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In my experience it is true that you cannot deploy Office 2007 through
GPO.  At least, not as a machine-deployed install.  There are some hooks
that may leave it available as either a click-to-install or
semi-automatic install as a user-policy, but not through the
old-fashioned GPO/msi deployment routine.  I agree it is a huge
annoyance at best, being that you cannot do a standard 'upgrade' nor
manage an absolute upgrade per-machine (as it was originally deployed in
our environment).  I don't understand the reasoning behind their change.

For us, we've just purchased licenses a few at a time for users who have
asked for needed features in Office 2007.  Then, installed manually from
a share.  On a positive note, for the most part the 'upgrades' have gone
OK, properly upgrading Office 2003 to Office 2007, however I have had a
couple machines decide to re-install the GPO-deployed Office 2003 when a
user clicked on a particular office-type file creating a mess of the
Office installation.  M$ fights the community so hard for their own
standards, then undermine themselves?