Microsoft has apparently given details of a new deal to PC makers that allows them to get discounted Windows XP licenses for use on UMPCs, according to Computer World UK. This already appeared to be the case due to pricing on the Eee PC, however it had not been confirmed. There seem to be two parts to this story. First, Microsoft is selling Windows for less on UMPCS. Second, some people suspect that the deal is supposed to prevent UMPCs from competing with normal PCs.

The first part is relatively simple. Microsoft is giving essentially the same product away at difference prices, depending what type of device it will go on. Although I am not in any way a lawyer, I suspect that this is legal, since Microsoft can just change one little feature and then it is a different product. Just because it is probably legal, does not, however, mean I think it is a fair practice. Another way of stating the second sentence of this paragraph is: Microsoft is making Windows less expensive in the markets where Linux is gaining market share. Because of this, I think this practice should be illegal and is certainly unfair.

The second part of the story is slightly more complicated, though not by much. The Computer World article brings up the point that Microsoft may be trying to limit UMPCs from invading the regular PC market by defining them with these specifications:

• Max screen size: 10.2
• No touch screen
• Hard drives are limited to 80GB
• Max 1GB RAM
• Max 1Ghz single-core processor, except for a few particular chips

Although it is true that these specifications would limit a UMPC from competing with a regular PC, three things should be kept in mind.

1. Microsoft has to set the limit somewhere. If Windows is going to have a different price for UMPCs, Microsoft has to define what a UMPC is so a 17-inch desktop replacement doesn’t count.
2. Every major UMPC that I can think of fits these specifications.
3. If these specifications are going to limit UMPCs, it is only going to hurt Microsoft. PC makers will not stop improving their hardware because they don’t get Microsoft’s discount. They might, however, switch to Linux, because Windows costs $50 more.

For these three reasons, I don’t see anything wrong with the specifications Microsoft has set. I do, however, think that the whole idea of selling the same product at differenet prices is unfair. If you disagree, however, I am open to hearing your arguement. Go ahead and post it in the comments.

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