Neoware Systems, Inc.

Questions and Answers

Questions & Answers

About the Neoware NeoStation, @workStation and Neoware netOS software

Are Neoware's products designed for home or business use?

Neoware's products are designed for use within the business enterprise. Businesses have the infrastructure necessary for thin client - in particular, high speed Ethernet networks. Neoware's NeoStation and @workStation thin clients can be used in today's business environments with no changes to existing networks or computers.

Businesses with telecommuters may well want to invest in thin clients for home business use now. Neoware has licensed its netOS software to manufacturers who may be interested in manufacturing Network Computers for home use.

What is the difference between the terms "Thin Client" and "NC" (or "Network Computer")

A "Network Computer" means something specific to Neoware: It is a device that meets the NC Reference Profile, a set of standards agreed to by Sun, Oracle, IBM, Netscape and others. This set of standards includes a range of internet technologies, including HTML, HTTP, Java, SMTP, and POP3, as well as standard network protocols such as TCP/IP, UDP, BOOTP, and DHCP.

In contrast, a "Thin Client" is any type of desktop device that is designed to be easier to manage and easier to use than a PC. A Thin Client could be a "Windows Access Terminal", in which all applications run on a multi-user server. Such a device doesn't meet the NC Reference Profile, but is simpler to use than a PC.

So, in short, an NC is a Thin Client, but not every Thin Client is an NC.

Neoware's NeoStation and @workStation can operate as Windows Access Terminals, Enterprise Access Terminals or Universal Thin Clients depending on the version of the netOS software they use. Neoware netOS for WinTerminals and for the Enterprise configure Neoware's products as Windows Access Terminals and Enterprise Access Terminals respectively; netOS for Intranets configures them as Universal Thin Clients.

What is Neoware netOS software?

Neoware netOS is the name of the software that runs on the Neoware NeoStation and @workStation Universal Thin Clients. Neoware netOS can be installed on virtually any type of computer, and allows companies to standardize on any operating system, from UNIX to Windows to mainframes. Additionally, netOS allows companies to use all of these operating systems at the same time. Neoware netOS software is designed around industry standards and includes built-in networking and protocols that make it compliant with the NC Reference Profile, such as Java, HTML and SMTP. So Neoware netOS is the first thin-client software that lets desktop systems like the Neoware NeoStation and @workStation talk to any computer and run any application on any type of network.

Neoware netOS software is available in three versions targeted at three different needs, based on technology and capabilities: netOS for WinTerminals, netOS for the Enterprise, and netOS for Intranets.

Can the NeoStation and @workStation run Java applications and browse the Web?

Yes. Customers can choose to run Java and Internet applications on the server in any Neoware model. Customers can choose the version of netOS that includes Java and Internet technologies (netOS for Intranets) This version of netOS includes both the Netscape Navigator and Spyglass Web browsers so customers can run any Java application, browse the web, or access an intranet without any other computer. Neoware was the first company to make Java and Netscape available for use in a low-cost desktop device.

Can Neoware's Thin Clients run applications other than a Web Browser and Java?

Yes. In addition to Web browsing and running Java applications, Neoware's NeoStation and @workStation can run all applications within a corporate enterprise, including Windows, MS-DOS, UNIX, midrange and mainframe applications.

Can the @workStation run Windows and Windows 95 applications?

Yes, using a Windows NT application server such as Citrix WinFrame, Insignia NTRIGUE or Microsoft's Windows NT 4.0 Server, Terminal Server Edition  with Citrix' MetaFrame, NeoStation and @workStation users can access PC applications, including DOS, Windows 3.X, Windows 95 and Windows NT applications at native Pentium Pro speed.

Do I have to replace my existing network of PCs to implement Neoware thin clients?

No. The Neoware's NeoStation and @workStation are designed to complement existing PC networks. Companies can deploy Neoware thin clients using their existing networks, and can use their existing applications. There's no need to change anything, or to replace existing PCs or servers.

Can I use Microsoft Internet Explorer with the Neoware's thin clients?

Yes! That's one of the benefits of the Neoware's solution. You can run any browser, on any type of computer and access it from the NeoStation or @workStation. So if your company or organization has standardized on Internet Explorer or other Web browser, Neoware's thin clients are a perfect choice.

How will Neoware keep applications like Navigator and Java at the latest version?

Neoware was the first company to offer Java and Navigator in a Thin Client. These applications were very easy to add to Neoware's netOS software because of the standards-based design of netOS. Other companies that have announced Java and Navigator licenses have not yet released products based on those technologies to the market, or did so up to one year after announcing them. Neoware considers this ability to quickly add new capabilities to its cross-platform netOS software a major competitive advantage, and plans to use this advantage to keep its products ahead of the competition.

How do I save or share files with the Neoware's thin clients and NCs?

It's simple; you can configure Neoware's Thin Clients to best fit your business needs. You can store files on a remote computer across a local net or the Internet, or you can install a local hard drive or connect a floppy drive to the NeoStation or @workStation.

Can Neoware's machines operate independently without the Internet?

Absolutely. Both the NeoStation and @workStation are designed to meet business requirements so they can provide access to all of the applications in the corporate enterprise, on any network, whether they are Windows, UNIX, mid-range or mainframe-based. Java and intranet applications can be accessed on a local network.

Is it necessary to go through a host computer or server for Neoware's Thin Clients to access the Internet?

The answer depends on the version of the netOS software that the machine uses. When running netOS for Intranets, the local browser on the desktop can connect directly to the Internet, or can do so through a proxy server, so users can browse the Web, run Java applets, send and receive e-mail without another computer. Users can also run Windows applications across the Internet with the @workStation.

Using netOS for WinTerminals or netOS for the Enterprise, users run the browser or Java Virtual Machine on a host computer and display it on the NeoStation or @workStation.

What software can I run using Neoware's products?

Virtually any software you use today. Neoware's netOS software allows users to connect to Windows, UNIX, mainframe, midrange, UNIX, Java, Internet and intranet applications today. Additionally, netOS can be installed on any of these operating systems, and it allows users to interact with any number of them at the same time.

How does a Neoware Thin Client compare to a PC?

Neoware's Thin Clients are designed to give you all of the functionality of a PC at a much lower cost and with a lot less maintenance and administration. Whether your needs are to access the Internet, your corporate intranet or PC applications, Neoware's machines are easier and less costly to use.

Based on independent market consultant studies, including Gartner Group and Zona Research, the Neoware's products can be significantly less costly to purchase, install, and than a PC. For example, Gartner estimates it costs over $43,000 per PC over five years, including administration and end user support. A Thin Client like the NeoStation or @workStation can save up to 39% of that cost.. In a business with just 100 desktop systems, this equates to $1.7 million in savings.

Are Neoware Thin Clients easier to manage than PCs in a network environment?

Neoware's Thin Clients are specifically designed to be easy to administer. Neoware systems are "zero administration" clients so you can plug them in and use them with no local administration. Everything that is done locally can also be done remotely. Because administrators can manage and monitor Neoware machines from a remote location, they can do software upgrades without disrupting end users. Since applications can be centrally stored on servers they are easier to upgrade, and administrators can easily keep their users up-to-date with the latest software.

Neoware machines can be administered via SNMP-based network management tools. Additionally, Neoware was the first Thin Client company to work with Computer Associates to allow CA Unicenter TNG to manage our Thin Clients.

The advantage of CA Unicenter over a proprietary management solution is that Neoware's customers don't need to learn a new management tool or maintain a new database of management information. Instead, administrators can use the same management tools that they use for other types of devices.

Does the NetPC announcement from Microsoft and Intel impact the advantages of using Neoware's Thin Clients?

No. The NetPC concept is not widely accepted in the industry, because a NetPC is not vastly different from a PC, and doesn't offer significant cost or administration savings. The Microsoft "Zero Administration Initiative" is not yet a complete product. It is not proven or accepted in the marketplace. This initiative would require another layer of operating system to attempt to "automate" some of the administrative burden inherent in maintaining PC's on numerous desktops. It in itself would require more powerful PCs and new versions of the operating system, and new hardware features to implement. These are just the problems that the @workStation Network Computer was designed to address. The NetPC hardware reference calls for a scaled-down, locked-down, lower-end PC with a locked case and no end-user expansion slots. Windows applications still run on the desktop, so the desktop performance will continue to be an issue as will desktop obsolescence.

How do Neoware's NeoStation and @workStation Universal Thin Clients compare to Sun Microsystems' JavaStation?

The JavaStation is a Java only machine. While users can use the JavaStation to connect to Windows and legacy systems, these systems are only accessible via emulators written in the Java language. This makes these applications slower and less functional than PCs or even dumb terminals. Additionally, complexity increases since Java software must be used to provide many of the functions that are built into Neoware's products, such as Windows access and terminal emulation. The JavaStation only operates connected to the Sun Netra-J server, significantly increasing costs and limiting flexibility. A hard drive, floppy drive or CD-ROM is not available..

Are Neoware's products compliant with the NC Reference Profile promoted by Oracle and Sun?

When configured with Neoware's netOS for Intranets software, NeoStation and @workStation models are fully compliant with the NC Reference Profile, but they add important capabilities that make them truly useable in business environments today. The addition of Windows access, terminal emulation, multimedia and the X protocol make Neoware's deices Universal Thin Clients that can do much more than just run Java applications and browse the Web. Neoware is committed to supporting industry standards, and Neoware's netOS for Intranets is compliant with the published specifications, but with additional functionality.

About the Company

When was Neoware Systems founded?

Neoware Systems was founded in March 1995 through a merger between ISAC, a company founded by Safeguard Scientifics, and Human Designed Systems, a terminal manufacturer, resulting in HDS Network Systems, Inc. On August 1^st, 1997, HDS Network Systems changed its name to Neoware Systems, Inc. to reflect the company's unique set of capabilities in providing innovative Thin Client technology that is changing the way businesses are deploying desktop computer systems. The company is public, and traded on the NASDAQ market under the symbol NWRE.

What is Neoware's affiliation with Safeguard Scientifics?

Safeguard is a $1.5 Billion+ NYSE-listed company that specializes in investing in and growing leading-edge high technology companies such as Neoware. Safeguard owned 100% of Novell and took the company public in the 1980s, so they have significant experience in the networking field. Safeguard also owns large positions in some of the leading companies in high technology, including CompuCom, one of the largest computer distributors in the US, and Cambridge Technology Partners, a premier systems integrator. The total value of Safeguard affiliated companies is over $12 Billion.

Neoware is a Safeguard-affliliated company and Safeguard is one of Neoware's shareholders.

What is Neoware' mission?

To provide customers with a Universal Thin Client solution that provides the lowest cost, easiest-to-use access to any type of information on any type of computer, through any type of network.

How many customers does Neoware have?

Neoware has shipped over 100,000 desktops and has thousands of customers world-wide, including:

Where does Neoware have offices and distribution?

Neoware has offices in the United States in King of Prussia, PA, Washington DC, Dallas, TX, the United Kingdom and Germany. Additionally Neoware has distribution in: