Continued:

So the question is, why is Microsoft segregating all these versions of the same OS? Why can’t it just put these options on the CD/DVD and let users choose which ones to install from the Add/Remove panel?

The strategy could be two-folded. The first reason is obvious – generate as much sales revenue as possible. If you buy one version and then realize you need additional capabilities of a different version, you will probably have to buy that as well and keep switching back and forth or buy the more expensive superset of the two. Either way, Microsoft makes money.

This move could backfire and I would label this step as perhaps the most detrimental step that Microsoft could have taken in it’s fight against open-source.

Imagine a customer whose needs might not be exactly the way Microsoft has thought them to be, and he might require services available on two different versions, how will he be serviced? Well, he probably won’t be and due to this, he’ll be forced to look at other options (namely Linux). And since he has nothing to go back to, he’ll stick to it and in turn propagate it to every one he knows.

The second reason I believe Microsoft could be taking this strategy is to appear to be catering to multiple audiences and being a specialist for each and every one of them by showing them how it understands their needs and has just the "right" software for them. Considering Microsoft’s stubbornness, users might not even get a choice in what Microsoft thinks they want and what they should get.

One can surely argue that maybe Microsoft has made the entire operating system in various modules and for its corporate customers, it will mix and match and give them the services they need. It is certainly possible, and could be one of the reasons why it is taking so long for the OS to come out. Already, Aero is available as a separate download, so is WINFS and the command shell for System Admins, so yes it could be a possibility but knowing Microsoft, it would be a distant one as normally Microsoft will give you a package and a sweetly worded file saying take it or leave it, we don’t really care if you like it.

On the other hand, if you end up getting your hands on the Vista Ultimate Edition, you would be one delighted user. A very delighted user because it would end up looking extremely Apple-like and give you some really amazing functionality and ease of use, which was unavailable in previous versions. But you would definitely need to shell out loads of money to meet just the system requirements, though.

All in all, this strategy by Microsoft seems to be a little desperate to be honest, it cannot afford to lose the emerging markets (India, China etc.) which will fuel future growth for its business but at the same time, it cannot give away the software for free (or maybe it can and doesn’t want to) so Microsoft has come out with some very interesting versions of its yet to be launched OS. Whether or not this strategy will be successful, only time will tell but far as I’m concerned, I have some serious reservations about it.