Windows 7: Free Upgrades End With SP1

Microsoft (NSDQ: MSFT) will discontinue a program under which businesses can upgrade XP-based PCs purchased after October to Windows 7 for free once the first Windows 7 service pack becomes available.

The plan has not been widely publicized by Microsoft, but was noted in a research report released Friday by an analyst at IT advisory firm Gartner.

“After Windows 7 ships, organizations needing to buy a PC deployed with Windows XP will be allowed a free upgrade to Windows 7 only until SP1 becomes available (or 18 months, whichever is earlier),” wrote Gartner analyst Michael Silver, in the report.

Microsoft plans to release Windows 7 on Oct. 22nd. The company has not stated when the first service pack might become available but it would likely not arrive until late 2010 at the earliest.

Silver took Microsoft to task for the policy and for another rule under which businesses that buy Vista-based PCs prior to Windows 7’s ship date are eligible to upgrade only 25 machines to Windows 7 for free.

Silver said Microsoft is simply trying to steer business customers toward pricey subscription programs.

Full Story: Information week