Network Computers

• Introduction
• Description
• Advantages
• Disadvantages
• Cost Analysis
• Future Projections

Introduction

IBM's Network Station

Description

Wyse Winterm 4000

WHAT IS THE IDEA BEHIND THE NETWORK COMPUTER?

Major vendors such as IBM, Oracle and Sun Microsystems have advanced the proposition that the ultimate solution to managing desktop complexity is replacing existing PCs with the (approximately) $500 device known as the Network Computer.

Largely conceived as a low-cost desktop engine for both Hyper Text Transport Protocol and Sun's Java technology, the rationale behind the Network Computer is that Internet and intranet-based services complemented by Java applets will ultimately replace desktop-based software as the application paradigm of choice. The network station has no moving parts and no hard disk, floppy disk or CD-ROM drive.

Indeed the NC has developed huge expectations from the IBM, Oracle, Sun triumvirate. Oracle CEO Larry Ellison has high expectations for the NC. He believes that the NC’s will outsell PC’s nine to one by the year 2000. IBM estimates that there are about 35 million dumb terminals in use today such as the ones that go with the AS/400 systems.

There are essentially three types of network computers being touted on the market.

1. Client-oriented NC (NC-C). These are client-centric network computers that execute applications at the desktop. It is typically a diskless device running a thin-client operating system. Code such as Java modules executes locally but resides on the server, so server connectivity is essential. Some types may not inherently support Windows applications, so you may also need a server-based emulator such as NTrigue, from Insignia Solutions, Inc. NC-C models include the Java-based models such as IBM's Network Station, Sun Microsystems' JavaStation and others such as models from Acorn Computer Group Ltd. that license software from Oracle Corp.'s Network Computing subsidiary. The study predicts these machines will become a factor in the NC marketplace in 1998. Examples: Sun Microsystems, Inc. JavaStation; Wyse Technology, Inc. Winterm 4000; and NC standards from IBM, Netscape Communications Corp., Oracle Corp. and Sun.

2. Server-oriented network computer (NC-S). This is basically a diskless smart terminal with the application executing on a server. They are server-centric network computers that execute application code at the server level. Some NC-S models are available now. Examples include HDS Network Systems, Inc.'s workStation, Wyse Technology, Inc.'s Winterm series, Citrix Systems, Inc Win frame. and Network Computer Devices, Inc.'s Explora. If a company is going to roll out a network computer to its workforce this year, it will be an NC-S.

NCD's Explora

3. NetPC. This is a planned, diskless Windows box with only a handful of hardware specifications to its name. The PC has no data stored locally; its identity, meaning user profile and configurations, is server based. The NetPC will be based on hardware specifications put forward by Microsoft Corp. and Intel Corp. Although NetPC hardware platforms may become available this year, the crux of the NetPC - the software won't be available until at least the middle of next year. Example: Microsoft Corp.-Intel Corp. NetPC specifications.

Advantages

Better Access

Network Computing provides access to all kinds of applications running on one server or many servers, to the worldwide resources of the Internet (or a private intranet), and to the fast-emerging world of Java applets and applications downloaded on demand from Internet or intranet servers. The flexibility of Network Computing adds to its attraction in that there is no disk storage because applications and data are maintained on the associated server and downloaded as needed.

Network Computing is a simple, economical alternative that extends access to information and applications no matter where they may reside.

Cost

The main advantages of Network Computing lies in its low cost, ease-of-use, flexibility, and reduced maintenance costs. The first generation of NCs are expected to cost about $500, with lower prices for NCs which substitute a monitor with a TV. Another cost advantage is lower costs in installation fees. Estimates are that the cost of a network computer based Internet installation is 57% less than that of a system built around standard desktop PCs. By automating and centralizing PC management and thereby lowering the cost of installing, maintaining, and trouble-shooting PC software and hardware, the NetPC initiative will bring these costs way down.

Ease of Use

A significant advantage of Network Computing is with its ease of use. According to Oracle, most computer users only use a word processor, send e-mail, create presentations, and develop spreadsheets. The network computer could easily provide such services, without the user having to have bulky software packages residing on their systems. For a user to type a letter, he or she would turn on the computer and start typing. The same user-interface (web-browser) would operate all programs, thus eliminating the learning curves of many applications.

SmartCard

At the heart of the network computer is an ATM (bank/credit card) type card that will provide users with security and easy access to the network. This SmartCard will enable users to access their personal data and e-mail from anywhere in the world. One benefit of such a card-system is that users will be able to use other people's machines without having to reconfigure the computer each time. Banks, offices, hotels, and other businesses will most likely have network computers available to their customers; all they will have to do is enter their SmartCard into the machine to have network access. This will make the network computer available to thousands, if not millions, of people instantly.

Potential users of Network Computing would include:

· companies with old "green-screen" applications they want to keep using, who also need newer graphical and Internet-based applications

· enterprises that are especially cost conscious, and anyone with back-office clerical operations

· businesses like financial institutions, securities firms, insurance companies and government agencies, that want to secure their vital data by storing it centrally, rather than on desktop files or removable media

· companies faced with replacing old terminals or old-technology PCs, that have become inefficient or uneconomical to maintain

· companies planning to buy a large number of PCs in order to access their corporate intranet or the Internet

· small businesses seeking to add IT function - but keep the total cost low

Disadvantages

Security

There are many tools that address some aspect of security. For example, they may check for operating configuration errors, reveal easily guessed passwords, detect intrusion, scan for viruses, authenticate users, examine system logs or block access to Internet sites. In spite of all these, however, it is often not possible to determine who has access to a certain piece of information, and from where? If somebody accessed the data, what did he/she do with it, and what may somebody be doing with the data right now? In the cases of some sophisticated users who deliberately avoid leaving a trail, it may be impossible to track them and their activities. Ways to answer these questions and ensure security in a distributed environment are still being explored, and one can never be 100 percent secure, even though the risk may be reduced.

The problem of hackers exists inside organizations and externally as well. Internally, there are connections within and between departments and project teams, individuals move among projects, and a network’s boundaries may extend to home offices, or contract staff. These connections must be secured, authorizations monitored, and security disciplines applied to prevent violations, which may cause considerable damage to the organization. These protection measures, for example firewalls for every department may be very expensive, and they probably will not be able to keep pace with internal network speeds. Identifying the actual user behind the computer is another challenge. Some means of authentication may be quite simple but considerably risky at the same time (station addresses), others easily guessed or obtained (passwords). These deficiencies create further internal hazards to security. On the other hand, the more rigid and therefore safe your security measures are, the greater the potential that users will work around them to avoid the hassle. (Reference article: "Villains in the Vault", Network Computing, January 15, 1997.)

Power Problems

Interrupted power supply can damage equipment, result in loss of data, or can cause whole systems to stop operating. This may be especially damaging in certain environments such as banking or retail trade, where even a short interruption can considerably hurt the business, and downtime is either intolerable, expensive, or both. Therefore, you need to make sure that your network is reliable, and secure from disasters. Data backup procedures need to be established, and power supply problems anticipated and solved.

Speed of Data Transmission

Delays in the network environment are sometimes inevitable, which can hinder efficient business activities and destroy continuity, for example in the case of video conferencing. Networks are too slow to meet the speed requirements in complex graphics and visualization tasks. In addition, there is a trade-off between flexibility and speed, and the security considerations. As an example, public keys are more secure than private keys, and they are typically slower at the same time.

Outsourcing vs. Internal Network-development

Outsourcing is almost unavoidable in most of today’s networks. There are certain advantages of outsourcing, for example the organization may gain from the expertise of an experienced outside vendor. On the other hand, the vendor may attempt to force its client into a solution which is most convenient for them, and not most beneficial for the particular business situation. A technically less sophisticated client may be unable to identify these strategies. On the other hand, remedying mistakes ( for example rewiring an office) that derive from inadequate expertise when doing a project internally, may be very costly.

Control

In an intranet, an organization typically maintains total control of the network environment. In an extranet, however, they have to deal with third party service providers, and therefore they lose some control. The potential problems are similar to those of outsourcing: insufficient user organization expertise may tempt a vendor to neglect the users’ needs and interests, and an unreliable vendor may put the organization to considerable security threat.

Cost Analysis

The network computer's fan club is led by Larry Ellison of Oracle, Sun Microsystems' Scott McNealy, and IBM’s Lou Gerstner. As it happens, these are the bosses of three of the strongest computer companies outside the oligopoly of Microsoft and Intel, which dominates the PC market. They see network computers primarily as a way to break the grip of the PC, just as the PC once broke that of the mainframe, and hope to make fortunes selling software (Oracle's), servers (Sun's) and mainframes (IBM's) to go with this novelty. Predictably, some of the noisiest skepticism has come from Microsoft, the company that would lose most if the PC went out of fashion.

Initially, the trio trumpeted the low price of a network computer, saying that it would cost less than $500-a quarter the price of a typical PC. Now that network computers are on the market (some made by Sun and IBM), the tune has changed: the cheapest ones for office use cost about $1,000, much the same as the cheapest PCs. Instead, the argument has shifted to the lifetime "cost of ownership" of computers. Oracle, Sun and IBM quote calculations by respected consultancies such as the Gartner Group that a PC costs an average company more than $13,000 a year when maintenance, training and time lost by users is included. The cost of buying a PC, amortized over five years, is a mere 5% of that.

In contrast, the lifetime costs of network computers are said to be low. Oracle claims that switching from a PC to a network computer can cut costs by 80%, and also boost employee productivity. This message appeals to managers, who are starting to ask what has happened to the increased productivity they expected to arise from the billions they have collectively spent on PCs in the past 15 years. Could network computers be what they really need: just enough technology to improve the way employees do their jobs, but not enough to go wrong?

The biggest savings are found not in the up-front cost of the network station but in the reduction in maintenance and help-desk overload. The real advantage of the network computer is that it’s server managed so network managers don’t need to install and maintain copies of software on every desktop. The network station allows the network manager to simply download software to connected machines by changing the program saved in the server.

Referring back to the three models some cost comparisons can be made based on design. The Gartner Group says that companies that purchase the NC-C models should save approximately 41% over today's standard networked PC model. The total cost-of-ownership savings over a five-year life cycle is estimated at 33% savings. For those willing to wait for the NetPC, the study predicts that the cost-of ownership savings will come to about only 26%.

AN ALTERNATIVE VIEW OF THE COST SAVINGS:

According to some industry executives, a closer examination of the costs of ownership reveals that, far from saving lots of money, network computers may often cost a company almost as much as modern, well-configured PCs. Add the cost of switching, and they may cost even more in the short term. Network computers may indeed have valuable uses (see box on next pages but the main savings they offer will not come from replacing the PC.

To see why, break down Gartner's estimate that a PC connected to an office network costs $13,00 a year. The figure has three components: 21% is the cost of buying the PC and its share of the network equipment that connects it to the rest of the office's PCs. 36% is administrative cost: anything from the cost of the systems department's help-desk to the bill for managers who have to decide what sort of computers and software to acquire in the first place.

43%-easily the largest chunk-comes from what Gartner calls "end-user operations": mainly productivity lost as users fiddle with their machines, rearrange the icons on their screen, play games and waste time in other ways.

Take those three components in order. Part of the reason network computers cost less to buy than an average PC is that the job of storing software and information is done by a central computer, or server. While the servers for a PC network usually just store data and connect PCs to a printer, servers for network computers must be faster and have more storage capacity. Similarly, the network equipment that connects the servers with the desktop machines has to be more powerful, and therefore more expensive. Virtually all the capital savings that come from installing network computers are lost in the extra cost of the network and the server.

The second claim-that network computers offer savings in administrative costs-is more plausible. Because their software is stored on central servers, systems managers can keep an eye on it. Input, a consultancy based in Mountain View, California, guesses that a single systems administrator might therefore be able to look after 100 network computers, compared with only 25 PCs, which, it calculates, could save an eye-popping $3,400 a year per machine.

But Input's calculations take no account of another administrative cost, which is likely to increase with the introduction of network computers. At least a quarter of a systems manager's time is typically spent, not on the machine on the desktop, but on the network itself and the central server. Switching to network computers is likely to double those costs, adding more than $1,000 per desktop and cutting the total savings by at least a third.

One idea for a company to cut these costs would be to update its existing PCs, by switching to Microsoft's newer operating system, Windows 95. That, Gartner calculates, would save a company $500 a year per user in administration and support costs. And adopting the best of today's cost-cutting software and management techniques, such as those embodied in Microsoft's forthcoming NetPC standard, could save a further $1,000-1,200 a year in administration. Gartner reckons that the total cost difference between a pure network computer and a NetPC is only about 12%,about $1,600 annually.

Future Projections