Rugged Computing Industry Discussion (2)

3. While Android is hugely successful in smartphones, it has struggled in tablets. Why do you think that is, and are the verticals missing a big opportunity by not at least exploring Android versions of rugged tablets?

4. The iPad does not use a pen. Do you consider the availability of a pen essential in a vertical market rugged tablet?

5. While the consumer smartphone market is dominated by iOS and Android, vertical handhelds largely still use Windows CE/Mobile, essentially a decade-old platform. Why do we not see Android-based vertical market handhelds?

Hellström: It is one thing for me, as a consumer, to decide that I want an Android tablet. It is entirely different for an enterprise, with legacy systems, many users, and budgetary constraints to decide to change over the whole enterprise. Consumers can experiment with a device here or there. A utility company with 1,000 field technicians can't. They need a proven enterprise device and software running on an operating system that they can integrate with the rest of the company. There are many companies doing that sort of experimentation right now, and it will certainly increase as the smaller or more agile enterprises take the lead.

Stinson: Vertical market handhelds are quite different from vertical market tablets — primarily, they don't offer the same degree of flexibility and often are "point specific" in that they have a single operational function in mind. These solutions are dominated by legacy software and as a result are reliant on older platforms. As the tablet market evolves, we anticipate that the handheld market will shortly begin to follow.

Hellström: Yes, it is still very valid.

Stinson: While there are certainly a number of useful "apps" out there, many of them are reader or light versions of business-critical applications and don't have the features required to support all users. Businesses can't run on "apps" alone — many require full software applications and programs, such as electronic medical records (EMRs) in healthcare or project management and building information model (BIM) software in construction. These full software applications require certain levels of power and performance and many won't work with just any operating system. We see "app"-based tablets co-existing with full Windows tablets for a long time.

Hellström: Possibly slightly. Large enterprises are understandably cautious, they need to be sure that a new OS is one that they can live with for many years. They know Windows, so it is a bit less risky but it is still an OS change.

Stinson: Windows is already a lower-risk alternative to Android, and Windows 8 will only further cement that status, especially with its improved security features. When you couple new enhancements, such as improved touch navigation, the overall user experience will be greatly improved. By offering compatibility with legacy software with some of the mobile phone OS features, Windows 8 has the potential to significantly impact the future of the tablet market — both consumer and business-grade.

Hellström: Absolutely not. The mobile computer market is growing exponentially, there is plenty of room out there for both.

Stinson: For consumer tablets and general business use or bring-your-own-device (BYOD), no. But for vertical markets where Windows is already outperforming Android, yes Windows 8 will be an even bigger threat. Unless the vendor and/or the user are able to build a complete and stable solution that is independent of Google's Android roadmap, it is going to be difficult for Android to dislodge Windows. Vertical customers need a solution that has some depth to it and will remain stable over a number of years. Google isn't really focused on either of those points — they are more interested in rapid iteration as both the Android OS and its ecosystem matures. This is good for a consumer or a general business person, but it will wreak havoc on the vertical user.

Hellström: It means that ARM based tablets will not be an option for those applications. Will ARM based units be able to compete with Android is the interesting question.

Stinson: It means that they need to use an Intel-based tablet. ARM-based Windows 8 tablets are expected to be very consumer-focused; at least for the first 12 months as the business software developers develop Metro UI versions of their enterprise applications. It comes down to need. If a business needs to run legacy Windows applications, then it's going to find a solution to support that. With the amount of tablets available today, businesses don't have to make concessions when it comes to selecting a device. It is time-consuming and costly to either make a complete OS switch or to configure "apps" to fit existing workflows — many of our customers just don't have the time or the resources to do it. Consider a retailer looking to upgrade its systems — if it's after summertime, it's just not an option to look at a different operating environment.

Hellström: Yes, with the latest Atom chipsets there is both speed and low power, plus the huge advantage of legacy application compatibility.

Stinson: Yes, because ARM-based platforms won't run the applications that certain customers need. It's important to differentiate between consumer and vertical business markets. ARM-based platforms mainly consist of consumer devices. Many vertical businesses run intensive software applications and programs that require powerful processors. We're also at a point where the technology can support these high levels of performance while maintaining seven to eight hours of battery life, or all day use.

Hellström: There are always reasons beyond the technical specs why some devices/companies succeed where others failed: timing, marketing, pricing, and just plain old luck play a part. There is plenty of room in this expanding market for other players. Apple training consumers about the benefits and gained efficiencies of mobile devices: it helps us all.

Stinson: The primary problem was that there were no business applications for their business tablets. Hardware folks don't always like to acknowledge the fact that software drives the selection of hardware, but it has been true in the past and it still seems to be the case now.

It's not that there's no room for anyone but Apple, but that Apple led the way, and as a result, offers a much more mature solution — in comparison to Android-based devices. The fact of the matter is that it's not about the tablet so to speak — it's about the application. Whether the application needed is available via the iOS on the iPad or through the Motion J3500 Tablet PC is what makes the decision for many vertical market businesses -- that and features that help devices to be more usable and protected in harsh working conditions.

Hellström: No. If an iPad will work for your enterprise, go for it. But the reality is that the lack of ruggedness does matter. We've been down this road many times, and will probably revisit it again after this. Enterprises can try to outfit their mobile field workers with consumer grade devices in order to save some upfront costs. But in the end, there is a true and compelling case for supplying them with devices that are designed to truly meet their needs.

Stinson: No — the Kindle Fire is doing a great job against the iPad. It's picked up 50% of the tablet market share. If you are going to compete head to head against the iPad, you need to be focused on an area where you have an advantage. Because the iPad is so well known, it's going to be the first thing most people think of when considering mobilizing their workforces. However, it's not going to be the only device evaluated. Most organizations will take usability, integration, security and costs into consideration. Once vertical businesses really examine their workflows, they'll often find that they need more processing power than originally thought, the ability to clearly view the tablets outdoors or integrated features that can reduce the amount of devices that must be managed in the field.

Hellström: It probably has some impact. It is definitely easier to get behind an OS with a clear story and a clear direction. You yourself have often complained of how Microsoft handled that with Windows Mobile. Enterprise users make long-term buying decisions — a clear and straightforward direction on the Android OS would probably put some minds at ease.

Stinson: It's definitely a factor and an example of something trying to be too many things for too many people. There's a lot going on with multiple versions of the OS and platforms ranging from smartphones to tablets to TVs. In this case, the solution is perceived as "unstable" which makes it difficult for IT buyers to support — both from a technical and a management perspective. The current incompatibilities across OS versions and the lack of a consistent upgrade path from one version to the next are also problems. It is very difficult to use Android as the basis for a managed platform for vertical business customers.

Hellström: Yes, there would be a market for a device like that. But the volumes are going to be what drive the pricing and it is unlikely that you'll see a quality device with these specs even at massive volumes for under $1,000. But to get those volumes, this device needs to hold extremely wide appeal and based on our customer requests I'm not sure it would. The majority of our users attach their tablet to something else, a probe, a sensor, a printers. Adding that level of connectivity opens a can of worms on your device specs.

Stinson: There's always a market, meaning there's going to be someone out there whose workflow demands these types of specifications. However, keep in mind that the market is most likely going to be a small one. It's important for vendors to find the right balance — too many features can drive up price as well as limit a device's success.

Hellström: Not a chance. The response to the Handheld Algiz 7 rugged tablet has been overwhelming. It isn't just because people are jumping on the tablet bandwagon, but rather that it gives them more screen real estate than they'd had to live with on rugged PDAs, at a considerably lower cost and lower weight that rugged tablets have previously offered. The applications will only grow from here.

Stinson: Tablets are here to stay. As technology has progressed, we've become more and more mobile, expecting anytime, anywhere access to information. By experiencing the benefits in our personal lives, it's only a natural progression that we would then apply it to the professional realm. Tablets are a combination of the right form factor, ergonomics, integrated features, battery life, performance and price..

Hellström: This is just a different market. There is enough business on the consumer side and the enterprise side to keep both models healthy and growing. Rugged tablet computers are used by people with a mission-critical application, media tablets generally aren't. Increasing sales on both ends of the spectrum helps everyone: component costs come down, performance specs improve. A rising tide raises all the boats, and in this case our "boat" is able to actually survive in that water.

Stinson: There are many organizations that will still have to rely on durability — where a case just won't provide the protection they need. In these cases, both safety and uptime are going to be the primary purchase drivers. However, in other cases, the price premium of a fully-rugged tablet may no longer be justifiable. More and more users are realizing that there are a variety of devices on the market that will fit their specific needs. It's no longer one-size-fits-all. It's critical that buyers examine their workflows first — devices second, and very importantly not the other way around.