Here is an article that someone emailed to me today (no name on it). Very interesting stuff.
" By Neil Winton, Science and Technology Correspondent
LONDON, May 21 - Oracle Corp's <ORCL.O> new Network Computer will have a tough time winning sales in the business market and analysts doubt whether consumers will be seduced by its purported low price.
U.S. technology powerhouse Oracle yesterday set up a company with other high-profile partners to promote so-called network computers and signal the start of an offensive against the dominance of software giant Microsoft Corp <MSFT.O>.
Dean Bubley, analyst with high technology consultancy Datamonitor, said initially network computers would be aimed at business markets likely to have the high-powered connections required.
But he cautioned there could be lots of technical difficulties.
"Companies have invested lots of money in training and on personal computers which they wouldn't want to waste. Oracle has a long way to go to break into that market," Bubley said.
Alex Letts, chairman of communications strategy agency SMI, agreed that network computers were aimed at the business market. He doubted that consumers would show much interest.
"Consumers don't mind paying $500 for a TV, but balk at a $2,000 computer. But even at $500, not many people will see a use for a network computer," Letts said.
Eddie Hold, editor of Economist magazine "Communicate," was sceptical of its mass market appeal.
"The typical response of somebody surfing the net after about 30 minutes is "Is that it?." There isn't the content out there to jusfify spending $500; they might as well buy a Sega <7964.T> computer game," Hold said.
Oracle says network computers would provide cheaper access. Instead of incorporating expensive software and microprocessors into each terminal, users could simply dial into the network and draw on only the computer power necessary for each task.
Oracle believes the network computer would avoid costly software updates on individual terminals.
Oracle boss Larry Ellison has touted his device around the world, saying it would trump what he described as overpriced, overpowered and overcomplicated computers using Microsoft software and Intel Corp <INTC.O> micropocessors.
Ellison has said the network computer retailing at $500 would massively undercut average personal computer prices in the United States and Europe and usher in a new mass market.
But SMI's Letts suspects a hidden agenda. "There are a lot of issues unresolved. Is this what the consumers want? Or is this just the big players trying to take shots at Microsoft and Intel?" Letts said.
Datamonitor's Bubley believes Microsoft will soon hit back.
"Microsoft is working on its next version of Windows, and I believe its SIPC - Simply Interactive PC - like a cut down PC, will compete here. I'd be surprised if Microsoft was caught out like it was with the Internet," Bubley said.
Oracle's announcement in San Francisco yesterday said the Network Computer consortium included more than 70 companies worlwide, including Apple Computer Inc <AAPL.O>, International Business Machines Corp <IBM.N>, Netscape Communications Corp <NSCP.O>, and Sun Microsystems Inc <SUNW.O>."
I personally would never buy one. |
