Windows P7 and .NET conflicting interests?

Vertigo Software is a longtime Microsoft partner and a major supporter of the Redmond company’s upcoming Windows Phone 7 mobile operating system. But lately it has begun dabbling in apps for Apple’s devices and Google’s Android phones, as well

“The No. 1 question we get is, ‘Can you build us an iPhone and iPad application?’ ” said Scott Stanfield, chief executive of the Point Richmond, Calif., software development and consulting company.

Welcome to Microsoft’s biggest opportunity — and one of its biggest obstacles — in its attempt to come back in the mobile market.

As it prepares to launch Windows Phone 7 in coming weeks, Microsoft is trying to build a critical mass of mobile apps by courting many of the same software shops that have made the company a success on PCs and computer servers. But the rise of Apple and Google in mobile phones has caused some of the most staunch Microsoft supporters to start hedging their bets.

Microsoft’s effort to win the loyalty of those developers will be key to its fate in the mobile market — and, by extension, to the company’s future, as mobile technologies play a larger role in the technology landscape. An early leader in mobile phones, Microsoft is now No. 4 in the U.S., behind BlackBerry, the iPhone, and Android, creating a serious challenge for the company as it tries to regain momentum among mobile phone users and mobile software developers.

Compelling apps would be key to a rebound, helping to attract those users. And the existing base of Microsoft-focused developers represents untapped potential in the smartphone market, said analyst Al Hilwa, a Seattle-based program director for applications development software at the IDC research firm.

“There’s a few million of these guys out there,” he said, “and they’re really champing at the bit to bring a lot of their applications and code to Windows Phone 7.”

Microsoft set the stage by basing its Windows Phone Developer Tools on its existing .NET development technologies, the Silverlight interactive platform and the XNA Game Studio. The company is emphasizing ease of use in the tools, trying to make it straightforward for developers to apply their existing skills to make mobile apps.

The big question is whether that interest will translate into the actual production of mobile apps.

And it’s not a sure thing. One challenge is that .NET developers have focused historically on business software, while Microsoft is positioning the first version of Windows Phone 7 to appeal, first and foremost, to consumers, said Ken Levy, president of the MashupX LLC consulting firm, co-host of the CodeCast podcast and president of the .NET Developer Association user group in Redmond.

Further complicating matters are limitations in the initial Windows Phone 7 platform, including the inability to run one third-party application in the background while another is active in the foreground, a capability commonly known as multitasking. Microsoft will launch Windows Phone 7 exclusively on the GSM mobile standard at first, initially excluding Verizon as a carrier and limiting the potential market to AT&T and T-Mobile in the U.S.

Microsoft will have a Windows Phone Marketplace similar to Apple’s App Store, but the company’s heritage is in providing platforms for business software, including applications developed for internal use, and many companies won’t be comfortable distributing their internal applications in a public marketplace. Previous versions of Microsoft’s mobile software allowed for direct installation of apps, without going through an app store, but that won’t be a widely available option with Windows Phone 7.

That promises to make it more difficult for Microsoft to leverage the .NET development community to support the Windows Phone 7 launch.

“We recognize that some developers and business organizations would like an additional private distribution mechanism, and are investigating potential solutions to address these customer needs,” a company representative said in a statement. The company didn’t explain what that mechanism might involve, but possibilities could include direct loading of apps or a separate, secure distribution channel for enterprise applications.

Levy, formerly a Microsoft community manager for Visual FoxPro and Visual Studio, said he hopes to see Windows Phone 7 succeed, to create more competition in the marketplace. But the situation creates a bit of a disconnect for .NET developers, he said. Many of them are very interested in Windows Phone 7, he said, citing the large crowd that attended a recent .NET Developer Association meeting on the subject.

But in general, he said, “.NET developers don’t build consumer apps.”

Even so, Microsoft executives say they’re encouraged by what they see so far. Microsoft said there were more than 300,000 downloads of the Windows Phone 7 developer tools even before they were finalized. Apps for high-profile online services such as Netflix and Twitter will be available at launch, for which Microsoft hasn’t yet released a date. Charlie Kindel, a Windows Phone general manager, said the company is making progress in winning over some Android and iPhone developers, and web developers, in addition to traditional .NET developers.

“Developers tend to have a naturally inquisitive side,” said Scott Guthrie, the corporate vice president in charge of Microsoft’s .NET development platform, after giving a demonstration of the tools at a recent media briefing. “If it’s fun and it’s cool and you can build something great, you’re going to see a lot of interest.”

Even as it starts to work with iPhone and Android apps, Vertigo Software is one of the .NET developers banking on Windows Phone 7. A backer of .NET since the beginning, the company’s recent projects have included using Microsoft’s Silverlight technology to create the high-definition online video experience for NBC’s coverage of the Vancouver Olympic Winter Games, and Sunday Night Football. Its Windows Phone 7 projects include apps for Clear Channel Communications, and an internal app for use by Microsoft itself.

Vertigo CEO Stanfield said it’s now necessary to include Android and the iPhone in the mix to provide a comprehensive mobile offering. At the same time, he expressed confidence in Microsoft’s ability to rebuild its market share to the point that companies such as his will be successful on the Windows Phone platform.

“This is a moonshot for Microsoft. And the funny thing is, they’ve been to the moon before. So I know they have the ability to do it,” Stanfield said. “The question is, are they going to keep a colony on the moon this time?”

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