Navio Communications Inc. has begun shipping its Internet software to its large consumer-electronics partners.

The five-month old company, an independent affiliate of Netscape Communications Corp., is focusing on the development of scalable Internet software based on open standards and the use of Netscape Navigator technologies to allow consumer and non-PC devices to use the Internet.

The company has been working to make Netscape Navigator smaller, modular and easily integrated to accommodate the hardware constraints of consumer, and non-PC devices. Because Navio technology is based on Internet standards and Netscape technology, the company said existing Web sites and Web content are compatible with consumer devices using Navio software.

Navio President and Chief Executive Wei Yen said the first consumer-electronics products including its software should be available from its consumer partners during the second half of 1997. While Yen would not confirm the names of these partners, other sources have said companies such as Sony Corp., NEC Corp., Nintendo, Sega, IBM Corp. and Oracle Corp. are on the roster. Yen said, "We started code-drop to our OEM customers in December. We actually have no control over when they ship the product, but I believe we will see things from them in the second half."

Plans call for Navio's technology to be first incorporated on televisions, network computers, small telephones and game players, in that order.

"The [consumer Internet] trend has started. We want to be a catalyst in the consumer area to enable consumer devices to access the Internet. But we want the Internet to be transparent to the user, so all they have to do is push a key," Yen said.

Yen joined Navio from Silicon Graphics Inc., where he was senior vice president of products and technologies. He reports to Navio Chairman and Netscape Chairman and founder Jim Clark. Yen, Clark and Netscape President and Chief Executive James Barksdale founded Navio in August 1996.

Navio, a private company partially funded by Netscape, as well as undisclosed consumer-electronics companies, had 65 employees when it started, and plans to have between 150 and 200 employees by the end of this year, Yen said.

Navio is positioned to make inroads in this growing market not only because of its open-standards approach but because of the backing, both financially and developmentally, from Netscape.

Greg Blatnik, vice president of Zona Research Inc., Redwood City, Calif., agreed. "With the Netscape advantage", Blatnick said, "Navio has a good opportunity to pioneer the growing non-PC market." Zona Research estimates there will be 75 million non-PC Internet units in the market by the end of 1999.

Yen said Navio's ticket to success is its horizontal approach. "Other companies eyeing this market are trying to be vertical. Consumer devices need to be specialized."

Yen pointed out Microsoft Corp. and Spyglass Inc. as companies having a more vertical approach.

Larry Prager, vice president of Somerset, N.J.-based Infoman, a $10 million software integrator that is a subsidiary of $275 million reseller, Software House, said Navio has the advantage over others because of Netscape's "forward thinking." "This could be one battle Microsoft could lose because of Navio's open-standards approach," Prager said.

Prager, as well as Navio's director of marketing, Adam Stock, said that while the territory is being carved now, companies may not reap the rewards for another two years.

Yen says the potential to penetrate the consumer market is great because there are 50 million people connected today to the Internet which has been doubling in size every 10 months. He has estimated that as many as one billion people will be connected by the year 2000.

Source: Computer Reseller News