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Microsoft IT

Microsoft Flip-flopping on Virtualization License 304

Cole writes "Microsoft came within a few hours of reversing its EULA-based ban on the virtualization of Vista Basic and Premium, only to cancel the announcement at the last minute. The company reached out to media and bloggers about the announcement and was ready to celebrate "user choice" before pulling the plug, apparently clinging to security excuses. From the article, "The threat of hypervisor malware affects Ultimate and Business editions just as much as Home Premium and Basic. As such, the only logical explanation is that Microsoft is using pricing to discourage users from virtualizing those OSes. Since when is a price tag an effective means of combating malware?" Something else must be going on here."
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Microsoft Flip-flopping on Virtualization License

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  • by wallyhall ( 665610 ) on Thursday June 21, 2007 @04:32AM (#19591641) Homepage
    but could this just be Microsoft trying to squeeze yet more dollars of profit out of everything they can (i.e. now virtulization)?
  • Why bother? (Score:1, Interesting)

    by crhylove ( 205956 ) <rhy@leperkhanz.com> on Thursday June 21, 2007 @04:35AM (#19591647) Homepage Journal
    There is very little that I need to do that can not be done natively in Ubuntu, and for those not in the know, Ubuntu is completely free. So why would I bother buying/downloading ANY version of Windows and even bother installing it, either natively or as a virtual machine? I just don't get it.
  • Re:It's obvious (Score:3, Interesting)

    by aichpvee ( 631243 ) on Thursday June 21, 2007 @04:35AM (#19591651) Journal
    How long before the EULA says that you can only run microsoft software on it? The DoJ isn't going to stop them these days and it seems like a more reasonable (doesn't take much, how is virtualizing a more secure OS going to be a security risk on windows!??!) case can be made that it would cut down on malware.
  • No kidding. (Score:5, Interesting)

    by jimicus ( 737525 ) on Thursday June 21, 2007 @04:40AM (#19591675)
    "Something else must be going on here". No shit sherlock.

    The thing that's going on is market segmentation [wikipedia.org]. To put it briefly: Microsoft reckons that those customers who are likely to want to run Vista in a virtual environment have got the money to buy a more expensive version. It's the exact same principle as is used for pricing some commercial databases according to "number of CPUs in the system which is going to be running it" - anyone who's got the money to buy and the need to run a 16-processor system can probably afford to spend more on the database, regardless of whether there's any technical difference between the 16 processor version and the 8 processor version of the software.
  • by ex-geek ( 847495 ) on Thursday June 21, 2007 @05:18AM (#19591823)
    Microsoft gives you at least a (costly) option. Apple (correct me, if I'm wrong) doesn't.

    And no, I am not a MS fanboy. I've been using Linux for more then ten years almost exclusively. Lack of hassle with licensing issues being one of the reasons for my choice of OS.
  • Re:Why bother? (Score:3, Interesting)

    by arkhan_jg ( 618674 ) on Thursday June 21, 2007 @05:28AM (#19591887)
    For the 'very little' you can't do natively in linux. Beats dual-booting.

    In my case, I have a dell axim x51v. Beautiful VGA screen, but I need outlook & activesync to get data on and off it easily as its windows mobile 5.
    I use linux on most of my servers, but there's still the odd desktop app that keeps me tied to windows. Virtualization allows me to run that handful of apps while stick to linux for my main desktop. In this role though, windows XP is more than adequate. Vista would be a complete waste of resources. Still, there will come a day when microsoft kill XP, via incompatibility or just end of patches.
  • by Anonymous Coward on Thursday June 21, 2007 @05:41AM (#19591953)
    Microsoft are already losing their stranglehold on the market; they're fighting against desktop linux, fighting a rear guard action against open standards and OEM's are looking to escape per machine licensing. Releasing so many versions of Vista was really a dumb move and DRM simply isn't going to work when the OS is run as a VM guest.

    My guess is that they're stalling for time while getting a TPM savvy hypervisor in boot ROM. Antitrust authorities wouldn't be amused by this, hence the handwaving about malware.

    What many commentators miss is that you're free to install your one copy of Vista in a VM, Microsoft can't stop you from doing that. The EULA (poorly worded as it is) only restricts (or permits) running multiple virtualized copies from the one license.
  • by Sesostris III ( 730910 ) on Thursday June 21, 2007 @05:44AM (#19591963)
    To be fair, this is a not-uncommon business practice that predates Microsoft.

    And Microsoft aren't the only current practitioners either! (I note Oracle has something which is called a "Restricted Use" license).

    Sesostris III
  • Re:The Mac Threat (Score:2, Interesting)

    by Corporate Troll ( 537873 ) on Thursday June 21, 2007 @06:20AM (#19592121) Homepage Journal

    Switchers pose a problem for Microsoft, because most anecdotal evidence and many studies show that switchers don't switch back to Windows. Now before you bash me as an Apple fanboi, consider this: most people who leave Windows are looking for an out due to frustration.

    I'll give you evidence for the contrary. In 1999 I was fully Linux, I switched from Windows because my laptop was too low spec and Windows ran bad, and Linux ran well. In december 2001, I switched from Linux to a fancy new iBook G3 running OS X and was very very happy. Alas, this was an iBook that presented the dreaded logic board failure and after a mere 3 years, it manifested. Just right after the extended warranty (because of the known problem) had expired. This of course, happened just after the announcement that Apple was switching to Intel. So buying a new iBook was not an option.

    I bought a second hand P-III 600MHz/512Meg RAM for 100€ and used it until it physically started to fall apart. This machine ran Win XP Pro and ran it well. Beginning this year, I replaced it (I mentioned that it physcially started to fall apart) and I didn't even consider an iBook since they were over 1100€ and I could get a (lower, but still fine) specced laptop for 800€ with Win XP Media Center. Now, the idea is to run Linux on it eventually, but I'm married and haven't got the same kind of spare time as I did back in 2000....

    So, there you go: a back-switcher. That said, I know how to secure and harden Windows machines. My machines never have problems, bar of course hardware problems... but even Apple isn't immune to that.

  • How long until... (Score:3, Interesting)

    by Opportunist ( 166417 ) on Thursday June 21, 2007 @06:26AM (#19592151)
    ...all we get is $EULA and it's adapted on a daily base with the routine call in Redmond?
  • by Keeper Of Keys ( 928206 ) on Thursday June 21, 2007 @06:32AM (#19592175) Homepage
    I am not a Linux or Mac fanboi. I have been using Windows exclusively for the past 8 years or so. My problem with Vista used to be the DRM. Then I bought a laptop with it pre-installed. Now I don't think about that; my complaint is with the general slowness, even with all the fancy interface stuff turned off. 2 hours to unzip a file that WinRAR handled in a couple of minutes? Several minutes to move files from one place on the same hard disk to another? I encounter that kind of thing every day.

    It's not the hardware, either. Ubuntu (which I am trying to migrate towards) is lightning fast on the same machine.

    Plus the general user is going to continually fall over permissions issues. Sometime I am refused permission to move a folder from one place in my Documents folder to another.

    Of course, eventally these things will be ironed out, but by then it may be too late. Competition is much stiffer now.
  • by Corporate Troll ( 537873 ) on Thursday June 21, 2007 @06:33AM (#19592183) Homepage Journal

    I was one of the people ranting that Win2000 was better than WinXP. The only thing I have found in a home environment that makes WinXP better than Win2000 is the welcome screen and that multiple users can be logged in at once. That was the reason I went to WinXP. There are some other nifty things like remote desktop and so, but they hardly matter for Joe Home User. The difference between Win2000 vs. WinXP and WinXP vs. WinVista is that a machine that ran Win2000 just fine, usually had no problems with WinXP. WinXP didn't need a fancy graphics card, nor did it require a very strong CPU, it just required memory, lots of it, especially after SP2.

    Case in point: my former laptop was a P-III 600MHz/512Meg. When I bought it (second hand) it only featured 256Meg RAM and ran Windows 2000 without a hitch. I have run WinXP without service pack on similar machines without a problem. SP2 upped the requirements a bit and was slow (but still acceptable with 256Meg), so I added another 256Meg which made it run like a champ for anything I had to do at the time. Do you even imaging running Vista on it? I doubt it, yet, it runs WinXP SP2 just fine!

    Heck, the laptop that replaced it is an AMD Turion X2 TL-50/1Gig laptop and it rated a mere "Vista Capable". That laptop was bought in January (on sale, I admit) You can't tell me that it isn't a modern machine. It is, but it lacks the graphics oompha to be Vista Approved (or whatever they call it)

    That's the difference.... WinXP ran on Win2000 hardware with minor upgrades. WinVista versus WinXP is a whole other tale.

  • Comment removed (Score:3, Interesting)

    by account_deleted ( 4530225 ) on Thursday June 21, 2007 @06:39AM (#19592207)
    Comment removed based on user account deletion
  • Re:Lame (Score:3, Interesting)

    by Ravnen ( 823845 ) on Thursday June 21, 2007 @06:40AM (#19592209)
    From a purely technical perspective, the argument is of course ridiculous. However, it actually can make sense is if they're assuming users buying Vista Ultimate/Business are more technically sophisticated, and so not as likely to be vulnerable to this sort of malware. There's also the issue of volume: Vista Ultimate and Business are more expensive, so will have lower volume, making them less attractive targets for malware authors.
  • by Anonymous Coward on Thursday June 21, 2007 @06:51AM (#19592259)
    The real question is WTF would really want to virtualize *Vista* anyway? If you want to run a Windows VM, XP without Aero/DRM will run a lot faster.
  • DRM Thing? (Score:5, Interesting)

    by Zo0ok ( 209803 ) on Thursday June 21, 2007 @07:09AM (#19592341) Homepage
    Not even the Ultimate License allows you to watch/play DRMd content in a virtual machine. It is impossible to technically restrict what can be done with content as soon as it is played in a Virtual Machine. Audio is especially easy to make perfect digital copies of, even if it is DRMd.

    Allowing home editions of Vista to be run in Virtual Machines would essentially make the DRM protection in Vista useless.

  • by GomezAdams ( 679726 ) on Thursday June 21, 2007 @07:40AM (#19592495)
    My current assignment is with a server consolidation team. One of the things we are doing is reducing the number of servers and virtualizing everything we can. If we can't virualize MS Windows to reduce hardware count then in the future Linux will be the platform of choice for servers. All the major players have Linux versions of the server software I use - databases and web based servers are the majority of corporate servers today so when I design systems I don't even consider a Microsoft based solution. Scalability and security are the main reasons. The Microsoft solution is to throw hardware at a problem requiring more licenses and more expense to the data center at all levels. Since Java runs everywhere, although I prefer other languages, WebSphere and WebLogic are the major players along with Apache for web based applications. Any database I need runs on any UNIX and some Linux distros. So I have no need to fight the PHBs who eat Microsoft FUD for breakfast when I can point to, in this case, millions of dollars in annual savings when they dump every server running Microsoft and never put another one in the data centers.

    So leave Gates and Co alone. I don't want them to allow virtualization. It will make my job a whole lot easier.

  • by Dan Ost ( 415913 ) on Thursday June 21, 2007 @08:14AM (#19592713)
    What many commentators miss is that you're free to install your one copy of Vista in a VM, Microsoft can't stop you from doing that. The EULA (poorly worded as it is) only restricts (or permits) running multiple virtualized copies from the one license.

    Can anyone corroborate this?

    Or, even better, is the EULA available online somewhere where I could verify this statement for myself?
  • Re:It's obvious (Score:5, Interesting)

    by MysteriousPreacher ( 702266 ) on Thursday June 21, 2007 @08:19AM (#19592743) Journal
    That would be tricky for MS to pull-off but they could just make it very difficult for certain applications to run on Windows. Require a certification process, implement technical measures to authenticate the applications and then use the DMCA to destroy anyone who dares to bypass the protection by using fake credentials.

    Make it nice and expensive to obtain the credentials, or just use a clever licence agreement and that'll certainly stop the pesky open-source kids from meddling. The best thing is, if the DoJ decide to take an interest, MS can tell them that it's necessary for security.

    I really can see Windows going the same as some console platforms. Either you make your software with permission or you don't do it at all.
  • Size Matters? (Score:3, Interesting)

    by NickFortune ( 613926 ) on Thursday June 21, 2007 @08:57AM (#19593073) Homepage Journal

    Right. Because it's obviously that miniscule proportion of people who a) want to virtualise and b) won't just ignore the EULA that is responsible for the "lack of popularity".

    Which, (assuming sarcasm on your part), wouldn't rule out the virtualisation restrictions being a contributory factory in to poor vista sales. I think we can take the poor sales as a given - if vista was flying off the shelves, MS wouldn't trouble with a "fact rich" campaign to persuade potential customers to "proceed with confidence". Whether or not sales is the same thing as popularity is another question, although Microsoft fans don't usually have a problem with the notion when contrasting Windows against Linux.

    But let's not get sidetracked. Even if virtualisation isn't causing Vista's sales problems, it could still be seen as doing so, internally. For that matter, if MS were going to relent a little on the more controversial features of Vista, they're more likely to give ground over virtualisation than they are to back pedal over DRM, for example. And there's probably nothing they can do at this late stage about the hardware issues. So if they were inclined to throw the potential buyer a bone, it would pretty much have to be over virtualisation.

    Maybe that's what happened here. One faction was all set to change the EULA in the (perhaps slightly desperate) hope of kick-starting a wave of Vista adoption. Then someone else comes along and says "it's OK - we'll fix it in advertising" and the change got withdrawn. In some ways, this seems the simplest explanation.

    And if advertising fails to fix the sales problem, we may yet see the licence restriction withdrawn.

    So really, I don't think the size of the virtualisation market much matters when it comes to forcing MS' hand in this case. Because I think the pressure is coming from within. I think MS are well aware that it isn't going to address most potential buyers concerns, but I don't think that matters. Ten years and billions of dollars have been spent, and careers will be on the line over this. I think some folks at MS are starting to clutch at straws. Virtualisation must look very tempting to them.

  • by Ravnen ( 823845 ) on Thursday June 21, 2007 @09:12AM (#19593247)
    Actually, price discrimination improves economic efficiency, and perfect price discrimination theoretically allows a monopoly to be as efficient as perfect competition (and remember that almost no competitive market is perfectly competitive). This means that, if you're interested in maximising overall gains from economic activity, and a market is a natural monopoly (e.g. because of network effects), then price discrimination should be encouraged.

    Without perfect price discrimination there will still be some deadweight loss from a monopoly. However, competition is almost never perfect either. Moreover, if a market is a natural monopoly, then the most effective use of resources is the case of a single producer, i.e. a monopolist. Beyond the wastefulness of having multiple producers in such a market, there may be potential gains in terms of technological progress, because a monopoly can use its supernormal profit to invest in research which may be beneficial overall, but would not be viable for a firm facing competitors that would also benefit from it. Technological progress is what drives economic growth in the long run, so this is an important issue.

    Mind you, Windows is not a monopoly in strict economic terms, even if its dominance is high enough to produce many of the same effects.

  • IE7 (Score:3, Interesting)

    by Yvan256 ( 722131 ) on Thursday June 21, 2007 @09:18AM (#19593311) Homepage Journal
    What I'd like to see is an extremely cheap version (even free?) with IE6 and IE7 pre-installed. Nothing else apart from Flash and Windows Media Player (and the ability to install, say, Quicktime).

    Web developers (developers, developers) without a Windows box cannot test websites for IE. And given IE's track record with standards compliance, this is not a good situation for Microsoft. I'm not buying a whole Windows box just to test websites in their crummy browser.

  • Re:Size Matters? (Score:4, Interesting)

    by drsmithy ( 35869 ) <drsmithy@nOSPAm.gmail.com> on Thursday June 21, 2007 @11:05PM (#19603909)

    Which, (assuming sarcasm on your part), wouldn't rule out the virtualisation restrictions being a contributory factory in to poor vista sales.

    Certainly. However, I think it's safe to assume - as my sarcasm intended - that EULA-limited virtualisation is only something a tiny minority of users would take into account.

    (Especially since a quite reasonable interpretation of the EULA doesn't prevent you from, say, virtualising a copy of Vista on your Mac running OS X - ie: the most common end-user virtualisation scenario.)

    I think we can take the poor sales as a given - if vista was flying off the shelves, MS wouldn't trouble with a "fact rich" campaign to persuade potential customers to "proceed with confidence". Whether or not sales is the same thing as popularity is another question, although Microsoft fans don't usually have a problem with the notion when contrasting Windows against Linux.

    As with Office, Microsoft's biggest competitor to Vista is Windows XP. Vista sales are slow not because it is "bad", but because XP is well and truly "good enough". Hence, the take-up rate of Vista is basically that of new/replacement PC sales.

    But let's not get sidetracked. Even if virtualisation isn't causing Vista's sales problems, it could still be seen as doing so, internally. For that matter, if MS were going to relent a little on the more controversial features of Vista, they're more likely to give ground over virtualisation than they are to back pedal over DRM, for example. And there's probably nothing they can do at this late stage about the hardware issues. So if they were inclined to throw the potential buyer a bone, it would pretty much have to be over virtualisation.

    Not really much of a bone. The proportion of customers such an annoucement would sway is miniscule by any reasonable argument. I don't think even the craziest of sales droids believe that a meaningful (hell, even statistically valid) portion of their userbase is holding back because of perceived problems with virtualising certain versions of Vista.

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