Microsoft officials are well aware that its biggest Windows 7 and Office 2010 competitors are its own previous product iterations (Windows XP and Office XP/2003). To try and wean users away from older, “good-enough” releases, Microsoft is introducing a new licensing promotion.

The revamped “Up to Date Discount” program is targeted at small/mid-size business (SMB) customers running older versions of Windows and Office. Between January 1 and June 30 of this year, Microsoft is enabling users running Windows XP or Vista (on the operating system side) and Office XP, Office 2003 or Office 2007 (on the productivity suite side) to receive a discount of 50 percent on the cost of their licenses for Windows 7 and Office 2007 (or Office 2010, once it is released by June 2010).