Palm reads its future in mobile market

Tipperary man John Hartnett is betting that Palm's new generation of smartphones will restore the fortunes of the company, he…

Tipperary man John Hartnett is betting that Palm's new generation of smartphones will restore the fortunes of the company, he tells John Collins

Although he would probably blush at the description, John Hartnett is one of the most senior Irish technology executives in Silicon Valley. As senior vice-president of global markets with Palm, the Tipperary man oversees sales and is effectively the number two at the once-dominant maker of personal digital assistants (PDAs).

Palm was once renowned for creating innovative and easy to use products, but it has struggled to make the transition as PDAs have effectively been replaced by smartphones. It was almost unthinkable in the late 90s when Palm devices were de rigeur for Silicon Valley tech execs that PC Magazine would launch a "Palm deathwatch" - something it did last week.

Earlier this summer the company announced it was moving beyond the PDA and smartphone space with the Foleo, a highly portable computer that was intended to compete with Windows or Apple Mac laptops for the regular traveller. Just last week Palm had to announce it didn't have the capacity to develop the Foleo while also re-engineering its own operating system to run on the open source Linux platform.

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Hartnett was in London this week to oversee the launch of the Palm Treo 500v - the first smartphone that the Californian company has developed exclusively for the European market. The launch was also a red letter day for Palm's Irish research and development centre, which opened two years ago and led the development of the internet phone in association with Vodafone and Microsoft.

In the wake of the current iPhone hype, it is easy to forget that Europe and Asia have dominated the US when it comes to the adoption of innovative mobile technologies and Palm is hoping to tap into that lucrative market with the new Treo.

The sleek internet phone runs Microsoft's Windows Mobile operating system and will be exclusively available through Vodafone in seven European countries, including Ireland, until the end of the year.

According to Hartnett the key features of the phone are its multi-messaging capabilities, web access via 3G ("unlike some of our competitors" says Hartnett, needling the iPhone's fans), ease of use thanks to a redesigned interface, and value for money.

It has a full Qwerty keyboard, 2.0 megapixel camera which offers video as well as still photography, supports up to six different e-mail accounts and has slimmed down versions of the Microsoft Office family of programs.

The target demographic for the Treo 500V that Hartnett describes sounds very similar to that of the iPhone - hip 18- to 35-year-olds that want a slick device that gives them internet anywhere.

"For this particular device getting the right price point was very important," says Hartnett. "Likewise in the form factor - it is the slimmest device Palm has produced for Windows Mobile."

Although Hartnett says some Vodafone customers will be able to get the Treo 500v for free, Vodafone Ireland says it will cost "up to" €299 depending on what contract the customer signs.

The way Hartnett tells it, the future for Palm is bright.

"Our vision is the same as it was 10 years ago when the company was founded," says Hartnett.

"We see the future of personal computing being mobile computing.

Today that future is here - mobile devices and computing are no longer just for business people or a tech elite. They are becoming a mass market."

He doesn't see the row-back from the Foleo, just a few months after it was launched, as being a sign of weakness.

Hartnett stresses that the Foleo has not been cancelled, just delayed. He says company founder Jeff Hawkins still believes that there is a major opportunity for Palm in creating an ultra-mobile computing platform.

But a company of Palm's scale has to hedge its bets and in the short term the focus has to be on porting the Palm OS to Linux.

"Our first focus has to be on the platform, it's crucial to creating a developer community and a great user experience," says Hartnett.

Products based on the Linux version of the Palm operating system are due next year and will be a key barometer of the company's future heath.

Whatever Palm's long-term prognosis, the company has served Hartnett well.

He finds himself in Silicon Valley after a career in which he has worked for a who's who of tech multinationals such as Handspring (acquired by Palm), MetaCreations, AT&T GIS, Digital Equipment and Wang.

"I'm a product of the IDA's success," says Hartnett. "Even though I spent a large part of my career in Ireland I never worked for an Irish or European company."

Although Ireland still has a positive image amongst Silicon Valley leaders, Hartnett says Ireland Inc needs to carefully manage US perceptions as the Irish economy changes.

"In the past Ireland has been successful in manufacturing, localisation and being a cost competitive country," he says. "Now it's time to change that image and bring out our high-tech capabilities."

Hartnett still maintains strong links with home and tries to get back to Ireland as often as his job allows. He's a big rugby fan - he sits on the board of USA Rugby and was instrumental in bringing Munster to Chicago for America's last warm-up game in advance of the Rugby World Cup.

"That's why they played so well against England," he jokes.

In addition to its Dublin development centre, Palm's Irish links deepened earlier this year when the Bono-backed Elevation Partners invested $325 million for a 25 per cent stake in Palm.

The private equity house also took three seats on the Palm board. Perhaps one of the most important of the new board members could turn out to be Jon Rubenstein.

He was the Apple executive who played a key role in developing the iMac computer and managed the iPod division during its rapid growth.

In the meantime, Hartnett has more prosaic hopes for the relationship.

"I'm expecting to see Bono with one of these phones in his hand," he laughs.