|
Palm embraces challenge
|
 |
April 20, 2000: 5:08 p.m. ET
Handheld computing leader sees no threat from new Microsoft Pocket PC product
By Staff Writer Richard Richtmyer
|
CHICAGO (CNNfn) - When Microsoft and three computer makers rolled out the new "Pocket PC" portable computer devices this week, many technology industry watchers said that Palm, which currently dominates the handheld computing market, has real cause for concern.
But Alan Kessler, Palm's (PALM: Research, Estimates) president and chief operating officer, brushed aside those arguments, saying that the company, which was recently spun off from 3Com (PALM: Research, Estimates), will continue to focus on simplicity, flexibility and cost efficiency as it moves ahead as an independent company.
"We really aren't trying to shrink the PC," Kessler said in an interview with CNNfn.com at the Comdex technology conference Thursday.
"We aren't trying to put a spreadsheet or a word processor in your pocket. Some of our customers may want that, and we provide that capability, but that's nor our purpose for being," Kessler added.
 The Pocket PC runs an improved version of Microsoft's "CE" operating system, which was not very successful in its earlier incarnations because users said it was too complex and not conducive to a portable computing environment.
Meanwhile, Palm's handheld computers attracted a strong following, primarily because they did a few things, such as contact management and appointment keeping, very well and were extremely easy to use.
The most recent data available from technology research firm International Data Corp. shows that Palm currently garners about 75 percent of the market share in handheld computers.
But with its improved operating system, many observers said Microsoft is moving into a position to snatch some of that away. The latest version of Windows CE, which is Microsoft's third try at a handheld computing platform, has been greatly simplified and has built in multimedia functionality as well as a slimmed down, but fully functional, version of its Internet Explorer Web browser.
Because Windows is so ubiquitous in home and business computing environments, many industry observers believe Microsoft will begin to steal some of Palm's thunder, especially among corporate users.
Kessler welcomed the challenge.
While he acknowledged that Windows is likely to continue to be the dominant platform on desktop computers, he said the model for handheld computing is turning into something that is fundamentally different.
In a keynote address before a roomful of Palm faithful, Kessler put forth his own challenge: "Let's get it on and see who can delight customers in the best way."
Palm's way will continue to be focused on providing users with "simplicity, elegance and powerful solutions," Kessler said.
Microsoft meanwhile, is hoping to piggyback on the Windows name, with a particular focus on the corporate market. Analysts expect the company to do particularly well there because of the widespread use of Windows applications in corporate enterprises. The idea is that technology managers will choose the Pocket PC to provide a seamless integration of handheld computing systems into their enterprises.
For its part, Palm will continue to target the enterprise market by teaming with other companies such as IBM (IBM: Research, Estimates) and Sun Microsystems (SUNW: Research, Estimates) that wrap complete solutions around the Palm, according to Kessler.
"That's what CIOs want," he said. "They want low cost of ownership, and they don't want to put all the complexity of a PC into somebody's pocket. They want it to be simple, and they want consulting services as well. That's what we've focused on and that's what we'll continue to focus on."
Palm also is working with Sun to make its devices compatible with the Java programming language, which can be used on multiple computing platforms, which will become increasingly important as networks edge out the PC as the center of the computing universe, according to Kessler. "In many ways, by supporting Java, we are actually going to be easier for a commercial enterprise or a developer to write for, because it will be more transferable," he said.
Though he admitted that the competitive landscape has changed and market share numbers will shift as the handheld computing industry evolves, Kessler remains confident that users will continue look to Palm as the leader.
"The headlines are going to be, 'This market is exploding,' " he said. "The subhead is going to be 'Who gained or gave a little market share? But the big news is that Palm grew 116 percent year over year, and what's going to happen next year?
"The real breakthrough is going to be how this changes the world, and how we led the charge. We are going to continue to do that." 
|
|
|
|
|
 |
|
