According to recent media reports, once the first 'Windows 7' service pack becomes available, the users would not be able to avail a program by Microsoft, under which businesses can upgrade XP-based PCs, purchased after October, to Windows 7 for free.

Though the plan has not been made public by Microsoft; however, it was specified in a research report released Friday by an analyst at IT advisory firm Gartner.

Gartner analyst, Michael Silver, wrote in the report: "After Windows 7 ships, organizations needing to buy a PC deployed with Windows XP will be allowed a free upgrade to Windows 7 only until SP1 becomes available (or 18 months, whichever is earlier)."

It has been learnt that Microsoft is mulling over the unveiling of Windows 7 on Oct. 22nd. Though it has not been confirmed by the company as to when the first service pack
(SP1) might become available; it can be assumed that it would likely not arrive until late 2010, at the earliest.

Going by Silver's report, Microsoft is simply trying to steer business customers toward pricey subscription programs.

Silver wrote: "Gartner believes Microsoft designs these program limitations to persuade organizations to enter Enterprise Agreements, enroll licenses in Software Assurance or purchase upgrade rights to run Windows 7."

The price of Software Assurance, which offers unlimited free upgrades for three years, is $100 to $150 per PC. Silver concluded that only if the value of the benefits exceeds the cost should enterprises consider purchasing Software Assurance licenses.