Slashdot | Microsoft Developing Windows for Low-End Machines
So instead of buying a whole bunch of new machines, you just buy one big central server, install the new windows for old machines and have them get all the applications of the new central server. This way only one machine with all the hardware and the rest of the money goes to Microsoft. Cool strategy.
Ofcourse this is to fight Linux and other open source OS's.
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via VMware blog