Hard cheese: Microsoft takes hard line on hardware upgrades

A little-known function called Windows Product Activation will force users to ask Microsoft's permission to reinstall the OS after making changes to their hardware.

Once the 'activate' button has been selected, user hardware information, such as the CPU ID, is sent to a Microsoft server.

But future reinstalls require proof of purchase and a telephone call to Microsoft.

Analysts and small business leaders are angry at the software giant's attempt to control user hardware decisions.

Mat Hanrahan, analyst at Bloor Research, said: "There is no doubt about it. This gives Microsoft an element of control as the user has to negotiate permission to upgrade hardware."

This is just another attempt at domination by Microsoft, said Peter Scargill, national IT chairman at the Federation of Small Businesses.

"This has the potential to make it very difficult for small businesses. They have a hard enough time with hardware anyway. The vast majority of SMEs don't have an IT department so this just gives them another headache," he said.

Duncan Reid, product services group manger at Microsoft, confirmed users are given a limited number of reinstalls but would not comment on how many are allowed before the system shuts them out.

However, he admitted it only affects retail versions sold to consumers and small businesses as the activation process would annoy too many corporates.

Ian Bramley, managing director at research house Software Strategies, claimed this feature will deter many users from upgrading to the latest Windows offering.

"Even replacing broken hardware or upgrading or moving from an obsolete to new desktop is now going to cause effort from Microsoft and this could be a possible source of delay," he said.

But Reid said reactivation is required only after a significant hardware change, and won't be a problem for many users as only a minority regularly upgrade their hardware.

However, the initiative also offers a taste of Microsoft's plan to become a software services company as extolled by .NET.

Bloor's Hanrahan explained: "Microsoft is going to intervene more in the future and this infrastructure and control of desktop sounds like they are trying to build the ground work to deliver software as a service.

"This looks like a simple activate button but the infrastructure it has will connect into .NET services in the future," he added.