Palm Platform in Jeopardy? Palm, Inc. Comments on the Future of Palm OS
Signaling a disagreement with PalmSource, the division of Access Co. responsible for the Palm operating system on the Treo smartphone, Palm, Inc. disclosed in an annual report filing on Friday that they were no longer bound to make royalty payments to PalmSource after December 2, 2006. According to Palm, PalmSource failed to meet development deadlines established in their agreement, releasing Palm from further cash obligations.
Although this is the first strong signal that a permanent rift may be developing between Palm and PalmSource, this may also simply be posturing prior to a renegotiation of their deal. The next generation operating system being designed by PalmSource will be compatible with the tens of thousands of applications already in the marketplace developed for the Palm operating system. Palm would clearly benefit from a next generation operating system that supports this software, because Palm has a substantial competitive advantage among hardware devices that support such applications, and a less well defined advantage in the world of Windows Mobile.
Some have speculated that Palm may be developing its own operating system competitive with the one PalmSource is creating. This could require a substantial investment by Palm, because the company would only be able to use code copyrighted by PalmSource with permission. Palm disclosed in its annual report a material spike in research and development spending, and that it was negotiating for “expanded development rights” to existing code copyrighted by PalmSource. Also, in an unusual move, Palm bought back from PalmSource the intellectual property rights to the marks “Palm” and “Palm OS.” Therefore, we believe there are are at least some material developments in support of this view.
This weekend, Jim Christensen, Director of Communication for Palm Inc., responded to a request for information from our good friends at PalmAddict. Published in an article entitled “Murky Waters,” the e-mail suggested that Palm, Inc. would continue working with PalmSource subject to a contract renegotiation. Mr. Christensen wrote, “Palm remains committed to working with PalmSource to resolve the development issues.”
Related Links
Read Jim Christensen’s comments to PalmAddict.
Read Palm’s annual report.
Discuss future Treo smartphones in mytreo.net/forum.
Filed under: Treo and Palm news
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Whilst other sites (like TreoCentral) notes that this “news” is but a small clause in a large Risk Factors section, and that anything in a Risk Factors section should be treated with skepticism, there’s no such context here. Instead, a small snippet of questionable value is spun out into a major article with lots of inference and speculation, all still of questionable value.
The annual report is probably another example of Sarbanes-Oxley compliance that forces a company to announce something a lot earlier than they would of in the past. Often it requires disclosing information that even a “reasonable man” would consider premature. A current example is Borland’s announcement much earlier this year that they planned to spin off their developer/IDE products (Delphi, JBuilder, C++Builder, etc.). Rumors went wild. In the past, a company probably would have waited until a decision on a buyer (or to “open-source” it) was made, thus giving a clearer picture of what is going on. In this example, the spinoff is temporarily nicknamed “DevCo” and is now generally viewed as a very positive thing based on subsequent S-O (and at this point rumor control announcements). But, the exact buyer still has still not been announced and that keeps the anxiety level high in the DevCo community. I’m sure it will be the same for the Palm Community until new target dates and responibilities are established, and contracts are signed. Palm and PalmSource need to really communicate as much as possible with the Palm community during this period.
Let me do a little prognosticating. Palm dumps the legacy OS off onto someone else. Retains the Palm and Palm OS monikers and then proceeds to make a Linux based OS which has an emulator for old Palm applications.
Then it releases new devices with it’s new killer OS and emulator to the market. The ramp up time is long and they don’t want anyone to know the plan.
Yes, i’m agree, changing completely the OS, could make a disaster for everyone includes palm, at that point of view, for years have been a thoudsands of software for palm os, if palm changes everything, what could happen with data, contacts, software?. I think a lot of people are using software for years. maybe a very good transition could be extremely needed.
Access is intent on delivering a real, powerful Linux distribution (think “Lindows”) on mobile platforms, they apparently feel that PalmOS has reached its pinnacle (but, hey kids, my 700p runs slower than my old 650, whassup?????) I’m inclined to agree but lean more toward Unix, with maybe an Apple licensed gui, they can keep iTunes though… I’m much happier with my CoreMP and my flac files (as well as divx, 3ivx, xvid, m4a, aac, Apple lossless, wav, ape, mp4, mp2, avi, mov, etc…)
For me, this situation is appalling. It could be a beautiful partnership going to the dogs (but I hope NOT). I really can’t fathom how, in the corporate world, its actors play the game. I love MERGERS, but this…? I suppose, if this relationship goes awry, then, divorce is in the works. It’s not the OS, it’s not the product, it’s not the money. I believe, it’s the partnership that makes such wonderful product that is of utmost importance. I wish something positive (not this rift happening) is being considered and implemented by both parties. Both companies do not know what they could lose. Guys, I love your Treo; please reconsider.