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Microsoft extends lifeline for older PCs

Software is designed as stopgap measure for firms with lots of older Windows
PCs they aren't ready to replace. 
By Ina Fried 
Staff Writer, CNET News.com

Published: July 12, 2006, 10:47 AM PDT 

Microsoft said on Wednesday that it's ready with software that allows older
PCs to be turned into more modern and secure systems, but in the process
also makes them less than full-fledged PCs. 

The software, known as Windows Fundamentals for Legacy PCs, is designed as a
stopgap measure for companies with a significant number of older Windows PCs
that they aren't ready to replace and that can't be easily upgraded to
Windows XP. Formerly known by its Eiger code name, Windows Fundamentals
allows those PCs some of the security benefits of XP, but essentially turns
the machines into thin clients, able to run only a few programs locally,
with most software needing to run remotely from a server. 

As Microsoft announced in September, Windows Fundamentals is being made
available as part of Microsoft's Software Assurance licensing program. It's
one of several changes the company is making to the Software Assurance
program. The company also announced that it is making Virtual PC 2004
Service Pack 1 available free to customers, and that volume licensing
customers that adopt Windows Vista will be able to install up to four copies
of the operating system in each machine, provided they are all for use by a
single user. 

The company has been working hard to sway customers away from the notion
that the program is primarily a way to buy its products on a subscription
basis. Under Software Assurance, customers pay an additional fee when they
license a program and get the rights to any updates issued during a specific
time period, usually three years. In some cases, though, Microsoft has taken
longer than three years to ready an update--the recent release of SQL Server
took five years, while Windows Vista is expected to debut early next year
more than five years after Windows XP. 

Also on the virtualization front, Microsoft said that effective Oct. 1,
businesses using Windows Server 2003 R2 Datacenter Edition will be able to
run any number of virtualized Windows Server instances. By licensing the
Datacenter version, customers will be able to run an unlimited number of
virtual versions of the standard, enterprise or Datacenter editions of the
OS. 

Meanwhile, VMWare, whose virtualization software competes with Virtual PC,
said Wednesday that it is ready with the free version of its GSX Server, for
which it once charged up to $2,800. VMware, which is a subsidiary of storage
giant EMC, said in February that it would make the software available for
free. 

Microsoft also announced on Wednesday a new "buy now/pay later" financing
promotion, under which business customers can get Windows Vista, Office 2007
and other products by paying $50 a month for six months and then spreading
the rest of the cost over 36 equal payments. 

The announcements came as Microsoft continues its annual partner conference
in Boston.

Gregory S. Williams
[EMAIL PROTECTED]



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