Microsoft Windows Phone 7 Adds Key Enhancements for the Consumer, But Not Much is New for the Enterprise

| Feb 16, 2010 | Enterprise Mobility | Analysts: Kitty Weldon, Avi Greengart

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Event Summary

February 15, 2010 — Microsoft unveiled Windows Phone 7 Series, a completely redesigned mobile OS distinguished by experience “hubs” and integrated content from Xbox LIVE (games) and Zune (music and video). Carrier partners include AT&T, Deutsche Telekom, Orange, SFR, Sprint, Telecom Italia, Telefónica, Telstra, T-Mobile USA, Verizon Wireless and Vodafone. Manufacturers include Dell, Garmin-Asus, HTC Corp., HP, LG, Samsung, Sony Ericsson, Toshiba and Qualcomm. The first phones will be available by holiday 2010.

Analytical Summary

• Current Perspective: Slightly positive on Microsoft’s Windows Phone 7 series, because this was the radical change consumers have been waiting for in order to reengage with Microsoft. Windows Phone 7 series is now competitive for entertainment and personal productivity. Social networking is built in, the PIM applications are well conceived, and there are tight ties to Microsoft’s other consumer assets such as Bing, Zune and XBOX Live. Microsoft is exerting more control over hardware standards, which may make it more difficult for its licensees to stand out from one another, but makes the platform overall much more compelling and gives developers a single target. However, the key value propositions for the enterprise user remain the same.

• Vendor Importance: Very high to Microsoft, as it is a strategic imperative that Microsoft have a strong entry in the mobile device space, as mobile phones have become mobile computers, and success in phones can be leveraged into the living room, the desktop (PC) and the cloud (Internet services). Windows Mobile 6.x was not competitive with mobile OS offerings from Apple, Google or Palm and is getting beaten in the market by RIM. Microsoft long had all the assets it needed to compete, but couldn’t get its left hand to talk to its right. That has now changed.

• Market Impact: Moderate on enterprise mobility, because Microsoft is a credible competitor again, and this is a market where Microsoft intends to compete for decades to come. However, while there are some enterprise improvements, the focus of the upgrade was in the consumer market. All-Microsoft shops are still going to buy Windows Mobile devices, while RIM, Palm, Apple and Android OEMs are all continuing to erode Windows Mobile market share in companies that want to give employees choice; these employees are just as likely to prefer the management, security and user experience of a BlackBerry or the “cool factor” of an iPhone or Droid.

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Current Perspective

Competitive Strengths and Weaknesses

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