A Conversation with PenWare’s Faruq Ahmad

As some parts of the pen computing industry reaches nearly a half decade of existence, the road leading here is filled with some highly publicized debris. However, even more interesting are the companies that have weathered the journey and are poised to shape the industry as it begins to significantly expand.

A good example of such a company is Palo Alto, California-based PenWare, Inc., developer of the pencentric spreadsheet PenCell. At first glance, it appears that any company that attempts to enter the spreadsheet market is asking for trouble. However, as Faruq Ahmad—Vice President at PenWare— recently told Pen-Based Computing, PenWare is not targeting a head-to-head battle with either Microsoft or Lotus.

According to Ahmad: “Lotus and Microsoft makes spreadsheets for desktops that require five to ten megabytes or more.” Instead, PenCell focuses on the set of features that makes mobile spreadsheets useful.

A History of Communications

Ahmad’s background brings together the two worlds of engineering and business. Following university, he spent the early part of his career in the computer and telecommunications industry with companies such as Intel, GTE/Sprint, and AT&T.

Ahmad stated that: “Telecommunications has always fascinated me because it brings people closer together. Where I find our company today is really in the nexus of these two [computers and communication] emerging markets and technologies. It’s a very exciting place to be.”

The Genesis of PenWare

Ahmad’s opportunity to enter the pen computing industry came by way of an invitation to join a small compiler company called NKR Research.

At the time, NKR built FORTRAN and BASIC compilers for OEM customers, however after some time, Ahmad felt the desire for more action. “It was a small cottage industry but it didn’t satisfy my appetite for a growing company.”

Ahmad’s introduction to pen computing came at the introduction of GRiD’s line of stylus devices. As Ahmad categorized it: “This was the coming out party for the pen business at that time”

The Need for a Portable Spreadsheet

In examining these portable devices, Ahmad and his colleagues decided to embark on creating a spreadsheet as their first product. Ahmad admitted that “a spreadsheet is not the most sexy product, but it’s an essential backbone application.”

At this point, the company’s focus was redirected solidly into the area of mobile and pen computing. The first version of PenCell was introduced on the Momenta pentop computer which, while innovative, will perhaps be remembered as pen computing’s most spectacular early failure.

However, everything seemed encouraging at the time and the company, who changed its name from NKR to PenWare in 1991, raised its first round of financing following the product introduction.

Reminiscing for a moment, Ahmad stated that: “Those were the days—and actually these are the days. The same excitement continues to feed the industry, so in some sense the constant change that you saw at the early stages is accelerating now rather than slowing down.”

Portable Design Serving Portable Devices

PenWare drew some important lessons from its earlier life as a compiler company and understood the importance of platform portability—especially at the design stage.

In a few months, PenWare successfully moved from Momenta’s Smalltalk-based environment to Microsoft’s Pen Windows, which arguably is today’s most widespread pen operating environment.

Equally importantly, they concentrated on making PenCell functional, yet small. On most environments, for example, PenCell consumes a mere 200 KB of memory, 500 KB on Pen Windows devices.

As Ahmad stated: “Our thinking from the start was that these devices won’t have much storage.” In addition, Ahmad feels that PenCell is unique by supporting the adhoc way that people tend to use mobile computing devices.

This has enabled PenWare to quickly support multiple hardware and software platforms including Pen Windows, the Sharp OZ-9500, 9600 Wizards, and most recently Magic CAP-based devices such as Motorola’s Envoy personal communicator.

Notable among the previous list is the absence of PenPoint as an operating platform. Ahmad concedes that this was originally a tough choice, since “PenPoint was far superior from a technology point of view; on the other hand were the market forces. We had to judge which would prevail.”

Well, Who Did Win?

With recent developments at EO—including the end to future public enhancements of the PenPoint operating system—who did win the pen operating systems war? As far as Windows for Pen is concerned, Ahmad sees new light at the end of the tunnel by the end of the year.

“We don’t expect to see a major ramp-up soon [for Pen Windows], however this is the breeding ground for the next generation.” In the meantime, Ahmad feels that this gives them the opportunity to continue to improve their product. “With each new port from Pen Windows to the Wizard to Magic, the product becomes more complete.”

Being a pen computing pioneer also gives PenWare access to valuable customer feedback. Ahmad stated that: “We’ve had the opportunity to work with scores of customers. Perhaps this is the most critical in being early in the market.”

Ahmad feels that this early experience with technology adopters will make the difference when the market picks up and the volume counts become significantly larger. In this way, Ahmad believes that the past few years have been time well spent introducing PenWare to a wide range of customers.

Bedazzled by the Magic

Like many leading companies, PenWare isn’t standing still. Based on recent activity, Ahmad and PenWare are clearly enamored with the possibilities of wireless communication that is truly personal.

“We see what’s commonly called the wireless infrastructure as being a great magnet for many of these technologies as they emerge.”

Ahmad said: “We see what’s commonly called the wireless infrastructure as being a great magnet for many of these technologies as they emerge.” And one of the most powerful of these new technologies, according to Ahmad, is Telescript and Magic CAP.

“We think that it defines the user interface paradigm which will make these PDAs broadly successful. A computer-like interface does a great job as a companion for the installed base, however an interface like Magic is required for broad appeal.”

All well and good, but does Magic CAP have the muscle for real productivity applications, or is it perhaps a bit too toyish to attract the serious business user that almost always forms the core group of early adopters?

Ahmad related a bit of history to address this issue: “That’s a concern that many of us heard around the time the Mac was introduced. The business user is supposed to like a severe, difficult device.”

“However, there is something dramatically different about these devices. They are personal. As personal devices, they have to be customizable and intuitive. I think there is a human need to customize, to personalize, and to have fun with a device.”

The Leading Platforms

With this belief, it’s only natural that PenWare worked hard to get PenCell to ship in ROM on the Motorola Envoy. However, PenWare is also aware of the need to produce a steady revenue stream to grow the company.

To satisfy this need, PenWare also produces a very popular version of PenCell for the Sharp Wizard line of personal organizers. While simple in scope compared to their PDA cousins, Wizards nonetheless sell in excess of 2 million units a year.

Realizing, however, that personal organizers are not a growth area, Ahmad is keeping a close eye on the development of WINPAD and other mobile companion devices. With this in mind, Ahmad predicts that the top three environments will soon be General Magic, Microsoft’s Mobile Companion (WINPAD), and Apple’s Newton.

Industry Attitudes

But what does COMPAQ and Microsoft’s delay in introducing the Mobile Companion say about the industry?

Ahmad stated: “It says that Newton didn’t do as well as Microsoft feared. If Newton had taken off better, I think we’d see WINPAD much earlier.” At the same time he feels that Apple’s numbers are very respectable for a new class of device.

As a comparison, Ahmad reminded us of the early VCR and cell phone market. “The consumer adoption cycle has its own dynamics. Irrespective of what looks good on paper, people take time to adjust. We’ve seen it time and time again, the same curve, but you move the axis every year.”