June 29, 2009

In a blow to businesses that need to purchase more than a handful of new computers between now and Windows 7's Oct. 22nd release date, Microsoft has limited the number of machines that can be upgraded to its new operating system for free to 25. Microsoft has made little mention about the limit, which is drawing heat from some notable industry watchers. Gartner analyst Michael Silver on Friday published a research note provocatively titled, "Enterprises Should Demand Windows Upgrade Option."

"Microsoft has limited the number of free Windows 7 upgrades that can be claimed via its Windows Upgrade Option," wrote Silver. "Organizations need to understand their Windows 7 requirements and obtain rights for the best value," Silver said.

Microsoft last week fleshed out details of the Windows Upgrade Option program for the first time. Consumers who purchase a Vista-based personal computer as of last Friday are eligible to upgrade the system to Windows 7 at no or little cost when the latter ships in October.

"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 at little or no cost to customers," wrote Microsoft's Brandon LeBlanc, who disclosed the details in a blog post.

"Gartner believes that Microsoft designs these program limitations to persuade organizations to enter Enterprise Agreements, enroll licenses in Software Assurance or purchase upgrade rights to run Windows 7," Silver wrote.

Microsoft blamed weak business sales in part for a 16% falloff in Windows sales in the most recent quarter.