When we're talking to the broader consumer, it's pretty clear that customers care what the device does, but not so much what the underlying operating system is. At the same time, the strategy may also obscure the previous difficulties Microsoft has had selling its vision for palm-size and handheld computers. In the two years since its introduction, Windows CE has failed to gain a significant foothold in the device market. Unlike rival Palm Computing's popular operating system, which is designed specifically for handhelds, Windows CE was seen by many as unwieldy and difficult to use in smaller devices. Windows CE has been painted with such a broad stroke that it diluted the value for the palm-size PCs specifically.
Vertical markets are typically a range of product lines that span a given category.
A wide range of appliances and devices based on Windows CE will eventually be rebranded as Windows Powered, Holden said, including larger sub-notebook devices and smart cards. The operating system will still be referred to as Windows CE in discussions with developers, manufacturers and the industry at large, he said. Under Microsoft's vision, Windows CE-based devices will simply be one more thin client for server computers based on Windows 2000, its upcoming corporate operating system, due out February 17. As Windows 2000 populates the business market, the thinking goes, small devices, notebooks and computers capable of accessing databases of corporate and personal information will suddenly become much more compelling. What's 'wagging the dog' of their world is that they've come to realize that every copy of a Windows client is Windows 2000 server enabled.