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Technology Stocks : Intel Corporation (INTC)

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To: Paul Engel who wrote (3464)	9/19/1996 10:35:00 PM
From: PFRice	of 186894

Paul writes: "In essence, the NC seems to be a return to distributed terminals and THE BIG MAINFRAME. Ever wonder why this situation ever gave way to the PC industry in the first place?" Because the PC offered a better overall (performance, cost etc) solution. A lot has changed in the past 10 years however. The best solution for the desktop back then is not necessarily the best desktop solution today. One thing that has changed is the server. Before it was big iron from IBM costing millions of dollars. Today its a PentiumPro SMP starting at a mere $10,000. The incredible price/performance of these servers provides yet another compelling reason to go with a thin client architecture. Today there are already businesses hanging 50+ Windows users off of a single PentiumPro SMP running Citrix's MultiuserNT. 100+ users will become common-place as faster 4 and 8-ways become available and as NT becomes more scaleable. Which brings me to an often overlooked aspect of the NC and that is that the NC isn't all bad for Intel. The NC (and the return to centralization) will help drive Intel sales of higher margin server related HW. Businesses demand access to Windows apps. A business deploying NCs will therefore require a server running MultiuserNT. Currently Citrix's software only runs on Intel boxes. (BTW, Intel has part ownership of Citrix.)

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