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Article #23: Smart phone may spark OS defection

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Palm Inc. launched last month its second He added that Palm Inc. "cannot plan a
Treo smart phone running the Windows mobile device roadmap based on an
Mobile 5.0 operating system, dubbed Treo operating system that is obsolete and
700wx, and industry observers say this whose replacement does not exist."
new product could cause traditional The new Palm 700wx smart phone is the
enterprise Palm OS users to jump ship to second Treo device that runs on the
Microsoft's more familiar platform. Windows Mobile platform; the first, Treo
Although there isn't a huge proportion of 700w, was launched in September 2005.
Palm OS users running enterprise Treo 700wx is now available through Bell
applications on their devices, those who Canada's high-speed mobile network
do can now have the Windows Mobile (1xEv-DO). It features several
platform as a viable alternative, said "out-of-the-box" enhancements from its
Carmi Levy, senior research analyst at predecessor, including increased RAM
Info-Tech Research in London, Ont. capacity from 32MB to 64MB.
Now that Palm is offering enterprises a The Treo 700wx can also be used as an
choice between two mobile operating EV-DO external USB modem for laptops to
platforms, IT managers have the access high-speed cellular network for
opportunity to standardize on a single connectivity.
platform, added Eddie Chan, research The device also has an integrated
analyst for mobile and personal computing Communications Manager feature which
technology at IDC Canada in Toronto. allows users to better manage their
"IT managers would want to simplify as connectivity. This product was sold
much as possible. The Windows Mobile separately with the previous Treo 700w,
platform is fairly intuitive, as well as said Levy.
Palm, but [decisions can be based on] the "The opportunity for growth is clear,
look and feel of the Windows environment with 130 million worldwide (Microsoft)
and the applications," said Chan. Exchange users," said Michael Moskowitz,
Windows' huge installed base can also vice-president, Americas International,
drive adoption of Windows Mobile-based Palm, Inc. This opportunity will be
Treo devices. While Palm has done "quite enabled by the direct push e-mail
well" with the Treo product line - capability that comes integrated with the
historically, it's been second to Treo 700wx, which allows the device to
Research in Motion in market share - the directly connect with Exchange 2003 for
Windows Mobile platform gives it greater real-time e-mail updates, he added.
market opportunity, the analyst A significant aspect of the Treo's direct
explained. push technology is the ability to
"[Palm] has done quite well with just the directly access the Exchange Server
Palm platform, but obviously when you without the need for a middleware
look in terms of corporations and their component to access e-mail, explained
installed base of Windows environment - Phil Sorgen, president of Microsoft
whether client or server - it definitely Canada.
makes for a greater reach for them," said "Many of our competitors require
Chan. middleware, other software or hardware,
The fact that the latest Palm OS v.5.4 either in their Office environment or in
has not been upgraded for a number of their network mobile operator's
years has not been helping things for the environment, to provide that capability,"
operating system, at least in the Sorgen said. That is a competitive
enterprise market, said Info-Tech's Levy. advantage, he added, because it reduces
"The Palm OS has basically reached a dead cost and complexity by directly linking
end and the Treos that run on a Palm OS the device and the Exchange environment.
will not be upgraded for the foreseeable At the launching of the new Windows-based
future." Treo, Sorgen expressed optimism that the
PalmSource, maker of the Palm OS, was Windows Mobile 5 platform will continue
acquired last year by Japanese mobile to grow. During Microsoft's 2006 fiscal
platform developer ACCESS Co. Ltd. While year, Sorgen said the software giant
PalmSource, and now ACCESS, have been shipped six million Windows
working for years to come up with a Mobile-connected devices worldwide.
follow-up to the Palm OS 5, "they are IDC's Chan said that while Windows Mobile
still nowhere close to actually adoption worldwide has picked up, the
delivering a workable product," he said. North American market has "taken a little
"Increasingly, users who have been using longer to ramp up." He attributed this to
Palm OS-based devices to run enterprise limited availability of products running
applications are now looking very Windows Mobile OS.
strongly at Microsoft Windows Mobile "Canadian carriers have been a little
5.0-powered devices and thinking that slower in bringing these devices to
it's time to make the jump," said Levy. market," said Chan.






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