Jupiter Research analyst, Michael Gartenberg points out that there's a difference between the business models of Windows Mobile and Zune.

“Windows Mobile is a core platform and OS. No one has ever been successful licensing technology platforms to others and then competing with a device of their own. Apple failed (twice), Palm and Nokia all tried it and it just can’t be done," he says, observing that 20 million Windows Mobile licenses have been deployed.

The analyst thinks Microsoft’s most likely to put mobile Zune branded functions inside future version of Windows Mobile, in a similar way to the inclusion of iPod features within the iPhone.

The full article can be seen at Macworld.

Laura Rooke:

The analyst thinks Microsoft’s most likely to put mobile Zune branded functions inside future version of Windows Mobile, in a similar way to the inclusion of iPod features within the iPhone.

I would like to see more compatability between Windows Mobile and the other Microsoft products, such as the Zune and the XBOX 360, which can already connect with eachother.

Zune Player Mobile on Windows Mobile would be a nice replacement to Windows Media Player Mobile.

To wirelessly connect your Windows Mobile to a 360, saving game stats and transferring music back and forth would make me happy.

For the life of me I cannot remember where I saw an interview from the CEO....saying that the Zune would not meet WM OS...actually I think we talked about it here in a thread somewhere. But I too want to see more WM with XBOX 360 and so on. I really don't use my device for music....IMHO...

You might be remembering this thread, where I linked over to the Windows Mobile Team Blog post where they were asking for opinions about how Zune and WM could work together - although NOT in the same device, the writer said...

 Compatability is something that should be expected of Microsoft rather than wished for, as is currently the case.

Bill Fisher:

You might be remembering this thread, where I linked over to the Windows Mobile Team Blog post where they were asking for opinions about how Zune and WM could work together - although NOT in the same device, the writer said

Yes that is correct Bill thanks...I do agree also we should "expect" compatibility from Microsoft.....since that has been one concept they have preached from conception of MS. 

 I always remember that, when Windows first began, the buzz word was 'standardization'. For years people had sort for an electronic world where everything could communicate with eachother with one standard protocol. I also remember that when Microsoft began providing numerous programmes, all with a standard platform, which did exactly this, the new buzz word became 'monopoly'.

 If the entire industry could come together and produce a set of standards for a truly universal communication between systems, could you imagine the progress that could be made?

 Microsoft are well on their way. All Microsoft products can talk to a PC. If they now just get them to talk to eachother... 

One of the reasons why the iPhone was a success is due to the fact that the iPod was a success. So, what do you think is gonna happen to the Zune Phone?

The Zune just didn't do well in any country it was released in. BestBuy Canada finally got the Zune a few months ago but they currently have them sitting on a small little table facing away from the iPods and away from the high traffic area in the store. Guess how many Zune sales so far? And besides, let's face it, Zune's marketing just didn't cut it. Everyone took every Zune commercial as either a joke or just plain "weird".

My point is this: If the Zune Phone is actually coming, then Microsoft is building a product based on the failure of a previous product. And I don't think Microsoft is dumb to make such a move.

It's not that the Zune platform wasnt a success. It's the fact that it had to fight for market share with other MP3 players. When Apple launched the iPod, there wasnt much in the form of competition plus it had its own place to buy music in iTunes that later incorporated t.v shows, video's and movies. Microsoft was just to late coming up and launching the product. But with the WM OS, together with Zune I think that phone will be a hit and can truely compete with the iPhone. Just like the orignal XBOX competed with PS2 to gain market share, if done right so can this project.

Now here is an idea... Go through different cellular manufactures and get Zune marketplace on their devices... Interesting.

http://www.engadgetmobile.com/2008/08/04/nokia-microsoft-working-on-zune-marketplace-integration/

 They could even start with making available from Windows Mobile.