Can Microsoft turn the PDA into a business must-have?

Microsoft's Pocket PC operating system Merlin, aims to make handheld devices more attractive to business users when it is released on 4 October.

Many business IT managers currently view handhelds as a major hazard to the security of their networks and a pain in the neck to support

Microsoft's Mobile Marketing Manager EMEA, Magnus Ahlberg said: "We've implemented three new features to make Pocket PCs better corporate citizens. There's no question that the enterprise is our key market."

These features include: giving each device a unique identifier number to help track them increasing the limit on the number of characters in a password from 4 to 128 and the ability to integrate with network management tools like CA's Unicenter TNG.

Other features such as built-in support for the Palm shorthand text input system, Graffiti, as well as Microsoft's own Transcriber handwriting technology, are designed to woo former Palm users.

Merlin-enabled devices are expected to start shipping from 4 October.

The system includes built-in drivers for 802.11b wireless LAN cards.

Unfortunately Bluetooth users will need to install drivers separately - which will be seen as another blow for the troubled wireless standard.

As previously reported on silicon.com, Microsoft has confirmed that Merlin will only run on devices with ARM 4 processors.

They will also need 32Mb of flash programmable ROM, of which 24Mb will be taken up by the OS itself and bundled applications, with 8Mb available for users or manufacturers to install new devices.

The new Merlin desktop graphics are designed to reproduce the "look and feel" of Windows XP, but with a higher level of customisability - so if you want to see the shining face of Britney Spears on your PDA start screen, you will be able to.

However, the close link between the Merlin OS and other Microsoft services is bound to cause controversy.

There will be a follow-up later today.