JANUARY 12, 2009

Microsoft Betting Big on 'Touch'
Software Giant Invests in Touch-Screen Technology for Personal Computers

By NICK WINGFIELD
Wall Street Journal

http://online.wsj.com/article/SB123172288454472521.html


While Apple Inc.'s iPhone kicked off the craze for touch-sensing screens on 
mobile phones, Microsoft Corp. is pushing a similar technology for 
personal-computer screens that could eventually replace the computer mouse.

N-trig Ltd., an Israeli start-up that makes touch-sensing screen hardware, 
is expected to announce that Microsoft is the largest investor in a $24 
million round of funding that also includes several venture-capital firms. 
The Redmond, Wash., software company is making the investment to help 
N-trig quickly adapt its technology to work well with Windows 7, the coming 
version of Microsoft's dominant operating system. It didn't disclose the 
specific size of Microsoft's investment.

The agreement is part of a gamble by Microsoft that consumers will 
eventually prefer to control their PCs with finger gestures, rather than 
pointing and clicking with a mouse. Microsoft is more deeply integrating 
touch features into Windows 7 -- due out in final form sometime before 
January of next year -- than it has in any previous version of Windows. The 
company is now mobilizing software-application makers, PC companies and 
component suppliers like N-trig to tool their products for Windows 7. 
Microsoft unveiled a test version of the operating system last week.

To be sure, touch-sensing PCs could end up as little more than a gimmick, 
but if the technology catches on as it has in the cellphone business, it 
could provide the first meaningful change in how users interact with PCs in 
decades.

Proponents of touch screens hope users will find it more appealing to 
browse libraries of photos, music and videos on their PCs by swiping their 
fingers across their computer screens, rather than do those same tasks with 
a keyboard and computer mouse. Touch screens let users zoom in on maps by 
pinching their fingers together, and to pivot around a three-dimensional 
map by sweeping their hands across the screen. Like virtual sculptors, 
engineers and architects could use the technology to mold simulated objects 
with their hands.

Bill Veghte, senior vice president for Microsoft's Windows business, says 
some likely applications are in education, as well as for shared PCs in 
places like the kitchen, where they can be used for things like recipes, 
online traffic reports and directions.

"It provides another natural way to interact with the computer," Mr. Veghte 
says.

He adds that touch screens aren't useful for all PC applications. Nor will 
they likely ever replace keyboards, which are more efficient for entering 
text. But touch-screen advocates predict mice and comparable pointing 
devices on notebooks will eventually fade from popular use.

"The mouse, I think, is gone," says Amichai Ben-David, CEO of N-trig. "I 
don't see a reason to have one."

Touch-screen technologies have been around for decades, used for purposes 
like automated teller machines and some mobile phones. Early 
implementations of the technology would often require users to press hard 
on screens that didn't respond snappily enough, limitations that have been 
overcome in recent years.

Furthermore, "multitouch" screens like those on the iPhone have opened up 
new ways of manipulating objects on screens with multiple fingers -- like 
enlarging photos by spreading two fingers apart.

Touch-screen companies got a huge boost when Apple CEO Steve Jobs unveiled 
the iPhone two years ago at Macworld. After the debut of iPhone -- which 
would inspire many cellphone makers to add similar technology -- PC 
companies that had largely ignored his sales pitch began returning his 
calls, he says.

"I didn't need the iPhone out," Mr. Ben-David says. "I just needed Steve 
Jobs in January 2007 announcing touch and showing the smoothness of it."

N-Trig's touch-screen technology is used in notebook PCs from Dell Inc. and 
Hewlett-Packard Co. H-P has become one of the most aggressive adopters with 
its TouchSmart line of computers, sales of which have "far exceeded" the 
company's expectations, according to Philip McKinney, vice president and 
chief technology officer of H-P's personal systems group. Those machines 
are sold with Microsoft's version of its operating system, Windows Vista, 
but H-P had to design extra software to more easily manipulate applications 
with users' fingers.

Mr. McKinney says Windows 7 will accelerate the changes necessary for new 
applications -- software designed for the new operating system, for 
example, will have wider scroll bars to better accommodate the width of 
fingers. But there will still be areas where touch isn't much use, he says.

"You're not going to do an Excel spreadsheet by touch," he says. "It's not 
a panacea."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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