[SGVLUG] Motorola picks Android over M$ Windows CE

[PAUL J WILKINSON]

 Here is the actual article from Dow Jones:


DJ Motorola Deals Microsoft A Blow With Android Endorsement  
  
Source: DJ   
Date: 02/04/09   
  
02/04 15:58 =DJ Motorola Deals Microsoft A Blow With Android Endorsement 

   By Roger Cheng   Of DOW JONES NEWSWIRES
 
NEW YORK (Dow Jones)--Motorola Inc.'s (MOT) choice this week of Google Inc.'s (GOOG) Android as the wireless platform needed to spice up its bland handset line dealt a blow to long-time partner Microsoft Corp. (MSFT) and its more established Windows Mobile operating system.

It's the most public indictment of Microsoft's mobile operating system, which many consider respectable and stable, but unsexy. Motorola's decision to commit to Android underscores the increasing threat to Windows Mobile, which has failed to keep up with the innovations of its rivals.

"You can call the iPhone sexy. You don't come close with Windows Mobile," said Roger Entner, who heads up telecom research at Nielsen Co. "At least Android has the promise of excitement."

Microsoft sold 18 million Windows Mobile licenses in fiscal 2008. The software runs on 140 phones made by 56 different handset manufacturers. But Apple Inc. ( AAPL), Google, and Research in Motion Ltd. (RIMM) and more recently Palm Inc. ( PALM)have introduced products that have grabbed the attention of consumers but don't use Windows.

Motorola Co-Chief Executive Sanjay Jha is hoping to grab a fair share of that attention with its own Android phones. In the most public shot at Microsoft, Jha called Android "more competitive" when compared with the latest version of Windows Mobile.

When the next iteration comes out, Windows Mobile 7, Motorola would return to the platform, Jha said. But that likely won't be until 2010.

It's a black eye for Microsoft right before the year's largest wireless trade show, Mobile World Congress, held in Barcelona in two weeks, where the company will have a lot to prove. A Microsoft spokesman declined to comment.


   Software Found Lacking
 
Jha's snub of Microsoft came as a surprise because it was so public, but the complaints expressed are well-known to industry observers.

In a study by J.D. Power and Associates released at the end of 2008, Windows Mobile lagged behind rivals Apple and RIM, and was only ahead of Palm's old operating system, in customer satisfaction.

Windows Mobile has been a standard used by handset makers who didn't want to develop their own operating system. Major players such as Samsung Electronics Co. Ltd. (005930.SE) and niche smartphone makers such as HTC Corp. (2498.TW) rely heavily on the software for their devices.

The operating system is based off of the PC version of Windows, and over the years have only seen minor upgrades.

"The most recent update to Windows Mobile dotted some i's and crossed some t's, while the competition is changing the way an operating system acts and looks like," said Avi Greengart, an analyst at Current Analysis. "The disturbing thing is Microsoft has had all the assets to compete."

The lack of innovation and clumsy interface have long been complaints expressed by users and gadget gurus.

Android, meanwhile, presents another option for handset makers. All of Windows Mobile's major partners are exploring Android phones.

HTC, the largest licensee, was the first to put out a Google phone, the G1. It was also one of the pioneers in creating a custom user interface to mask the Windows Mobile platform.



 
Hard Decision



 
Motorola had been a stalwart user of Windows Mobile, most notably in its Q smartphone. The device took design cues from the ultra-successful Razr and was launched with high expectations that were never really fulfilled.

With Motorola's Mobile Devices unit collapsing, the company has had to slash jobs and expenses, reducing the amount of resources to put behind its development. Rather than go with Windows Mobile, it opted to choose the newer, untested Android platform.

"Motorola is in such deep trouble that they have to focus," Greengart said. " They simply cannot afford to produce mediocre products on multiple platforms."

Jha said in an interview that he believes Android's simpler architecture allows it to be used on a number of different handsets, and not just high-end smartphones. He stressed, however, that Motorola was not dumping Windows Mobile.

Robbie Bach, president of Microsoft's Entertainment and Devices division, previously has said that Windows Mobile can be used in lower-end phones, but few handset makers have done so.

Industry observers believe that Motorola will need a "home-run" device to survive. They also agreed that while Android is unproven, it had a better chance of accomplishing that feat, simply because so many other smartphones already use Windows Mobile.

"If Sanjay (Jha) bets everything on Windows Mobile and fails, everyone will say I told you so," Entner said. "But if he bets the farm on Android, it's more forgiveable. At least he tried something else."



 
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng at dowjones.com