The Buzz: MS Scores Big Win with Palm

After a decade of rivalry, Microsoft and Palm finally shook hands Monday morning at a press conference announcing a new Treo smartphone powered by Windows Mobile 5.0. Although the device won't launch until early next year, analysts and consumers alike have already begun to weigh in and the response is overwhelmingly positive.

"While deals like Skype and eBay make you want to check your calendar to see what year it is, deals like this make you want to check outside to see if Hell has frozen over. This is a huge win from a psychological perspective and from a market perspective [for Microsoft]. Microsoft has the potential to be a very strong player in the mobile space. Great device, great form factor, great partner with EV-DO and its all running Windows Mobile 5.0."
- Michael Gartenberg, Jupiter Research

"Today Palm and Microsoft did what Apple has found it virtually impossible to do, create a lasting partnership. This partnership, clearly targeted at the under penetrated opportunity that RIM now so well targets, not only will provide the strongest alternative to date to RIM but, much like the iPod did in the MP3 space, the best opportunity so far to grow the market."
- Rob Enderle, The Enderle Group

"The decision by Palm to introduce a new version of the Treo using Windows Mobile 5.0 should not come as a surprise to anyone given the fact that the Treo is already the best selling smart phone on the market and Palm is determined to keep it that way. Palm's decision to back Windows Mobile should not be viewed as Palm giving up on the Palm OS though. In fact, I am sure they are going to use and support the Palm OS for many years to come."
- Tim Bajarin, Creative Strategies

"It's quite the day, Bill Gates came out himself for the event. Sort of doing a jig celebrating the fall of another territory to Microsoft's juggernaut. Add Palm to the long list of Microsoft enemies such as Lotus, Netscape, Borland, Novell, etc. who have succumbed to the Borg."
- Russellbeattie.com

"In order to deliver the best possible product to the end user in a capitalist democracy there must be competition between providers. The lean to catering to the bottom line for investors conflicts with this, so more often than not we see consolidation, market compression, and poor product quality. Mark my words, it is this day that marks the end of Palm and the end of its quality as a systems developer."
- Tyler Regas, PDAHandyman.com

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