Palm and Microsoft are collaborating with their respective engineers. As such, once the Palm software engineers give away their trade secrets etc, then Microsoft will be able to emulate the Palm OS on a Microsoft controlled device.
Software developers will start crossing over to create programs that will work on a Microsoft based OS and they'll emulate their current interface etc on that platform. This is why Microsoft, IMHO, decided on this collaboration.
Palm will "sell" it's expertise in smartphone design and eventually be blended into the campus at Redmond, albeit perhaps a seperate campus in Sunnyvale.
The world is moving to converged devices. Let's face it. The Treo is actually smaller than the original Palm Pilot. Therefore, why would anyone (and we won't be given the option) carry two devices - phone and pda? Technology is moving at the speed of business.
The first users of these device will be business. It will integrate seamlessly with their existing Outlook/Exchange servers in a wireless fashion. Add streaming video to that mix via the EVDO or EDGE technologies and now you have a device that will carry your personal info (PDA) act as a phone, act as a small TV, take a snapshot (don't forget the 1.3megapixel camera) and what else: Oh, MP3, email, office documents just about anything you can do with your computer.
Ok, that said - why will it be the death of Palm: Specifically, Palm can not crack the business community properly. Why, because Microsoft wouldn't give them the code. MS could crack the PDA market with their highpowered over priced non-consumer friendly devices.
Ok, Palm is about to lauch a $99 color cheapie PDA. Why? Because the market is still there and untouched for some users and because when it comes to business devices - Microsoft has that market virtually cornered.
Now Apple releases the Ipod phone through Cingular. Why, because Apple appeals to high end users for graphics and artististic software (photos etc). So they go after the low end market on "tunes" with the new cellular phone.
Ok, now the vision of these two companies again, IMHO:
The day is coming quickly when you won't need a personal PC on your desktop! ...........What? has Moose lost his animal mind?
Bear with me: Corporate email is now moslty Exchange which can be accessed via the new OWA protocol from virtually any PC that has a Internet connection - without Outlook. Personal email has moved to IMAP such as Google, Yahoo, Juno etc......you don't need a PC to access it....just a connection.
With EVDO speed, you can hook up a keyboard to your mobile device and have a full size screen on your desktop and then have gigs of storage on Google or Yahoo transfer pictures from your SD card to this remote hard drive........what do you need a computer for. What do you need a PDA for?
The day is coming that you'll carry a Treo like device and it'll provide you with all of the above.....and that day is close - first quarter of 2006 based upon today's press conference.
Business will endorse this quickly which will cause the price to drop when production kicks up to meet demand and then you'll be buying a $399 phone with rebates for $50......why would you then just buy a PHONE.
That's the end of Palm rolled into MS.
I give it 5 to 6 years before the network speed of all of the remaining wireless carriers is fast enough to handle it. And EVDO is already at 1.5MBs which is faster than most DSL.