To All:
NetPC Gamble: Compaq Keeps
Its Bet On Table
Date: 10/6/97
Author: Russ Britt
Soon, Compaq Computer Corp. will know whether the
NetPC was a good idea.
The world's top PC maker is the first to market with the
machines, which some competitors are balking at
selling. NetPCs have data storage and software at the
desktop, but promise to reduce maintenance costs by
keeping users from introducing additional software to
the machine. They're marginally cheaper than PCs.
International Business Machines Corp. has said it will
not market a NetPC, but instead will use some of its
principles in desktop PCs.
But Compaq remains undaunted and is going ahead
with the initiative it proposed along with Microsoft
Corp. and Intel Corp.
Tim Harris oversees Compaq's desktop machines and
its initiative to bring NetPCs to market. He spoke with
IBD shortly after the company started shipping the
machines last month.
IBD:
What is the market for the NetPC?
Harris:
Our numbers - that we've been using since June -
indicate that it will run about 5% to 10% of the overall
commercial desktop market.
IBD:
What's an example of a business ideally suited to using
NetPCs?
Harris:
I wouldn't say it's any one type of business. You could
take any business. It gets down to the type of user
within that business. We kind of view it as the
high-task user, someone who probably uses one
application. It could be accounts payable; it could be
order entry.
IBD:
Do you have any customers signed up for the NetPC or
numbers on units sold?
Harris:
I can't comment on actual numbers of shipments. We
definitely have orders. I'd say the orders right now are
in line with expectations.
IBD:
When will you start shipping NetPCs in mass
quantities?
Harris:
We already are.
IBD:
Some network computer makers are not really shipping
in volume. Many customers still are evaluating the NC
concept. Do you have any customers who have bought
hundreds or thousands of NetPCs?
Harris:
We definitely have some that have bought hundreds and
thousands of these. It's a combination of those who
have found a use for it and those who are still
evaluating it. The NetPC is a standard space. The
machine can be used in any environment that any PC is
in today.
IBD:
Why does a NetPC make more sense than an NC?
Harris:
(NCs) don't run any of the software . . . (They're not
compatible with) the major (hardware and software)
investments (companies have) made over the past
couple of decades. That's a key part of the equation.
IBD:
What did you make of IBM's decision not to make a
machine following the NetPC specifications.
Harris:
I don't think I can comment really on what they're
doing or why they're doing it. All I can say is we
believe the managed PC story is a strong one and that
there are users out there (interested in) NetPCs where a
sealed- form-factor, no-removable-media, one-slot
machine makes sense.
IBD:
IBM was getting feedback from customers who said a
NetPC wasn't exactly what they wanted. What kind of
feedback have you been getting?
Harris:
Our feedback has been positive. In most cases, I would
say the NetPC is still a form factor that's under
evaluation for most of our key customers. Back when
we announced this in June, we stated that this is a
segment of the market that's going to take some time to
evolve.
IBD:
Some industry leaders say manageability is more a
software solution than anything else. If that's the case,
why does anyone need a new piece of hardware?
Harris:
It really is a reconfigured desktop, in essence. It
physically limits the ability to introduce into that
environment hardware or software that (can) cause
(overall) network costs to (rise).
(C) Copyright 1997 Investors Business Daily, Inc.
Metadata: CPQ IBM MSFT INTC I/3572 I/3573 I/8065 I/3675
E/IBD E/SN1 |
