Microsoft has announced the different product versions for Windows 7.

From the PressPass interview with Windows General Manager Mike Ybarra:

Ybarra: With Windows 7 there will be two primary editions: Windows 7 Home Premium, and Windows 7 Professional. We think those two SKUs will meet most customers’ needs.

Windows 7 Home Premium is the recommended choice for consumers. It gives them a full-function PC experience and a visually rich environment in everything from the way they experience entertainment to the way they connect their devices.

Windows 7 Professional is the recommended choice for small businesses and for people who work at home but have to operate in an IT-managed or business environment where security and productivity are critical. For those running Windows Vista Business, it will be a very logical move to Windows 7 Professional.

There will also be a Windows 7 Home Basic version only available in emerging markets, Windows 7 Enterprise for large corporate customers and Windows 7 Ultimate which will include all the features of every edition.

Additional feature from PressPass: