The Standard
( Tuesday November 30 1999 )

Network Computing Lives!

Not five years ago, network-based computing was hailed as the way to bring computing to the masses. In surprisingly short order, though, it was written off as another bright idea that collapsed under the weight of Microsoft's dominating Windows applications.

But the idea may have some life in it yet. MyWebOS.com, a Baltimore-based startup that turned heads recently with plans to build a Web-based desktop, is expected to unveil the new computing environment today. The move is part of a wave of network-based computing ventures that seek to free consumers of bulky personal computers. The expected announcement from MyWebOS comes on the same day that x:drive, a service that allows users to store files online, is expected to announce it has secured $20 million in funding from eCompanies Venture Group, Goldman Sachs and Wit Capital.

"We're trying to pioneer a new technology and a new way of computing," says Shervin Pishevar, chief executive of MyWebOS.com. "The days of buying boxed software are going to be over." Instead, MyWebOS users will eventually pay to use high-end applications based on how often the programs are used. Other applications, however, will remain free.

Made popular by Oracle founder Larry Ellison in the mid-1990s, network-based computing was envisioned as a way to offer the masses a way to compute without paying thousands of dollars for computers. In addition, network computing would erode the hold that Microsoft has on the personal computer as a result of its Windows applications. In theory, applications and files would be stored on Web servers that would be accessed by inexpensive, scaled-down computers, or network devices. But Ellison's view was slow to catch on, largely because the new machines were slower than regular computers and offered far fewer choices.

But new companies offering Web-based applications are renewing interest in the concept. Halfbrain.com, for instance, recently announced it was making available an online spreadsheet called BrainMatter, while Bitlocker and Activespace both offer online data-management applications. Other companies hoping to build online operating systems include MyInternetDesktop.com and Magicaldesk, while x:drive and idrive are two of the better-known companies that allow users to stash their files online, rather than on floppy disks and hard drives.

Many of these new companies are banking on the continued rise of handheld devices, which often lack the computing power of PCs. Accessing the Web from such gizmos, a user could sort customer lists, draft a company proposal and even download music onto a music player. But the move to Web-based applications is not limited to low-end computing. A Richardson, Texas-based company called Alibre recently unveiled plans to offer a high-end application on the Web for mechanical design.

Initially, MyWebOS is expected to provide an office productivity suite called Hyperoffice 2000, which comes with a word processor, e-mail and calendar programs and a contact manager. MyWebOS.com recently received $10 million from Impact Venture Partners, a company backed by Adam Dell, the brother of Dell Computer founder Michael; the Grotech Capital Group; and Orion Capital.

MyWebOS says it has hired Deepak Puri, a former Netscape manager in charge of product development, as its president of strategic development. Puri will manage relations with third-party developers, who will be key if MyWebOS.com is to gain widespread acceptance.

If network acolytes are correct, Microsoft – which derives substantial revenues from its Windows operating system, which powers 90 percent of the world's PCs – will not sit idly by as its market share erodes. But that doesn't faze Pishevar.

"We're looking forward to working with a lot of companies including Microsoft," he says. "There's no reason for us to not allow them to rent their applications to (us)."