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What is Windows 7 N or Windows 8 N? How does the N differ from a regular version?

What is Windows 7 N or Windows 8 N? How does the N differ from a regular version?

For example, on my company's MSDN account I have seen that some of the software (such as Windows 7 and Windows 8) are available in what is called Windows 7 Professional N or Windows 8 Professional N.

How does this N designation make the software different than the regular Professional version of the operating system software?
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I have noticed that the Windows 8 N version in Microsoft Action Pack doesn't require a serial number activation key.

Why is that?

Doesn't that mean that it can be installed an unlimited number of times if it doesn't need to be activated?
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Just FYI you can install Windows 8 without product key. Please see link below.

http://www.windowsvalley.com/install-windows-8-without-product-key/