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Windows and Linux battle for the soul of the netbook

by Scott Bicheno on 5 February 2009, 12:24

Tags: Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), Hewlett Packard (NYSE:HPQ)

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Windows 7 Starter

"Microsoft is offering a clear path for Windows 7 across the board, so as we demonstrated at PDC, WinHEC and CES, Windows 7 provides a great user experience on small-notebook PCs.

"With Windows 7, we've matched hardware improvements with some investments of our own. With Windows 7 we are on track to have a smaller OS footprint; an improved user interface that should allow for faster boot-up and shut-down times; improved power management for enhanced battery life; enhanced media capabilities; and increased reliability, stability and security.

"These engineering investments allow small notebook PCs to run any version of Windows 7, and allow customers complete flexibility to purchase a system which meets their needs. For OEMs that build lower-cost small notebook PCs, Windows 7 Starter will now be available in developed markets."

So Windows 7 Starter is effectively Windows 7 Netbook Edition. It lacks a lot of the bells and whistles of the other versions but it should be sufficient for the needs of the majority of netbook users.

 

As ever, the key thing here is price. Microsoft has to walk a tightrope between making it cheap enough to minimise the cost saving offered by Linux systems while still maximising profit. At the same time, if Starter is too feature-rich, what reason will there be to upgrade to more expensive versions.

To address that last point Microsoft has made it clear that Starter will only be made available to major OEMs and it will only allow it to be used in netbooks. Given Microsoft's own admission that the definition of the netbook is constantly evolving, however, it might prove hard to contain the spread of Starter and the consequent erosion of margins for Microsoft.