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NC vs PC May Spark The Biggest Change In Computer Marketing In A Decade
June 30, 1997
The looming battle of the PC vs. the NC - or network computer
- could spark the biggest change in computer marketing since price wars
took center stage a decade ago.
With the focus likely to shift from the cost of buying
the machines to the cost of maintaining them, marketers will be better
able to differentiate brands that have been largely viewed as commodities.
A marketing battle begins this week when Oracle Corp.
formally launches its Network Computer, a brand and list of tech specs
the big software marketer is licensing to business computermakers and consumer
brand marketers such as Thomson Consumer Electronics.
The PC establishment last week tried to head off the NC
threat by formally unveiling Network PC, a version of a standard PC aimed
at business.
An NC machine, starting at less than $1,000, plugs into
the brains and software of a remote computer, a scheme hyped as making
it cheaper for companies to maintain computer networks.
A Network PC costs more than $1,000, and is a mini-PC
powered by Microsoft Corp. software and an Intel Corp. chip but lacking
a floppy disk or CD-ROM. The marketing pitch to computer departments is
that they can monitor and maintain the PC from afar.
But NC's broad marketing appeal so far is unproven, while
Network PC shows signs of being little more than a stop-gap product.
Yet both open a marketing opportunity that over time could
shift business PC advertising from its longtime focus on price to what
is a bigger financial issue for customers: the ``total cost of ownership''
- purchase price plus the far bigger cost of maintenance.
``There's a new way to spin the price story,'' said Rob
Wait, worldwide product marketing manager for commercial desktop in Hewlett-Packard
Co.'s computing division.
In the short term, marketers could end up bewildering
prospects with conflicting claims about NCs and Network PCs.
``There is some confusion here,'' said Ron Peck, Intel's
director of Net Client Marketing.
Oracle will try to clarify its position with an NC brand
campaign this fall from Think West, Los Angeles.
IBM Corp. has a rival product, the Network Station, that
it calls an NC. IBM, Oracle, Sun Microsystems, Apple Computer and Netscape
Communications Corp. last year agreed on a basic NC standard, but not all
the products bearing that name will be wholly compatible with Oracle's
version. IBM is unique in pushing both an NC and a version of the Network
PC.
The Network PC could end up having a short lifespan, partly
because Compaq Computer Corp., Dell Computer Corp. and Hewlett-Packard
will market their versions using existing business PC brands rather than
the Network PC tag.
Software soon will allow companies to manage regular PCs
as easily as Network PCs. So regardless of what the products are called,
the marketing shift to management of PCs should continue.
Source: Advertising Age
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