The Netbook Debate

Martin | Apr 20, 2009 | Comments

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The last days have been filled with a debate about Microsoft’s current and future stand in the popular netbook market. Many commenters concentrated their arguments on the Windows 7 Starter edition which is the least expensive but also least functional edition of Windows 7. Especially the three application limit has been cause of criticism. The three application limit is a hard coded limit in the operating system that will not allow the user to run more than three third party applications at the same time. There are a few exceptions like antivirus software programs but it basically means that users are purposely limited on that operating system.

Many argued that Microsoft tried to solve two problems that they were facing in the netbook market at the same time. The first problem was that Vista failed miserably in the netbook market which is dominated by Windows XP. Windows XP on the other hand does not bring in the revenue per copy that Windows Vista would ensure. Microsoft has created the windows 7 Starter To avoid the mistake when Windows 7 gets released. The limited functionality means it can be sold for a lower price per copy than the other Windows 7 editions with an opt in upgrade option that would bring in additional revenue.

The main problem with this strategy seems to be the perception of the customer. Will they think highly of Windows 7 when the first system they work with is crippled like the Windows 7 Starter edition is? Microsoft has probably conducted studies researching the impact and must have come to the conclusion that the advantages top the disadvantages.

Windows 7 Starter is on the other hand not the only edition of Windows 7 that manufacturers can install on netbooks as Mary-Jo pointed out over at ZDnet. Mary-Jo mentions Windows 7 Home Premium as the alternative to Windows 7 Starter. The edition offers several features that Windows 7 Starter does not offer. Here is the list: (take a look at our Windows 7 features article for the complete list)

  • Desktop Window Manager
  • Windows Mobility Center
  • Windows Aero
  • Multi-Touch
  • Premium Games
  • Windows Media Center

Windows 7 Home Premium does not come with the three application limit which is probably the main advantage of it. Manufacturers will have to pay more money per copy and it is very likely that the low end netbook market will be dominated by Windows 7 Starter while the middle and higher end market will see Windows 7 Home Premium in front.

Some users asked why the article by Mary-Jo did not list Windows 7 Home Basic instead of Windows 7 Home Premium. The reason is that the basic edition has been specifically designed for emerging markets.

The more expensive editions of Windows 7 run fine on netbooks as well considering that netbooks will become more powerful until Windows 7 will be released. The main battle for the netbook market will be fought between Windows 7 Starter, Windows 7 Home Premium and Linux. Linux having the cost factor as an advantage. Other operating systems like Google’s Android will not have a huge impact in the near future.

What’s your take on the netbook market? do you think it is wise to offer the Windows 7 Starter edition?

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About the Author: Martin Brinkmann is an Online Journalist from Germany who discovered his love for technology in high school. He is currently working as a freelancer for several publications and runs his own Internet website Ghacks

  • I think the "starter" version is going to be a great strategy for Microsoft. The pricing of Windows 7 is much better than Vista. I have been running Windows 7 for six months on a desktop and it is solid and reliable. It is going to be a good choice for someone buying a refurbished laptop or refurbished netbook since the lower price of the computer plus attractively priced software will yield a great bargain.
  • zammbi
    Seems a lot of people going to get confused with this 'starter' version. They should of given it a better name. Like 3rd world edition :P
    Anyway for people who are confused, this version is going to cost tens of dollars instead on hundreds....
    I don't see why people are complaining about it.
  • steven
    I dont see why they would put a limit on how many applications they can open.. let us use our computers how we want!! If we want our computers to be extremely slow with 10 applications open then why should they stop us?

    I'm running my asus n10 with vista and I've got my google chrome(great netbook browser) with 15 tabs open, outlook, msn, word, itunes and kaskpersky running. I don't know how I'd go with a 3 app limit
  • anonymous
    @sic The 3 application limit on windows 7 starter edition doesn't apply to anti virus
  • max
    I don't think, that windows 7 starter will be sold much, because, I have more than 3 autorun programs, so I am not able to start my PC with this version.
  • sic
    3 apps? wtf seriously? ok So anti virus, now you are down to 2 apps, email, and web browser. So i guess you wont be able to run IM while you have the web browser going. Unless you want to kill anti virus , and risk destroying your hardware.

    Anyone that gets stuck with cripple ware should just bootleg the ultimate OS or use linux
  • Matt
    One of the main reasons why Windows XP has been so successful in the Netbook market is because of its familiarity. Many Linux netbooks have been returned due to the fact that the majority of people who buy netbooks do not know Linux, and therefore didn't understand it. Just look at the netbook market now, the cheapest ones are the Linux ones, but I'd go out of my way to pay more for an XP one. If a normal consumer saw no difference between a linux netbook and a windows 7 starter netbook, they'd most likely choose the Windows 7 netbook. While I'd prefer Home Premium or Ultimate on a netbook (im using it on one now), Price points are a massive influence in ones buying selection. You have to remember also that it is a netbook, occasional browsing and online chat are what they are built for.
  • snowdog
    yeah i think the windows starter edition will go down the toilet. it may be ok for occasional browsing (web) but anything else? forget it
  • oh wow
    Realistically, I can't see any user choosing Windows 7 starter over Linux. If netbooks with Windows 7 HP are much more expensive, there is no way M$ will be able to dominate this market.
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