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Palm Announces Separated Software Operations
Eharley writes: "'Palm on Monday announced it has completed the split of its operating system division from the rest of the company. The software unit will now report separately on the financial performance of its licensing business, and could eventually be spun off or sold by Palm.'
Yahoo is carrying the story here. Considering that their market share in PDA devices has been slipping, is this a move that will signal the end of the Palm hardware line or organizers?"
I don't think this will signal the end of the Palm hardware line. From my personal experience people think of Palm as THE personal organizer. Yes, they are familiar with others, but they still refer to them as "Palms" rather than "personal organizers." Their market share may be slipping, but I don't see that meaning the end of their hardware.
It's interesting that they split the software division off. Microsoft is a well established software giant and having a company that only does software is not such a lucrative position with MS in the mix. Unless there's some contract that says Palm hardware has to use Palm software, I wouldn't be suprised if we eventually saw Palms running Windows CE and never saw Palm software again. Don't get me wrong, I'm in no way saying MS is better, I'm just pointing out the fact that they are bullies and they will do anything to destroy another software maker.
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Makes total sense when they're now licensing their OS to several different hardware manufacturers. Think about it. Their hardware team is in direct competition with their own software sales team.
Several companies are in this unique situation but Palm must have realised the benefits of splitting themselves up. Kind of like 3Com splitting off Palm in the first place.
Oh Well. 2002-01-21 01:30:45 Splitting Palm (articles,news) (rejected)
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This is a good move on their part. Palm OS licensees are faced with the conundrum that their OS supplier is also one of their competitors. It's the DSL/ILEC thing all over again. Considering that PDA vendors have the illusion of being able to go to Microsoft for their OS instead (I call it an illusion because Microsoft is a competitior to everyone whether they realize it or not), Palm OS needs to make a better effort to appear hardware-neutral. This is a good way of doing it.
Frankly, I think that console mfrs should do the same thing. Sony and Nintendo should license their console OS's to anyone who wants to build the boxes (imagine the variety we'd see!).
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It's wrong to think that every business automatically uses it's products to boost each other.
It may make very solid financial sence for palm to take steps to ensure their hardware and software sections are financially and legally separated. Maybe the COULD sell more palm devices if they used other software.. and maybe they could make more on software if they weren't stuck with a single platform.
This way.. if one fails, the other can go on.
I think this is probably a very reasonable move, which allows not only the hardware division to experiment with possible altnerate OS's -- including linux, beos, and probably qnx
But it makes more sense from a sub-licensor standpoint, in that the money you pay isn't necessary going to your direct competitor.
It sort of levels the playing field
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"and could eventually be spun off or sold by Palm".
I see it now. . .
Palm spins it off, MS's mere presence threatens to buy and squash it so AOL buys it and uses that as another "see I got that too" to MS.
AOL can't figure out what to do with it so they decide to embed it in their mythical "AOL anyhwere" web-applicance along with RHL, Mozilla, Winamp, etc. Suddenly AOL buys another OS so that MS can't quash it, Palm OS is no longer 'needed' in their scheme so they open-source it and make it another AOLServer, the chaos continues and MS wins because they're the only ones with a direction.
Let's see if my prediction happens. I see a pattern emerging. . . .
From where I am standing I see many more PDA devices running PalmOS. Microsoft may have the marketing power to create the illusion that they have big market share, but in reality any other company would be dead if it was based on moving an OS. The competition here has to be on PocketPC Vs. PalmOS Vs. ???. (Because for one thing Microsoft does not provide any hardware to run their PocketPC OS on). In reality I would bet that their are 50 PalmOS related devices sold for every 1 CE/PocketPC device.
Now do I think that Palm is slacking in their Hardware provisions and enhancments....Hell yes I do...But they are the AOL of the PDA world -- and it wont matter how many bells and whistles they have to compete with -- they still will be the king of the hill.
(+1 Funny) only if I laugh out loud.
The problem for Palm is that their hardware business has a stronger consumer presence than their software. They also appear to have been asleep at the wheel for some time, while Microsoft was busy reinventing the PDA, Palm have not done anything of note since the Palm VII which is still as big and bulky as ever.
Palm are in a hole because Microsoft are producing a pocket computer while Palm are producing a single purpose appliance.
The problem with a Palm is that is appeals to the same people who used their Filofaxes in the 1980s, those obnoxious organized people who can actually remember to charge the damn thing each night. The Palm VII could have been the answer - a PDA and comunicator in one. Unfortunately using a Palm VII is a bit like using a dual boot Linux/Windows PC. It can play Tombraider, or it can run Gnome but not both at once. Same with the Palm VII, it can download email from Palm net, but it does not integrate seamlessly into my corporate mail system, not without some plugin in the sever my IT dept would never install.
The pocket PC on the other hand is not just a PDA, it has Word and Excell and Outlook. It also has an MP3 player that looks pretty solidly aimed at the consumer market.
So OK at the moment there are relatively few consumers with $500 to spend on a pocket PC, but within a year that price will be $300 and the year after $200. There are an awful lot more consumers interested in a consumer gadget than are interested in a cheap PDA.
OK so you can buy lots of software to make a Palm do the same as a PocketPC - only no MP3 output as there is no audio output. The problem is that by the time you do that you have spent more than you would for the PocketPC and you have a processor that is a third the speed and a third the amount of RAM.
The problem for Palm Software is that they have to quickly get to the point where they can make their platform as a package match Pocket PC. They may be able to buy in some software from third parties and bundle. As things stand they are playing Lotus 123 to Microsoft Office.
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In the computer industry, the money is ALWAYS in software rather than hardware. Look at the margins that hardware companies make, or why Microsoft sells each X-Box unit at substantial loss. The marginal cost for an additional copy of Palm OS, or Tony Hawk 2.5X, or whatever, is practically nothing; however, the marginal cost of an additional video card or Palm Pilot is substantial. Greater profits are earned in the software market.
Also, market saturation will reach the hardware market for PDAs much faster than the software market. Who wants to buy another Palm after they just bought their V for three hundred dollars two years ago? Eventually, devices will reach sufficient power and size that continual advancement is senseless, and additional profits will only be extracted by writing new software. Way to see the future, Palm.
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Palm's biggest problem is their processor the "Dragonball" - a special version of the 68xxx series with buildt in LCD display controller.
This processor is OLD !
The competitors are miles ahead (BTW: Cool record !)
EPOC - ARM9
PocketPC - StrongArm
Linux - StrongArm
All 32 bits and a modern OS.
Motorola has several successors to the 68xxx series, but none for the PDA marked, the Coldfire for embedded use and the PowerPC for the desktop, and some embedded powerpc variations.
... is that they made their PDAs work *too* well. Think of it this way: everyone who wants a Palm Pilot has one by now and, if they're anything like any of my friends, they're in no hurry to "upgrade", even to a color screen. Palm's gear is great for the tasks it's designed to perform, and, unfortunately for Palm, there's really no constant need to upgrade like there is for a PC. People who bought Palm Pilots 2 years ago are still in no hurry to replace them, unless they've got a bit of disposable cash laying around (and who does, these days?)
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