• Sidebar: Embedded Retail Platform Builds on XP SP 2

A Windows XP Embedded-based platform in early 2005 will specifically target point-of-sale or point-of-service (POS) devices, including point-of-sale terminals, kiosks, and self-checkout systems. The new embedded platform for retail devices will include the latest code and features from Windows XP Embedded with Service Pack (SP) 2 and will support the retail industry’s Unified Point of Service (UPOS) device interconnection standard. However, customers who decide to use Microsoft's retail platform versus a general-purpose embedded OS are choosing quick time-to-market over flexibility.

Retailing a Key Vertical

The retail vertical is important to Microsoft for two reasons. First, the retail sector has more businesses than most verticals. Second, within each retail business there are many opportunities for computers and servers, all of which could potentially license Microsoft software.

To address the retail vertical, Microsoft unveiled its Smarter Retailing Initiative at a National Retail Federation conference in Jan. 2004. This initiative describes Microsoft’s view of a modern retail enterprise built around Windows and the Windows Server System to provide end-to-end integration of in-store systems—from POS devices and kiosks to the back-end systems that manage inventory and sales and provide customer support. As part of this initiative, Microsoft Business Solutions already offers a turnkey Retail Management System that includes application software to help retailers manage a wide range of store operations, including POS and inventory control. Companies such as Radio Shack and J. C. Penney are already deploying POS devices based on Windows XP Embedded.

Windows Embedded for Point of Service

Key to Microsoft’s retail strategy is providing a version of Windows that is viable for POS devices and that can be easily integrated with other Windows systems. If businesses use Windows for this fundamental application, then they will be more likely to use Windows as a platform for other applications and systems. But businesses may be reluctant to use the full retail version of Windows XP Professional for a POS application because the full version contains application-like features, such as Windows Movie Maker, that add no value for them and because of Windows security vulnerabilities and the need to regularly patch the OS.

In the same way that Windows Mobile is a customized version of Windows CE designed for mobile devices, Windows Embedded for Point of Service will be a customized version of Windows XP Embedded designed for retail applications. This platform is made up of a subset of Windows components required by POS applications and hardware platforms—using a subset not only reduces the overall size of the OS but also reduces the attack surface and the number of components that may need upgrading and patching during the life of the device.

In addition to allowing device developers to use only the components they need for their device, the Windows Embedded for Point of Service platform will simplify setup of retail devices, enable new POS applications, and reduce life cycle costs for the devices.

Simplifying device setup. Windows Embedded for Point of Service supports the UPOS standard for device peripherals provided by the Association for Retail Technology Standards (ARTS), and it should interface easily with retail device peripherals, such as scanners, receipt printers, and cash drawers.

Enabling applications. Because Windows XP Embedded is based on the same binaries as retail Windows XP Professional, the new retail platform based on it can support the same applications as Windows, provided the necessary components are included in the embedded OS image. This means that Windows Embedded for Point of Service will support the following:

• The .NET Framework for application development
• Windows Media technologies, which could be used for instructional videos at kiosks and self-service POS devices
• Wireless communications for connecting POS devices to servers and peripherals to POS devices.

In addition, Windows Embedded for Point of Service will be adaptable for emerging technologies, such as biometrics for user identification and authentication, and Radio Frequency ID (RFID) for inventory management.

Reducing life cycle costs. Basing Windows Embedded for Point of Service on Windows XP Embedded with SP2 means the platform will have stronger default security settings than Windows XP with SP1. It will have the Windows Firewall enabled by default and will support recent security applications and management tools from both Microsoft and partners. Making the platform less vulnerable to security breaches should reduce downtime, thereby lowering costs over the life cycle of the device, and is important if Windows is to compete successfully against other embedded OS offerings.

(For details on how Windows XP Embedded is improved by SP2, see the sidebar "Embedded Retail Platform Builds on Windows XP SP2".)

Selecting Platform Means Trade-offs

Using an embedded platform such as Windows Embedded for Point of Service instead of a full embedded OS typically reduces the hardware and software choices the device manufacturer can make. This trade-off makes it harder for the device manufacturer to differentiate a product from a competitor that uses the same platform, but it allows the manufacturer to get a finished device into the market faster.

Many device makers seem to find this trade-off worthwhile: Microsoft has announced that more than 30 retail and hospitality device makers and application vendors are working with Microsoft to develop customer solutions built on Windows Embedded for Point of Service, including APG Cash Drawer, BSquare, CRS Retail Systems, Fujitsu Transaction Solutions, Micros Systems, Retalix, Seiko Epson, and Wincor-Nixdorf.

Availability and Resources

Windows XP Embedded with SP2 should be available before the end of 2004. (Microsoft targets making updates and service packs for Windows XP Embedded available within 90 days of their release on Windows XP Professional.)

Windows Embedded for Point of Service should be available to device makers in the first half of 2005 through Windows Embedded partners.

For background on Windows XP Embedded, see "Embedded OS Roadmap Shows Little Change" on page 6 of the Sept. 2004 Update.

For background on the Smart Retail Initiative, see "Building a Presence in Retail" on page 30 of the Apr. 2004 Update.

Microsoft’s Smart Retail Initiative is at www.microsoft.com/smartretail.

Windows Embedded for Point of Service is described at msdn.microsoft.com/embedded/getstart/devplat/pos.

Windows XP Embedded is detailed at msdn.microsoft.com/embedded/usewinemb/xp.

A preview (release candidate) of Windows XP Embedded with SP2 can be downloaded from msdn.microsoft.com/embedded/getstart/prodoverview/future/techpreview/xptechpreview/default.aspx.