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October 7, 2008 2:39 PM

XP OEM Licensing Extension Is Urban Myth



News Commentary. Contrary to all the blog buzz, Microsoft hasn't extended OEM Windows XP "downgrade" licensing by another six months.

What Microsoft has done is agree to provide OEMs with Windows XP media until June 30. Surely, somebody will accuse me of playing semantics. Not so. It's called accuracy in reporting, and pretty much everybody has it wrong.

arrow.gifGOT A TIP OR RUMOR?

The blogosphere buzzed with excitement, ridicule and accusation over the weekend about the rumored extension. Seems like anybody and everybody wagged the "We told you that Vista sucks" finger at Microsoft. I don't doubt that several OEMs want to continue offering Windows XP after Jan. 31, but they didn't need any extension to do it.

There's some crazy urban legend out there that downgrade rights:

  • Are new with Vista
  • Will expire on Jan. 31
  • Can only be obtained through OEMs

These are falsehoods. Microsoft has long provided downgrade rights in OEM Windows versions and through volume licensing. Windows XP Professional OEM editions can be downgraded to Windows 2000. Similarly, Windows Vista Business and Ultimate can be downgraded to Windows XP Pro. According to a Microsoft downgrade rights fact sheet (PDF), Windows XP Pro can be installed by the buyer or by "an OEM, when authorized by end user" on PCs licensed for Vista Business or Ultimate.

The downgrade rights don't expire, at least while the current operating system is available. Yesterday, I bantered back and forth with two Microsoft PR reps about the nuances of the so-called extension. The official response is weak:

As more customers make the move to Windows Vista, we want to make sure that they are making that transition with confidence and that it is as smooth as possible. Providing downgrade media for a few more months is part of that commitment, as is the Windows Vista Small Business Assurance program, which provides 1-on-1, customized support for our small business customers.

I was unhappy with the response, because it doesn't satisfy the market situation. Many OEMs are offering Windows XP downgrade media for consumer PCs. So I pressed and got this equally unsatisfactory response:

Some partners want to be able to support their customers with appropriate media while they transition to Windows Vista-knowing they sometimes need more time to test applications before upgrading. Not all of our partners provide this option, so customers should check with their OEM or system builder for more information.

Neither statement is false, just inadequate for circumstances. Unquestionably, Microsoft provides downgrade rights mainly for businesses, which exercise them as a way of ensuring interoperability and management priorities; IT organizations typically standardize chunks of their organization on a single platform, which easily could be an older Windows version.

What's different about Windows Vista—and this is where the finger pointers have a, ah, point—is the extension of downgrade rights to consumers and for so long. OEMs such as Dell offer XP, because customers want the older operating system. What's more amazing is what happens after Jan. 31. It would be unprecedented for OEMs to aggressively offer downgrade options to consumers more than two years after a newer version of Windows shipped.

Microsoft has chosen—as I understand, at the request of some OEMs—to provide Windows XP installation media for longer time. That extension is six months, until June 30. Even without this extension, OEMs could provide downgrades by stockpiling XP media for distribution with new PCs, or customers could exercise those rights by requesting the media directly from Microsoft.

Logistically, it's more prudent for Microsoft to extend XP media availability, because:

  • A distribution and licensing mechanism already is in place that works.
  • Microsoft support costs would increase, as consumers request downgrade media.
  • Windows Vista Home Premium is the most popular version, not Business or Ultimate, which qualify for downgrade rights; OEMs could easily preorder too few or too many discs.

Something else: Windows 7 is coming and sooner than some analysts have speculated. The six-month XP media extension ends right about the time Microsoft should be finishing up Seven, assuming release target is holiday 2009. That's still my prediction.

Some people will say that Microsoft has given up on Windows Vista, and in some ways that's true. Microsoft's "Windows. Life Without Walls" marketing campaign isn't about Vista. Of course, there are some people who would wag their fingers and accuse: "Vista. Walls Without Windows."

[Please send your tips or rumors to watchtips at live.com.]

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Comments (6)

I have been rolling out some new Dell Optiplex 755 systems for the past 4 weeks at a Government Agency and the procurement includes both Windows Vista Business and XP Professional media. The systems are preloaded with XP because we are just not ready for Vista, some of the custom applications need to be updated. But Vista is definitely on their agenda, but it will take some time before they start rolling it out and it will most likely be incremental.

Waiting on Windows 7 to skip Vista does not make sense especially for businesses, since the same kernel will be used which means, any incompatibilities today moving from XP to Vista will also be there when trying to move from XP to 7. The strategy for most enterprise roll outs is to use a proven and tested product, which Vista will be by 2010, by then the second Service Pack should also be out. I don't see a mass deployment of Windows 7, its the same case for most versions of Windows in the past.

We need to also understand how businesses procure licenses and software from Microsoft. Thats through Software Assurance and Enterprise Agreement. Which means Vista is on their schedule, not Microsoft. We are talking about an OS that Microsoft plans to support until 2016.

Lawrence D'Oliveiro :

Me Downgrade You Long Time!

Seriously, if this latest XP extension isn't such a big deal, don't you think Microsoft's own PR would be competent enough to emphasize that fact?

And why does your comment form still say "you may use HTML tags for style" when that is a blatant lie?

whatever :

Just about all incompatibilities between 3rd party software and OS are above the kernel.

There will be businesses that skip straight past Vista because of disappointing performance and issues during early testing when it came out, perception issues, the closeness of Windows 7's release and simply better things to do than spending money on testing / rolling-out and supporting every version of windows that comes out...

Hardly new - there were many businesses that skipped Win2k and went from NT4 to xp.

This time however there's even less incentive to move OS because all the action happens elsewhere (browser, server based computing, etc), making the return on investment or any perceptible change for the big costs very small.
This of course applies to Windows, OS X or any other OS used in a business environment.

The above combined with Vista's low quality early on, UI issues and a low popularity that is unprecedented to previous versions does make for interesting times...

Vista Sucks :

Vista SUCKS!

billybob :

Drivers are the ones that have problems with Vista, but lots of software includes kernel level drivers. Games and music CD's for copy protection, anti-virus for security and even iTunes for device support.

It does mean that businesses are better upgrading Vista to 7, but how many are planning to upgrade at all? If XP still works then its best to stick with that. The benefit to a businesses bottom line of upgrading XP to 7 is fairly intangible.

It is fairly inevitable that each new version of Windows will get progressively less market share. 7 will take a share of Vista but not much from XP.

chips b malroy :

Well Joe, I totally disagree with your point about XP downgrade rights being extended. It clearly points to OEM and user frustration with the Vista OS, as to the reason why Microsoft was forced to do this, despite how many times you want to tell us "that Vista is not so bad." Bull, it is that bad.

The problem with Vista is not for the newbie users, but rather with those that have just a little experience or more. Vista tries to be so locked down that it makes it much harder to change defaults on the system. And the defaults seemed to be setup for nobody in particular except for MS. It is also so locked down that it protects the DRM and the bloat. Hard to cut out the bloat in Vista, at least harder than XP. Sadly, it is not so locked down to protect you from malware.

Joe, with that disagreement past us, its good you notice that the next date for ending XP downgrade rights fall during the summer of 09. Yep, right around the time to release Seven, or whatever MS decides to call it. Vista will not stand on its own, and Seven, will be a more polished turd, if MS has done its homework. It remains to be seen if MS will put this one over on OEM's and computer users. But long term, Microsoft is in trouble until they release an OS that is as safe and secure, runs fast, and is as stable, as alternative OS, like Linux, Mac OS X, etc.

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