How much is that XP in the Windows?

For years, Microsoft has sold Windows. And for each version, Microsoft specified minimum hardware requirements. So for any version of Windows, you need so much memory and so much disk and so much video power.

Now, Microsoft is turning the rules upside-down. Instead of specifying the minimum hardware, Microsoft is specifying the maximum hardware.

This is part of Microsoft's strategy for the ULPC (Ultra Low-cost PC) market. New PCs like the ASUS 'eee' PC and others are gaining interest by consumers, and market share. Normally, interest in PCs is a good thing for Microsoft, but this market isn't. Microsoft has staked its future on Windows Vista, and the ULPCs can't run Vista. (ULPCs are too small and underpowered for Windows Vista. They can run a stripped-down version of Windows XP. Many of them run Linux.)

It appears that Microsoft was surprised by the interest in ULPCs. I suspect that Microsoft's strategy assumed that hardware would continue to get a little bit faster and more capable each year. They didn't see a new 'technology curve' for hardware, namely the ULPC.

Microsoft is now between a rock and a hard place. They cannot ignore the ULPC market. Doing so would give Linux a 'foot in the door' at home and quite possibly in the business market. But they cannot distribute Windows Vista for the ULPCs because it just won't run, and if they extend the life of Windows XP then they lose the income from the upgrades to Windows Vista.

So in a move to have their cake and eat it too, Microsoft is extending the life of Windows XP, but now with limits on its use. The limits are not the typical "minimum system requirements" but a new concept: maximum system requirements. Or maybe, instead of "requirements", we should say "supported", since the rules set the upper bounds on hardware.

This lets Microsoft get into the ULPC market but keep Windows Vista as their premium operating system. The limits are artificial (1 GB RAM, 80 GB DASD, 10.5 inch display) and Windows XP can handle more -- it's been doing it for years.

It strikes me that if customers saw value in Windows Vista, the limits would not be necessary. If Windows Vista had value, people would be using it for their new desktops, upgrading their old desktops to use Vista, and would be clamoring for ULPCs that run Windows Vista.