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Technology Stocks : NCDI - Network Computing Devices

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To: Mark Orsi who wrote (4294)	9/11/1999 9:19:00 AM
From: Craig McNeill	of 4453

From IBMers internal website: Thin gets bigger: IBM Network Stations pick up the pace IBM has quickened its march in the thin client marketplace, announcing two new members of the Network Station family aimed at e-business applications in a wide variety of industries, including vital new businesses such as applications service providers (ASPs) which provide outsourced business applications over the Web. With retail prices of about $559 (US) and $799 (US) respectively, the new Network Station 2200 and 2800 are designed to clear a path to customers who need cost-effective, low maintenance desktop machines that operate in the emerging server-powered, Web enabled e-business environment. As the industry's thin client pioneer and market share leader, our company has maintained its focus on the thin client opportunity, in spite of "obituaries" from analysts and press observers ? based on over-hyped statements by competitors who predicted the early demise of PCs and the eclipse of the Windows operating system. Along the way, we adjusted our imagery as well ? adopting the industry term "thin client" instead of our original "network computer" designation. In spite of the resulting marketplace confusion ? still fed by the emergence of cut-rate PC offerings -- concrete business fundamentals have continued to fuel solid growth in the thin client area ? and we have hundreds of thousands of thin client sales as evidence. Those fundamentals include factors such as total ownership cost ? centrally managed installation, upgrading and user support can substantially undercut the cost of full-function PCs deployed inappropriately to perform discrete functions ? especially where tasks are repetitive, routine or do not require the user to create non-standard input. Such applications include banking functions such as those performed by loan officers, travel industry reservations arrangements or the delivery of purchasing or human resources information by an ASP to an enterprise, for example. Perhaps the clearest vindication of our approach comes from competitors ? Hewlett-Packard recently announced a range of thin client and Sun is also upping its stake in the market with its new SunRay line ? and the press has significantly re-evaluated its earlier dismissal of the thin client opportunity.

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