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SPECIAL REPORT: Microsoft unveils $3 Windows CE "core" license
May 06, 2003

[Updated May 14, 2003, 11:30am PDT] -- In a bold move, Microsoft chairman Bill Gates unveiled a revised product structure and highly aggressive runtime pricing -- as low as $3 -- for the Windows CE .NET embedded operating system today, at the WinHEC (Windows Hardware Engineering Conference) in New Orleans. The revised pricing model is likely to make Windows CE much more competitive with alternatives such as Wind River's VxWorks, open source embedded Linux, and other embedded operating systems, say analysts.

To provide added perspective on this extremely significant announcement from Microsoft, WindowsForDevices.com brings you this "Special Report," which includes an overview of the new CE .NET product structuring along with a roundup of some of the more interesting news items and articles from around the web that relate to this announcement, plus links to related stories that provide additional background.

Restructured -- and significantly re-priced -- product licensing

Under the new scheme, Windows CE .NET will be licensed according to three runtime alternatives -- "Windows CE .NET 4.2 Core," which includes a basic subset of CE .NET components and will be available at an estimated retail price (ERP) of $3; a "Windows CE. NET 4.2 Professional" version priced at $15 (ERP), which includes the balance of CE .NET other than image, PDF, and Office file viewers; and a "Windows CE. NET 4.2 Professional Plus" version, which adds the viewers.

Microsoft also announced a new free "noncommercial distribution license" for Windows CE .NET 4.2, which permits embedded developers, device manufacturers, and Microsoft's partners to share Windows CE system images for free or noncommercial devices. The purpose of this new free license is to foster innovation and collaboration within the community, the company said.

Revised product structure

As mentioned, Windows CE .NET 4.2 will now be offered in three versions, representing increasingly complete sets of CE .NET functionality . . .
  • Windows CE .NET 4.2 Core -- includes baseline CE .NET operating system components, including the kernel, filesystem, networking and communications stacks, and multimedia functions, plus the application development platform. Microsoft said it is targeting this new low-end package at developers and manufacturers of "low-cost devices such as gateways, entry-level VoIP phones, industrial automation equipment, and consumer electronic devices such as CD players, digital cameras, and networked DVD players."

  • Windows CE. NET 4.2 Professional -- additional system components are now structured into a high-end bundle called the Windows CE. NET 4.2 Professional license. According to Microsoft, the additional programs and functions included in this package include Windows Messenger, WordPad, the Remote Desktop Protocol, and Internet Explorer 6. The company said this software bundle is aimed toward devices requiring "the richest user interface, multimedia and browsing capabilities, including set-top boxes, advanced VoIP devices, mobile handhelds and digital media players."

  • Windows CE. NET 4.2 Professional Plus -- this version is nearly identical to the second one, but adds CE .NET viewers for images, PDFs, and Office-compatible documents (including Microsoft Word, Excel, PowerPoint) are available as extra-cost components.
A downloadable Microsoft document provides detailed infomation on the new Windows CE .NET 4.2 runtime licensing model. The document includes a brief FAQ (frequently asked questions) which answers commonly asked questions about the new strategy, plus a comprehensive functionality comparison catalog that clearly tabulates the distinguishing features of each of the three runtime license options:

Runtime Licensing Model for Windows CE .NET 4.2
(900KB Word file)

Microsoft said the new Windows CE .NET 4.2 licenses and associated tools will become available on June 1, 2003.


Free Noncommercial License and Tools

The new "noncommercial distribution" license included in the free Windows CE .NET 4.2 Emulation Edition and Evaluation Kit permits embedded developers and device manufacturers to prototype and freely distribute Windows CE .NET images for noncommercial purposes, Microsoft said. The new license will be posted on the Microsoft Embedded Web site as of June 1, at the same time the Windows CE .NET 4.2 product offerings become available, the company said.

According to Microsoft, the free downloadable Windows CE .NET 4.2 Emulation Edition enables developers to build and test their Windows CE .NET-based designs without requiring the target hardware. The free Windows CE .NET 4.2 Evaluation Kit allows developers to immediately begin evaluating Windows CE .NET using the full Platform Builder tool along with a complete set of operating system components.

Microsoft also noted that it also now provides more than 2 million lines of source code under the Shared Source Program for Windows CE, allowing developers to view and modify the source code for "noncommercial" purposes.

Note: Microsoft defines noncommercial use as "when no compensation is received for a device image or a product using that image."

The Emulation Edition is available for free via download from the Microsoft Download Center, and the free 120-day Evaluation Kit can be ordered from the Windows Embedded website, Microsoft said. (Note: those ordering the free 120-day Evaluation Kit are required to pay shipping and handling charges.)


Added perspective

Here, we provide a roundup of some of the more interesting news items and articles from around the web that relate to this announcement. Additional stories will be listed as they come to our attention, so check back here for the latest . . .
  • VDC's view on new CE. NET licensing model -- embedded industry analyst, Venture Development Corp. (VDC), offers their perspective on today's announcement by Microsoft of revised CE .NET product structure and licensing. Story

  • Microsoft FAQ on the new CE .NET runtime pricing model -- Microsoft released the following "frequently asked questions" (FAQ) regarding the revised Windows CE .NET product structure and runtime pricing model announced earlier today. Microsoft comments on the reasons behind the changed pricing, device types targeted by the three license options, and how the new approach competes with so-called "free" embedded Linux offerings Story

  • London's Sunday Business -- This article briefly examines Microsoft's per unit price cut of Windows CE and quotes Microsoft spokesman Aubrey Edwards on the merits of the reduced pricing in the mobile phone market, "The $3 version of our software will be suitable for low-end phones, where a $15 version would be too expensive for a manufacturer making a phone to retail for, for instance, $100-$150." A competitor in the mobile phone OS space, Symbian is priced at $5 per unit, according to the article. Story



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