People whose view of the industry doesn't stretch much further than the ends of their noses - just as far as their PC screens - naturally see Microsoft as the dominant software supplier. Meanwhile, Microsoft is struggling to make an impact in huge areas of the software business where it is the underdog. These include games consoles, handhelds and mobile phones, server operating systems and software, and business applications.
Handhelds and mobiles are the two most prominent applications for Microsoft's embedded operating system, Windows CE (originally Consumer Electronics). It is also used in smart computer terminals, wireless screens, internet phones, cars, tills, television set-top boxes, cable modems, DVD players, robot arms and other products, including a sewing machine.
Microsoft's PocketPC group is probably the biggest customer for CE. It takes the modules it needs and packages them into a platform for sale to PDA manufacturers. But many companies use Windows CE in computers that are not PocketPCs or even handhelds.
Windows Automotive is another CE platform, and includes a speech interface. It is used in 17 car lines from eight manufacturers: BMW, Citroen, Fiat, Honda, Mitsubishi, Subaru, Toyota and Volvo.
Unfortunately for Microsoft, embedded operating systems do not command high prices. At this month's Windows Hardware Engineering Conference in New Orleans, Microsoft announced a headline price of about $3 per copy for the operating system core.
To compete with embedded versions of Linux, Microsoft also has a "shared source" initiative for Windows CE. You could download the source code, change it and use it for educational purposes. Last week, Aubrey Edwards, director of Microsoft's embedded and appliance platforms group, told me: "We've expanded that to include commercial companies developing prototypes and running trials. As long as they don't get paid for the device, they don't have to pay for the operating system image."
Microsoft also announced Platform Builder, a Wizard that makes it easy to generate code for a device. Products range from a digital video receiver to Windows Thin Client, and software such as Windows Messenger, WordPad, etc.
As with other tools, such as PowerPoint, Microsoft has deskilled the task so anyone can do it... as long as they don't mind their results being much like everyone else's.
All this is fine if you are using a 32-bit processor, and need a wide range of features. Internet networking, a firewall, Windows Media Audio and MP3 codecs, and internationalisation facilities are all part of the core system; Bluetooth and Wi-Fi wireless support are easily added. Microsoft's big bet is that lots of device manufacturers will need them.
But today, most don't. Many want to use cheaper 8-bit and 16-bit processors and as little software as possible. There may one day be a big market for wireless knitting machines that download patterns from the net, and smart phones with PDA features, but until then, I suspect CE will remain of minority interest.
