Windows 8, as the first Microsoft operating system compatible with low-power microprocessors designed by ARM Holdings Plc, will run on tablets as well as desktops and laptops.
"The operating system has begun to be seen as largely irrelevant," said Sid Parakh, an analyst at fund firm McAdams Wright Ragen, which holds Microsoft shares. "This is the release that will have to prove its relevance all over again."
Tablets and smartphones and cloud computing have made Bill Gates' vision of "a computer on every desk and in every home" seem quaint, and Apple Inc and Google Inc and Amazon.com now set the agenda for the computing industry.
Still, all of those companies' fancy new hardware devices need basic operating software, and Microsoft is betting there is still more than a little room for Windows.
"The big increment here is that it'll be viable on the ARM platform, that there'll be a tablet form factor - that kind of makes it a big deal," said Dan Hanson, a portfolio manager at BlackRock, which holds 5 per cent of Microsoft's shares through various funds. "Microsoft correctly identified the relevance of the tablet form factor over a decade ago. This operating system may allow them to finally execute."
The Product
Windows 8 will come in two main flavors - one that works on the traditional x86 chips made by Intel Corp for desktops and laptops, and a new version for the ARM microprocessors that have become the standard for tablets, smartphones and other portable devices.
Microsoft says it is aiming to get machines running on both the ARM and Intel platforms into the market at the same time but has not set a target date.
In both versions, Windows 8 features a completely new interface, borrowed from what Microsoft calls the "Metro" style of the current Windows Phone software. It features blocks or 'tiles' that can be moved around the screen or tapped to go straight into an application.
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