Intel CEO Andrew Grove met behind closed doors two weeks ago with Oracle's Larry Ellison to discuss a plan under which Intel would greatly increase its support of the Network Computer (NC) platform, according to an exclusive report in CMP's InformationWeek magazine. The talks could pave the way for vendors such as Compaq Computer, Dell Computer, and Hewlett-Packard -- which have publicly dismissed the NC -- to enter the growing market for low-cost computers by using Intel's technology.

Sources familiar with the Intel-Oracle talks told InformationWeek that Ellison and Jerry Baker, President of Network Computer Inc. (NCI), an Oracle subsidiary, met with Grove to discuss the development of motherboards optimized for NCs, as well as pricing issues. NCs built under the Oracle specification already use the 133-MHz Pentium chip, but at their meeting, Grove suggested that NCI's partners start using faster Pentium chips. According to one source, PC vendors have also met privately with NCI in recent weeks to evaluate the viability of building NCs. Intel and Oracle declined to comment.

The secret talks indicate that the chipmaker may be hedging its bets on the NetPC, a joint Intel-Microsoft initiative. Intel and the Redmond, Wash. software giant just last week unveiled the specifications for their pared down computer platform, which will ship this summer to directly compete with Oracle's NCs and other low-cost computing options.

Oracle's NCs and Intel/Microsoft's NetPCs represent two developments brought on by an insatiable need for greater control over desktop management and computing costs in the enterprise. Details on both initiatives and the Intel-Oracle discussions can also be found on InformationWeek Online at http://www.informationweek.com.

Source: CMP Media Inc.