Microsoft is launching a program to promote the use of its Windows OS in ultra low-cost PCs, one effect of which will be to limit the hardware capabilities of this type of device, IDG News Service has learned.

Microsoft is launching a program to promote the use of its Windows OS in ultra low-cost PCs, one effect of which will be to limit the hardware capabilities of this type of device, IDG News Service has learned.

Microsoft confirmed Thursday that it will extend the sales of Windows XP Home to OEMs beyond the current deadline of June 30, 2008, to accommodate a new class of ultra-low-cost PCs (ULCPCs) that are just beginning to pepper the market.

Microsoft has opposed an industry-wide plan to promote interoperability in cloud computing claiming, officially it’s because the firm believes the plan is unnecessarily secretive. But there are allegations Microsoft feels threatened by the plan boosting Linux-based systems.

As the release of low-cost laptops based on Intel's upcoming Atom processor draws near, Microsoft is getting boxed into a corner. The software company plans to stop selling most Windows XP licenses after June 30, yet most of these low-cost laptops won't be powerful enough to run Vista when they arrive later this year.

With Mandriva and others rejecting Microsoft's Linux payoff deal, there is a lot of talk lately about Microsoft's new Patent Infringement Protection Plan and how it might not be the “you scratch our backs and we won't stab you in yours” plan that it was initially thought to be."

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"It seems, for now, that the plan to negate the threat of Microsoft's patent protection plan with certain Linux partners has succeeded. The statements made by Microsoft disavowing any notion that they will fall under the new version of the GNU General Public License (GPLv3) seems to confirm that."

Microsoft announced plans today to expand support for Windows XP on budget flash-storage computing devices with an eye towards getting Windows XP running on the OLPC. The software giant will publish design guidelines next year that will make it possible for manufacturers of low-cost mobile devices to build hardware that provides optimal compatibility with Microsoft's legacy operating system. The company also announced plans for field trials next month that will put Windows XP to the test on One Laptop Per Child (OLPC) project's XO laptop.