The software giant Microsoft is launching a program to promote its Windows Operating System (OS) in ultra low-cost PCs (ULPCs). One possible effect arising out of this program would be the limitation of the hardware capabilities of such devices.

As a step to promote its Windows OS, Microsoft plans to offer steep discounts to PC manufacturers, so as to encourage them to use OS rather than Linux on ULPCs. However, the condition is that the vendors who manufacture ULPCs must limit the hard drives to 80 GB and screen size to 10.2 inches. Further, they won’t be allowed to provide touch screen PCs to the customers.

Though the program is confidential in nature, it was obtained by IDG News Service. The main objective behind limiting the hardware capabilities seems to restrict the ULPCs from entering the market for mainstream PCs that use Windows Vista.

The limitations would allow PC producers to offer a low-cost substitute, and also prevent eroding of pricing and margins in the mainstream market of OS.

ULPCs are those laptops which are low priced and hence should not be allowed to eat up the sales of high-end systems.

Microsoft expects to sell 10-13 million devices this year as per the documents. However, it refrained from commenting on the confidential documents.

As far as the use of Linux is concerned, some PC manufacturers have expressed an inclination towards Linux for its ability to reduce the device cost.