How Microsoft Could Lose Its Grip on 'Rugged' Devices

Excerpt from an article in The New York Times

Monday, February 06, 2012

How Microsoft Could Lose Its Grip on 'Rugged' Devices

By BRIAN X. CHEN

When a UPS delivery worker shows up at your house, the bulky handheld that he yanks out for you to write your digital signature is known as a "rugged device." Microsoft's older Windows Mobile operating system is running on the vast majority of these devices, but competitors are offering rugged alternatives on newer software, and it's questionable how long Microsoft can fend them off.

Rugged devices are designed to tolerate the abuse of being outdoors on a regular basis. They're often sealed to prevent rain, moisture and dust from getting inside, and their cases are sturdy enough to survive falls. Workers in field services like telecom, utilities, oil and gas typically carry these devices. You've seen them in the hands of delivery workers, and you may have seen some healthcare providers carrying rugged handhelds for viewing patient records and vital signs.

For several years, Microsoft has dominated the rugged-device niche. The company got a head start on mobile software when it released Windows CE, its pocket PC operating system, in 1996, when mobile computers were mostly affordable to only big businesses. For over a decade, Microsoft has formed relationships with major enterprises who have deployed their business software on Windows Mobile devices.

But the Windows Mobile software hasn't received a significant update since 2010. And Microsoft is focusing investments on its new Windows Phone 7 software, a smartphone operating system tailored for consumers, which is not compatible with the older Windows Mobile apps. Furthermore, Microsoft has said it is not ready to announce its plans for business customers for Windows Phone 7. This leaves an opening for competitors to come up with alternatives.

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