Microsoft will introduce new end user license agreements that will allow virtualization on Windows Vista Home Basic and Windows Vista Home Premium. The promise comes from Mike Neil, who is now overseeing both the desktop and server development teams, the plans and strategy for the Microsoft virtualization software. Currently, the Redmond Company has limited the usage of Vista Home Basic and Home Premium as host or guest operating systems in virtual machines.

"There's been much written about the EULA for the home editions of Windows Vista. But what hasn't been well reported is where we have made advances. The primary use cases here are with business customers and enthusiasts. In Windows Vista Enterprise edition we allow the user to have 4 installs of Windows in VMs and they can install and use Vista Business Edition in a VM," Neil revealed.

Even with its own Virtual PC 2007, Microsoft is only supporting Vista Business, Enterprise and Ultimate. The real restrictions of Vista Home Basic and Home Premium associated with virtualization are in the EULA. The user must agree to not using the two low end Vista operating systems with emulating technology. However, there is little impediment outside of the license. In fact there is none, and both operating systems can integrate with virtualization technologies. This provides proof that Microsoft plans to expand the virtualization licensing to cover Windows Vista Home Basic and Home Premium.

"Virtualization is a new technology for consumers, and one that isn't mature enough yet from a security perspective for broad consumer adoption. But for the enthusiasts and early adopters we do provide Vista Ultimate to be used in a VM. As an example we have researched these issues with current virtualization hardware architectures. One area that is clear is that our security and data protection features can potentially be subverted by a malicious virtualization layer. We're working with the hardware and software industry to improve the security of virtualization technologies and we will evolve our licensing policies as virtualization becomes more widely used on client systems," Neil added.