Microsoft's new handheld operating system, Pocket PC 2002, will be available from this week. The software offers significant advantages over the previous version, although Hewlett-Packard's Jornada 565 and 568 will be the only devices using it at launch time.
However, with Pocket PC 2002 priced at a premium and configured for enterprise users, it may leave the lower-end business and consumer market open for dominance by Palm devices.
Hewlett-Packard's new handhelds are based on the StrongARM processor, a chip fast becoming the de facto standard for PDAs. Casio is expected to release a Pocket PC 2002 machine based on the same technology, and Palm has also committed itself to releasing new devices based on StrongArm chips early next year.
Processor choices have been limited by Microsoft's decision to drop support for other chips with this version of Pocket PC--earlier versions also supported MIPS and Hitachi processors.
Microsoft said that the move to StrongArm, combined with support for upgradable firmware in the latest machines, will extend the life span of Pocket PC devices. Magnus Ahlberg, Microsoft's manager for Pocket PC in Europe, said the life span of Pocket PCs is currently about 12 to18 months. '[But] Compaq's iPaq is already using the StrongArm and is upgradable,' he added. 'We see that device lasting for three to four years.'
However, the future of the iPaq might be affected by factors other than technology. The proposed merger between HP and Compaq would bring together two of the biggest Pocket PC suppliers, and their product lines could be rationalised.
Matthieu DuPont of HP told IT Week, 'The proposed merger process will take six to nine months to complete, and during that time we will review technology competencies within the two organisations.' Microsoft is also cautious about predicting the future for HP and Compaq, but Ahlberg argued, 'Providing both continue to be strong in the market, this will be good for Microsoft.'
Whether or not HP and Compaq rationalise their products and back a single device, Pocket PC 2002 will still have competition. Martin Worth, Palm's UK channel manager, sees little to fear from Pocket PC at the lower end of the PDA market. 'We dominate the consumer area and may expand further as a result of Psion's reduced involvement. Entry-level products will be sufficient for many customers,' he said.
Worth also sees Palm competing for corporate custom, and said that forthcoming support for multimedia and wireless communications will attract buyers.
However, for business users, Microsoft expects Pocket PC 2002 will offer significant advantages over Palm. A redesigned Connectivity Manager will help users to connect to wireless networks and the Internet, and will simplify mobile computing. The platform's support for virtual private networks (VPNs) and Terminal Services is also likely to be attractive for firms with mobile workers. Pocket PC 2002's functionality and the pricing of devices such as the Jornada 565 at over Ã,£400 shows a clear business focus from Microsoft and HP. And with an advertised battery life of up to 14 hours, the Jornada range should overcome one of Pocket PC's traditional shortcomings.
Given this high-end focus, the lower-end of the PDA market could be claimed almost exclusively by Palm. However, Microsoft's rival may find it difficult to capitalise on its low-end presence to attract corporate custom. It already has a large number of developers and applications using its Palm OS platform, but many expect firms will be increasingly drawn to Pocket PC's greater capabilities.
Palm could dominate the low end.
Is “enterprise user” a euphemism for “person with more money that sense”?
Of course PocketPC will have the high end, there are no Palm devices that sell for those highly inflated prices! The biggest competitor for PocketPC is low priced laptops, not Palm.
What “enterprise level” application is so Windows-centric that it can’t be done on a Palm? For half the price?
This article seems to imply that “enterprise users” will pick the PocketPC device because it supports VPNs and terminal services. Both of these require a network, and I doubt very much that any PocketPC device will last for even half the claimed 14 hours whilst operating on a wireless network (don’t tell me, you’ll plug it into the mains ... gee, just like a laptop).
What are the REAL advantages (if any) of PocketPC over Palm?