Microsoft backtracks on NC strategy

Microsoft has performed a U-turn on the network computer (NC) by admitting it is to develop client/server software for a sub-$500 Windows terminal.

According to US reports, the software giant has radically rethought its attitude towards fat-client technology and is now preparing its own NC offering.

One US industry watcher said: ?Microsoft has done a U-turn. It has been saying fat, thick clients are the way to go, but now it is saying it?ll be the thinnest of the thin.?

Microsoft chairman and CEO Bill Gates revealed plans for the Windows terminals at the Software Developers Conference in San Francisco last week.

He said the terminals would be supported by NT 5 and would communicate with NT using a video-type protocol.

Microsoft US group product marketing manager Adam Taylor said the choice of operating system for the machine had not been made. ?It might run Windows CE or some version of Windows, or maybe something else altogether.?