ITU 03: PalmSource CEO: Who wouldn’t be scared to death of Microsoft?

PalmSource CEO David Nagel has cast doubts over rivals Microsoft and Symbian just days before his company is spun off as a software player separate to the rest of Palm.

PalmSource, guardian of the Palm OS and other software that is increasingly being used in smart phones as much as PDAs, has long boasted of the number of applications available for the platform and Palm remains the PDA market leader. However, with inroads being made with cellular operators around the world, speaking to silicon.com at the ITU Telecom World 2003 event in Geneva, he took the position of the underdog going on the offensive against his two closest rivals.

Symbian, the smart phone OS venture backed by a number of device companies, recently saw Motorola sell its stake. Soon after exiting, it launched a Microsoft-based phone. However, it says it is still committed to the Symbian software as well as Linux.

On Symbian, Nagel said: “As Nokia gets more and more apparent control everyone else [backs away]. Symbian’s position is weakened by all the ownership changes taking place and people assume Nokia will dominate.”

He was also critical of Microsoft’s approach, entering the market with Orange and Taiwanese manufacturer HTC, but then building up to some 25 or so additional licensees.

“Microsoft says it has more than 25 licensees [for its Windows Mobile software] but I challenge anyone to name more than five. Most of them will never bring out products,” he said.

“It’s crazy to take a small market and slice it 25 ways. Nobody makes any money.”

Asked, as he was positioning PalmSource as the minnow in the smart phone battle, whether he is concerned about going head-to-head Microsoft, he said: “Of course I am. I’m scared to death. But they’re not infallible. They’ve gone into a number of markets and failed.”

Ed Suwanjindar, lead product manager for Microsoft’s Mobile Devices division, said: “Our partnerships with Samsung and Motorola, two of the top three handset manufacturers reflects the opportunity that device makers and partners at large see in Windows Mobile software.”

Nagel added that there will soon be more top tier licensees for the Palm OS and that the company would entertain Samsung – which has relationships with Microsoft, Palm and Symbian - or even another user of its software taking an equity stake in the business, as Sony did a year ago.

Symbian declined to comment on Nagel’s remarks.