IBM sees more network computer sales in '98
Holly Rosenkrantz
New York, Dec 29: International Business Machines (IBM) Corp is looking for big sales in 1998 of its newly developed network computers, a scaled-down form of a personal computer that it introduced in the market this year.After hundreds of business customers tested the machines this year, about 50 companies have signed on to buy ``hundreds of thousands'' of IBM's network computers, known as NCs, in early 1998, spokesman Philip Hester said.These companies include AMR Corp's American Eagle regional shuttle, veterinary supply chain Walco International, and Atlanta-based Wolf Camera & Video, IBM said. And with Sun Microsystem set to introduce its own network computer to the market in 1998, IBM is hoping the machine will gain wider acceptance among businesses looking for less expensive computers than traditional PCs.``It will help legitimise the marketplace...(for NCs,) '' Hester said. NCs generally cost less than $1,000 a machine, although prices vary based on the model purchased, IBM said. Hester said
the company hopes to sell hundreds of thousands of these machines next year, although he declined to disclose IBM's internal sales goals for NCs -- a product that he said is a key element of the company's overall business strategy for 1998. ``We're the ones who had once said a couple of hundred thousand PCs would be sold, so I'm not going to make predictions,'' he said. One obstacle that IBM faces in the emerging competition to sell scaled-down computers is a perception that they are no longer in the game, Hester said.In September, the company announced it was moving away from plans to build and sell a machine called a NetPC. The NetPC is another type of scaled-down personal computer which contains more features than IBM's NCs. The NetPC is being promoted by Microsoft Corp and Intel Corp. Hester said IBM backed away from its plans to make NetPCs after its customers told the company there is not much difference between these new machines and IBM's personal computers. But although IBM also announced at
that time it was stepping up plans to promote its NCs, Hester said there was a perception that it was getting out of the business of selling scaled-down, less expensive computers. ``There was a lot of confusion,'' Hester said. ``We haven't done a real good job on getting this thing clarified.'' NCs are targeted for business where employees can function without the floppy disk drives and extra-powerful microprocessors that come with standard personal computers. A Gartner group analyst, Ross Rubin said a key issue for selling the product is the compatibility of the system's server. A company outfitted with NCs would use the server for functions such as updating software on all its machines. Hester said its NCs are compatible with servers made by other companies.In addition, IBM is hoping that the growth of the NC market will boost its server sales, which cost between $2,000 and $2 million.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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