CONTENTS

HOME PC CONSUMPTION SHOWS MAJOR CHANGES
The home is the next major battleground for manufacturers of personal computer and consumer electronics. This year, PC makers have begun offering television with PCs inside, the first major innovation in television in over 30 years. MORE>

STUDY SHOWS BUYER PREFERENCES FOR NEW CONSUMER ELECTRONICS
With the plethora of new consumer electronics equipment coming on the market, the Consumer Electronics Manufacturers Association (CEMA) conducted a study to see what consumers really thought of the new devices. Surprisingly, the research showed consumers aware of the new options, and are willing to buy the products for various functions, especially the combination television and personal computer. MORE>

COMPAQ AND THOMSON PARTNER
The convergence of the television and personal computer is bringing companies from the two industries together. One such partnership is between Computer Corp. of Houston, Tex. and Thomson Consumer Electronics Inc. of Indianapolis, Ind. MORE>

THE STAGE HAS BEEN SET FOR A MAJOR PARADIGM SHIFT IN COMPUTING
The network computer aims to change the current computing paradigm. On May 20, several large computer companies took the first step toward making that change occur. Oracle Corp. of Redwood City, Calif. introduced the long awaited Network Computer Reference Suite, the first commercial implementation of the NC Reference Profile. MORE>

VENDORS OFFERING NETWORK COMPUTING
Companies including Akai Electric Co. Ltd., Funai Electric Co., Ltd., IDEA, Olivetti, Uniden Corporation and Wyse Technology, Inc. plan to license the Oracle NC System Software Suite, eliminating the need to port, integrate and support numerous software components from different vendors. These manufacturers expect to build an array of NCs including screen phones, set-top boxes, NC televisions, portable computers and desktop computers. MORE>

RESEARCH FIRM POINTS OUT THE DARK SIDE OF NETWORK COMPUTING
Zona Research Inc in Redwood City, Calif. believes the recent announcement by Oracle Corp. of Redwood City, Calif. is illogical for the user. The Network Computer Reference Profile “is an interesting announcement because it is based primarily on vendor needs, not user needs,” the research firm declares. MORE>

CHIP BUILDS NETWORK COMPUTER FOR UNDER $500
Last month, American Interactive Media, Inc. of Medford, N.J. licensed technology from MSU (UK) Limited AIME to develop an Internet network computer. MORE>

WHAT IF NETWORK COMPUTER DOES NOT SUPPORT WINDOWS?
According to Zona Research Inc. in Redwood City, Calif. the combination of Sun, Oracle, Netscape, and IBM aims to stimulate Java and Internet-based applications development for the Network Computer. However, the business model for making money is not clear, thus presenting the group its first big hurdle. MORE>

ARM CHIP WILL DRIVE NETWORK COMPUTER
At the Oracle Press Conference on May 20, Advanced RISC Machines Ltd. (ARM) of Cambridge, England, debuted its ARM7500FE. Oracle corp. of Redwood City, Calif. selected the ARM for use in the Network Computer. MORE>

WHAT DOES THE NETWORK COMPUTER MEAN TO SUN?
Contrary to much of the hype about the $500 network computer, there are no specific hardware implementations either advocated or promoted by this initiative. In fact, the very first network computer, as defined by the NC Reference Profile, may well be a PC running Windows 95. MORE>

ARE JAVA AND THE NETWORK COMPUTER IRRESISTIBLE FORCES?
One of the major problems confronting the network computer is the emerging battle between Microsoft Corp. of Redmond, Wash. and the rest of the industry. Three software giants aiming to take Microsoft’s place are Sun, Oracle, and Netscape. MORE>

THE INFORMATION TECHNOLOGY HISTORY LESSON
If there is one lesson that history has taught the information technology industry it is that change is inevitable and those who adapt prosper and those who don’t die. That message is clear for IBM Corp. of Armonk, N.Y. The company who defined the personal computer industry is no longer its leading supplier. MORE>

MICROSOFT, THE EMPIRE STRIKES BACK, AIMS TO DESTROY NETSCAPE
Major information technology suppliers initially viewed the arrival of the Internet as a technology in search of a solution, much like the early PCs in the late 1970s. Netscape Communications Corp., founder and chairman, James C. Clark, admitted during a speech at the Design Automation conference this month in Las Vegas, Nev. that Netscape was founded without a clear vision of where money was to be made on the emerging Internet. MORE>

HP TAKES WINDOWS NT INTO UNIX LAND
Just how effectively is Windows NT competing against Unix in computing environments considered Unix strongholds? Until now, the answer to that question would have been not, very effective. However, last month Hewlett-Packard Company of Palo Alto, Calif. made the answer less clear. MORE>

DETAILS OF THE NEW NETWORK COMPUTING REFERENCE PROFILE 1
The NC Reference Profile consists of a set of open standards and guidelines, which form the basis of an NC. The initial NC Reference Profile will be made available in July 1996, for comment and review, and is expected to be finalized by participants in August 1996. MORE>

CONSORTIUM CREATES REFERENCE PROFILE FOR NETWORK COMPUTERS
On May 20, a consortium comprising Apple Computer, Netscape, IBM, Oracle, and Sun jointly announced a common set of guidelines for developing low-cost, easy-to-use network computing (NC) devices, called NC Reference Profile 1 (see description at right.) It is architecturally neutral and aims to facilitate the growth of network computing. MORE>

JAVASOFT PRESIDENT ALAN BARATZ DESCRIBES WHY THE BUZZ OVER JAVA
If you’re not familiar with the term Java in reference to the Internet, then you had better learn fast, because the phenomenon is sweeping the infant market like a rapidly replicating virus. Java is an object-oriented programming language that allows client-based applications to be executed by any type of client computer located anywhere on the Internet or World Wide Web. MORE>

NEW JAVA OS PUTS JAVA IN ANY COMPUTING DEVICE
At the end of May, JavaSoft, an operating company of Sun Microsystems, Inc. in Cupertino, Calif. announced “JavaOS”, a compact operating system that runs Java applications directly on microprocessors. JavaOS will run equally well on a network computer, a PDA, a printer, a game machine, a cellular telephone, or other devices that require a very compact OS and the ability to run Java. JavaOS can run with as little as 512K ROM and 256K RAM. MORE>

FLOPPY DRIVE READS AND WRITES 120-MBYTE OR STANDARD 3.5-IN FLOPPIES
For over 15 years, disk drive start-ups have been trying to develop high capacity floppy disk drive technology. Iomega Corp. of Roy, Utah has been the most successful with its Zip drive debuted at Comdex Fall 1994 in Las Vegas, Nev. MORE>

3M’S LS-120 DISKETTE FEATURES METAL PARTICLE MEDIA
To support its high data density, the LS-120 Diskette from 3M company of St. Paul, Minn. developed higher coercivity (metal particle) pigment and advanced dual layer coating technology. The media is coated onto a thin (.0025 inch vs. .003 inch for 1.44 MB diskettes) substrate of polyethylene terathalate (PET) for better head-to-media contact. MORE>

WHY THE FLOPPY DISK DRIVE MARKET KEEPS GROWING DESPITE LOW PRICES
In a world where tens of millions of units of PCs are shipped, the floppy disk drive continues to be the main removable storage medium on every PC shipped. It is the most cost-effective, universal medium of data and program exchange on the market. MORE>

TWO PC MAKERS INCLUDE ZIP DRIVE IN THEIR SYSTEMS
Last month, Iomega Corp. of Roy, Utah announced that The Acer Group of Taipei, Taiwan, plans to include the Zip drive as a storage device in the company’s new PC Line, AcerBasic. The Acer system will be officially launched in June and sell for $500 (U.S.). MORE>

SYQUEST REMOVABLE HARD DRIVE FENDS OFF FLOPPY DRIVE ATTACK
There is a growing market for removable disk drives among PC users. Market research firm, Disk/Trend Inc. in Mountain View, Calif. projects 1998 unit shipments at nearly 2 million drives, for removable cartridge hard drives. MORE>

SEAGATE AND HITACHI INTRODUCE 2.5-IN. DISK DRIVES
On June 10, Seagate Technology of Scotts Valley, Calif. and Hitachi America, Ltd.’s Computer Division in Brisbane, Calif. both debuted 2.5-in. disk drives. Both are aiming to garner a large share of the growth 2.5-in. drive market. Disk/Trend Inc. of Mountain View, Calif. puts the market at 10.6 million units in 1995 growing 18% in 1996 to 12.5 million units. MORE>

TWO DISK DRIVE GIANTS DEBUT COMPETITIVE 3.5-IN. DRIVES
Last month, Seagate Technology of Scotts Valley, Calif. and Western Digital Corp. both introduced new 3.5-in. hard drives aimed at the desktop PC market. Seagate debuted four new drives. Western Digital announced a high-end addition to a family of 3.5-in. drives. MORE>

IOMEGA’S ZIP DRIVE GETS ANOTHER MAJOR PC SUPPORTER
On June 10, Iomega Corp. of Roy, Utah got another major boost in its bid to make its Zip drive an integral part of the PC. The company announced that IBM plans to incorporate its Zip drive into a select model of its new Aptiva line of PCs. The model is expected to be available in the third quarter of this year. MORE>

INTENSIVELY COMPETITIVE DISK DRIVE INDUSTRY CONTINUES GROWTH
Market research firm Disk/Trend Inc. of Mountain View, Calif. this month announced its 1996 Disk/Trend Report on Rigid Disk Drives. It reports that the highly competitive industry will manage a healthy 22% growth rate for 1996. MORE>

SONY ENTERS 8-MM TAPE DRIVE MARKET
The 8-mm tape drive market is dominated by Exabyte Corp. However, last month the Boulder, Colo. tape drive maker got some competition from Sony Electronics of San Jose, Calif. Sony announced the SDX series of drives and media. The drive uses a new 8-mm helical scan recording technology called Advanced Intelligent Tape (AIT). MORE>

MOTOROLA DECLARES 1996 THE YEAR OF THE SMARTCARD ARE YOU READY?
Allan Hughes worldwide Smartcard operations manager for Motorola Semiconductor Product Sector based in East Kilbride, Scotland says the Smartcard, a technology developed in Europe, is about to invade the U.S. This summer at the 1996 Olympics, the largest U.S. trial of Smartcards will occur. MORE>

SIEMENS EXPLAINS ITS PLACE IN SMARTCARDS
The Siemens Semiconductor Group intends to boost its position as a leading supplier in the chip card market—currently 30 % market share—and to benefit primarily from dynamic market trends in the USA and in Asia. Jorg Borchert, head of marketing chip card ICs, made this observation to journalists at the CardTech/Secur-Tech trade fair in Atlanta, Ga. MORE>

JAPAN FORMS MINIATURE FLASH CARD CONSORTIUM TO RIVAL COMPACTFLASH
On June 5, Samsung Electronics Co., Ltd. (SEC) of Seoul, Korea and Toshiba Corp. of Tokyo announced a small flash memory card joint project. The two will pursue a course separate from the U.S. CompactFlash group. MORE>

21 NEW MEMBERS JOIN COMPACTFLASH ASSOCIATION, MEMBERSHIP NOW 44
On June 11, 21 new computing, semiconductor, connector, component, imaging, communications and consumer electronics companies joined the CompactFlash Association (CFA) bringing the total number of CFA members to 44. MORE>

No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of product liability, negligence or otherwise, or from any use or operation or any methods, products, instructions or ideas contained in the material herein.

This publication has been registered with the Copyright Clearance Center, Inc. Consent is given for copying articles for personal or internal use, or for the personal use of specific clients. The consent is given on the condition that the copier pay the per-copy fee stated in the code on the front page for copying beyond that permitted by Sections 107 and 108 of the U.S. Copyright Law. The appropriate fee should be forwarded with a copy of each page reproduced to the Copyright Clearance Center Inc., 21 Congress Street, Salem, MA 01970, USA. This consent does not extend to other kinds of copying such as for general distribution, resale, advertising and promotion purposes, or for creating new collective works. Special written permission must be obtained from the publisher for such copying.