My apologies if this has been posted already.
Microsoft mobile efforts finally gathering steam By Scott Hillis
SEATTLE, Feb 29 (Reuters) - Microsoft Corp. MSFT.O is finally going mobile.
In a stream of recent announcements, the Redmond, Wash., software giant that dominates PCs and that is marching on corporate networks, has made clear it still intends to be a player in wireless and handheld devices despite earlier efforts that foundered on clumsy and ill-conceived products.
On Tuesday the company said it was releasing software for handheld computers that will let the devices play music, video and graphics.
A day earlier, Microsoft forged a pact with high-flying mobile communications company Qualcomm Inc. QCOM.O to draw up designs for wireless devices.
It also unveiled an Internet service for mobile phones that will potentially let the 80 million users of its Exchange and Hotmail e-mail services write and read messages on the go.
The deals signal that Microsoft won't be confined to PCs sitting on desks.
"The fundamental philosophy is that one size doesn't fit all," Phil Holden, group product manager for mobile devices at Microsoft, said in an interview on Tuesday.
"This is a very different space than the PC," Holden said.
"The strategy is to take the best of the PC and move that to these smaller devices."
Such devices, which will mix and match mobile phones with Web access, personal data managers and entertainment, will power the next stage of Internet development, analysts say.
And Microsoft yearns to be in the driver's seat.
"There were so many different announcements, alliances, ventures, and partnerships, and they all show Microsoft definitely wants to be a player in this market," said Michael Gartenberg, vice president of technology research firm said.
"They are now putting together partnerships that they sorely lacked," Gartenberg said.
Previous attempts to break into mobile devices centered on Windows CE, a compact version of the ubiquitous Windows operating system for PCs that made Microsoft a household name.
But CE-based gadgets have not been nearly as popular as 3Com Corp.'s COMS.O wildly successful line of Palm devices. Mobile telephone makers have turned their backs on Windows CE, too, saying it is far too bulky to fit in the tiny confines of today's pocket-sized phones.
But Microsoft appears to be addressing both challenges. It is now loudly touting its Mobile Explorer, an Internet browser that has been specially designed to fit on cell phones, even those that don't run CE.
Microsoft scored big last week by signing with Sony Corp. 6758.T to put the micro browser in the Japanese electronics giant's new phones. Last year it signed a deal with Sweden's Ericsson LMEb.ST to deploy the software.
"The fact that you've got Microsoft getting vendors agreeing to put technology in phones is extremely significant," Gartenberg said.
The browser piques the interest of device makers because it can display Web pages like a regular PC, unlike many other mobile browsers that only show "clips", or bare-bones versions of Web sites.
The partnership with Qualcomm, whose cutting-edge wireless technology has made it one of the hottest companies on Wall Street, also promises to give Microsoft a weapon in its fight against Palm, which has upped the ante with recent products sporting wireless connections and color displays.
Also in its sights is Symbian, a joint venture between British handheld computer maker Psion Plc PON.L, mobile phone makers Motorola MOT.N, Ericsson and Nokia NOK1V.HE and Japan's Matsushita Communications Industrial Corp. 6781.T.
Symbian is also developing mobile phone operating systems and designs for new wireless devices.
Gartenberg thinks that when the dust settles, Microsoft will hold about a quarter of the market, on par with Symbian but well short of Palm's 40 percent.
Microsoft is also gambling that people will snap up fancier devices instead of the plain vanilla Palm-style gadgets that mainly offer address books, calendars and to-do lists.
Last week the company said new "Pocket PCs" to be made by high-profile manufacturers like Compaq Computer Corp. CPQ.N will hit stores by June. The CE-based devices will be able to play music, show video and run graphics and games.
"They're placing bets in lots of places," said Gary Beach, publisher of CIO Magazine. "I think what their strategy is -- and give them credit, they tend to eventually get it right -- is that they want to have an operating system that appeals to every kind of information device." REUTERS Rtr 20:06 02-29-00
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