The Google Android OS has created a lot of buzz lately in the mobile landscape. Clearly Google is going big offense in this area, by forming up Open Handset Alliance and starting to build Android phones with several handset makers.
Right now, Windows Mobile takes a big share in the enterprise business market, an area that Android may not be able to encroach initially. Think about iPhones. Without a good solution of sync-email and IT manageability, iPhone does not really pose a threat to Windows Mobile in that market segment.
In the long term, for a healthy persistent growth of Windows Mobile, a strategic move from Enterprise to Consumer may be needed. Just like how Microsoft Windows dominates the PC market - people use the same piece of software at work AND AT HOME. Windows Mobile needs to re-invent itself, with 3 to 5 years, as something that both the enterprise and average users can happily adopt, something that does not look like a scale-down desktop Windows. Microsoft can't afford to lose this battle, as I believe this is one of two growth areas (the other being online services) that the whole industry is betting in.
For more information about Android and Open Handset Alliance, see this site.
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As a new owner of a windows mobile device (Samsung Blackjack II) I have to say that the only way Microsoft is going to stay ahead of the oncoming competition is to revamp the user experience. The features and flexibility are there, but in a very confusing and not very phone-friendly format. The iPhone and the Android OS are going to eat MS's lunch as soon as these devices are capable of connecting to Exchange.
I'm not one of those anti-Microsoft crazies either... Microsoft provides my living and I like your products. This feedback comes as a consumer having used your product for a couple of weeks.
A shift in focus to the consumer market is long overdue - these devices are inherently personal (in that you can carry them on your person)...the truth is that in the "Enterprise" they often end up as little more than an executive toy, so making them suit-friendly (other than for security) has been a wasted exercise.
Make 'em sexy.
Now.