Some very large U.S. corporations are turning to NCs--not Windows-based PCs--as they turn away from mainframe and minicomputer terminals.

Organizations such as Federal Express Corp.; Southwestern Bell Corp.; Sears, Roebuck and Co.; and the AARP (American Association of Retired Persons) are inking deals with NC manufactures for the hardware and Java-enabled software, hoping to lower costs and provide greater manageability over Windows-based PCs.

FedEx will replace tens of thousands of 3270 terminals--which today run a proprietary application and E-mail--with Java-based NCs.

"We fully embrace Java, which obviously puts less emphasis on the desktop OS," said Dennis Jones, CIO at FedEx, in Memphis, Tenn.

FedEx has not decided on a vendor from which to purchase the systems, but worked with Sun Microsystems Inc. on a pilot program for Java and the JavaStation.

"We're migrating out of the mainframe and are not satisfied with the PC option because of cost, support and control," Jones said.

Gartner Group Inc., which surprised many IS professionals with its PC cost-of-ownership study several years ago, is readying an NC cost study that supports the claims of NC vendors.

The data, which will become public this week, will show that network computing can save 25 to 40 percent over a five-year period.

Considering Gartner's estimation that Windows 95-based PCs cost about $39,000 to maintain, corporate sites could see a minimum savings of about $9,600 per seat over five years.

"Network devices lend themselves to lower cost of ownership because manageability is inherent," said Mark Gartenberg, research director at Gartner.

In moving off the mainframe, AARP Pharmacy Services, in Alexandria, Va., has replaced about 1,000 X Window System terminals with Java-based NCs from HDS Network Systems Inc.

Some corporations have executed a Windows-based, network-centric model to meet cost goals.

Southwestern Bell, in Dallas, is midway through a 1,000-seat installation of Windows-based Win-terms, which will replace ASCI terminals spread across five states.

The organization wanted to move to Windows PCs, but officials said volume made it cost-prohibitive.

Gartenberg said a PC-based business practice encompassing centralized application development, asset management and implementation of DMI standards also can yield a 25 percent cost savings over five years.

Thus, companies must weigh the benefits and trade-offs of implementing NCs.

"For structured tasks, NCs are a good fit, but for content creation, it's not," Gartenberg said. "The word is: Don't deploy where it makes no sense and don't buy into the hype."

Source: PC Week