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Network Computers for the Masses Get New Life

October 5, 2004
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Oct. 6–Long live the network computer, an idea that never dies.

A decade ago, Oracle Chief Executive Larry Ellison predicted that cheap $500 computers connected to broadband Internet networks would undermine the Microsoft-Intel duopoly in personal computers.

These devices contained little computing power and memory. But they could connect to fast central servers that would perform computing tasks. However, falling prices for standard PCs and the slow spread of high-speed Internet connections doomed early efforts.

Now the idea is getting new life as the $150 network computer for the masses. An alliance of chip makers and Chinese partners announced Tuesday that they are promoting an “Open Source Networked Computing” initiative to create low-cost alternatives to PCs in markets such as China and India.

Speaking at the Fall Processor Forum conference in San Jose, Bob Bailey, CEO of chip maker PMC-Sierra, said a convergence of trends gives the $150 network computers a chance to replace the PC in emerging markets.

The machines would run open-source Linux software and will have the equivalent of open-source hardware since many chip makers would be able to manufacture the chips.

Proponents of the network computer say the machines make more sense now because components are cheaper and the whole system requires just a few chips. Bailey estimates the entire cost for a system would be $80 and it could be sold for $150.

“This machine will have no fans, no drives, no Wintel,” said Bailey, whose company makes the chips for a network computer dubbed the PMC Xiao Hu, Chinese for small tiger.

Linux has also become a low-cost alternative to Microsoft Windows, with China and other governments backing the open-source operating system.

The latest network-computer effort got off the ground thanks to research at Tsinghua University in Beijing. High-speed Internet connections that connect the relatively dumb network computers with powerful servers are becoming more common. There also is a growing demand for cheap machines among the rising middle class in the Third World.

Besides Santa Clara-based PMC, other proponents of the network computer include Mips Technologies and ATI Technologies. A handful of Chinese companies also plan to produce the machines, including Lenovo, formerly called Legend, the largest domestic Chinese PC maker.

Bailey noted that a network computer would carry much lower administration costs than a PC because it won’t be as susceptible to security breaches, virus attacks or need software updates.

But the newest version of the network computer will face competition. Sun Microsystems and Wyse Technology already make the devices.

However, Bailey said the “open source” network computer could enjoy broad support, particularly because Linux has become a standard and because there are more than a 100 companies that have licensed the chip architecture that the machine will use.

Glenn Henry, president of Via Technologies’ Centaur Technology unit, said full-fledged PCs using his company’s Intel-compatible chips can sell for as little as $150 in China.

Bailey noted that network computers will likely cost half as much as a similar PC but use a tenth of the power because they are based on more efficient microprocessors.

“This is one of those ideas whose time has come,” said John Bourgoin, chief executive of Mips in Mountain View.

Kevin Krewell, editor in chief of the Microprocessor Report, said the price seems right for the network computer. But he noted PMC-Sierra will need Internet service providers, retailers and other companies to offer support for the network computer.

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