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It could build something based on the Palm operating system, one based on Microsoft PocketPC software or even Linux.
The software, based on Microsoft Windows, never seemed flexible enough to fit a variety of mobile computers.
Use of the system, which is based on Microsoft software, reached 99% usage and has stayed there for the last two years.
Its partners, which provide content, cable TV access and set-top boxes based on Microsoft software, include United Pan-Europe CommUnited Pan-Europe
Motorola and Samsung, the second- and third-biggest mobile handset makers, have both announced phones based on Microsoft's smartphone software.
Hewlett-Packard is said to have killed the Slate, which was to be based on Microsoft's Windows, and is now reportedly working on a tablet using an operating system from Palm, the smart-phone maker that HP recently bought.
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People make very important decisions based on what Microsoft says; we have a responsibility about what we say out loud".
The employee retention program could be expensive, perhaps costing billions of dollars, based on what Microsoft did when it acquired another technology company last year.
Citigroup Internet Analyst Mark Mahaney (our interview from last week is here) updated his Yahoo guidance today based on the Microsoft bid withdrawal over the weekend.
The new applications, Microsoft's general manager of its Office division Julia White told me earlier this week, are based on the technology Microsoft acquired when it bought the email app Acompli for $200 million last year.
As part of this preview, Microsoft is also now making the Unity Tools for Visual Studio 2.0 available to developers, based on the technology Microsoft acquired when it bought SyntaxTree earlier this year.
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