For firms that want the benefits of network computing without leaving the familiar Windows user-interface, it is an attractive option. Microsoft is being much more forceful about the underlying software for digital devices. Jon Roberts, who is responsible for CE's success, says the operating system is not a mere subset of Windows, but a totally new product. Because it is designed to be modular, manufacturers can decide what parts they want to use, even discarding the Windows interface if they choose. Mr Roberts claims that the advantage of CE is that it plugs into a huge community of applications developers.
Simple appliances demand simple operating systems.
Most appliances will be sold with only a few embedded applications. The search for cheap software will require manufacturers to write their own programs or to license code from little-known houses such as Wind River or Integrated Systems. Where CE can score is with quite complicated handheld computers that more closely resemble PCs. The danger for Microsoft, however, is that CE becomes a kind of NT-lite and so cannibalises much more profitable Windows 98 laptop licences. Microsoft has the talent and money, combined with the strategic readiness of Mr Gates to adapt, as he did to the arrival of the Internet.