A new display technology to be released by Microsoft today called Surface could be a dangerous threat to Apple Computer (as well as others like Philips, Sony and Nokia). It’s essentially a multi-touch screen embedded into table that allows the user(s) to interact with it through using their hands as well as objects placed on the table itself. You could use your fingers to grab the edges of a photo to make it bigger or just drag it ‘into’ a mobile phone that’s laying on the ‘Surface’ and in connnection with the device. This dragging move would simply drop the image into the mobile phone’s storage. It could be used (according to Microsoft) to plan directions to or from a location (such as if it were placed in a coffee shop/airline departure or arrivals lound/museum).

What’s interesting about the technology is that the brains behind it are not all that revolutionary. Many of the techniques shown have been displayed in other forum like Jeff Han’s multi-touch talks at the 2006 and 2007 TED conferences, the music browsing application’s technique of flipping the album cover art to show a track listing (showed at Steve Jobs’ January 2007 Macworld (iPhone) Keynote). Embedded dots on the bottom of an article would read the pre-programmed intentions of an object (like a higly reduced Datamatrix machine readable barcode). The underlying technology isn’t new but screwing it all together in a pleasing way is. This is the realm of Apple’s strengths and Microsoft, in a number of areas of late, has been showing its design acumen is not as faulty as sometimes thought.

This device could be a success for Microsoft, and ironically if Apple were to have made it I don’t think it would be. Why? Because the technology relies on interaction with other companies and partnering with groups to place the device, something that Apple is very weak on. A great example is the iPhone currently on the route to release. It may be a fantastic product but months after its announcement, developers still don’t know if it will be open to outside applications or whether it will be locked down to only Apple-approved initiatives. Of course Microsoft isn’t always successful in this field: see technologies like its Spot watches and other devices that are based on FM radio transmissions of data over the air. The project is still running but never gained anything like the momentum Microsoft must have hoped it would attain.

What’s most dangerous about this development is that it makes Microsoft look cool and hip. If you can simply place your iPod Zune onto your Surface at home and it starts piping music through your home theatre system without the hassle of having to network it up with your PC then that makes Microsoft look good. Even better if you can do that with your Zune at a friend’s house. Or a friend’s player at your house. It’s the social interaction that is key and makes devices like this work. Getting maps at a coffee shop has limited appeal after a while. There’s no reason why you’d rather do it there than your PC at home, but sharing photos or videos of a recent vacation is much more fun at a local third-space than in your office cubicle.

The technology is amazing because it’s not the technology that’s interesting. It’s the content partners and the network of locations that counts. This isn’t perhaps the type of thing that’s going to be in an average home for some time yet but it’s the perfect thing to have in a B2C environment like a coffee shop/dentist waiting room or even a corporate foyer. These play directly into Microsoft’s strengths, and Apple’s weaknesses.

The WSJ’s D-Conference joint interview today between Jobs and Gates should be interesting.

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