re: WinTel leaving room
In a worst case scenario, everyone could get squeezed out. I like to think it has more positive implications, however. Two points I would make:
1) The major 'good' thing about Microsoft and now Intel blessing the thin client model is that it is the first time in history that either one of them have basically said, formally and publicly:
"It's ok sometimes to not buy a PC"
If you think about this, it is a world changing event. The biggest issue any of us in this business face is the implicit assumption of major customers that a PC will be the ultimate solution to all problems. Until WinTel said differently it wasn't a choice of PC or no PC, it was merely a choice of little PC or big PC. Big potential win.
2) Ignoring for now Microsoft's application business, both Microsoft and Intel are fundamentally in the 'platform' business. Historically we have developed our own platforms, (operating systems, drivers, ASICs, boards, etc). While this has certainly allowed us great flexibility and control, it has also come at the cost of resource constraints. Properly used, the Intel and Microsoft efforts can actually *enhance* the business opportunities of companies like NCD. What we need to do is capitalize on more vertical and/or specialized opportunities that add value to the basic platforms.
A no-brainer? Hardly. It requires creativity and agility. I believe it will also require mass, which is why I believe it is critical for NCD to be a major player in the emerging WBT market. This creates a base for the business to expand in multiple directions. Given that the market (over the course of 1998) will become more and more accepting of the thin client model through Microsoft and Intel positioning, this is not a horrible situation to be in. |
