Smart phone may spark OS defection

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