Palm + RIM = TreoBerry

The two giants of PDA market, Palm Inc., and Research In Motion Ltd. are getting into an alliance to extend RIM’s BlackBerry email service to Palm’s Treo smartphone. An announcement to this effect was made today, and the first devices would be available as early begining of 2006.

The two companies said BlackBerry Connect will be available only on Palm’s Treo 650, a popular version of the Treo that runs the Palm operating system.

This means that Treo 650 and future Palm OS-based Treo smartphones will be able to connect to the BlackBerry Enterprise Server, which supports Microsoft Exchange and Lotus Notes. Other capabilities include "push" E-mail that combines the BlackBerry service and Palm’s VersaMail E-mail client, wireless calendar synchronization, remote address lookup of corporate E-mail directories, E-mail attachment viewing, and security features like encryption, policy enforcement, and commands.

RIM Chairman and Co-Chief Executive Jim Balsillie said the deal acknowledges "significant customer interest in this powerful combination, and we look forward to building on our relationship with Palm."

"Treo 650 has earned accolades as the best fully featured smart phone available, and we’re thrilled to make it even better by answering customer requests and offering RIM’s BlackBerry e-mail solution for businesses.", said Palm President and CEO Edward Colligan

RIM is also expected to continue making handheld devices for the near future, after having announced plans at CTIA to use processors from Intel in future devices. But striking deals with the likes of Palm, Nokia, and other handset makers allow RIM to supplement its hardware business with higher-margin software licenses. This business model could also be attractive if RIM loses its legal battle with NTP Inc. over patents related to the BlackBerry devices, he said.

NTP has sued RIM alleging the BlackBerry devices infringe on patents held by NTP, and RIM has lost several appeals. RIM plans to petition the U.S. Supreme Court to hear the case, while the U.S. Patent and Trademark Office reviews the validity of NTP’s patents.