With the mainstreaming of smartphones, the mobile phone landscape has changed dramatically since 2007 and Microsoft is now more than ever pressured to deliver a competitive mobile operating system.

During a conference call Tuesday, Microsoft CEO Steve Ballmer revealed that Windows Mobile 7 would be ready in 2010, reported WMPoweruser. This comes just after the showing of Windows Mobile 6.5 earlier this month at the Mobile World Conference in Spain.

Perhaps it’s more than just coincidence that both Windows for PCs and Windows Mobile will be hitting “7” sometime in the near future. Ballmer said that he saw both versions of Windows as two sides of a single project, which will eventually share technologies such as the browser, presentation technologies, and later on, even the kernel.

As proof of its dedication to the mobile space, Microsoft is now putting $900 million per year into Windows Mobile, with a 2,000 strong staff.

Despite the strong backing, Ballmer reiterated that the company will not being making a Microsoft-branded phone, but instead will be committed to licensing its software.

Industry onlookers speculated earlier this month that Microsoft is having a hand in creating a reference design for other handset makers to follow -- all in hopes to create a baseline of hardware that would be suited well for future Windows Mobile operating systems.

Source : Tom's Hardware US