If Microsoft were to try to buy its way into the market - QNX might be the more likely target - being Canadian and privately held it would be much cheaper.
Such a combination could pose serious competition to Wind if it were marketed and supported properly. I doubt this could be done in MSFT's corporate culture.
I tend to believe that the primary market interests of MSFT are in the high volume end user products - Auto PC, PDA's and other information devices - while Wind, QNX. etc. best serve different needs of highly reliable dedicated embedded systems such as medical and industrial instruments, printers, cameras, copiers, industrial automation, utilities, automotive systems, digital cameras, cable modems, routers, etc.
While these devices may perform very complex functions, they are usually programmed by their manufacturers or systems integrators (only once except for upgrades). These manufacturers need, expect and are willing to pay for a level of technical support that Microsoft can only provide to a tiny number of its largest customers.
More and more of these embedded devices will be attached in some manner to the Internet to permit remote access for collection and transfer of data, diagnostics and upgrading of software, and remote adjustment or commands. These dedicated embedded controllers will quickly outnumber conventional PC's, and it is through these devices that Wind could become an Internet play without competing head to head with Win CE.
JMHO,
Mike |