Microsoft Licenses ActiveSync For Motorola, PalmOne Smart Phones

The Redmond, Wash.-based software giant this week said it signed a licensing agreement with Motorola that will enable the forthcoming Motosync-based A780 mobile phones to interoperate with Microsoft's Exchange Server 2003. The A780 is based on Linux and Java technologies and will ship in early 2005.

Microsoft signed a similar licensing deal in October with PalmOne, whose proprietary Palm operating system competes with Microsoft's Windows Mobile operating systems, namely CE. PalmOne's Treo 650, which shipped late last month, was the first non-Microsoft platform to use ActiveSync technology, Microsoft said.

The use of ActiveSync will enable these non-Windows phones to sync up wirelessly with Exchange Server 2003 so users can have access to e-mail and calendar services on the road.

ActiveSync, a wireless synchronization server technology that debuted in Exchange Server 2003, is used in other smart phones and Pocket PCs based on Microsoft's Windows Mobile operating system.

One Microsoft Gold Certified Partner said the move won't help Microsoft's mobile operating systems revenues, but it will grow its e-mail business--and advance the deployment of business applications to mobile devices.

"It's not a benefit to Windows Mobile [operating systems], but it helps the Exchange group get more adoption of its server technology and is a way to secure Microsoft's Exchange on the back end," said Simon Chan, director of business development for Iteration2, a solution provider in Irvine, Calif. "There's a very tangible ROI in mobilizing your sales force and every company with a field force--whether sales or services organization--is thinking about mobilizing their apps."

Microsoft expects the move will open up opportunities for Microsoft partners as well as partners that sell PalmOne and Motorola smart phones.

"There are a large set of deployment partners who deploy Exchange into the enterprise infrastructure and whose system integrators are also partners with companies like PalmOne," said Chuck Sabin, a senior technical product manager in Microsoft's Exchange Business Group, when the PalmOne deal was announced last month. "We're opening up new partner opportunities."

Steve Janiak, a senior product manager at PalmOne, said third-party software products from ISVs--including Good Technology, Seven, Bistro and Intellisync--offer ActiveSync synchronization for mobile phones to Exchange. However, out-of-the-box wireless interoperability with Exchange Server 2003 is a significant improvement for Treo 650 and future Treo smart phones.

One Microsoft solution provider said the ActiveSync moves will help Microsoft fight off competitors and sell more Exchange Server 2003 licenses.

"If Microsoft opens up ActiveSync, it will have ripple effect on the mobile device industry," said Ken Winell, CEO of Econium, of Totowa, NJ. "Companies like BlackBerry and its enterprise server and Good Technology will see their market disappear. Smart phone manufacturers will have the ability to offer seamless synchronization with Exchange/Outlook from devices other than Windows CE. Symbian and Palm could be big winners."