Windows 2000 prices disclosed by Microsoft ahead of release.

Microsoft Corp. disclosed a pricing schedule for its Windows 2000 operating system, the first time the software concern has made such information public prior to actually shipping a product. The new operating system, which Microsoft expects to ship to users Feb. 17, generally won_t cost more than Windows NT. But the Redmond, Wash., company plans an aggressive series of competitive-pricing plans to encourage customers of rival software systems to switch. Equally important, Microsoft_s incentives appear designed to move current business users of its consumer-oriented operating systems, Windows 95 and Windows 98, to Windows 2000. That makes sense for Microsoft, which earns roughly twice as much from each sale of a Windows NT-equipped PC as it does from each Windows 98 PC. Windows 2000, Microsoft_s ambitious attempt to push its PC-software franchise into high-end computers, comes in a number of configurations, and its pricing is correspondingly complicated. For instance, Microsoft plans to offer the desktop PC version, called Windows 2000 Professional, for an estimated retail price of $319. Users upgrading from Windows NT, however, will pay only $149, whereas customers upgrading from Windows 95 or Windows 98 will pay $219. None of the prices disclosed Monday take into account volume discounts or other special offers. Microsoft plans to be particularly aggressive regarding competitors_ products. Users of older versions of Novell Inc._s NetWare software can upgrade to a 10-user version of Windows 2000 Server for $599; upgrading to the latest version of NetWare would cost the same customers $1,055, Microsoft said. Ron Heinz, Novell_s vice president for world-wide sales, didn_t dispute those figures, but said pricing for most customers would vary. More important, he said, Novell_s software is significantly easier to operate and requires fewer support staffers, making it much cheaper to maintain.