Attributing the change to increased business demand for Windows 2000, Microsoft next year will end volume discounts for consumer versions of its Windows operating system.

Microsoft said it began informing customers and its reseller partners of the change on Friday. The shift in policy comes at a time when some analysts are questioning just how much demand—corporate or consumer--there really is for Windows 2000 on the desktop. One analyst said Microsoft's decision to end volume licensing of consumer versions of Windows will result in a price increase for a number of businesses. "The screw is turning here. If you're an enterprise organization and have a lot of Windows 95 or 98 out there, Windows just got a whole lot more expensive," said Gartner analyst Chris LeTocq. LeTocq said Microsoft's announcement should be interpreted as a "revenue enhancer," a move that can come none too soon for the company. Microsoft issued a profit warning Thursday, citing IT and consumer PC demand for its desktop applications as the primary reasons for restating both its second-quarter and fiscal 2001 earnings.