Windows 7 Home Premium – This is the successor to Windows Vista Home Premium, and Microsoft expects it to be the most common edition sold, the standard for virtually all consumer PCs. It includes the Aero interface with its Windows 7 enhancements, plus Windows Media Center, DVD playback support, and multi-touch and handwriting features. I’m also told (but can’t yet confirm) that image-based backup is included in this edition for the first time.

Windows 7 Professional – This edition drops the Business label used in Windows Vista and goes back to the old XP-era name, presumably to give XP users more comfort in their upgrade decision. Unlike Vista Business, this edition contains all features in the Home Premium edition, including Media Center. For the extra cost, you get more traditional business features like the ability to join a Windows domain, group policy based management tools, Remote Desktop host capabilities, network-based backup features, and support for the Encrypting file system.

Windows 7 Ultimate/Enterprise – In the retail channel, this edition will be called Ultimate; for corporate customers with a Select license agreement, it will be called Enterprise. In either case, the feature set includes everything in Professional edition plus support for BitLocker whole-drive encryption (and the new BitLocker To Go feature, which adds high-grade encryption to removable media). This edition also includes all supported language packs (those cost extra for other editions) and the capability to boot from a VHD.

Source: ZDNet

The SKU’s are as follows according to Neowin:

Windows 7 Starter
Market: Emerging markets, with new PCs only
Key features: Enhanced taskbar, Jump Lists, Windows Media Player, Backup and Restore, Action Center, Device Stage, Play To, Fax and Scan, basic games
What’s missing: Aero Glass, many Aero desktop enhancements, Windows Touch, Media Center, Live thumbnail previews, Home Group creation

Windows 7 Home Premium
Market: Mainstream retail market
Key features: Aero Glass, Aero Background, Windows Touch, Home Group creation, Media Center, DVD playback and authoring, premium games
What’s missing: Domain join, Remote Desktop host, advanced backup, EFS, Mobility Center, Offline Folders

Windows 7 Professional (superset of Home)
Market: Mainstream retail market
Key features: Domain join, Remote Desktop host, location aware printing, EFS, Mobility Center, Presentation Mode, Offline Folders, Media Center
What’s missing: BitLocker, BitLocker To Go, AppLocker, Direct Access, Branche Cache, MUI language packs, boot from VHD

Windows 7 Enterprise
Market: Volume-license business customers only
Key features: BitLocker, BitLocker To Go, AppLocker, Direct Access, Branche Cache, MUI language packs, boot from VHD
What’s missing: Retail licensing

Windows 7 Ultimate
Market: Retail market, limited availability
Key features: BitLocker, BitLocker To Go, AppLocker, Direct Access, Branche Cache, MUI language packs, boot from VHD
What’s missing: Volume licensing

There will be a Home Basic edition, but it will only be released to emerging markets. "We know emerging markets have unique needs and we will offer Windows 7 Home Basic, only in emerging markets, for customers looking for an entry-point Windows experience on a full-size value PC", said Windows General Manager Mike Ybarra. Paul Thurrot is reporting that Home Basic will lack "Aero Glass, Live Thumbnail Previews, Internet Connection Sharing, and a few other goodies."

I am glad that Home basic will be restricted to emerging markets.  There was just too much confusion with Vista having 2 home editions and some will argue that Home Basic is not really Vista (which I happen to agree with).  Now there will be two mainstream versions avalable.  Home and Pro, and if users choose they will be able to get Ultimate if they have a need for the higher feature set.

What are your thoughts on this new SKU set?  Do you think it will simplify things for the consumer and the OEM PC buyer?  Post your thoughts, I’m curious to see what people think of this.