The clever bods at Microsoft have finally given the thumbs up to a virtualised environment on their newest operating system which will allow users to install older applications, it has transpired.

According to the organisation, Windows 7 will have a fully-fledged XP Mode capable of installing and running programs that operators of Vista may have had problems with, thus making the new offering fully backwards compatible and offering extra options to small businesses in IT.

It made the announcement yesterday (October 1st), adding that it will be released onOctober 22nd, when Windows 7 is officially launched for people around the world to get their hands on.

The addition may be one which will please a number of students around the country, who were given an offer they may not be able to refuse from Microsoft earlier this month.

That's because the organisation said it would be providing everyone with a .edu address with the chance to download the operating system for just £30.

More than half of small businesses (53 per cent) believe that the most important benefit of outsourcing is guaranteed response times for IT support. London-based Connect conducted the research in 2007.