Richard: Milos, thanks for talking with SymbianOne. Perhaps we can start with your latest product Qix, where did the concept for the product come from?

Milos: The idea for Qix stemmed from a product we have been working on for a while called eZiNet. The idea behind eZiNet is to use our predictive text engine as a way to pull information off a network into a device, using a client server approach. We just happened to build the device portion of the solution first. We then realized the potential for a stand alone product to easily access information on a phone. Not just contacts and phone numbers but services too. What really sold us on launching Qix was the realization that it could generate huge cost savings and increased ARPU for operators by putting all the operators' services literally at the phone user's fingertips.

Richard: Do you still plan to expand the product to the scope of the original eZiNet?

Milos: We certainly have more phases to the Qix product. We have plans for over-the-air updating, so new services can be added to the index. We are also looking at features to access remote host based services.

Richard: You have launched Qix on Series 60, while Zi supports several operating systems Symbian seems to be a favorite.

Milos: You're right. We have all of our products implemented on Symbian OS, Qix and eZiText on Series 60, and eZiTap and Decuma on UIQ. We certainly are fans of the OS. Technically it's amazing what Symbian have packed into such a compact OS and obviously from a marketing perspective it has significant advantages over other operating systems.

Richard: What has been the particular advantage for Qix?

Milos: Because Symbian OS is so open we have been able to implement a very wide selection of features on the demonstration versions of Qix. So we have provided access to virtually everything in the phone including contacts, bookmarks, messages, call logs, and browser bookmarks. In a real implementation the licensee can obviously chose to include or exclude particular features. Ports to other devices will change the features we are able to offer, as each solution will be unique.

Richard: You mentioned earlier that you see significant advantages for Operators in the Qix product. You have traditionally focused on handset manufacturers, why the change in focus?

Milos: Look at what Qix really does, making complex smartphones with simple keypads much easier to use. It makes service discovery easier and therefore will generate more network traffic. As a result the operators are the big benefactors from this technology. So we felt it was more logical to go directly to the operators; get them to understand the benefits of the product so they can collaborate with handset manufacturers to include it on their devices - ensuring any implementation is totally customized to specifically address their unique service strategies.

Richard: Surely the operators will want something concrete, some hard numbers before they start to add Qix to their device specification?

Milos: Certainly, and we are planning field trials to prove Qix. The plan will take a set of devices, load half with Qix and leave the other half in original condition. These devices will then be shipped and we will measure the ARPU and costs associated with these handsets. We expect to come up with significant evidence that Qix accelerates revenues for operators.

For us, the goal is not only to show the benefits of Qix but also to reveal its true value. We hope these trials will allow us to price Qix on the basis of the benefit it offers not simply a fixed per phone royalty.

[Editor's note - Zi have announced trials with Virgin.]

Richard: Has shifting focus more towards the operator meant a change in the way you deal with your customers?

Milos: Our approach is not radically different. Operators have been an increasingly important part of our customer base for a while now. We have been working with operators to get eZiText and our other products specified on phones and so we are talking to carriers more and more, now that we have several things to talk to them about.

Richard: One thing I've always found curious is why eZiTap has been made available as a public application and other products have not. What's the reason?

Milos: It's basically driven by market demand. It's not part of our core business model. But they serve a purpose, to get a product known in the market or to get customer feedback on ideas and concepts - not to mention that we had received numerous end-user requests for such a product too.

Richard: And how does the Decuma purchase fit into your business plans?

Milos: We believe that device manufacturers are always looking for new and efficient ways for users to enter information into their devices. While the pure PDA market is shrinking we are seeing more phones with PDA style functionality and stylus support so handwriting recognition is becoming important to our customers.

The acquisition of Decuma is part of our architectural view of text entry. We plan to harness our linguistics knowledge, the power of our databases, and predictive engines across a range of input methods. Doing this will enable us to deliver a tighter code with a smaller footprint. We will also be able to offer the user the ability to switch dynamically between method, moving from stylus entry while stationery, to keypad entry (with one hand) while on the move.

While this architecture had technical advantages we are also finding that OEMs and ODMs want to minimize the number of vendors they deal with. So having a full suite of text entry tools is a huge advantage. It's opening doors to deals we would not have been able to address before.

Richard: Decuma had been talking about a consumer version of the handwriting application. Have those plans changed?

Milos: No, we are launching a download of Decuma for UIQ phones. From March 14th, end users can now go to handango.com to download it. The download product is compatible with Sony Ericsson P800/P900/P910 smartphones. We are also reworking our 2005 roadmap. We have customer requirements which need the integration of the Decuma product into the Zi engines to provide word completion and next word prediction.

Richard: While all these technologies are very nice, isn't voice really the killer text entry application? Do you see text entry products like Voice Signal's VoiceMode dictation technology as a significant threat?

Milos: Voice can be a good solution but we don't believe it is the only solution. Imagine trying to dictate a private message in a crowded room, bus or train. There will always be times and places for keyboard or screen-based text entry. Voice is however an important text entry method and we are looking at ways to integrate voice into our product line. We are always looking for new ways to enter text.

Richard: What options are you exploring for voice? Are you likely to make another acquisition similar to Decuma?

Milos: Our ideal would be to purchase, but with the voice market taking off that is not looking like a viable option. It is most likely that we will establish a partnership of some form.

Richard: So what's in the immediate future for Zi?

Milos: The next release is an updated version of eZiText with improved language support and many other improvements, but beyond that you will just have to wait.

Richard: We will await with interest. Thanks for talking with SymbianOne Milos.

Milos: Thanks, it was a pleasure.

SymbianOne has already previewed Zi's Decuma handwriting recognition technology in this article. Shortly we will be posting an article on eZiText and Qix. eZiTap and Decuma for UIQ can be downloaded and purchased directly from Zi Corporation here.