Thread: Any thoughts on this ??...
<<Ellison Brings Back the Network Computer
January 28, 2000
You knew it was only a matter of time. Internet appliances became a hot item in 1999 -- in drawing attention, if not in drawing sales. It won't be long until there are more Net-connected devices than there are wired PCs. Is this a case for the revival of the network computer?
We haven't heard much from Oracle (ORCL) chief Larry Ellison on the status of his brainchild for a while. At Upside's Showcase conference in Palm Springs, Calif., Thursday night, he made it clear that we're about to. Firing on all cylinders, Ellison made his case for the network computer, taking the opportunity take a couple of shots at rival Bill Gates and defend his vision in the face of a wily audience.
Stopping short of a demo of the new $199 NC he announced was in the works last November, Ellison dropped a couple of hints about the company's direction. Oracle is going to spin off a couple companies. The first, to be called the New Internet Computing Company, will apparently make the network computers, and the other will have its hand in wireless Internet devices.
The NICC, as we'll call it, plans to release its first network computers in March and will be able to ship volumes in the millions by June, says Ellison. He will also soon name a CEO of the NICC. "We can't tell you who she is either," he said, "but we will in a week or so."
That remark started a buzz in the crowd. I won't tell you who said it, but someone shouted the question of whether the new CEO is of legal age or not. Ouch. Well, Larry, you do have a reputation.
Joking aside, Larry sounds as if he's really getting serious here; it's been awhile since he's been this feisty.
An audience member asked why Liberate Technologies (LBRT), the maker of TV-based devices that was formerly know as NCI, was never widely successful with the network computer. Larry took off the gloves. "You know why? Because Bill Gates called Bob Palmer (the former CEO) at Digital Equipment and told him not to make them." Host Gina Smith reminded Larry that there was press in the room.
When LCI Technology Group Chairman and CEO Sam Asseer approached the stage to give Larry one of his "SmartPens," a biometric devices that recognizes signatures not just by how they look but how they're written, Larry quipped, "So if Bill Gates uses one of these when he threatens a manufacturer, they'll know it was him?"
Welcome back, Larry. It's been a long time.
Testing the Vision:
Still, will the NC fly this time? The crowd was full of the usual critics. Some people just hate the idea of giving up their desktop PCs. Power users will probably never buy network computers. But the NC may benefit from the trend in computing towards simplicity and ease of use.
Larry's preferred computing model is that of the ASP: run everything remotely. He had a business partner, NetLedger, demonstrate its online accounting software to prove his point. It was your basic ASP approach -- the one that uses PCs today. But Larry's conclusion is that once there are enough ASPs, there's no need for PCs anymore, except for making graphics and doing other tasks that require large amounts of computing power.
"I believe every software company is going to have to become an ASP," he said.
Does the ASP model bring up security and privacy issues? "If you think your data is safer on you PC … you are mistaken," he said, adding that networks can be very secure and those with needs for high levels of security such as the CIA currently use Oracle products.
But what good is the ASP model for a user not connected to a network, such as when on an airplane? Larry says improved portable devices will fill in those moments.
Yes, asked someone from the audience, but what about small companies off the beaten path with a mediocre ISP? The network goes down and there goes the business. Nonsense, Ellison replied, there are many ways to connect to the Internet when the primary mode of doing so fails. He suggested having multiple service providers as backups, such as free ISPs. If one goes down, there's always another.
Is there? Most of the population does not have multiple connections to the Internet. Individuals and small business often have only one phone line. A phone outage will bring their business to a halt. When I work remotely, I often find it difficult to get a good connection. Half the time when my computer dials in from here in Palm Springs, I get a recording saying I've got the wrong number. And I try to stay offline as much as possible, because someone might actually want to call me on my one-line-only hotel phone.
Bandwidth is no longer the big issue, damn it, it's coming. But the availability of reliable connections is an issue. People need a lot of connectivity to the Internet before we can really rely on the ASP model -- and on network computers -- for individuals and small businesses. From there, who knows? I could see a future where the PC splits into several smaller, dedicated devices that would be just as useful.
And if they don't crash, Larry's got a winner. Now it's Bill's move.
Richard L. Brandt is senior contributing editor at UPSIDE. >>
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