InteLinux:
eetimes.com
Intel to sell Celeron-equipped info appliances
By Robert Ristelhueber
EE Times
(01/07/00, 9:30 a.m. EST)
SANTA CLARA, Calif. — Intel Corp. this week joined the Internet
appliance parade, announcing plans to market hardware and software
by midyear under the Intel brand name. Initial products will be based
on the Celeron processor and will run the Linux operating system.
The Intel Web appliances will not be sold directly to consumers, but
rather to telephone operating companies, Internet service providers
and e-commerce retailers, according to Craig Miller, product marketing
manager for the Home Products Group. Intel has begun shipping
prototypes to several customers, including US West, NEC Corp. and
an e-commerce division of Galeries Lafayette in France. They each will
add features of their own to the units.
"This isn't a real market yet, but we happen to think it's a promising
one if done right," Miller said. Intel will price its appliances close to
$300 for a basic configuration, but a more elaborate device could cost
several hundred dollars more, he said. Customers in turn are expected
to sell the devices to end users for a wide range of prices, and to give
some away free to those signing up for a suite of services.
"I think Intel is right to be putting an oar in the water and seeing
what happens," said Nathan Brookwood, an analyst with Insight 64
(Saratoga, Calif.). "If the Internet appliance is the next big thing,
they need to be in there and understand it."
He doubted if Intel was interested in becoming a big supplier of Web
appliances, however. "I think they're doing this more to develop a
semiconductor market than to be a box supplier. Nobody makes a lot
of money selling boxes."
But Miller said Intel was planning to build a real business out of Web
appliances. "We think it's a tremendous opportunity to build brand
value with consumers." He added, though, "Whether this eventually
goes to a space where we're simply an ingredient supplier, I can't say.
It's not our plan, but we can't look forward." Intel designed the
appliances internally, but will use a contract manufacturer to build
them.
Miller thinks the target markets for the appliances will be households
that aren't yet connected to the Internet, as well as buffs who want
access to the Web in different rooms of their homes. Intel will provide
a variety of designs. "Some will have LCDs, some CRTs, some will be
broadband-ready, some dial-up only. And some will have cordless
phones attached," he said.
Intel also will provide network-based management tools to its
customers, so that service providers can upgrade end users without
making service calls, he said.
Although Intel produces the StrongARM processor, it decided to use
Celeron for its initial Web appliances. "It's not out of the realm of
possibility (for the future), but today the direction StrongARM is
headed is to power-sensitive applications," Miller said. "We're striving
for a platform that doesn't compromise on plug-in support."
Brookwood of Insight 64 expects the Intel appliances to use a highly
integrated processor. "A Timna-class product could form the guts of
these devices. Throw in a couple of RAM chips, and you're done."
The decision to use Linux instead of a Microsoft operating system like
Windows or Windows CE was seen by some as more evidence of a
parting of the ways between the companies, but Miller said it was
driven by customer demands. "Several asked for Linux by name. They
felt Linux gave the best flexibility and best Internet experience. We
concurred. We did prototypes using other operating systems, and felt
they were lacking. It doesn't mean we can't do (a Windows-based
appliance) in the future," he said.
Microsoft's entries
Microsoft showed a line of CE-based Web appliances it calls MSN Web
Companion at the Comdex show in November. Due to ship at midyear,
they will be built by several companies, including Compaq, Philips,
Vestel, Thomson and Acer.
"Intel is in a high-margin businesses. Building this kind of hardware is
not their kind of business," said Robin Wang, product marketing
manager for Internet appliances at Acer (San Jose, Calif.). Acer's Web
appliances will also use X86 processors, but the company hasn't
decided which vendor to use, saying that Intel, National
Semiconductor, AMD and Via Technologies are all possibilities.
Acer's initial Web appliances won't contain a phone handset, but will
have a built-in LCD screen and an infrared keyboard. "You'll only have
to connect the phone line and power cord," Wang said.
A number of companies were expected to make Web appliance
announcements at the ongoing Consumer Electronics Show in Las
Vegas. Cirrus Logic said it had formed an alliance with Diamond
Multimedia to collaborate in the design of future Internet appliances
and Rio audio players.
Internet phone company Net2Phone Inc. and Panasonic said they will
market a line of Web phones. And America Online was expected to
finally unveil its AOL TV service.
Asked if Intel's introduction of Web appliances might bring the
company into conflict with any customers, Miller conceded that,
"Yeah, it's almost certain some of our traditional PC customers will
also try to provide into this space. That's OK, it's a market big enough
to sustain a lot of players." |
