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Microsoft gets a big plug, but not without some vicious rumors as well

Delta Air Lines, Inc. (DAL), the world's largest airline in terms of passenger traffic in 2012, gave Microsoft Corp. (MSFT) a big boost when it announced that it would be buying all of its pilots new Surface 2 tablets, which run Microsoft's upcoming Windows 8.1 RT operating system.

I. An Enterprise Win For Microsoft, Windows 8.1

A press release by Microsoft describes:

Device rollout to pilots flying the Boeing 757 and Boeing 767 fleets will start later this year and all Delta cockpits are projected to be paperless by the end of 2014. 

Delta's flight operations SVP, Capt. Steve Dickson, remarks:

Delta's electronic flight bag running on Surface 2 continues the technological strides Delta has been making to give our crews the best tools to keep them flying safely and efficiently.  This intuitive device puts key information at their fingertips right when they need it. By eliminating paper, we'll reduce clutter and minimize time spent looking for flight information allowing our pilots the opportunity for greater situational awareness in the air and on the ground.

The move comes in the wake of shift in how wireless devices on aircraft are perceived.  The U.S. Federal Aviation Administration (FAA) has found in recent studies that the weak wireless signals in narrow bands of wireless spectrum used by mobile devices were not capable of interfering with airplane electronics as previously suspected.  This has in turn allowed both pilots -- and potentially even passengers -- to use wireless devices like consumer tablets during takeoff and landing.

Delta Surface 2

In the wake of those developments most major airlines have replaced or are eyeing replacing their "old school" pen and paper flight logs with tablets loaded with custom flight logging apps.  Traditionally an airline had carried up to 45 pounds of paper for flight logs, charts, and manuals.  This massive accumulation of paper not only burned fuel by adding to the flight weight, but also led to occasional errors and time-consuming searches by pilots.

Surface 2

The switch from its current 38-pound paper flight bags to the more modern Surface 2 flight bags is expected to save Delta 1.2 million gallons of fuel annually, while also cutting the airline's paper consumption by 7.5 million sheets.

II. Pilots are Reportedly Disgruntled, Employee Accusations Mount

American Airlines (owned by AMR Corp. (OTC:AAMRQ)), the world's fourth largest commercial airline, adopted Apple, Inc.'s (AAPL) iPads for flight-logging purposes and has been rolling out the tablets over its fleet, ever since December 2011.

The pickup of the Microsoft tablets by an even larger fleet is perhaps the biggest enterprise win for Surface yet.  Delta reportedly aims for "full deployment" by the end of 2014, which would likely mean one Surface 2 for every one of its 11,000 active pilots.

Delta is paying Microsoft around $5.5M USD for the tablets, which will retail for $449 USD on the consumer market when they launch on Oct. 22.  Reports indicate this expense should be more than worth it -- eliminating paper flight logs will save around $13M USD per year.

Surface 2

Even better for Microsoft, Delta has also been giving its 19,000 flight attendants Windows Phone by Microsoft subsidiary Nokia, which used Microsoft Dynamics to track customer in-flight purchases.  The Nokia Lumia 820 began rolling out to flight attendants in August, according to Delta.

III. Pilots Lobbied for iPad (Reportedly), Complain That Delta is "in bed with Microsoft”

The first-generation Surface has proven a major market dud, even if it did receive generally neutral-to-favorable reviews and earn some respectful nods for its slick design cues.  After taking a $900M USD charge (loss) on unsold first-generation Surface tablets, Microsoft has been dumping them off on the market at bargain-bin prices, even giving them away for free as part of its "Bing for Schools" program that's ostensibly supposed to drive search engine traffic towards Microsoft's Bing.

While Surface sales -- as a whole -- have struggled, sales of Microsoft's Windows RT have been especially bad as consumers have forsook the ARM-powered Microsoft devices due to their lack of compatibility with legacy x86 Windows software.  The new deal could provide a boost to the struggling Windows 8.1 RT platform and vindicate Microsoft's decision to cling to poor-selling ARM devices.

But given this lukewarm consumer reception, it's perhaps not surprising to see some employees speaking out against the deal.  One disgruntled Delta pilot reportedly accused Delta's administration of being "in bed with [Microsoft]", according to Apple Insider.  He said, "We fought hard for iPad."

The Apple Insider piece in a roundabout way seems to allege that Microsoft agreed to route its corporate flights through Delta as a kickback to sweeten the deal, and heavily wooed Delta's information technology department staff.

Pilots reportedly wanted an Apple iPad.

As for the specs of the Surface 2 versus its current-generation Apple competition (the fourth generation iPad), the Surface 2 looks good in most categories, except trailing slightly in screen resolution).

The Surface 2 features a lower resolution display than the current fourth generation iPad (1920x1080 vs. 2048x1536).  The devices have comparable physical storage capacity (up to 128 GB), although Microsoft's Windows recovery partition consumes several additional gigabytes cutting the usable storage space.  However, the Surface 2 features more memory (2 GB vs. 1 GB for the current iPad).  Both devices weigh approximately the same, while the Surface 2 is slightly thinner (8.9 mm vs. 9.4 mm for the iPad).  
The Surface 2 packs a faster Tegra 4 processor from NVIDIA.

Both tablets use chips that license ARM Holdings Plc's (LON:ARM) instruction set.  The Surface 2's NVIDIA Corp. (NVDA) system-on-a-chip appears to enjoy a healthy lead over the Apple chip in compute-heavy applications, and a narrower lead over its competitor in graphics-bound applications.  Apple's proprietary A6X 1.4 GHz dual-core chip was blown away (499 milliseconds to finish for Tegra 4 vs. 865 ms for the iPad) by the NVIDIA Tegra 4 in early Javascript Sunspider benchmarks, a compute-heavy application, while earning a narrower win in GLBenchmark 2.5, a graphics-heavy benchmark (57 frames-per-second, versus 51 fps for the iPad 4).

Sources: Microsoft, Delta, Apple Insider

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RE: The pilots can go f*** themselves
By amanojaku on 10/2/2013 12:38:55 AM , Rating: 5
Surface 2 is $450. Surface Pro 2 is $900. I don't think Delta is interested in doubling its equipment costs. Besides, it's not like pilots need a desktop computer in the cockpit. They're replacing MANUALS. Apps are already more powerful than a stack of paper.

And what is the difference between an app and an application? If it does what you want, it's the same thing. Clearly, Delta performed a trial and determined apps can do what they want. All that's really missing is the ability to run existing x86 code, which the paper manuals can't do, either.

One of the goals is to have a light tablet. Surface Pro 2 is heavier than Surface 2 by 25%. Adding the Power Cover will bump up battery life from five hours to 10, but the cost will be extra weight and an additional $200. It's also not available until 2014. Surface 2 reaches 10 hours without a cover.

Stop assuming your needs are equal to that of Delta's.

RE: The pilots can go f*** themselves
By Manch on 10/4/2013 5:49:53 PM , Rating: 2
You hit the nail on the head with your last bit "Stop assuming your needs are equal to that of Delta's."

Saving 1.2mil by eliminating the paper. 7.5 million sheets is about 75000lbs. 1 standard US sheet is 1/100th Lb. Assuming the 1.2mil savings is the weight diff between paper bag and tablet it's costing Delta is a little bit over $13.11 a lb every year. If all 11000 pilots receive a surface 2 at 1.5lbs it will cost them only $216,315.00. A Surface Pro 2 @ 2lbs will cost them 288,420.00 of fuel annually. That's a difference of $72,105.00 in fuel. Not a a lot relatively compared to the savings from eliminating paper but ~$72K plus the saving from not buying the pro add up. Delta obviously doesn't pay retail but 11000 Surface 2's at retail cost $4.9 mil. Surface Pros would double that.

Also this electronic flight bag is a work device. Delta will lock them down very much like corporations and the Gov do with work phones/laptops. One thing MS excels at is enterprise services and applications. MS can provide both the front end and the back end of a system. This is something Apple simply cannot compete with. There are enterprise applications for Apple products and some of them are very nice but they have to play with....Windows!

Lastly, these are not a standalone system. These will be integrated into Deltas IT infrastructure. Another advantage of electronic flight bag is changes can be made on the fly vs waiting for a new copy or page corrections to be inserted. Also the pilots will be able to upload what they are doing on the fly as well and you can bet your @$$ they will be using the metrics to identify problems and what not.

So yeah, you may not be able to play the latest iGame but should be pretty awesome for what they need it to do.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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