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http://i.i.com.com/cnwk.1d/i/ne/pre/Net/2000/02/0201netpliance.jpg

I-Opener

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The i-Opener was a low-cost internet appliance produced by Netpliance (now known as Tippingpoint) between the years 1999 and 2002.

The i-Opener is generally regarded as a business failure because of poor sales. The hardware, cheaply available, became popular among collectors who modified the appliance to run as a normal PC. This made the device capable of running typical PC operating systems, such as Linux and Microsoft Windows.

The original retail price was $99. The actual cost of the device was roughly estimated between $300 and $400. The devices were sold as a Loss leader for monthly Internet service. However, as soon as a hacking method became available on the Internet (in 2000), many customers cancelled the monthly service, which eventually made the business model unsustainable. Similar business model and failure are also found in the 3Com Audrey and Virgin Webplayer.

Hacking

It was not too long before it was discovered that the i-Opener was simply an x86 compatible PC inside a fancy case. By removing the back cover of the device, one could find a Socket 7 CPU socket, with an IDT WinChip CPU, a SDRAM SODIMM socket, a 44 pin IDE plug (which allowed adding a hard drive and CD drive converting the appliance into nothing less than a $99 PC with a LCD screen), and a SanDISK 16 MB Chip. However, the pins on the connector were reversed, and required making or ordering special cables and adapters to connect a drive to the unit. Attempts by i-Opener to thwart hacking included gluing the BIOS chip with epoxy and modifying its settings rendering it unable to detect hard drives, limiting the type of CPU that you could use to the one included with the unit, and even cutting the pins on the IDE connector.

 

http://www.the-labs.com/IOpener/iopener_main22.jpgi-opener is a low-cost ($99-$400) internet computer which is mainly financed by using a dedicated ISP when you buy the machine ($25/mo).

In late February 2000 Ken Segler codeman hacked the machine in order to run Linux on it (FreeBSD, and even Win98 seems to work too) and after it was posted on slashdot.org the news made it through the open-source community within hours (March 11, 2000).

-----------------------------------------------

 

From: http://www.net4tv.com/Voice/Story.cfm?storyID=2103

Eyeopener for i-opener as Hack News Mars IPO

 

By Nancy McPoland
(March 26, 2000)

When Austin Texas-based startup Netpliance debuted its i-opener in November, 1999, little did they know they would have an "eye-opener" of their own three months later. Netpliance's plans to raise $100 million by a March 17 Initial Public Offering [IPO] were marred by the news that a user had discovered a way to modify the device to become a working computer, a move which could cost Netpliance a great deal of its planned revenue, and one which the company was forced to take steps to prevent.

http://www.net4tv.com/voice/graphics/story/home_device_sm.gif

The currently-$99 device was intended by Netpliance to be an Internet appliance, a tool to allow would-be Web surfers dial-up Internet access that was cheap, stream-lined, and without the need for a computer. The device includes a 10" LCD display, mid-sized (laptop) keyboard with an embedded mouse pointer device, 56K modem, and an optional PS/2 computer mouse. The $21.95 required monthly service includes e-mail, one-click access to news, weather, sports and other information, including a Web Guide to the best of the Internet. The browser supports JavaScript with Java support expected later, and a custom version of RealAudio.

The company claims that the device, which normally retails at $199, but is on special offer of $99 until June, is marketed as a loss-leader, in which the manufacturing costs of $300-$400 per unit are made up by the company's profits from the monthly service and from e-commerce and ad sales.

Netpliance went public March 17 with what was felt to be a relatively lackluster IPO, selling 8 million shares at $18 per share to raise $144 million. Analysts blamed the lack of investor enthusiasm on a glut of promised information appliances with little to show for themselves, high marketing costs, and no clear-cut picture as to what device will be a widely adopted in a market being eyed hungrily by the big-boy players such as Microsoft, AOL, Intel and Gateway.

Also interfering with the IPO were the rumors flying about a potential "hack," a hardware modification that allowed knowledgable users to modify the device to be used as a low-cost, low-power computer, bypassing the Netpliance service. As news of the potential modification spread, investors became concerned that Netpliance's business plan would be adversely affected, and as supplies in retail markets dwindled as computer hobbyists jumped to grab the available units, shares of Netpliance dropped $8 by March 20.

The cause of all the commotion was a user named Ken Segler, AKA "Linux-Hacker," who bought an i-opener, went "under the hood," and discovered that the small device was actually a full-fledged PC, albeit one with 16 mg Flash RAM rather than a hard drive. With some modifications costing less than $100, Segler was able to transform the dedicated Internet terminal into a working Pentium PC running the open-source operating system Linux. When Segler posted news and instructions about his feat on his Linux-Hacker website, a community of i-opener hackers sprang up, spreading the news far and wide and making Segler into an Internet celebrity.

Mr. Segler's modifications, while called a "hack," were perfectly legal, at most violating the unit warranty. Unlike the exploits often detailed in the media of "hackers" who vandalize websites, steal credit card and other information, and glory in disrupting Internet traffic, Segler is of the old school of hackers who simply like to tinker with hardware and software, exploring the possibilities and undocumented features. Many think the entire computer and Internet community owes a great debt to these hackers for their work in improving and modifying hardware and software.

What Segler found when he opened the i-opener was a connection for an internal hard drive, which he added and loaded the open-source, free operating system Linux onto it. Adding some cables and connectors to make the hard drive fit properly in the box was all it took to turn the Internet terminal into a small but powerful computer.

The intense Internet public reaction, which some call the "Slashdot effect," after a popular website which posts news to the Linux and hacker community and is widely-read, led supplies at retail outlets such as Circuit City to be quickly exhausted. Segler's website traffic spiked up to 100,000 users, and he was inundated with orders for his $35 modification kit. Websites and Usenet newsgroups sprang up regarding the hack and other modifications.

Netpliance's reaction at first was at first ambivalent, as the company did not believe that many in their target audience of first-time Internet users would have the interest in or ability to do the modifications. The company announced plans to work with the open-source programmers, even adding a "developer's corner" to its website for collaborative efforts. But faced with continuing dwindling stock prices as investors eyed the short market supplies and threats to the business plan, Netpliance announced late this week that further shipments of the i-openers would not be reconfigurable.

The company also made a change in the Terms of Service that warns "modification of the i-opener in any way is in violation of our terms and conditions." Netpliance had previously required a user to agree to its Terms of Service when signing up for the monthly Internet access, which was done by running a software program included with the unit. The signup could be bypassed by anyone wishing to use the device only for low-cost computing. Netpliance now includes the following statement in the ordering section of the website: "By purchasing the i-opener you are agreeing to use the i-opener Internet service. The fee is $21.95 a month and will be billed approximately 2 days after the i-opener is shipped to you."

Netpliance has indicated that it still plans to work with the Linux community in collaboration for the development of Linux applications for the device, but has, it hopes, closed the door to unauthorized modification. The hacker community isn't so sure, as posters to message boards wonder how the company thinks it can prevent modifications. The announcement has also spawned growing discussions on how legal a company's attempt to stop a legitimate purchaser of its product from modifying it after it's taken home.

Netpliance hopes that the changes to its hardware and service will encourage investors and purchasers to see their business plan as viable, and that they can return to their original identity as an Internet Service Provider who also does hardware, not as the makers of a PC-clone machine. The company sees the interest in the i-opener as encouraging, and feels that the Linux developers will accelerate the company's research into alternative operating systems. The hacker community, on the other hand, has adopted a "wait-and-see" attitude as to how much cooperation Netpliance will give them in the future, and already speculation as to how to undo Netpliance's anti-hack measures is under way.

I-Opener Orders Reneged

http://www.wired.com/c/s.gif

 

By Chris Oakeshttp://www.wired.com/ly/wired/shared/images/common/icon_story_send.gif| From: http://www.wired.com/news/technology/0,1282,35481,00.html
07:00 AM Apr, 07, 2000

In another twist to Netpliance saga, the flood of customers who are waiting for their Net appliance orders to be delivered found out the reason for the delay, and they are not happy.

After realizing that the $99 devices can be easily hacked and turned into low-cost PCs, the company is retroactively changing the terms of sales.

"This is serious misrepresentation," said Michael Griego, a customer who still hasn't received his order. Griego maintains i-opener linux, a site where Linux and i-opener fans share knowledge about the modified devices.

"Netpliance has simply taken orders for a product and then, after the purchase, changed the terms."

Griego said he's received a barrage of email from other customers with outstanding orders who think that terms are being applied after the fact.

To fulfill their orders, customers must accept a new version of the i-opener and agree to sign up for an account using the company's ISP.

Customers who want to pass on signing up with the ISP have two choices: pay an additional $500, or cancel their order.

But buyers who ordered the original device under the original terms -- which did not include an ISP contract -- think that's tantamount to bait-and-switch.

Ken Segler, who first discovered that the devices could be modified to be used as cheap PCs, said he too has been contacted by unhappy customers.

"A lot of people are really upset," said Segler, who owns three of the original orders that were delivered before the hack was discovered last month.

Netpliance created a new version of its product and revised the purchase terms after its newly offered stock appeared to suffer from the fact that the i-opener could be modified.

A circle of technically oriented customers, many of them Linux enthusiasts, figured out how to modify and use the computer, leaving the accompanying Netpliance ISP -- and the revenue from the monthly access charges -- out of the equation.

Soon the i-opener became a cult hit, seen by geeks as a capable computer at a bargain-basement price. Circuit City stores began selling out.

The product was meant only as a customized access device for the company's $21.95 Internet service, so the company changed its hardware to prevent the connection of cables that enabled the modification. It also changed the terms of service to require signing up with the ISP.

Fans of the i-opener had no beef with the change, although in true geek fashion, they were soon working out ways to hack the revised hardware. They did, however, have a beef with the attempt to apply the terms after the fact.

"This would not be a problem except for the fact that they are attempting to make this retroactive to people who have purchased the product in the past," Griego said.

Netpliance officials said that once it had modified the hardware, it had no choice but to contact customers with unfulfilled orders and tell them they'd be receiving a different product.

"We're trying to do the right thing by calling customers and saying, 'Hey we're not going to ship this to you and then tell you about the terms and conditions,'" said Munira Fareed, director of marketing at Netpliance. "All you have to do is tell us this is OK and then we'll ship your order. And if not, then we'll have to cancel your order.'"

But aren't users right to feel a little cheated?

"It's an unpopular decision for the people who are interested only in modifying our i-opener," Fareed said. "And for those people, all we say is, 'Look, we want to work with you, in an organized fashion. We have a developers program.'"

That developers program invites Linux programmers and others to help develop a version of the i-opener to be sold to the developer community without the Internet service.

Fareed said the company simply needs to make up the $499 cost of producing the i-opener, and has no plans to reverse its decision.

 

Netpliance quits Web appliance business, slashes jobs

Reporting lower-than-expected earnings, the company cuts 93 jobs, or 38 percent of its work force, and morphs into an infrastructure and managed-services company.

http://i.i.com.com/cnwk.1d/i/ne/pre/Net/2000/02/0201netpliance.jpgBy Ian Fried
Staff Writer, CNET News.com

Published: November 10, 2000, 2:10 PM PST

 

http://dw.com.com/redir?edId=3&sId=3&dwpubsysid=1&onId=1006&ptid=2100&lop=st.ref.goo&cid=5731398&oid=2100-1006-5731398&destUrl=http://www.cnet.com/i/b.gif

update Netpliance, which sold inexpensive appliances for Web surfing, is slashing jobs and changing its business model in the face of greater-than-expected quarterly losses.

Under the changes, the company will effectively stop selling its I-opener appliance. Instead, Netpliance said Friday, it will license the product design to AT&T and others and then assist in providing service.

The Netpliance saga will likely serve as a cautionary tale of the post-PC era. The start-up has been one of the most visible proponents of cheap, stripped-down devices for hooking to the Web. While the idea has beguiled marketing executives, profits have been elusive.

The Austin, Texas-based company said it will morph into an infrastructure and managed-services company. Along with the move, the company said it is cutting 93 jobs, or 38 percent of its work force.

"We've made a big shift in our business model, a shift we believe will bring profits more quickly," chief executive officer John McHale told CNET News.com.

McHale said the move was prompted by the investment community's unwillingness to fund or support subsidy-based models. "That was the one and only reason we changed strategies," McHale said.

Netpliance sold its I-opener for as little as $99, expecting to recoup hardware costs over time by selling monthly Internet service.

McHale added that the company had not yet been looking for additional financing but knew it would eventually need more backing under its old plan.

For the quarter that ended Sept. 30, Netpliance lost $41.9 million, or 69 cents per share, on total revenue of $3.8 million. Analysts had been expecting a loss of 46 cents per share, according to First Call/Thomson Financial.

Of the company's $3.8 million in sales, only $230,000 came from sales of new I-openers, with $3.4 million coming from subscription revenue and $195,000 from peripheral sales. Netpliance apparently sold few of its devices after hiking the price and not selling products in August.

As of Sept. 30, Netpliance provided I-opener service to 49,400 subscribers, compared with 44,000 at the close of the second quarter.

Netpliance said it will continue to support the existing I-opener owners but does not plan to take new orders itself for the I-opener after Jan. 31.

Netpliance said it is forming a venture with AT&T's WorldNet service to jointly offer a version of the I-opener, with Netpliance providing infrastructure and helping to manage the service. The $299 units, similar to the I-opener, will go on sale after Thanksgiving on QVC, the television shopping network. Monthly service for the I-opener will be priced at $21.95.

Switching directions will cost the company in the near term. The company said it has scrapped orders with Taiwan's Quanta, the manufacturer of the I-opener, which resulted in a cancellation fee of $6.3 million in the third quarter. The company also said it is "uncertain" whether it will be able to sell any of the 27,000 I-openers it has in inventory.

The company said it expects to save $5.4 million per year from the job cuts and to eliminate the heavy losses it incurred from the heavily subsidized I-opener. However, the company will take a charge of between $2.5 million and $3.5 million in the fourth quarter related to the business shift and job cuts.

On Friday, Netpliance shares closed down 25 cents, or 16 percent, at $1.31. The company has been public for less than a year. It debuted March 20 on Nasdaq, closing that day at $18. It stayed in that range for the rest of March before beginning a steady decline.

By April, it had dipped below $10 and slipped below $5 in May. June and July saw a slight recovery to the $7 to 8 range. By the end of September, however, shares were trading in the $1.50 range.

As part of its new shift, Netpliance created two new business units, Netpliance.net and Netpliance Infrastructure Products Group (IPG). Netpliance.net aims to host applications and provide services to high-speed Internet service providers. Netpliance IPG will develop infrastructure products for installation in data centers, points-of-presence and residential access devices, the company said.

The company said it has $76.6 million in cash and short-term investments and expects that will be enough to keep it in business for at least the next 12 months even with no revenue or additional financing.

McHale said the company is not currently in a position to project its revenue for the coming months.

Analyst Richard Doherty of Seaford, N.Y.-based Envisioneering said the shift seems to make sense, adding that the company would have been better off to partner with a larger company from the start.

"It's probably the most secure business model they have been able to come up with after all of these months, even though it's very different," Doherty said.

McHale said the Netpliance's new goal is not just to help manage services for I-openers, but also to help other companies set up and maintain high-speed Internet services for other Net appliances and PCs.

"The fact is simplicity is hard to do," McHale said. "We've created a number of key technologies."

 

From: A Black Eye for i-opener

Netpliance Fined $100,000

http://www.consumeraffairs.com/printme.php?url=/news/netpliance.html

ack Eye for

 

WASHINGTON, July 2, 2001 -- The marketer of a device being advertised as a less expensive alternative to the personal computer for Internet access and e-mail has agreed to settle Federal Trade Commission charges that its sales and billing practices violated federal laws.

The agency charged Netpliance, Inc., based in Austin, Texas, with deceptive advertising, unfair billing, misrepresenting federal laws and violating a series of other federal laws that the FTC enforces, including the Mail or Telephone Order Merchandise Rule, the Truth-In-Lending Act and Regulation Z.

Netpliance offers an Internet access device, called the "i-opener," and Internet services to consumers. The settlement calls for the company to clearly and conspicuously disclose important terms and qualifications associated with using the i-opener or any other internet or online access product or service, reimburse consumers for improperly billed charges, requires the company to pay a $100,000 civil penalty, and bars the company from engaging in these illegal acts in the future.

According to the FTC, Netpliance pitched its product saying, "Give Them the Internet! Imagine family or friends unwrapping the i-opener ... Complete access to the World Wide Web ... as low as $199!" and "With no computer hassles, software to load or boot-up delays, the Internet can now become a very convenient part of your life for as little as $199."

The FTC complaint challenges these advertisements as deceptive because Netpliance failed to disclose adequately all of the extra costs associated with using the i-opener, such as monthly Internet service fees and long distance telephone charges. In addition, the company failed to disclose to consumers that they must use Netpliance's Internet service to access the Internet. Consumers could not access the Internet with the i-opener through another Internet service provider, even if Netpliance ceases providing Internet service in the future.

According to the FTC's complaint, advertisements for the i-opener also claimed that it provided access to all of the Internet's entertainment and information and that it was equivalent to a personal computer with respect to its ability to access Internet content. For example, i-opener ads included statements such as "Complete access to the World Wide Web" and "Even the most expensive home computer system can't bring you i-opener's simplicity, compact size, and convenient features."

The FTC complaint alleges that these advertising claims are deceptive. In fact, i-opener users are unable to access all of the content on the Internet. Some of the content that is unavailable to i-opener users includes files created using popular data formats or programming languages, such as popular Internet technologies for Web site audio, video, interactivity, and multimedia used for online entertainment and information communication. Furthermore, i-opener users cannot download, store, or run software available on the Internet. In certain cases, they also may not be able to display Web pages, open e-mail attachments, or play music files online.

The FTC also challenged some of the company's billing practices as deceptive and unfair. First, the company billed some consumers for Internet service based upon the date they received their i-openers. These consumers, however, did not owe the company money because, when they ordered their i-openers, the company had promised them that they would not be billed until they actually used the service. Second, the company back billed these same consumers for months of Internet service by charging their credit or debit cards without their consent. As part of the settlement, the company agreed to refund those consumers for the amounts illegally charged to their accounts.

The FTC also charged the company with violating the Mail or Telephone Order Merchandise Rule. The Rule requires that retailers ship goods within the date promised, or if no date is promised, within 30 days of the order's receipt. If the company cannot ship as promised, it is required to provide notice to the buyer with a revised shipping date, giving the opportunity for the buyer to agree to the delay or to cancel the order. The company agreed to change its procedures to ensure that such violations will not recur in the future, and to pay a civil penalty of $100,000.

The FTC complaint also alleges that Netpliance misrepresented to consumers that they had only 30 days to dispute a charge to their credit card accounts for services rendered by the company, when federal law states that consumers have 60 days to dispute such charges. In addition, the company failed to issue promised credits to consumers' credit card accounts within seven business days as required under the Truth-in-Lending Act.

Back to the top(http://www.consumeraffairs.com/#top) | Consumer News 2001(http://www.consumeraffairs.com/consumer_news.htm)

 

Expanding the Netpliance

i-opener

by








General News

Post Mortem

 

This is the first substantial content update since February of 2001 -- and may be the last given the waning interest in the Netpliance i-opener. Much to my surprise, Netpliance is still not bankrupt (financially, anyway). They changed business focus twice and their name once, but they are still in business and still losing money.

To expand the i-opener or not: Although I will leave the content for those who are interested, I can no longer recommend expanding the i-opener (unless you just have the parts lying around and a lot of spare time on your hands). Given the very limited screen size, CPU performance, and RAM present in the machine, it is just not economicaly justified. There is also the risk that you will be left with a non-functional machine with no spares, service manuals, or place to turn for repair.

Note on web site updates: I discovered that this web site has been "broken" for the better part of a year. Links were damaged and content has been missing. Apparently, HTML formatting software that I used did more than just make the HTML "pretty." I apologize for the problems. I have done my best to correct them. I have deleted all links to Paypal. Everyone is aware of Paypal and I am no longer comfortable actively endorsing them given some of the stories I have read. Although the section remains for the Tenmax Lasagna Cooler, be aware that mine died a premature death and I have not reverted to a large passive heatsink for which I cut a hole in the case. Because the cooler failed far sooner than I would have expected, I cannot recommend them any longer.

Netpliance Deathwatch

 

It has been many months (over six, in fact) since I have added any content to this web site. As you are probably all aware, Netpliance is apparently in its death throes. In July of 2000, I wrote: "It is my guess that the end is near for Netpliance." At that time, the price of their stock was at $7 per share. On Friday, Feb. 11, 2001, it was trading at 28 cents per share. The intervening months have not been good to Netpliance:

In addition to the public news, I have gotten e-mails from Netpliance customers. It appears that the sole printer designed for use with the i-opener -- the Canon BJC-2115 -- has been discontinued. Customers who now need a printer find that Netpliance has no printers and no intention of getting any more to satisfy customer demand.

Another customer, in a rural area, was relying on Netpliance's toll-free service that they promised to those without a local dial-up. After months of using his i-opener, distributing his e-mail address, and getting proficient and reliant on the Internet, Netpliance sent him an e-mail that said, in effect, find a local ISP and keep paying us (at a reduced rate), return your i-opener for a refund, or use it as a doorstop until we get a local dial-up in your area (which may never happen). Here is the text of that e-mail:

Dear i-opener Member,

This letter is to inform you of an important change in our terms of service. Effective October 1, 2000, Netpliance will no longer be able to offer toll free Internet access. According to our records, your i-opener has been set to dial a toll free Internet access number and Netpliance does not currently have a local number in your area. We regret the inconvenience, and are proposing three options for you. Please select one of the three options below to assist you with this transition:

Option A:
Netpliance is announcing a new Internet Service Provider program. This program allows you to choose your own Internet Service Provider (ISP) while continuing to take advantage of all the many features of the i-opener. This new program is available to you at a special rate of $9.95 per month and further we will provide this new service free of charge through December 31, 2000. This special rate for i-opener features does not include what your new ISP may charge you per month. We will assist you in the process of determining if your ISP of choice will work with the i-opener. Every Internet Service Provider is different so we cannot guarantee this option will be available.

Option B:
Return your i-opener to Netpliance for a full refund on the price you paid for the i-opener, including shipping.

Option C:
Cancel your monthly service until we are able to provide local service in your area in the future. You will no longer be billed the i-opener monthly service fee of $21.95. We will correspond with you to provide updates on our progress with finding a local Internet service provider.

Here is what you need to do:

1. Reply to this e-mail (choice@iopener.net) on or before September 30, 2000 with your decision on one of the options above.
    Example: We have selected Option B.

2. We will email you within 72 hours of receiving your selection to confirm your choice.

3. If we do not hear from you by September 30, 2000 we will automatically implement Option C.

Please e-mail us at choice@iopener.net if you have any questions prior to making your Option selection.

Sincerely,
the people at Netpliance

It's that kind of callous attitude towards the customer, combined with a refusal to honor their commitments, that both explains much of Netpliance's failure while making many feel that they deserve to fail.

 

Netpliance Quadruples Price While Predicting Shipping Delay of Months

 

Netpliance released two shocking bits of news this month (July 2000):

1. They have raised the price of the i-opener from $99 to $399.

2. Orders placed on or after July 1 would not be delivered before October 1.

The shipping delay was quietly hidden on the "Frequently Asked Questions" portion of the Netpliance i-opener web page.

Although Netpliance will addminor upgrades to the i-opener unit and service -- which include improved chat capability and the ability to have up to four email accounts, industry analysts remain baffled. Analyst Richard Doherty of the Envisioneering Group described the shipping delay as "bizarre" and said that the new offer "not a compelling offer versus the original" according to CNET News.com articles.

In a market becoming crowded with big-name competitors like Intel and Microsoft (in collaboration with eMachines), a $400 Internet appliance that marries you to a $21.95/month ISP is no bargain. What if you are unhappy with the ISP? Tough. They are the only game in town as far as your i-opener is concerned. What if they boot you for some purported violation of their terms of service? Too bad. You have a $400 paperweight.

The average consumer is going to write-off the i-opener in the blink of an eye. I went to Circuit City's web site today and found a Compaq K6/2 500mhz PC for $49.99 after rebates (Compuserve, Compaq, Circuit City). Now, let's see how that compares to a $399 i-opener:

 

Circuit City Compaq System

Netpliance i-opener

Unit Cost after rebates

$49.99

$399

ISP Cost for Three Years

$790.20

$790.20

Total Cost

$840.19

$1,189.20

 

 

 

Hardware

 

 

CPU Speed

500mhz

200mhz

RAM

64MB

32MB

Hard Drive

10GB

none

Floppy Drive

1.44mb 3.5"

none

CD-ROM Drive

40X

none

Printer

Compaq Color Inkjet IJ300

none

Screen

15", multiple resolution

10", fixed resolution

Hardware Upgradable?

Yes, uses standard PC components

No. Sealed enclosure with no expansion slots

 

 

 

Software

 

 

Operating system

Windows 98

Variant of QNX in ROM

Web Browser

Yes (Internet Explorer 5)

Yes - QNX proprietary

e-mail

Yes (Outlook Express)

Yes - QNX proprietary

Word Processor

Yes (Microsoft Works 2000)

no

Spreadsheet

Yes (Microsoft Works 2000)

no

Database

Yes (Microsoft Works 2000)

no

Calendar

Yes (Microsoft Works 2000)

no

Address Book

Yes (Microsoft Works 2000)

no

Financial Management

Yes (Microsoft Money 2000)

no

Educational

Yes (Microsoft Encarta 2000 encyclopedia on CD-ROM

no

Anti-Virus Software

Yes (McAfee Virus Scan)

no

Multimedia

Yes

no

Software Availability

Thousands of titles available throughout the world.

no

On the one hand, the consumer gets a real PC with monitor, printer, industry-standard operating system and applications, and upgradability as the market changes. With the i-opener, they pay $350 more and wait months for delivery. They get no printer, a tiny screen, and no upgrade path. They cannot write a letter, balance their budget, or install software titles that suit their interests. Their children cannot do reports for school or play games on the i-opener.

All of us computer geeks can argue about the flaws in the Windows 98 operating system or that the i-opener is not as threatened by viruses, but the average computer neophyte knows that Microsoft is the standard and maybe that Compaq and Compuserve are big names, too. They know that they can read the screen on the Compaq (many older people cannot read the i-opener screen) and print anything that interests them.

It is my guess that the end is near for Netpliance. They spent so much time and budget trying to thwart "hackers", while angering their retailers, that they now appear to be in serious financial trouble. Their underhanded tactics, retroactive product changes, and deceiptful business practices (see other articles on this web page) have come back to haunt them. Their stock price that was over $26 at the time of their IPO has now collapsed to about $7. Now they have quadrupled the price of their only product and are promising delivery three or more months in the future. That sounds like desperation and financial trouble to me.