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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Microsoft To Try Network Computer Gates Reverses Stand, Challenges Sun

Associated Press

Microsoft Corp. hopes to get even bigger by scaling back.

The company is expected today to unveil plans for a network computer, a low-cost, basic machine intended to be linked in corporate networks. A variety of companies have or are working on such computers for consumers and businesses.

The move is an apparent strategy switch for Microsoft. Its chairman, Bill Gates, previously derided the idea that anyone would want a stripped-down box dependent on a network rather than a full-fledged PC, most of which use Microsoft’s operating software.

But the idea is catching on among businesses because network computers, or NCs, are cheaper to buy and maintain than PCs. Microsoft also is seeking to go even smaller, recently introducing a version of its Windows operating system for handheld computer devices.

Today’s announcement also is being seen as an attempt to steal some thunder from Sun Microsystems Inc., which plans to launch its JavaStation NC in New York on Tuesday. Sun is one of several companies, including Apple, IBM, Netscape and Oracle, collaborating on NC standards that don’t include Microsoft software.

In an attempt to counter Microsoft’s attempt to become the dominant Internet software company, Oracle and Netscape today announced that they had endorsed each other’s flagship products.

Oracle will include the Netscape Navigator browser with its own operating system software. Netscape, in turn, will sell Oracle enterprise and work group data bases with its server products.

Microsoft, based in Redmond, has declined to discuss details of today’s announcement. But the move appeared to be another way for Microsoft to set an industry standard and sell more of its operating systems in an additional bid to retain its software dominance.

According to published reports, Microsoft’s plan will be supported by several personal computer makers, including Compaq, Dell and Hewlett-Packard, whose products are based on Intel Corp. chips and Microsoft software.