The Empire Strikes Back: AOL vs. Microsoft

The computer world equivalent of the Bush/Gore drama is the AOL versus Microsoft race for whole house connectivity . While Microsoft was first out of the box with its Compaq Ipaq/MSN branded Internet appliance, Gateway and AOL have unleashed its candidate, a 10-inch flat screen Web appliance dubbed the Touch Pad.
Part of AOL's Anywhere (everywhere and beyond) strategy, the new device is significant both as a direct competitor the "other empire" Microsoft and as a barometer of the post PC era. Gateway/AOL's deliberate deletion of Microsoft software and an Intel processor from the Touch Pad further underscore the heated competition between AOL and Microsoft. The Touch Pad incorporates a non-traditional technology trifecta that includes a Mobile LINUX Operating system, a Netscape/AOL Web browser and Transmeta's Crusoe processor.

The Touch Pad fits easily on the kitchen countertop, in the living room or bedroom. Its equipped with a 56K modem and through an alliance with Broadcom, the Touch Pad will have home networking and high speed (broadband) capabilities as well. Touch Pad will be available by December and sold through Gateway. Its software subscription fee will be an AOL bundle called Instant AOL which According to Barry Schuler, president of AOL Interactive Services, "Instant AOL is all about making the Internet even more convenient than ever before. A lot of families keep their PC in a bedroom or study but spend most of their time in the kitchen and family room."

As mentioned, the Touch Pad symbolizes a major shift in the computer industry. Companies like Dell, Compaq and Gateway are shifting focus from traditional PCs to non-traditional devices. Dell with its MP3 music jukebox, Compaq's Ipaq Internet appliance and portable MP3 and Gateway's' Touch Pad plus its version of a MP3 jukebox coming this December. Add to that, IBM's wireless initiative --they will be the first with Bluetooth equipped laptops that communicate wirelessly with cell phones, Sony's Memory Stick frenzy which combines its powerhouse consumer electronics products with its PC business, and Apple's already successful play in home movie editing, and you have a bellwether for the future in the post PC era.

Read more news on the Gateway/AOL announcement here.