THE PIISSIBILITIES ABE INFINITE
`
`Fujitsu and the Tablet PC
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`B<p|ains and illustrates Fujitsu’s position on
`Microsoft’s Tablet PC initiative.
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`Fujitsu PC Corporation
`www.fujitsupc.com
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` EXHIBIT
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`IDL1
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`For more information: pr@fujitsupc.com
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`This paper explains and illustrates Fujitsu's position on Microsoft's Tablet PC
`initiative. The initiative, one of Microsoft's many efforts to expand the
`
`usefulness and applicability of the PC, is based on the idea of enhancing
`today's pen tablet computer with hardware and software which will allow it to
`become the "next-generation mobile business PC." As the pioneer and industry
`leader in pen tablet computing (with more than 60% of the current Windows®
`pen tablet market‘) Fujitsu is often called upon to answer questions regarding
`the Tablet PC's concept, positioning, market, technology and direction. This
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`paper attempts to answer those questions from Fujitsu's point of view.
`
`Fujitsu-Microsoft relationship
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`Fujitsu and Microsoft have had an ongoing relationship and dialog on pen computing for years,
`starting in 1993 with the development of the Fujitsu Sty|istic® 500 pen tablet. Fujitsu has supplied pen
`tablets to Microsoft for use in various research and development efforts covering everything from
`handwriting recognition to OS testing to automation in the "Microsoft Home." As the market leader in
`pen tablets, Fujitsu is often the first OEM that Microsoft turns to for information on the applications
`and technology of pen tablets. When Microsoft began to develop its first working prototype of the
`Tablet PC, much of the initial experimentation was done using pre—production samples of Fujitsu's
`Stylistic 3400 pen tablet.
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`The Stylistic 3400, which started shipping in 2000, marked a true inflection point in pen tablet history. With
`a Pentium‘‘-‘’ III, a 10.4" XGA TFT display, a thickness of 1.1 inch and a weight of only 3.2 pounds, the
`Stylistic 3400 was the first pen tablet product that approached the capabilities of an ultra—portable
`notebook. The first Microsoft Tablet PC prototype, shown at Comdex 2000 by Bill Gates during his
`keynote speech, was not substantially different from the Stylistic 3400. As a result of the keynote, the
`media and others began to understand that Microsoft's vision for the Tablet PC had some basis in reality.
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`Tablet PC Positioning
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`Microsoft is positioning the Tablet PC as the "evolution of the notebook." Tablet PCs are intended to be a "pure superset of
`today's notebook PCs," offering all the functionality of a notebook with added Tablet functionality. This added functionality
`allows the user to run Windows and Windows applications using a pen, to annotate documents, and to create handwritten
`documents using "digital ink" for later reference or conversion into text. Tablet PCs in general will have long battery life,
`light weight, high—reso|ution displays, and (in some cases) built-in wireless capability. Some Tablet PCs will look just like
`today's clamshell laptops, complete with a full keyboard, but with the addition of a mechanism that converts the hardware
`into a "slate" form (products with this form—factor are generally called "convertibles"). Other Tablet PCs will have "pure"
`tablet form—factors. Just like today's portable PCs, Tablet PCs can be put into a docking station on a desk to support a
`|arge—screen monitor, mouse, fu||—size keyboard, LAN connection, CD-ROM, local printer, speakers and other peripherals
`
`If you've followed Fujitsu products over the last few years, then you know that Fujitsu has already "evolved"— Fujitsu has
`already gone where Microsoft wants to go with the Tablet PC.
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`Starting with the Stylistic 3400 in 2000, the usage model of pen tablets began to change significantly. Putting a 3—pound
`pen tablet into a mini—dock provided exactly the kind of docked capability that Microsoft envisions with the Tablet PC.
`Putting the pen tablet into a "portfolio case" with a lightweight wireless keyboard enabled realistic notebook capability. The
`combination of the mini—dock and the portfolio case caused pen tablets to migrate away from the position of "specialized
`vertical application devices" towards a variant of ultra—portable notebooks. The key element that's missing is an operating
`system that fully supports the pen — and Microsoft will be providing that as one of the fundamental underpinnings of the
`Tablet PC initiative.
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`For more information: pr@fujitsupc.com
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`The Tablet PC: A New OS and a Hardware Specification
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`The Tablet PC initiative is similar to other new platform definitions created by Microsoft, such as Windows CE 1.0 in 1995.
`The initiative consists of three parts:
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`1. A new, full—scale version of Windows, to be called "Windows XP Tablet PC Edition"
`2. A Tablet PC Hardware Requirements specification aimed at OEMs who want to build Tablet PCs
`3. A set of software development tools (APls) aimed at lSVs who want to build pen-centric applications for Tablet PCs.
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`The Tablet PC OS will be the third member of the Windows XP family — XP Home for the consumer, XP Pro for enterprise
`and XP Tablet for mobile. Microsoft's five—year goal is to make the use of a pen with Windows so compelling that the market
`will require the majority of Windows portable computers to support a pen. In this way, Microsoft intends to make XP Tablet
`the new "Windows Mobile OS."
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`The Tablet PC Hardware Requirements specification is surprisingly short. There are only eight unique requirements for a
`mobile computer to be a Tablet PC. The requirements, which are all aimed at ensuring the optimal usability of a Tablet PC,
`include the following:
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`1. High—performance active digitizer with "hover" mode
`2. Resume from suspend in two seconds or less
`3. Battery life in suspend of at least 72 hours
`4. Automatic hibernation (save-to—disk) when the battery is exhausted
`5. Rotation between landscape and portrait modes without rebooting
`6. Docking and undocking without notifying the OS ("Grab—and—Go")
`7. Legacy-free hardware (no serial, parallel, PS/2, game or FDD ports)
`8. A Tablet PC without an attached keyboard must provide a dedicated hardware mechanism to
`produce a “Ctrl—Alt—Delete".
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`The Tablet PC's Effect on Fujitsu Pen Tablet Specifications
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`A few obvious changes are required to meet the seven Tablet PC hardware requirements listed above; for example,
`changing from a passive (resistive) digitizer to an active digitizer. Other than those few items and the normal changes due to
`the progression of computer technology, however, the transition to Tablet PCS will entail relatively little change in Fujitsu's
`pen tablet specifications.
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`One exception is LCD resolution. Today Fujitsu offers both SVGA (800 x 600) and XGA (1024 x 768) resolutions in 10.4"
`LCDs. In keeping with Microsoft's "strong recommendation" that all Tablet PC LCDs should have at least 120 dots per inch
`(dpi), 10.4" SVGA LCDs (96 dpi) will be eliminated from Fujitsu's Tablet PCs. The smaller 8.4" SVGA LCDs will remain, since
`they are 119 dpi. Fujitsu's strong emphasis on color LCDs that are clearly readable both indoors and outdoors will continue.
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`Default LCD orientation is likely to be an area where Fujitsu's current specifications remain unchanged, even though the
`Tablet PC may encourage a change. Historically, pen tablet applications have used landscape mode because the
`applicatioh—specific software used on pen tablets was derived from notebook software. In Microsoft's view, the Tablet PC is
`primarily a portrait—mode device because it replaces an 8.5" x 11" paper notebook. The look and feel of Microsoft's Tablet
`PC prototype clearly emphasizes portrait mode; Fujitsu's emphasis will be to make sure that Fujitsu Tablet PCs work
`perfectly in both landscape and portrait modes.
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`The "legacy free" requirement of a Tablet PC is another specification change that will affect some Fujitsu models. Some
`Fujitsu pen tablets are already |egacy—free (e.g., the Stylistic LT P—600); others will require changes to eliminate legacy ports
`on the core device. (Legacy ports are still allowed in a docking station as long as the OS can't see them directly — i.e., it's
`OK to convert USB or IEEE 1394 to legacy ports in a docking station.) In the past, legacy compatibility has had a strong
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` For more information: pr@fujitsupc.com
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`effect on the specifications of Fujitsu's pen tablets; now the Tablet PC's legacy—free requirement will bring a stronger
`emphasis on the cutting edge of PC architecture in Fujitsu's products.
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`The Tablet PC and the Notebook
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`Today Fujitsu sells both pen tablets and notebooks. The key to choosing between the two is whether or
`not the user has to work while standing or walking around. A pen tablet has a significant advantage
`over a notebook by being able to be used while the user is truly mobile. When a pen tablet is used at a
`desk in a mini-dock, its capability is essentially identical to that of an ultra—portable notebook. When a
`pen tablet is used in a portfolio case, its capability is very close to that of a notebook.
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`A pen tablet is often seen as "a notebook without a keyboard." Actually this is an inaccurate view. To
`help correct this situation, Microsoft's positioning of the Tablet PC includes the statement that "all Tablet
`PCs will have keyboards." That's certainly true for Fujitsu's current pen tablets as well as for Fujitsu's
`future Tablet PCs. Both forms of tablet can use a wireless (infrared) keyboard, a wired (USB) keyboard,
`or an on—screen keyboard.
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`One of the significant effects of the Tablet PC will be to further blur the distinction between a notebook
`and a pen tablet. Since all Tablet PCs will have keyboards in one form or another (internal or external),
`the distinction will evolve into whether a given device supports a pen, not whether it has a keyboard or
`not. Microsoft believes (and Fujitsu agrees) that within five years after the introduction of the Tablet PC,
`as many as 50% of all mobile Windows computers will support a pen. Fujitsu is already headed in that
`direction. Fujitsu's LifeBook(r) B Series notebooks today support a pen — the LCD on these products
`(when used with a three—cell battery) can be rotated through 180 degrees and laid flat on the desk to
`create the effect of a pen tablet. Fujitsu is likely to enhance these products, and possibly other
`notebook series, to meet the Tablet PC specifications in the future.
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`Digital lnk
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`One of the key attributes of a pen is that it can be used for inking (writing and drawing). Microsoft is emphasizing the use of
`"digital ink" on the Tablet PC, while de—emphasizing handwriting recognition. Fujitsu's existing customer applications make
`almost no use of digital ink, and very little use of handwriting recognition. Most corporate project—based applications today
`are menu—driven and point—and—click oriented, involving forms completion or data access or acquisition. Any additional
`support that Microsoft provides for either digital ink or enhanced handwriting recognition in the Tablet PC therefore
`represents additional capabilities that can be utilized by Fujitsu customers.
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`The Tablet PC operating system adds substantial support for creating, manipulating and storing digital ink, as well as a
`major new ink—oriented application called "Microsoft Journal." Consider the typical person who takes notes in a paper
`notebook during a meeting. They frequently don't type up their notes and format them into a Word document immediately
`after the meeting. Often the notes are left in ink form and used as—is for reference. Similarly, when someone annotates a
`document or sketches something, the annotations and drawings are nearly always left in ink form. lnk doesn't always need
`to be transformed into data.
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`As a tool for creating, storing and manipulating ink, Microsoft Journal takes note—taking to a new level. The application
`allows such capabilities as:
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`0 Moving ink words as though they were text
`0 Bolding, italicizing, underlining and coloring single words or groups of words
`0 Searching handwritten blocks of ink for a specific word or phrase
`0 Scaling entire blocks of ink
`0 Delayed or background recognition
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`For more information: pr@fujitsupc.com
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`In addition to Microsoft Journal, Microsoft plans to enhance Office® XP (Word®, PowerPoint®, and Out|ook®) and Visio® to
`fully support digital ink. For example, suppose you're responding to an email message in Outlook. After tapping on Reply,
`instead of starting to type on the keyboard you can tap on a pen icon and an "inking box" appears. You can handwrite a
`quick response in the box, tap Send, and your reply is sent in the form of ink, along with the previous message in text
`below. This is made possible by Microsoft's definition of ink as a data type equal in stature to text. The support for ink as a
`data type extends throughout the XP Tablet operating system, and it makes a significant difference.
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`There will be a substantial number of additional applications from third parties (lSVs) that take full advantage of XP Tablet's
`support for digital ink. For example, Autodesk is enhancing AutoCAD, Inventor, Streamline, Buzzsaw and other digital design
`and viewing applications to make use of the extensive ink—oriented APls that Microsoft has included in XP Tablet. These
`enhanced applications should be very appealing to mobile architects, construction supervisors and the many users of CAD
`drawings who today often use outdated paper copies. Similarly, Adobe is enhancing Acrobat to add pen—based
`commenting and content manipulation via the ink—oriented AP|s in support of their network publishing solutions. Allscripts
`Healthcare Solutions and Amicore — two providers of mobile clinical and office automation software for physicians —~ are
`enhancing their products to support digital ink. This should help further extend the already—significant penetration of pen
`tablets into healthcare applications. Digital ink may turn out to be the "killer application" of the first generation of Tablet PCs —
`an interesting turn of events from the early 1990s, when handwriting recognition was supposed to be the "killer application"
`for pen computers.
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`Handwriting Recognition
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`Handwriting recognition has been the whipping boy for pen computers since the first pen tablet was
`invented in 1989. Although handwriting recognition applications have steadily improved over the last 10
`years, most people's handwriting has actually deteriorated because the target audience of most
`handwritten material has become just the author, rather than other people. If you're the only one who
`has to read your handwriting, you tend to become sloppier and use more shortcuts. The result is that
`handwriting recognition accuracy has improved only a little over the past 10 years. The handwriting
`recognizer that's in the currently shipping version of Office XP is the same one that will be in XP Tablet.
`Microsoft believes that it's the best recognizer on the market today, and they're probably right.
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`While Fujitsu supports any and all progress that Microsoft makes in handwriting recognition, Fujitsu also
`believes that handwriting recognition will never be a fully adequate replacement for keyboard input.
`Handwriting recognition will never be universally reliable for all people because handwriting varies
`substantially from person to person. This limitation is one of the factors that will help make digital ink
`very attractive.
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`Microsoft's Vision versus Fujitsu's Market
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`Microsoft's primary target for the initial release of Tablet PC products is the corporate knowledge
`worker. According to Microsoft, there are 43.4 million knowledge workers in the United States,
`representing 21% of the population over 21 years of age. The initial users as envisioned by Microsoft
`include both "road warriors" and "corridor cruisers". Most people are familiar with the former group.
`Microsoft's vision is that these users, many of whom currently have ultra-portable notebooks, will be
`eager to upgrade their hardware to a convertible—style Tablet PC. After all,
`if a Tablet PC truly is a
`superset of today's ultra—portable notebook, why not upgrade and take advantage of the pen?
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`The corridor cruiser is a person who works in an office building or in a campus of buildings. They're not
`heavy travelers. Instead, they spend a lot of time out of the office in meetings in the building or on the
`campus. Today this user often has a desktop computer in the office, and a paper notebook that they
`carry with them to meetings. They typically don't have a notebook computer because, (a) using a
`notebook computer in Western business meetings, with the screen forming a barrier between
`participants along with the keyboard generating noise, is considered to be impolite, and, (b) without
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` For more information: pr@fujitsupc.com
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`heavy travel, the user typically can't justify the cost of a notebook.
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`Microsoft's short-term vision is that the corridor cruisers replace their desktop computers with slate-
`style Tablet PCs. When they're in the office, the Tablet PC is docked, supporting a |arge—screen monitor,
`standard 101 keyboard, mouse, LAN connection, CD-ROM, speakers — all the normal desktop
`peripherals. When it's time to go to a meeting, the user grabs the Tablet PC out of the docking station
`and brings it to the meeting. in the meeting, the Tablet PC is used not only for taking notes (like a
`traditional paper notebook), but also for referring to the user's data, such as budget reports, forecasts,
`offline web pages and anything else that's needed on the spot. If the user finds the meeting boring or
`isn't one of the primary contributors to the meeting, they can even write and send an "ink" email (via
`wireless LAN) surreptitiously from the Tablet PC on their lap.
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`However, Microsoft isn't focused exclusively on road warriors and corridor cruisers. Microsoft
`acknowledges that "vertical markets that use proprietary devices or digital appliances for pen-based
`input may find the Tablet PC's broader functionality and power appealing." This statement (from the
`FAQ on the Microsoft Tablet PC website) acknowledges that Tablet PCs will be appealing in corporate
`project—based applications the same way pen tablets are today.
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`Fujitsu agrees with Microsoft in the belief that the Tablet PC is a natural extension and evolution of the
`mobile business computer. When technology enabled business users to bring their computers with
`them, the notebook computer market was born — beginning with the "luggable." At the outset of the
`notebook market (and sometimes even today), potential users were often required to present a
`business case demonstrating increased productivity prior to receiving a notebook computer. The
`motivation for today's purchase of pen tablets is no different. It's the desire to increase efficiency and
`yield a positive Return on Investment (ROl). With the welcome introduction of a broadly accepted, fully
`pen-enabled operating system, the ROl—based business market for Fujitsu's products will broaden and
`expand significantly.
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`Fujitsu regards the enterprise corridor cruiser as a significant incremental business opportunity for Tablet
`PC products. Fujitsu has been selling Windows pen tablets to Fortune 1000 companies for almost ten
`years in steadily increasing numbers for project—based business applications. Selling through corporate
`IT to groups of knowledge workers in the enterprise who want to improve their personal efficiency
`through the use of a Tablet PC is a natural extension of Fujitsu's current business. Corporate IT already
`recognizes Fujitsu as a stable, long—term supplier of portable computers; Microsoft's strong support for
`the Tablet PC will simply increase lT's awareness of Fujitsu's products and make access to those
`products easier.
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`Neither Microsoft nor Fujitsu are targeting the consumer in the first round of Tablet PC products. Since
`the majority of notebooks today are sold to business users, it's very reasonable to avoid trying to
`address the consumer market until the Tablet PC is well established in the enterprise. Of course, there
`will always be a few early—adopters who want to try the latest PC innovation. While Fujitsu will probably
`offer Tablet PCs on the Web and through existing retail channels, Fujitsu doesn't plan to make any
`particular effort to attract the consumer.
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`Summary
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`Fujitsu believes that Windows XP Tablet PC Edition is a welcome and enabling technology, which will allow the existing pen
`tablet market to take its natural next step. Hardware, software and connectivity have advanced enough to make this next
`step possible. Through increasing use of natural interfaces, the Tablet PC will expand the existing pen tablet market from the
`truly mobile, on—their—feet users to the broader business portable market — notebook computer users. In both cases, the
`market drivers remain the same: increased efficiency through business process automation, and optimal Return on
`Investment. Over the past ten years of leadership in the design of truly mobile hardware and solutions—based sales, Fujitsu
`has helped many of the world's leading corporations. In the era of the Tablet PC, Fujitsu will continue supplying state—of—the-
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`For more information: pr@fujitsupc.com
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`art pen tablets to the same Fortune 1000 corporations who are Fujitsu customers today. The range of applications will
`expand, and the technology will continue to advance, but Fujitsu's expertise in both will be just as necessary as it is today.
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`Resources for Further Reading on the Tablet PC
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`http://www.microsoft.com/windowsxp/tabletpc/
`http://www. pencomputing.com/frames/tablet_pc.html
`http://www.tabletpctalk.com/
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`Note 1: Market share data for the North American market from IDC, 2001
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`Fujitsu and the Fujitsu logo are registered trademarks of Fujitsu Limited. Stylistic is a registered trademark of Fujitsu PC Corporation. Microsoft and Windows are registered trademarks of Microsoft
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` For more information: pr@tujitsupc.com
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