Vista Virtualization Change Reversed

Rules that prohibit use of consumer versions of Vista, advanced security features, and rights management features within virtual machines (VMs) were about to be relaxed in June 2007, but Microsoft reversed course at the last moment, electing to retain the rules as they were. Microsoft did not explain the reason for the reversal, but the sudden change of heart suggests intervention by a senior business executive or other product group that saw some business or legal threat to the company.

Virtualization Restrictions

The Vista End User License Agreements (EULAs) contain the following provisions:

• Vista Home Basic and Home Premium are not permitted to be used as the guest OS in VMs
• BitLocker, which encrypts data on a Vista boot volume, may not be used in a VM
• Digital media or applications protected by any form of Microsoft rights management may not be played or used in a VM.

The company was considering removing these provisions, and briefed analysts and press about their removal as late as June 18, noting that the restrictions were widely criticized by customers, bloggers, partners, and others. But the following day, when the change was scheduled to be announced, the company reversed course, stating that it would not modify the EULA after all, and that the current restrictions represent “an appropriate balance” of security and business benefits.