Network Computers are being evaluated by corporate users around the world as an alternative to PCs for business use. One recent survey indicated that 80% of Fortune 1000 companies in the US are evaluating the NC as an alternative to PCs, and dozens of companies have moved past the pilot stage to full deployment. One HDS customer has already rolled out 1000 Network Computers - possibly the largest NC installation to date. The reasons are simple: Network Computers have the potential to save serious money - up to 39% of the total cost of a PC, according to the Gartner Group's recent comparison of PCs and NCs. For a company with only 60 desktops, that's over $1 Million in savings over five years.

But how does the NC fit into the world of portable computing? Portable computing is one of the fastest growing segments of the personal computer business, and a laptop computer is a necessity for most business people who travel. With a laptop, you're never away from the office -- email, faxes, documents, business plans - most travelers carry this information with them wherever they go. What place does an NC have for portable computer users? By definition the NC needs to be connected to a network in order to operate it. Applications and data need to be transferred from a server to the NC because they are not stored locally on the Network Computer. So does that mean that users of portable computers will never use NCs, and that NCs can never replace portable PCs?

The answer is no. The Network Computer will have a huge impact on the portable computer market, potentially even redefining the whole definition of portable computing. Instead of portable computing, we will have pervasive computing. Here's how it will work.

Today portable computing means carting around a heavy laptop computer every time one leaves the office. Even as an executive at a Network Computer company, I carry one with me every time I travel. With all of the cables, phone cords, different types of electrical adapters, and a power supply, my portable PC weighs in at close to ten pounds. Although that may sound light, after an overnight flight from the States, I must admit that ten pounds is not effortless to lug around airports, taxis and hotel lobbies.

Of course, managing a laptop is not effortless either. You have to make sure that all of the information you need is loaded onto your laptop computer before you leave your office. If you regularly use more than one computer (say a desktop machine in the office and a laptop on the road) you have to remember where the latest versions of your documents are -- on your desktop or on your laptop. For me that usually means a frantic search for documents that I'll need on my trip right before I leave my office. Since I'm usually late for a plane, I often forget the most important documents, and I'm often left with older versions when only the most recent ones are of any use. Of course, there is software that synchronizes laptops and desktops machines, but since the laptop often isn't connected to the office network, that doesn't do me much good.

Here's where the Network Computer will fit in. Imagine not having to cart around 10 pounds of laptop, cables, phone cords and power supply every time you leave the office. In the near future, the Network Computer will be available most places you'll need to use a computer. For example, many airlines today have LCD entertainment screens built into seat backs so that passengers can watch movies. What if these screens were Network Computers too, so they offered access to the Internet, and via a secure connection, back to the home office? Imagine being able to send and receive email and faxes from your airplane, and even access PC applications like word processors and spreadsheets, without carrying a laptop, and without worrying about whether you have the latest version of your files with you. In airports, kiosks will soon be available that let you do the same thing, and one day, Network Computers that allow you to connect to the Internet or your office will be as widespread as public telephones.

Hotels are another area where you will see Network Computers soon. Every hotel room has a television set, and many have networks in place to deliver movies on demand. It's a small step to connect a Network Computer to a TV set to allow hotel guests to access email, the web, and even remote computers at a home office. Technology that exists today would even allow guests to use standard PC programs like Microsoft Word and Excel from a television set. Personally, I'd choose one hotel property over another if I could connect to the Internet, send and receive mail and write letters without carrying my portable computer with me.

Why will Network Computers be used instead of PCs in these applications? Two reasons: cost and simplicity. First of all, Network Computers cost much less than PCs to buy. As an example, HDS recently introduced a line of powerful NCs, priced at less than 500. In high volume applications like airplane seatbacks and hotel rooms, the up-front savings of a Network Computer are a necessity.

Simplicity is an even more important consideration. Those of you who are responsible for managing networks of hundreds or thousands of personal computers know about the headaches, hassles and costs of PCs in a network. A number of studies have been published that point out the money that can corporations can save by using NCs instead of PCs. Unlike PCs, Network Computers have the simplicity of an appliance - just plug one in and you're ready to work. If a hotel wanted to put PCs in every room, they'd need an army of system administrators to maintain them. With Network Computers, once one is installed, there's nothing left to maintain, since all of the administration can be done centrally.

So, we're on the verge of a new era in computing. The Network Computer is being evaluated as a PC alternative by most companies today. Some predications show the NC replacing the PC in 20% to 80% of PC installations for corporate use. Even the portable PC isn't safe. Here's another big market for NCs - the evolution of portable computing into pervasive computing.

Mike Kantrowitz is executive vice-president of HDS Network Systems, Inc.. HDS Network Systems is a sponsor of NC News.