Aug 12

A New Wave of Net Appliances
Sun Review August 12, 2000

By 2003, it is estimated that 320 million people will be online worldwide. As consumer demand for easy-to-use Internet access grows exponentially, new types of Internet-compatible devices are emerging. According to a recent IDC report, by 2002 these new "Net appliances" will be shipped to more than 15 million people in the U.S. alone.

For telecommunication companies, Internet service providers and e-Commerce

retailers, reaching millions of new customers will be easier and more cost-effective. Until now only a few stripped-down, Internet access-only machines have been available. See Netpliance's I-opener as an example (www.netpliance.com).

By Christmas, computer giants and Internet service providers such as Intel and America Online are expected to start promoting these low-cost countertop devices.

Net appliances are designed for ease of use, enabling even the most computer-illiterate of us to access the Internet and other web-based services such as e-mail, stock quotes or weather reports.

According to a survey by Princeton Research Associates, more Americans would rather go without television or newspapers than give up their Internet connection.

76% say they can get by with only the Internet
44% said they could find everything they need from newspapers alone
31% claimed they could learn everything they need from television.

The sizes and shapes of these devices vary widely, with several models using touchscreens with optional keyboards, while others will look more like scaled-down iMacs. The I-opener features 32MB of RAM, built-in 56Kbps modem, a "line-saver" so you won't miss any phonecalls, and caching of Web guide channels to enable you to access information quickly either online or offline. Intel's Dot.Station (www.intel.com/internetappliances/webappliance) is designed for high-traffic areas of the home such as the kitchen or livingroom and includes e-mail, home organization tools such as an address book and a calendar, and a built-in telephone and answering machine.

The Net appliances will also vary in price (all below $500), but one thing these devices have in common is no Microsoft Windows! Intel's Dot.Station, IBM's Netvista (www.pc.ibm.com/ca/netvista), and devices designed by America Online and Gateway will all feature the Linux operating system. 3Com has announced a countertop device that will use the Palm OS. A variety of processors will power these devices, including chips from Cyrix, Intel and Transmeta.

Internet service providers will offer these Net appliances at reduced prices in exchange for an Internet services contract that will cost you anywhere from $20 to $50 per month.

Of course the Redmond giant is not sleeping. Microsoft's launch of Web Companion was delayed from last spring but is set to arrive soon, built by Compaq and others. But with such a variety of options for consumers, including operating systems, services, and processor options, the question will be which company can actually deliver on the promise of no-hassle web browsing and e-mail.