MS to go on NC offensive

Hardware behemoths have joined Microsoft to produce a cheap PC thatrivals the network computer

Microsoft has managed to line up hardware heavyweights Intel, Compaq and Hewlett Packard to put together a rival offering to the network computer (NC).

On Monday, the software vendor rushed to announce plans to produce a PC that is cheap to maintain, in time to steal the limelight from Sun, which yesterday launched its $800 Java-based NC.

The move represents an about-turn on Microsoft's part as the company previously claimed the NC was not a threat to its business.

As the rival camps seem set for battle, IBM looks to be backing both sides. It is expected to join the Microsoft camp, despite having produced its own version of the NC earlier this year.

Clive Longbottom, European programme director at the Meta Group, said: 'This is just standard Microsoft. It's the Internet all over again.

Two years ago the company was not going to be on the Internet and now it says it is - and it's the same with this.

'If the NC falls flat on its face, it doesn't matter because Microsoft won't, and if it does well, it will be able to compete. So it wins both ways.'

Microsoft is releasing a cut-down Office product for the small business market which will cost less than #200 and will ship through OEM channels as well as regular distribution outlets.

The small business edition of Office 97 will start shipping in Q1 1997.

The product will include Publisher, Word, Excel, Outlook, and Financial Manager, which offers tighter integration between Word and accountancy software packages Sage and Pegasus.