NCs arrive! Microsoft a bit nervous?

Electronic News, Nov 4, 1996 by Elaine Chen, Cynthia Bournellis

New York--Network computers (NCs) are finally here, and could Microsoft actually be a little nervous? Last week, Sun Microsystems threw a major launch of NCs, servers and supporting software, while thin-client specialist Wyse Technology this week will introduce products compliant with the NC standards introduced by Oracle last May.

Meanwhile, Microsoft and Intel jumped in with their NetPC initiative based around a skinnier--but far from thin--"zero-admin client." While most analysts believe NCs hold some promise, they cautioned it could be years until the concept takes hold, and that increased application development will be key.

Sun CEO Scott McNealy is an ardent proponent of the NC, perhaps because it could be one of the strongest challenges ever to his encroaching "Wintel" adversaries. Under the NC model, initially introduced by Oracle and a host of prominent industry supporters last spring (EN, May 20), stripped-down computing devices download application software on an as-needed basis from a host server. Since these networks will run best with smaller applications, and also reduce the need for shrink-wrapped software, a widespread move to NCs will in all probability dampen sales for Microsoft's memory-hungry product offerings--while encouraging the spread of Sun's Java software platform.

Given the NC's potential significance, the industry has been hotly anticipating the first major product launch. IBM's recent introduction of the Network Station (EN, Sept. 9) only served to whet the appetite. IBM positioned the Network Station as essentially a "dumb terminal," albeit one with a graphical interface and some attractive features. Accordingly, last week's unveiling of two companies' NC product lines, along with the intriguing NetPC announcement from Microsoft, mark the true debut of the NC.

A standing-room-only crowd gathered to watch Mr. McNealy unveil what he termed "a computer for people who want to do something," as compared with the PC, "a computer for people looking for something to do." The new JavaStation is powered by a 100MHz microSparc II processor and includes a scant 8MB of memory, upgradable to 64MB, a 10BaseT Ethernet connection and a single serial port. While up to 8MB of flash memory will be available by the middle of next year, the JavaStation contains no other storage or slots.

During the launch, Mr. McNealy emphasized the simplicity and ease of use of the device. He connected and installed a JavaStation onstage, joking, "I did it with my golf major from Harvard." The sleek desktop version, which Mr. MacNealy nicknamed the "coffee maker," is convection cooled and therefore contains no moving parts. In a basic configuration, both the desktop version and fan-cooled embedded model are priced at $742. A package with keyboard, mouse and 14-inch color monitor will retail for $995, while a higher-end configuration with 16MB memory, mouse, keyboard and 17-inch monitor will be priced at $1,565, with all products shipping in December.

Sun also introduced a wealth of supporting products for the NC, including the crucial operating system and application development software and a range of servers specially optimized for the JavaStation. Sun Microsystems Computer president Ed Zander noted that "Any Sun server can power JavaStations" as well, and also showed the device's cross-platform capability by running it with Apple and even Windows NT servers. However, non-native applications will take a substantial performance hit. Sun Desktop Systems GM Gene Banman noted the company is developing a just-in-time compiler that should improve performance. Currently close to 450 applications have been developed for the Java NC, according to Sun.

Meanwhile, in the race to build the most robust and cheapest NC, Wyse Technology is releasing its new line of Winterm 4000SE Enhanced Network Computers.

The Winterm 4000SE series meets the Network Computer Reference Platform conceived earlier this year by Oracle and a number of leading technology companies (EN, June 12). Formerly code-named Boogie Board, the new line executes Java applets and Windows applications. Wyse licensed the Java operating system from JavaSoft and made a design using the StrongARM processor from Digital Equipment--StrongARM has been widely promoted as a processor for NCs.

Unlike Sun Microsystems, which just released its JavaStation Network Computer, and IBM, which also unveiled its Network Station NC in September, Wyse got into the game early on. In 1994, Wyse walked away from the PC market--the company began shipping first-generation Winterm NCs, also referred to as thin clients, during the fall of last year. Because of its early lead, many analysts believe Wyse has an advantage over its rivals. "Their pricing is very, very aggressive," said Greg Blatnik, a VP at the Zona Research market research firm.

But Wyse, and other NC competitors, could face some stiff competition now that Microsoft and Intel have announced their new NetPC reference platform designed to help businesses reduce the costs associated with owning PCs. "They could definitely become serious competitors to non-Windows thin clients," said Mr. Blatnik.