Tuesday, November 28, 2006

Microsoft Wins Mobile Software Contract from US Census Bureau

Microsoft Corp. has just won its biggest ever mobile software contract, in the form of an order from the US Census Bureau for 500,000 Windows Mobile-equipped handheld devices.

This deal alone will put Microsoft well on the way to its goal of outdoing BlackBerry in the wireless email market, and achieving annual sales of $1 billion for its mobile software division.

“Up until now, BlackBerry had the market for themselves,” said Microsoft vice president, Peter Knook in an interview. “That landscape has changed.”

The software giant wouldn’t release the exact value of the Census Bureau contract, but did say that Windows-based devices would be used to collect information in the 2010 US census. Windows-equipped smartphones are build by such manufacturers as Palm and Motorola, and include functions to surf the internet, receive email, listen to music, and use MS Office software applications.

Research firm, IDC, is optimistic about Microsoft’s future in mobile software, especially given the climate of growth in the market for cell phone operating systems. IDC analysts expect the number of Windows Mobile users to double annually for the next two years, but don’t yet see Microsoft-powered devices as a true alternative to the RIM BlackBerry.

“They’re nowhere right now,” commented IDC analyst Kevin Burden. “RIM is still the mobile enterprise solution that all others should be measured against.”

If it hopes to truly revolutionize the market, Microsoft still has a lot of work to do in winning the trust of corporate wireless email users. This latest contract is an encouraging sign, but only time will tell if other public and private sector organizations will follow the Census Bureau’s lead, and flock to Windows Mobile.