7?

Microsoft has been no stranger to unusual names. We scoffed when they named XP, and we scoffed again when they named Vista. However Windows 7 sets a new level of bewilderment. Depending on how you wish to count your Windows versions, you can come up with an order that makes Windows 7 the 7th version of Windows - counting the NT kernel desktop releases is one such example - but ultimately the list is as arbitrary as the name.

With the exception of NT4, Microsoft has always made at least two versions of Windows per major kernel, with the second releases being a refinement of what came before rather than a massive rearchitecting. Win98 refined Win95, WinXP refined Win2K. And Windows 7, as it turns out, refines Vista (even if MS wants to get as far from that name as possible). Windows 7’s kernel is recognized by Microsoft as version 6.1, and Vista was 6.0. While it’s true that kernel version numbers can be equally arbitrary, in this case it’s an appropriate number.

As Vista’s refinement, Windows 7 doesn’t bring with it anywhere near the level of change that Vista brought. With Vista we saw a new networking stack, a radically new video driver model, the moving of audio completely into software, UAC, and more. Meanwhile Windows 7 includes a number of new features, but nothing comparable to Vista’s great overhaul. If you’re a feature warrior looking for something big like Vista, you’re going to come away disappointed. If you’re looking for a smoother transition however Windows 7 should meet those expectations.

And for the name, clearly it’s a bad choice. The return to some kind of version numbering scheme is actually rather nice – it’s normally less arbitrary than a name and leaves no confusion about what order things come in – but to use a version numbering scheme you have to be consistent. Unless Microsoft intends to skip a kernel version number so that Windows 8 runs on the 8.0 kernel, this is only going to get worse as time goes on. It also has the interesting distinction of being harder to search for; “Win7” is a character too short for many sites that require a minimum term length, and “Windows 7” will be read by most software as two separate terms which can be pulled from anywhere.

So it may sound petty, but Microsoft could have picked something more sensible than Windows 7. (Ed: On the other hand, it still is less arbitrary than most CPU and GPU names)

Moving on, we have the matter of the different editions of Windows 7. Microsoft has not completely clarified this matter so we’re going to need to revisit this when Windows 7 finally ships, but they have given us enough solid information to accurately talk about the important bits.

The biggest news is that the Ultimate/Business/Home Premium schism has been resolved with Windows 7. When WinXP Home and Pro were split into more versions, the “everything including the kitchen sink” edition of Windows that was Pro and became Ultimate also became really, really expensive compared to the other editions. The problem was a combination of pricing and how Microsoft decided to split up features and at the same time carve out an extremely high-end niche. Users on Home Premium couldn’t get Remote Desktop. Users on Business couldn’t get Media Center and the built-in MPEG-2 codec. Meanwhile Business was priced higher than Home Premium, but it wasn’t a superset of Home Premium. Ultimate offered everything, but it also included a number of Enterprise features that were useless for even most users. Ultimately power users who wanted something similar to WinXP Pro (mainly, remote desktop and file encryption) were left in a pickle, and everyone else was confused on what edition to get.

With Windows 7, all editions have once again become supersets of other editions, going from Starter to Ultimate. Furthermore, Business edition has been renamed (back) to Professional to reflect this change, and with the return to being a superset of Windows Home Premium it regains its multimedia abilities. For all intents and purposes, Professional is once again the power-user and business user edition. The difference in turn between it and Enterprise/Ultimate has been reduced to BitLocker, Virtual Hard Disk booting, and some other associated enterprise-level features.

This change also marks a collapse in how many versions of Windows 7 are on the retail market. Only Home Premium and Professional will be widely sold at retail and shipped on OEM computers. Enterprise continues to be for volume use, and Home Basic has been demoted to just “emerging markets.” The unknowns at this point are where Starter and Ultimate will best fit in. There is some concern that Starter will find its way onto netbooks in developed markets in order to meet the kind of OS prices that such a cheap computer demands, however we can’t imagine such a castrated OS going over well with users. Previously it has been limited to the cheapest of the cheapest computers in emerging markets.

Meanwhile Microsoft is calling Ultimate a “limited retail and OEM” product, which we take to mean it won’t be sold on store shelves and instead would be limited to specialty retailers like Newegg, and pre-installed on few if any systems. There’s clearly going to be a need for a non-volume license edition of Enterprise (which is the role Ultimate fills) but Professional significantly reduces the practical value of it. Ultimate may very well end up being the pirate edition of Windows 7, because right now there’s even less going for it than what’s going for Vista Ultimate. Hopefully Microsoft will clarify this before Windows 7 launches.

Windows 7: A New Marketing Approach Getting Dirty: What’s Changing Under the Hood
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  • thebeastie - Wednesday, May 6, 2009 - link

    I guess what would be the most naive is to think that Windows 7 is about anything else but money, I mean they could easily improve Vista to have every feature that Windows 7 has, but they wont.
    MS has handed out whole new versions of DirectX and just about every other type of similar feature that is in Windows 7 so forth via service packs in the past.
    Some how come that is not possible these days? Its just about treating us like complete fools.

  • B3an - Friday, May 8, 2009 - link

    ...You do know you're talking to yourself thebeastie??

    Are you really this stupid or is apple paying you to write this?
  • SkateNY - Wednesday, May 6, 2009 - link

    Microsoft is a company in decline. It's top managers, supporters, fanboys, and investors are all in denial about this.

    Their most recent OS was and remains an abysmal failure. Their attempt at competing in the MP3 market is a disaster, no matter how many people tell us that they love their Zune. Their "loss leader" in game consoles is just that...a leader in losses.

    Want proof? Look at the stock price for the past five years...at least five years.

    MSFT investors are desperate. They'll say and do anything to make others believe that the company is doing as well now as they were doing before they were adjudicated by the US Department of Justice as violating the Sherman Anti-trust Law in restraint of trade.

    They've lost a great deal of their investments over the past ten years. They're so desperate that they need to tell themselves -- and anyone who will listen -- that this is a great company.

    Sorry, but as is true in the rest of the real world, what has Microsoft done for anyone invested in them lately? The soft answer would be "nothing." The truth is that they've damaged their investors through bad judgment, poor management, and malfeasance.

    What they've done is move a great deal of their previously loyal customers to Apple and Linux. And a large percentage of them who haven't made that move are looking into it.

    It's a sad story. With so many resources, the best they could do was barely maintain their core products...Windows and Office. Not enough. The rest of the tech world is passing them by, and they don't seem to have a clue.
  • piroroadkill - Thursday, May 7, 2009 - link

    Huh?

    Microsoft aren't going anywhere.
  • SimpleLance - Wednesday, May 6, 2009 - link

    "It's a sad story. With so many resources, the best they could do was barely maintain their core products...Windows and Office. Not enough. The rest of the tech world is passing them by, and they don't seem to have a clue."

    Who in the tech world is passing them by? Linux? There is nothing in the Linux world that is an innovation. Everything is a just a bad copying of what they see in Windows. Same goes for OSX. Name a technology from Linux or OSX, and you will find that in Windows years ago.

    In the mean time, there is a lot of Windows features that neither OSX or Linux has.

    BitLocker drive encryption - OSX only has folder encryption. Windows has had that since Windows NT 3.x.

    Active Directory - now being copied by Linux

    Access Control List - only recently added in OSX. Has been in Windows NT 1.0.

    Remote Desktop - no equivalent at all in Linux or OSX. All they have is VNC. VNC started in the Windows world that got implemented in Linux and OSX. That is the worst form of remote desktop (screen scraping). Its like a high school student's home work. With Remote Desktop, Windows users threw away VNC as trash, and Linux/OSX picked it up - they really have nothing else, but junk.

    SMB - copied as Samba. Where is AppleTalk now? Apple does not know how to write an OS. They had to take BSD.

    DirectX - makes Open GL like a kid's work.

    Etc. etc.

    Who again is overtaking who?

    New in Win7...

    BITS Branch Cache (Vista had something called Peer Cache) - serverless P2P.

    Support for TRIM command for SSD - now perhaps being added to Linux. Another me too effort. Definitely not in OSX.

    Improved (less chatty) SMB - Samba is behind again. Nobody in the Linux world could make a better SMB. MS had to do it.

    VHD Booting - Linux folks probably scratching their head now. What is that? they say. How do we copy that?

    Plus all the other eye candy that people talk about.
  • Hgr - Friday, May 29, 2009 - link

    "In the mean time, there is a lot of Windows features that neither OSX or Linux has."

    I am sure of that, but of those you are listing here, many simply do not apply.

    "BitLocker drive encryption - OSX only has folder encryption. Windows has had that since Windows NT 3.x."

    BitLocker is a trademark of Microsoft, so it will be difficult to find it in non-Microsoft operating systems. If you're looking for drive encryption in Linux, distributions have been supporting this for years.

    "Active Directory - now being copied by Linux"

    Yes, the Samba folks are quite active in reimplementing AD in Samba 4 - as a means of Windows interoperability. Note that DNS, LDAP and Kerberos, the three most important of the protocols that AD is built upon, have been copied by Microsoft from Unix systems. They have been available for Linux de facto from their inception.

    "Remote Desktop - no equivalent at all in Linux or OSX. All they have is VNC. VNC started in the Windows world that got implemented in Linux and OSX. That is the worst form of remote desktop (screen scraping). Its like a high school student's home work. With Remote Desktop, Windows users threw away VNC as trash, and Linux/OSX picked it up - they really have nothing else, but junk."

    Just because you don't know better solutions does not mean that there are none. VNC certainly isn't a native Linux remote desktop protocol, much less a universal tool for everyday work (it has not been designed to be one). For years, X11 SSH tunnelling has been available. For those who want a low-latency remote desktop, the NX compression protocol and software suite have been available for quite some time, and many are perfectly happy with it. Linux's NX can compress even Windows RDP even further. ;-)

    "DirectX - makes Open GL like a kid's work."

    Just because DirectX is good for making games does not make OpenGL "a kid's work". After all, DirectX is more akin to SDL than to OpenGL. OpenGL has clearly a different target audience - it is used to build industrial software. Is it surprising that it's different?

    "SMB - copied as Samba. Where is AppleTalk now? Apple does not know how to write an OS. They had to take BSD."

    Actually, SMB was not invented "at Microsoft". It is an intellectual child of three companies - IBM, Microsoft, and 3com. Many operating systems have later adopted this protocol. Surprising, again? We want to be able to talk to other systems so we adopt it. In Linux, you can use at least half a dozen networked file systems.

    "Improved (less chatty) SMB - Samba is behind again. Nobody in the Linux world could make a better SMB. MS had to do it."

    Why hasn't it been less chatty before? :-) Well, of course, Samba is behind, Microsoft is in charge of updating their broken protocols, the Samba team is not going to do this for them. A Linux user simply uses a less chatty (less broken?) protocol.

    "Support for TRIM command for SSD - now perhaps being added to Linux. Another me too effort. Definitely not in OSX. "

    Linux kernel and its file system modules have been ready for this since half a year ago, according to one of the leading Linux file system developers. And it is no "me too effort", not as long as it is not Microsoft that invented it a started manufacturing the devices. Are you trying to imply that for any hardware feature, there is only one OS allowed to support it without being accused of me-too-ism, and that all other systems that include support later are just copycats? Great, I've mentioned Kerberos. Good to see that MS joined the "I want it too" crowd. :-)
  • andrihb - Wednesday, May 6, 2009 - link

    In your dreams, maybe.
  • strikeback03 - Wednesday, May 6, 2009 - link

    Unfortunately, there are plenty of applications that don't run natively in any *nix (Adobe is my problem) so some version of Windows is the only option.
  • coolkev99 - Wednesday, May 6, 2009 - link

    I don't buy an OS based on company stock price.
  • C'DaleRider - Wednesday, May 6, 2009 - link

    [quote]Look at the stock price for the past five years...at least five years.[/quote]

    OK...I did....and the stock price 5 years ago was in the $24/share range, as it was 4 years ago, 3 years ago, 2 years ago, last year. In fact, it's been around $24 per share going back almost 10 years ago.....although just after the beginning of 2000 it spiked to $48 per share, but then the dot com bubble burst and every tech stock fell, MS's included. The release of XP did give a bump to roughly $34/share, but again fell back to its "base" of around $24/share.

    Sorry, but this is the first fact you are sadly misinformed on.

    Then, the investors. Don't think most are crying and desperate at all. MSFT has been paying dividends every quarter, like clockwork. Granted, since Vista's release, it's not been spectacular, but has been fairly consistent.

    Consider MSFT's 5 yr. net profit margin, 27.9%, is still well above sector and industry average. The company's low price-to-earnings ratio -- which Oakmark Fund places at less than nine, based on estimates for this year's earnings -- is closer to seven if you exclude the $4 a share in net cash.

    Nicely, the stock is also currently sporting a dividend yield of 3%. But one problem is that investors, especially individual investors, put too much focus on growth expectations and too little focus on price.

    Here's another tidbit you overlooked in your bashing.....MS had an EPS of $1.87 in '08, its highest EPS pay since '99. And MS's net profit has grown from '04-'08, every year. (FYI...net profits were, from '04-'08: $8.1B, $12.2B, $12.6B, $14B, and $17.6B).

    Granted '09 will be "dismal," it's been dismal for everyone. But MS will still show a net profit and is paying nice dividends on its stock.

    And as for everyone crying and gnashing teeth about MS, I wonder why Barron's, and every other analyist, puts Microsoft as a strong buy and NOT ONE has MS as a sell of any sort.

    And game consoles? MS never planned to turn a profit on each...it IS a loss leader, just like the PS3. The games themselves are the profit center. Always has been like that and probably will always be like that.

    So, where's the panic? Where's the problem? MS is still sitting on over $640M in cash reserves.....something a lot of companies can only wish to have.


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