By Siobhan Kennedy in Los Angeles
Larry Ellison, chairman and CEO of Oracle Corp yesterday gave the first public demonstration of its much hyped second generation Network Computer and pledged to spend $100m over five years to install the device in schools worldwide.
Speaking during his keynote at the Oracle OpenWorld conference in Los Angeles, Ellison showed the audience a prototype of the $199 computer; essentially a black box with a CD-ROM drive. Details about the NC have been trickling out over the last few months, but this is the first time the device has actually been shown in public.
Ellison said Network Computer Version 2 (named as such after Oracle tried to introduce something similar four years back and failed) will officially be launched in the first quarter of 2000 with volume shipments in the second quarter. He confirmed that Oracle has set up a new company, to be called Network Computer Inc, with a new CEO and new employees. Ellison declined to say who the CEO was other than to say she’s excited about it. Likewise he wouldn’t be drawn on who will actually be manufacturing the boxes, adding only that several different manufacturers will be involved.
Oracle’s first attempt at the NC was also under a company named Network Computer Inc but when the idea didn’t take off Oracle decided to rename it Liberate Technologies Inc and spin the business off as a separate company. Liberate’s remit wasn’t to concentrate on NCs per se, rather than to develop technology that enables people to convert their television sets into NCs. Although people were skeptical that Liberate wouldn’t be a success, the firm is now a $6bn company and Ellison clearly wants to do the same with NCI.
One of the main differences with the new NC compared to Oracle’s last effort is that it can be booted straight off a CD-ROM; the first version could only be booted from the network. In addition, the device can connect to the internet either via an Ethernet connection or by a standalone dialup modem. Just like a Sony PlayStation, Ellison said, Version 2 will ship with a CD that contains the Linux operating system and browser in one. When users want to upgrade the system – like changing to a new game on their PlayStation – they simply have to take the old CD out, throw it away, and slip in the new one. As well as the basic CD, there will also be another version which comes bundled with Sun’s Star Office applications – a web-based rival to Microsoft’s Office suite. Ellison also stressed that the device will be able to access all Oracle’s database and applications, but that’s true for any web-based application.
Other than that, the specs remain unchanged. The NC will come with 64MB RAM, an Intel 400MHz processor and an SVGA graphics adaptor. For $199, users get a keyboard and mouse but the monitor is optional, at $99, although Ellison said customers don’t have to buy that one in particular as the NC will work with any monitor they chose.
Oracle isn’t aiming the NC at any market in particular, just anyone that accesses the web, Ellison said. In particular, Oracle wants to see the NC move into the education market, to give kids that don’t have PCs a chance, he said. Already, Oracle has started a five-year program through which it plans to spend $100m putting network computers in schools around the world. It has also set up a new web site, Helpushelp.com to encourage other companies and prominent individuals to do the same. To that end, during his keynote speech Ellison introduced Shaquille O’Neal, an LA Lakers basketball player and internet entrepreneur, and announced he has committed to buy an NC for a school-kid and put his name behind the campaign.
The move comes just a day after Microsoft launched its new web companion appliance at the Comdex trade show in Las Vegas, testament, Ellison said, to the fact that Oracle got it right all those years ago and Microsoft’s just got round to copying its idea now. At the time Bill Gates said the network computer was the most
stupid idea in the world, he said, well, Liberate’s now a $6bn company which is pretty good for a stupid idea.
Once the inevitable Ellison anti-Microsoft hype is cut through, we believe Oracle has a much better chance of being successful this time round. While Ellison’s essential message – reduce complexity at the desktop and provide users with some form of browser-based appliance to access centrally stored and managed data and applications – hasn’t changed that much, customers needed more time to make that transition. Four years ago when Oracle delivered its first NC, businesses were still rooted in the client/server mindset. But now things have changed and the internet computing model has gained widespread acceptance. If Oracle’s customers are happy to buy its web-based applications, which they clearly are, why not buy network computers to access them? á
