Microsoft (NSDQ:MSFT) CEO Steve Ballmer seems unimpressed with the
progress Google (NSDQ:GOOG)'s Android operating system has been making
in the mobile space. In fact, he's of the mind that Android comes with
plenty of associated costs due to its reliance on Microsoft patents.

In a video interview with Fortune last week, Ballmer suggested that
the fast growth of Google's Android mobile operating system should be
weighed against its patent licensing implications.

"There's nothing free about Android … as we certainly have asserted in
a number of cases, there's an intellectual property royalty due on
that," Ballmer said. "Whether they happen to charge or not for their
software is their business decision."

It wouldn't be much of a stretch to say that Microsoft is getting
frustrated with the industry lovefest that's building around Android.
Google's I/O conference last week was dominated by Android 2.2, code
named Froyo, which added Flash support, Wi-Fi tethering and faster
performance, as well as Microsoft Exchange support.

What's more, Google's I/O event came on the heels of an NPD Group
report that showed Android overtaking the iPhone for the number two
spot in smartphone unit sales. Android is hot, and the contrast to
Microsoft's mobile situation couldn't be more dramatic.

Windows Phone 7 may help, but devices running it won't arrive until
some as-yet undefined timeframe later this year. Meanwhile, Apple
(NSDQ:AAPL) is likely to unveil a new, fourth generation iPhone at
next month's Worldwide Developer Conference, and other handset vendors
aren't going to be twiddling their thumbs either.

Although Microsoft's partners are confident that Windows Phone 7 will
help right the ship, they're not underestimating the significance of
what Google has achieved with Android. Scott Stanfield, CEO of Vertigo
Software, a Richmond, Calif.-based Microsoft partner, sees Android as
a threat to Windows Phone 7 in Microsoft's traditional comfort zone of
the enterprise.

"Now you have a platform that Java developers can work with, unlike
iPhone which is Objective-C," Stanfield said. "We can’t count
Microsoft out yet: from what we’ve seen, Windows Phone 7 will be their
best phone yet. But is it too late?"

Andrew Brust, chief of new technology for twentysix New York, a
Microsoft solution provider in New York City, says Google's success
with Android stems from borrowing elements from the Microsoft Windows
Mobile model and then adding its own improvements in specific areas.

"Android took Microsoft’s software-plus-OEM approach and added far
superior Web browsing, good cloud services integration and an open
developer platform and market," Brust said. "Google's reward for
taking that risk is that they now have a product that the market likes
better than Windows Mobile 6.x."

http://www.crn.com/software/225200013

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