The low-cost angle
2008 has been the year of low-cost computers, namely netbooks powered by Intel's Atom processor. The ultra-portable and supposedly-affordable systems have soared in popularity, but Microsoft, somehow, has failed to truly benefit.
Due to the lack of sheer performance on the majority of today's netbooks, the systems have stayed away from the resource-hungry Vista and opted for Microsoft's older Windows XP operating system - or, to Microsoft's dismay, a Linux distribution. Both of which have played a part in slowing Vista adoption. As a consequence, Microsoft has continued to extend the deadline of Windows XP availability. After all, it would rather these low-cost systems opt for an older operating system of its own, as opposed to a rival alternative.
But extending XP availability is merely an interim measure. Having invested some six billion dollars in Vista's development, the software giant can ill afford to watch its investment be overshadowed by the tired-but-popular Windows XP.
The answer, then, could be Windows 7. Microsoft was quick to demonstrate at PDC 2008 that Windows 7's fine-tuned refinements allow the software to run flawlessly on a netbook with a 1GHz processor and just 1GB of memory. Should that be the case with the final product, Windows 7 could simultaneously help bring Windows XP and Windows Vista to a close.
In the current economic climate, we can expect low-cost computers to continue to rise in popularity. As these low-performance systems continue to bite away at market share, Microsoft will feel the need to get Windows 7 out in the open sooner rather than later.
Similarly, Microsoft's partners may feel that a netbook advertised with Windows XP isn't immediately appealing to the everyday consumer - it is, after all, a seven-year-old operating system.
On the other hand, a £300 netbook with Windows 7 could have widespread appeal and could be a substantial success for Microsoft and its partners.