2010 07 30

Windows 7 Is Being Retooled for Tablet Market

Microsoft CEO Steve Ballmer told industry analysts Thursday that the software giant is working in cooperation with device manufacturers to develop a customized version of Windows 7 for tablets. Although Apple has created an entirely new tablet market without Microsoft's participation, Ballmer noted that much the same thing happened with netbooks. Microsoft went from having no Windows penetration on netbooks in the early days to seeing Windows become "the guiding piece of software" in a market subsegment that now accounts for 15 percent or so of all PCs shipped worldwide, Ballmer observed. "Just like we had to make things happen on netbooks, we've got to make things happen with Windows 7 on slates" in cooperation with Microsoft's hardware partners, Ballmer said. "We are in the process of doing that as we speak." Developing Unique Apps It's clear that Microsoft understands both the threat and opportunity presented by Apple's iPad, but the company's consideration of all the outstanding issues still appears to be in the early stages, said Al Hilwa, director of applications development software at IDC. "The idea of devices based on Windows is a good one, as we see a world of many form factors competing," Hilwa said. "But if the machine looks and smells too much like Windows, it will mostly cannibalize Windows PC sales and not necessarily affect the growth of phone-derived tablets." From a competitive perspective, Microsoft has a lot of good software relevant to the emerging tablet market, and has already done a considerable amount of work on relevant technologies like touch, Ballmer said. "We've got the application base, we've got the user familiarity, we've got everything on our side if we do things really right," he added. To hit the iPad market squarely, however, Microsoft will need a content-consumption strategy that is iTunes-like, an application development...