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News In Review

February 23, 1998

Sun Enlists IBM For JavaOS Aid

NC vendors aim to sway buyers away from Windows alternatives

By Mary Hayes

D evelopers of Java-based network computers, hampered by technical and marketing missteps and an aggressive Microsoft, are regrouping with the intent of convincing customers that pure Java NCs are a viable thin-client alternative to Windows-based machines.

Sun Microsystems, developer of the JavaOS for NCs, has enlisted IBM to get the delayed operating system out the door, according to sources close to the agreement. IBM is offering its 2,400 Java develope rs to help make the JavaOS more robust and stable. The companies hope IBM's involvement will boost user confidence in Java-based NCs--by the sheer influence of IBM and by the assurance that the JavaOS isn't an operating system that's proprietary to Sun.

Both Sun and IBM are banking heavily on the JavaOS. Sun now plans to roll out its JavaStation next month, 18 months after it was announced, and IBM plans to introduce a JavaOS-based Network Station in several months.

Howie Hungercaption "IBM brings a lot to the table in terms of enterprise customers, and we are anxious to help get the JavaOS to the marketplace," says Howie Hunger, director of channels and marketing for IBM's Network Station unit. Hunger acknowledges that IBM is negotiating a JavaOS alliance with Sun but won't discuss specifics. Sun officials declined to comment.

Sources say IBM and Sun will pool their JavaOS developers to address a number of issues, including security, device drivers, servicing, and administration. The companies will also co-develop tools and services for Java developers, and collaborate on educational and certification services for software and hardware vendors. The companies will also share marketing responsibilities for the JavaOS.

Early testers like the prospect of a Java-based NC, but they're grappling with an immature technology. "In some cases, dumb terminals aren't enough, fat PCs are overkill, and a Java NC with a browser is an ideal intermediate choice," says Peter Hendler, a physician with Kaiser Permanente Medical Group. The Fremont, Calif., health-care organization is testing Sun JavaStations as replacements for up to 20,000 terminals for accessing Internet-based medical records. But Hendler says the group has had trouble with the systems locking up when multiple tasks are run, requiring users to restart the systems. "The current weakn ess is that the operating system is not bulletproof enough," he explains.

Slow Start For NCI
Another driver of Java-based NCs, Network Computer Inc., has also gotten off to a slow start. The Oracle-backed company last week replaced CEO Jerry Baker, who has a technology background, with David Roux, an Oracle executive VP whose background is in business development, acquisitions, and marketing.

Despite the fact that NCI laid off 15% of its 200-person workforce in December, Baker's departure and Roux's appointment aren't a sign of weakness, but a sign that the company has entered the selling phase for its NC software, says Jeffery Menz, director of product development for NCI. Menz says NCI is competing for several large deals, including 10,000-unit contracts with Volkswagen and the U.S. Marine Corps, as well as smaller purchases under review at Bell Atlantic, EDS, Honeywell, NexTel, and several universities. IBM, which claims to have sold 100,000 NCs last year, also says it is chas ing several large deals.

But not one NC vendor has yet disclosed a deal for more than a few thousand units. What's more, a closely watched pioneer of thin-client computing, Federal Express, is moving toward a Windows-oriented approach, picking low-priced PCs and Windows terminals for at least part of its program to replace 75,000 dumb terminals and aging PCs (" FedEx Moves Away From NC Approach ," InformationWeek , Feb. 16, p. 22). FedEx cited concerns with the technical immaturity of Java NCs.

Microsoft is promoting a thin-client strategy that includes Windows terminals for accessing its upcoming Terminal Server software, as well as Java-based PCs with the ability to use Zero Administration software to make them act like thin-client devices. Analysts say the rapidly declining cost of PCs makes that an attractive option to users who need access to existing Windows applications.

--with additional reporting by Stuart J. Johnston


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