As anticipated, Microsoft this week launched the latest version of its Pocket PC operating system, Windows Mobile 5.0. Reaction has varied from its impact on the cell phone market to the portable multimedia market.

For small business owners, the new OS means more options for software and hardware to meet specific industry needs, specifically for sales professionals and field technicians. There are also expanded mobile e-mail solutions, including a push e-mail functionality with Exchange that should give RIM a run for their money. According to PC World, users will be able to use a landscape display, making it easier to view Web pages. Also Nextel users will enjoy a new “push-to-talk” compatibility. Apparently Microsoft is aggressively encouraging developers to create 5.0 applications through a $25,000 contest.

As a longtime user of T-Mobile’s Pocket PC (no longer available), I like being able to edit Word and Excel documents from my handheld, only once I loaded the file back to my desktop, the formatting was gone, including any graphics. Windows Mobile 5.0 will correct that issue. While everything soulds great, we’ll have to see how the system works in the field before offering a recommendation.