Making sense of Windows' irrational pricing and licensing

An interesting post by ZD's Ed Bott explores the new retail pricing for Windows Vista and he comes to a surprising conclusion:

A few weeks ago, Microsoft announced it was cutting the price of retail, shrink-wrapped copies of Windows Vista. The new suggested price for an upgrade edition of Windows Vista Ultimate is $219, down from $299. The cost of an upgrade edition of Vista Home Premium drops to $129 from $159. Those price cuts were effective with the release of Vista Service Pack 1 in mid-March, and the actual prices that people pay (the so-called street price) will invariably be lower: Amazon, for example, is offering discounts on the upgrade editions of Vista Ultimate and Home Premium for $195 and $95, respectively. The full versions are $300 and $216.

Those prices are, frankly, higher than what any sane person would pay. You can get a better deal direct from Microsoft, just by installing an unlicensed copy of Windows and not activating it within the first 30 days. As I noted back in December, Microsoft will sell you a fully legal Vista Ultimate license for $199, no questions asked, as part of its “get legal” program. In fact, Microsoft’s direct prices are significantly better than the suggested retail prices and practically identical to the discounted prices available from partners like Amazon.

There's also some good common-sense advice for Microsoft in there regarding Vista marketing, and I agree with almost all of it. It's just too complex to buy and upgrade Windows these days.

Discuss this Article 5

Sir_timbit01
on Apr 15, 2008
Totally agree. I've been looking into getting Vista for a new box I'm building. There's lots of places out there that are happy to sell a copy of the oem version to the end user (NewEgg is a prime example), no questions asked, and no additional hardware purchase at the same time.
james3mg
on Apr 15, 2008
Thanks for pointing out this article- I'm with you, I agree with almost everything he said. Good (and short) read. Interesting you can get Ultimate Full edition by not activating vista for 30 days, straight from MS...
Avro
on Apr 15, 2008
Ed has mentioned the lack of family pricing for Windows. These days a lot of families have several computers in the house and it is interesting to note that about 32% of OS X Leopard buyers have opted for the 5 User family pack. It cost me £119 and represents very good value. Microsoft should offer Windows users a similar family pack. I think it would sell well and keep people legal.
xtreem0
on Apr 15, 2008
@Avro. They did try to do that a while ago... It was something like... if you bought vista ultimate you would get 2 vista home premium's for free. The deal is not available anymore. (it was there test to see how well it worked in the consumer market) no idea if they will do that for the next os though...
Snakedoctor1
on Apr 15, 2008
I remember when Windows NT 3.1 Advanced Server was $799 for as many users and you could put on one box. They were killing Netware with that pricing. Now you need to take a 5 day course on licensing for MS products. There is probably a certification that will get you 5k more a year at a new job, so you can deal with the mess. I think MS is trying to jackup every sector of business they are in right now. 360 RROD, Xbox Live crashing, Zune software, Vista, WHS, OneCare, killing off XP to early. Someone help them NOW before they make more stupid moves.

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