| Microsoft aims new Windows version at cash registers, kiosks |
Oct. 03, 2004
[Updated Oct. 4, 2004] -- Microsoft announced today that it is developing a specialized version of its Windows XP Embedded operating system aimed at the retail and hospitality industries. Microsoft hopes the new OS version -- to be known as "Windows Embedded for Point of Service" -- will become the software platform for millions of next-generation point-of-sale terminals (cash registers), self-checkout devices, information kiosks, and other computerized equipment used to interact with customers in stores, hotels, shopping malls, airports, and other public settings. The new software platform is expected to become available by mid-2005.
Based on technologies available in Windows XP Embedded with Service Pack 2 (XPe SP2), also announced today, Windows Embedded for Point of Service aims to "enhance the customer experience at the point of service, increase reliability and security, and deliver low life-cycle costs for POS systems," Microsoft says.
The stakes in the POS market are high. According to the IHL Consulting Group, a market analyst firm that specializes in the retail industry, the total revenue for the North American retail point-of-sale market in 2003 was approximately $7.1 billion, of which slightly over $1B represented new software shipments.
Plug-and-play convenience
According to Microsoft, the new OS will be the first industry-specific software platform for the Point of Service market to provide plug-and-play functionality enabling retail device peripherals to be easily installed and managed. Having studied the POS market's needs for some 18 months, Microsoft found that the retail POS market suffers from a lack of modernized standards, needlessly complex and and costly system upgrade and maintenance methods, and a need to migrate to next-generation interface, peripheral, and communications technologies.
In particular, the process of integrating and managing peripherals such as scanners, receipt printers, cash drawers, and magnetic stripe readers is costly and time-consuming in the Point of Service industry, due to reliance on existing COM-based technology, according to Microsoft product manager Jason Demeny. Retailers typically allocate less than 1.5 percent of their costs to I.T. expenses, so it's critical to minimize these cost factors, he says. Additionally, many new types of periperals will enter the retail industry over the next several years, including RFID, wireless technologies, biometric scanners, and multi-display devices, so the market will be faced with costly upgrade challenges.
Key objectives
Accordingly, Microsoft defines its three primary design goals for Windows Embedded for Point of Service as follows: - Be easy to set up, use and manage -- Plug-and-play functionality easily integrates and manages retail device peripherals such as scanners, receipt printers and cash drawers. In addition, support for the Unified Point of Service (UPOS) standard, compatibility with Win32-based applications, and support for the Microsoft .NET Framework simplify the setup, use and management of POS systems. Stronger default security settings and tools increase network protection to enable a more secure experience on POS systems.
- Enable scenarios for today and tomorrow -- Support for advanced multimedia technologies such as Windows Media Player, support for emerging technologies such as RFID and biometrics, and communications technologies such as wireless networking create opportunities for innovative new retail solutions and customer interactions.
- Reduce life-cycle costs -- A standard software platform that uses familiar deployment technologies and support for management technologies such as Software Update Services 2.0, Windows Update Services and Systems Management Server 2003 -- and a platform with a support policy of 10 years -- reduces development, deployment, servicing and support costs through the life cycle of the POS system.
Current status
Microsoft says it has been working with more than 30 "industry-leading" retail and hospitality device makers and application vendors, who are developing solutions built around the new Windows Embedded for Point of Service software platform. Early participants are said to include: equipment makers Fujitsu Transaction Solutions, Micros Systems, and Wincor-Nixdorf; independent software vendors InfoGenesis, NSB Group, Retalix, and xpient Solutions; retail peripheral companies APG Cash Drawer, Ingenico, Seiko Epson, Sorimachi-Giken, Memory Technology, Tatung, and Ultimate Technology; and systems integrator Bsquare.
The new Windows Embedded for Point of Service software platform, currently under development, consists of a subset of Windows XP Embedded SP2 technologies along with added market-specific technologies tailored to the needs of the Point of Service market, according to Demeny. Key capabilities will include new plug-and-play support for peripherals such as RFID, biometrics, and magnetic strip readers, as well as the security, management, and other capabilities of XPe SP2. And, as with XPe SP2, Microsoft will supply at least 10 years of product support, he adds.
Microsoft's new Point of Service software platform falls under the umbrella of its Windows XP based "Smarter Retailing Initiative" (SRI) launched earlier this year. At the time of its launch, Microsoft said that the initiative would be based on Windows XP Embedded along with open industry standards such as Web services and XML, and retail-specific standards such as IX Retail, OPOS, RFID, and UCCNet. Microsoft claimed SRI would "fundamentally change the retailer's rules of engagement with customers and the customer's in-store experience."
Further details on the Windows Embedded for Point of Service platform are available here. Information regarding Microsoft's Smarter Retailing Initiative can be found here.
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