[ by Melanie Gretchen ] A C-I 'Technology Update' for our readers. "Windows 8" is the official name for the next version of Microsoft Windows, a series of operating systems produced by Microsoft for use on personal computers.  Microsoft has spent 2 years developing this next generation system and is planning to launch the product in the 3rd quarter of 2012. Windows 8 is the first Microsoft operating system that has been designed to run on both desktop computers and tablet devices.  What other features will this operating system offer?  And how is Windows 8 expected to fare against Google's Android operating system and Apple's iPad and iPhone products? Microsoft is anticipating that Windows 8 will attract year-end holiday shoppers, but that doesn't necessarily guarantee success.  Microsoft has had almost no presence in the tablet market, while Apple accounts for just under 2/3's of sales, while Android has captured nearly 1/3 of the market.  Two big competitors, with big lead times and big control of the market. Nevertheless, Microsoft expects to sell nearly 189 million units this year, and by all accounts, analysts believe Microsoft can capture as much as 4% of the tablet market - which actually would make for a decent entry. Market Potential. Microsoft has a lot riding on Windows 8, because Q2 revenues from all other Windows products fell 6.3% from a year earlier, to $4.7 billion.  But, investors appear optimistic, and have driven Microsoft's shares up some 20% this year, largely on the prospects of "a rich year of new products" - that, according to Nomura Securities analyst Rick Sherlund.  He also expects promising new versions of Windows Serve 8 to manage networks and updates to Microsoft Office this year. What to Expect. Microsoft seeks to deliver a simpler Windows product line in its 3 offerings later this year:  (i) Windows 8 for most people;  (ii) Windows Pro for professionals and businesses; and, (iii) preinstalled Windows RT for tablets.  The jury's still out on whether the company will offer Windows 8 for smartphones, a market in which the company has struggled. Features. Windows 8 is expected to offer consumers with:

• an updated version of the Internet Explorer Web browser.
• a Web-based storage facility.
• a single-password sign-on that would allow users to access their e-mail, address books, and documents across a Windows-powered computers and mobile phones

Developers will be offered an expanded number of programming languages developers to write Windows 8 applications.  More importantly, the company is offering them a bigger cut of sales than they get from Apple or Google:  80% of sales after an app hits $25,000 in revenue. More Apps. Developers will have the ability to work more freely with customers, according to Jonathan Sasse, marketing chief at Slacker Inc.  This would translate into potentially lower costs for customers.  Clients who download its Slacker Radio app, for example, to a Windows device will be able to pay by credit card or use their network carrier;  conversely, iPhone users must pay through iTunes, a more costly application. The response among developers is promising.  In January, Appcelerator, an L.A. firm that helps create tools for developers, conducted a survey of its 300,000 clients.  Closing the gap, Windows 8 attracted 37% of respondents. who currently develop, or plan to develop apps for it.  Not bad for a start-up system, although Android attracts a 66% response, while Apple attracts 88% response to iOS, the operating system which runs the iPad and iPhone. From his position, Mr. Sasse expects to reap similar returns from Windows 8 tablet users.  We'll soon find out.   [WSJ, 4/19/12].