InformationWeek
Defining The Business Value Of Technology
June 23, 1999
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Some companies such as Intel envision true mobility for notebook users: accessing company data without the hindrance of cables and wires.
Intel says notebook computers will be the primary tool for most of its workers, which is why the company is installing wireless LANs in all of its conference rooms and cafeterias around the world. Intel will equip notebooks with wireless network interface cards and install VPN software on both notebooks and servers for secure data transmissions. Receivers, to be installed within buildings, will offer notebook users wireless network access from as far away as 500 feet.
Intel is convinced that employee productivity soars with increased mobility. Most companies have ignored that benefit because notebooks historically cost more than PCs, but that's starting to change, says CIO Burns. In recent years, Intel's notebook costs have plummeted, largely because of improved system reliability and reduced hardware costs. Also, Intel has worked internally to reduce costs associated with software, internal and outsourced support help, maintenance and consulting, and users' time spent on maintenance and configuration. In 1995, it determined its annual ownership costs to be $13,750 for notebooks and $9,250 for desktops. But by late last year, those numbers plunged to $5,000 and $4,200, respectively. At that point it became an easy decision to begin a massive transition to notebooks, says Burns.
But what about the $800 annual premium per notebook? According to Burns' calculations, Intel breaks even on the notebook conversion if users spend 1.7 hours more per month on their notebooks than they would have spent on their PCs. Burns says employees will easily get that extra 100 minutes of productivity per month, because they can move among the conference rooms and cafeterias in a battery mode and link to wireless LANs. "The pattern of work behavior is more effective with a notebook," says Burns. "Enabling people to have their data with them during the day is extremely valuable."
Sometime next year, products based on a new wireless transmission technology protocol are expected to become available. The protocol, code-named Bluetooth, was devised last year by Ericsson, IBM, Intel, Nokia, and Toshiba. The technology would be used primarily for a single point-to-point wireless connection of up to 30 feet. For example, hardware based on Bluetooth is expected to allow a notebook user to print a document from a local office printer. Bluetooth offers a transmission speed of around 700 Kbps, or about 12 times the speed of a 56-Kbps modem.
Dell is considering incorporating Bluetooth technology into its future notebooks, says Frank Hanzlik, a senior manager of product marketing. He points out that so far, the only other type of technology that's been able to offer a simple point-to-point wireless connection between a device and a peripheral is infrared. However, infrared requires that users line up a notebook with a printer that's within a three-foot distance. "Infrared has not been very successful," says Hanzlik. "Few people are using it because line-of-sight issues and distance are a problem."
The use of wide area wireless technology is growing in the transportation and telecommunications industries to provide field workers with access to company information from notebook or handheld computers. MCI WorldCom uses notebooks with 9.8-Kbps PC Card wireless modems from Research In Motion Ltd., says senior software engineer Peter Tsai. He's also evaluating cellular digital packet data (CDPD), a technology for carrying data over existing cellular switched networks at 19.2 Kbps. Although CDPD has been criticized for spotty geographical coverage and mediocre application support, Tsai says vendors are working to improve the technology, increase its transmission speed, and expand its software support.Nonetheless, wireless WANs have their limitations, and aren't viable for many companies, says Jack Gold, an analyst with the Meta Group. The bandwidth is still too low to support the transmission of complicated data files. Furthermore, costs are high compared with other WAN technologies.
Instead, Gold expects that WANs based on digital subscriber line technology will become a more viable option for fast access to company networks within two years, when DSL is expected to mature. Though DSL isn't wireless, it works on standard copper wires found in office buildings and hotel rooms, and transfers data at a speed of up to 1.5 Mbps (70 times the speed of CDPD).
Although a few years may pass before some of these technologies are viable, it's time to plan an infrastructure that supports a workforce of mostly mobile workers. As networks of business-related information broaden, employees will require the tools and support to access them.
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Photo by David L. Cornwell
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