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Technology Stocks : Corel Corp.

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To: Scott Volmar who wrote (503)6/4/1997 11:17:00 AM
From: bcoch   of 9798
 
Here is another article re their spin off project:-
Corel set to have network computer in the marketplace by fall
Joanne Chianello The Ottawa Citizen

Corel Computer Corp. will begin shipping desktop-video enhanced
network computers by the fall.The new Corel Corp. subsidiary, which moves into its own downtown offices June 21, will be selling the so-called VNC -- or video network computer -- for about $700 U.S.
Corel Computer, a separate division of the software giant, which
will concentrate on hardware, will be one of the first companies to
introduce the new network computer -- a desktop terminal that has
little or no memory. Unlike traditional personal computers, the
network computer accesses most applications, like
word-processing, from servers. Because the application software
isn't stored on individual machines, it makes network computers
easier and cheaper for companies to manage.

The move will pit Corel Computer against some of
high-technology's heaviest hitters -- IBM Corp., Sun Microsystems
and Oracle Corp. But Eid Eid, the president of Corel Computer, said the Ottawa company has a jump on integrating Java, the computer language network computers will use, and video technology. Corel
Computer's VNC will integrate the company's desktop
video-conferencing technology, which will operate over a computer
network.

He made his comments during a multi-city video conference call
with students and alumni of the Queen's University executive MBA
program. Mr. Eid also pointed out that both IBM and Sun are focussing on different markets. IBM wants to replace the 30 million existing
dumb terminals that were introduced decades ago to work with
mainframe computers, while Sun is concentrating on the high-end
users as well as trying to sell its servers, the powerful computers that run networks.

Mr. Eid joked yesterday that the Oracle subsidiary working on
computer networks "is the wild horse" because no one ever knows
what Oracle boss Larry Ellison will do next.

The network computer field could be huge. U.S.-based Zona
Research estimates that 78 million network computers could be
shipping annually by the year 2000. However, only about seven
million units would be purchased for commercial uses.

And the potential for desktop video conferencing is also promising,
with industry forecasts pegging annual sales for the technology in the
$5 billion U.S. range by the end of the decade.

Gartner Group expects that by 1999, 85 per cent of all desktop
computers shipping will be able to handle video-conferencing.

Certainly, that's not out of the question, considering large
corporations could save time and money by using desktop
conferencing video to train workers and hold employee meetings.
Travel to various offices could be reduced by virtually meeting on
the desktop video system.

But just because a new technology makes sense, it doesn't mean it
will be adopted by customers. Or if it is, it could take years before
the market reaches a critical mass.
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