is not a feature I'd consider as an "extra" in todays world.  

    Also would be interested to know what versions support full backup, this is a great feature.

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  1. Posted by: Windows 7 Product Editions announced » Kristan Kenney’s Digital Life on February 04, 2009 at 10:14PM

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  2. Posted by: Brandon LeBlanc of the Windows 7 Team Blog posts a clarifying article on the Windows 7 SKUs « AboKevins Blog on February 04, 2009 at 11:14PM

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  3. Posted by: Brandon LeBlanc of the Windows 7 Team Blog posts a clarifying article on the Windows 7 SKUs « AboKevins Blog on February 04, 2009 at 11:28PM

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  4. Posted by: A closer look at the Windows 7 SKUs - :: The Windows 7 Site :: on February 05, 2009 at 12:31AM

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  5. Posted by: huhwhat.com » Blog Archive » A closer look at the Windows 7 SKUs - Windows 7 Team Blog - The Windows Blog on February 05, 2009 at 2:04AM

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  13. Posted by: Teamzille.de on February 05, 2009 at 12:15PM

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  31. Posted by: Technology Info » Blog Archive » Windows 7 Enterprise Edition Customer Benefits on February 12, 2009 at 9:29AM

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  32. Posted by: Windows 7 Enterprise Edition Customer Benefits | yoursoftwarelink.com on February 12, 2009 at 11:15AM

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  33. Posted by: Q&A from the Windows 7 Springboard Roundtable « Taking it Upwards with SBS - Dale aka SBSisyphus’ Weblog on February 12, 2009 at 2:03PM

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  34. Posted by: Frees Point on February 12, 2009 at 3:08PM

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