Here is my long winded and probably naive take on the $500 PC, PClite, Interpersonal PC, World PC, Internet Appliance or whatever you want to call it.
WHAT IS IT?: An Internet Appliance (IA) is basically a device that serves as an interface to the internet. It has a few things in common with a regular PC in that it has the same basic components such as a display, a microprocessor (could be an X86 or some other chip), and some memory. The difference is that the IA is optimized to do one thing and one thing only, and that is to act as a graphical/audio interface to the net. In other words, to receive/display/playback image data and audio data coming from the net, and also to transmit user input (keyboard ,mouse, microphone) out to the net. Because it is designed and optimized to perform a specific function, it costs less by virtue of the fact that the function it perfroms requires less ram, less powerful microprocessor etc.
WHAT GOOD IS A LOW PERFORMANCE DEVICE LIKE THAT? There is a misconception that an IA can't possibly DELIVER the performance of a $2500 multimedia PC. Wrong. By itself, the IA is nothing to get excited about. But if the IA is hooked up to a 300 MHz Quad P7 server over the net, it will probably run Microsoft PowerPoint pretty damn fast. The IA itself does not run the application. The remote P7 server runs it. All the IA does is display the graphics that this remote server is sending it. (If you are familiar with X-terminals, the basic idea is the same.) Obviously, if the network can't shuttle the data between the IA and the server fast enough, then you will have lousy perfomance and its the World Wide Wait all over again. So, as George Gilder and Scott McNealy have been saying for some time now, the network is the key. Without a fast affordable network connection, the IA idea ain't gonna fly.
ARE THERE HIGH-ENOUGH BANDWIDTH NETWORK CONNECTIONS AVAILABLE FOR THE HOME TO MAKE THIS IA THING WORK ? Certainly 14.4 Kb/s won't cut it. ISDN might work at 128 Kb/s but will probably be marginal especially for multimedia intensive applications. Cable however may be the way to go for now. Check out @Home's website at home.net. In 1996 cable operators will begin deploying 4 Mb/s internet access. That is over 200 hundred times faster than a 14.4 modem and 30 times faster than ISDN. The big question for internet access via cable is cost to the consumer. The cable companies claim they can match ISDN costs. This remains to be seen. IF they can, then cable companies will do very well, ISDN might have a short life and this IA thing might really take off. With Sun, IBM, and Oracle pushing the IA or similar concepts, there is a decent chance that this will happen.
WHO IS GOING TO PROVIDE THE SERVER AT THE OTHER END OF THE NETWORK? Maybe AOL, maybe UUNET, maybe AT&T, or maybe IBM. Could be a lot of companies. What does seem likely though, is that computing power and resources will be looked at more and more like electric power: as a utility. You plug into the wall to get at the power. No need to generate your own power. Let the utility company do it for you and have it piped in to your home. DOES THIS MEAN THE END OF WINTEL? The IA idea has nothing directly to do with whether Microsoft or Intel will fall by the wayside. Certainly, the PC will not just suddenly fade away. But what the IA idea does mean is that the playing field could change dramatically. If you had a choice between a $2500 multimedia PC and an IA device that would give you all the capabilities and performance of that same multimedia PC for HALF the price, which one would you buy? Furthermore, if that IA device meant you would no longer need to concern yourself with hard disks crashes, back-ups, memory strips, hardware/software incompatibilities, and having to upgrade hardware/software, which one would you buy? This is the big carrot that is being chased with the IA idea, and why the IA idea seems so compelling to some.
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