Sunday, January 28, 2007

Palm
I wasn't surprised to see a few shrill articles about the death of the Palm OS this week. The ten-year-old mobile operating system has been "dying" for most of its life in the assessment of the technical media—at least dating back to when the first Pocket PC devices hit the market in 2000. But the original PDA OS still dominates the handheld device market and has in recent years occupied a small but high-profile beachhead on the global smartphone market, thanks to the popularity of the Palm Treo. Still, when its owner ACCESS announced it was renaming the venerable Palm OS Garnet to "Garnet OS" it seemed even to many fair-minded observers to have suffered a humiliating blow.

At the risk of sounding absurdly optimistic in the face of the declining PDA market and the Palm OS's beleaguered status in the tough smartphone market, I am going on record saying that its renaming is actually something of a milestone in the rebirth of the "Palm" brand. To understand why this could be so you need to know a bit of history.

To start with, while ACCESS has been decried for the renaming, it wasn't actually something they had a choice about. In May of 2005 PalmSource sold the right to the previously shared Palm brand to then-PalmOne, and agreed to phase out its use of the name in all its products within four years. PalmOne immediately changed its name back to Palm Inc. and it was only a matter of time before ACCESS—party to the agreement by dint of its acquisition of PalmSource—would begin the process of removing the Palm name from all of its products. When PalmSource was renamed ACCESS last October this was symbolic of the integration of parent and subsidiary, but it was also the first step toward compliance with that two-year old agreement. Changing "Palm OS Garnet" to "Garnet OS" is just the next step. Eventually ACCESS products like Palm Desktop will have to be renamed or replaced as well.

What's more interesting is what the change means for Palm. As has been widely publicized, Palm reacquired from ACCESS the right to use and develop the Garnet OS source code in pretty much any way it choses as long as backward compatibility is maintained, as established by a mutually agreed upon test suite. Less publicized is the fact that Palm is actually exempt from having to use the name Garnet OS in any products it releases with this OS. In explaining this deal with Palm, ACCESS stated:
Under terms of the agreement, we have given Palm the right to use either "Palm OS by ACCESS" or the product's new name... when referring to the operating system licensed with this new agreement.
So from Palm's perspective this renaming exercise by ACCESS would appear to mean next to nothing.

But appearances can be deceiving. As I've mentioned several times before, Palm's reacquistion of the Garnet source code was not just so Palm didn't have to depend on ACCESS to make minor tweaks and bug fixes. The $44M agreement included concessions by ACCESS that give Palm "the right to use Palm OS Garnet in whole, or in part, in any product from Palm and together with any other system technologies." Palm's press release about the agreement was a bit more definite about what this meant:
Palm has secured an expansion of its existing patent license from ACCESS to cover all current and future Palm products, regardless of the underlying operating system. [emphasis mine]

I've gone into some detail in several other posts about the evidence that Palm needed this agreement to enable it to develop it's own Linux-based successor to the Palm OS, apart from that being developed by ACCESS. If I'm right about this, what makes the renaming of Palm OS Garnet so interesting, is that it actually clears the way for Palm to give the name "Palm OS" to its next-generation operating system. Palm owns the brand, it owns its OS, and as of this week no other company will be able to use the name Palm OS.

The Palm brand had become quite a mess in the last few years, what with the ill-fated PalmOne/PalmSource split and the subsequent buyout of PalmSource, but since Ed Colligan took the helm at Palm he's done a great job in putting the brand back together again. More than just the brand, he has hired back many of the original developers of the Palm OS and regained the right to build the next generation of the Palm OS. From where I stand it looks like this project has been under way for at least a couple of years, and I expect we'll be hearing an announcement about a modernized but Garnet-compatible "Palm System 7" (or some such) within the next few months.

Comments

Great article David. Unlike a lot of the FUD and misinterpretations going around, your summary of Palm's reacquisition of the Palm brand from PalmSource/ACCESS along with the terms of their agreement with ACCESS to acquire the rights to use Garnet code clearly shows that Palm, Inc. can and probably will build their own OS based on LInux and carrying the Palm brand.

An important part of Palm's brand is their differentiation and user experience - the "Zen of Palm". Another quote from Palm's press release drives this point home and shows how important this differentiation is, and how Garnet code/legacy support is critical:

""This agreement gives Palm increased ability to innovate on the Palm OS Garnet base, and to effectively differentiate Palm products long into the future," said Mark Bercow, senior vice president of business development at Palm, Inc."

ACCESS's ALP can't guarantee this differentiation to Palm, especially in an increasingly crowded and competitive smartphone & mobile computing market. To ACCESS, Palm would be just another licensee, just as they are with Microsoft.

Posted by Brian at Sunday, January 28, 2007 18:33:54

Great comment. I agree completely. I think ALP is an interesting platform in its own right and I'm eager to see it gain some prominence, but I expect that Palm would not have been interested in ALP no matter how good it turned out to be for the exact reasons you describe.

Posted by cervezas at Sunday, January 28, 2007 18:52:12

This makes so much sense in light of the recent presentation of the Apple iPhone. What's unique about the iPhone is the exclusive bundling of sleek hardware and a very distinctive OS. Palm will be basically doing the same with their Treos. They will be the only phones you can buy running Palm OS, with all the good things associated with it (lots of applications, a large developer base, the Zen...), that honestly the iPhone will never have.

People want the Palm OS on Palm devices. This is why the Palm/PalmSource split was bad, and other Palm OS based devices (Tapwave?) were not successful.

If what you describe is true, I really welcome the future of Palm. It will be fun to see what happens in 2007.

Posted by feranick at Sunday, January 28, 2007 20:04:07

David,

I agree with majority of your comments but I wonder why you're so convinced that Palm will work on its own Linux layer rather than use ALP? I know you've been basing this on the volume of recent Linux hirings at Palm, but these could also be related to work required to integrate ALP with Palm h/w platform, etc.

I'd appreciate your comments.

Good luck with your great blog!

Posted by lwojcieszak at Monday, February 26, 2007 07:38:28

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