Pocket PC at Vanguard of Microsoft’s Wireless Push

The hugely hyped launch of Microsoft’s new Pocket PC program today at New York’s Grand Central Station is but one piece of a larger strategy that aims to fuse its software and services across the wireless world.

For the first time, Microsoft Corp. is unveiling its new wireless platform that aims to link Windows 2000 to an array of mobile devices that have access to the Web. So far, no other company is attempting to offer a package that stitches together corporate servers, the Internet, mobile phones and various other mobile devices.

“The company sees itself as an infrastructure software company, and it will look at every opportunity to create compelling software for the whole wireless infrastructure,” said Dwight Davis, an analyst for Summit Strategies. “I think Microsoft can bring lots of strengths to the wireless marketplace.”

Microsoft executives have been developing a new wireless strategy over the last year, but are just now revealing the scope of their ambition to play a central role in one of the most diverse and fastest-growing technology markets.

The wireless phone market--which includes phones with an Internet connection--is expected to reach 1 billion customers by 2002, up from 450 million at the end of 1999, experts predict.

To capture a slice of that market, Microsoft recently named Paul Gross, senior vice president of collaboration and mobility, to craft its first push into the complicated and competitive wireless arena. “There are no other competitors that can offer an end-to-end solution,” Gross said in a recent interview. “We’re trying to drive the convergence of wired and wireless standards.”

Gross is directing about 2,000 people, including the group that handles corporate e-mail through Microsoft Exchange, to connect its new wireless service platform with its various partners and even competitors.

The “carrier-centric” strategy is based on creating an open platform, one in which Microsoft and the carriers can mix and match various software and devices over the platform, Gross said.

Microsoft is entering a crowded field of competitors who are developing a wide range of software for use in everything from smart phones to hand-held digital devices to servers at the corporate back office.

Palm Inc. and Symbian are writing operating systems and micro browsers for mobile devices. And rivals Oracle Corp. and Phone.com have created their own wireless software platforms and remote-access databases.

Microsoft’s early attempts to break into the mobile-devices market focused on Windows CE, a compact version of the Windows operating system. But CE-based gadgets failed to garner the popularity of Palm’s hand-held devices. In addition, mobile phone makers rejected Windows CE, complaining that it is too bulky.

But during the last year, Microsoft has improved Windows CE, developed its new wireless platform and has been rolling out e new wireless products such as Mobile Explorer, an Internet browser that has been designed to fit on cell phones.

The company also has focused more on forming alliances and investing in partnerships with various telecommunications and wireless companies in an attempt to understand the business and the emerging standards that will drive the industry, analysts say.

“The advantage Microsoft brings is having pieces of each of those markets--the handset, applications and the back-end servers,” said Mark Anderson, publisher of Strategic News Service. “A year ago, Microsoft looked hapless in the communications space. Today they look like they know where they are going.”