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"The term PC will probably be reserved for things you sit fairly close to and you can edit the information easily with a full screen," Gates added.
Eventually, computers will include "softer" software that can guide users by learning how they work, based on usage profiles and smart agent technology, he said. Enhanced software will also improve online collaboration, he added.
Bandwidth problems which have stifled performance increases are being solved, according to Gates, particularly with the emergence of cable modems and ADSL (asymmetric digital subscriber line), which enables higher bandwidth applications over existing telephone lines.
During a question-and-answer period after his keynote, Gates said that next year Windows NT will become a full superset of Windows 95, and thus able to run all the same applications. He also predicted that within the next five to 10 years Internet access through satellite connection will be widely available.
In a related announcement, IBM and Intel Corp. said they will join together to tackle the rising costs of PC ownership in a networked environment. Through their Advanced Manageability Alliance, the two companies said they will design, develop, and comarket standards-based solutions intended to cut costs by simplifying installation and maintenance of PCs. Along with Sun's JavaStation roll-out and Microsoft's NetPC, the IBM-Intel undertaking shows a decided movement by industry leaders to tackle the high cost of owning and maintaining desktop PCs.
Market research firm International Data Corp. estimates the yearly ownership cost of a PC to be at least ,000 a year. NC manufacturers say ownership costs for their devices are less than half that. In the first stage of the alliance, Intel will incorporate IBM's Wake On LAN remote management capabilities into its Fast Ethernet LAN adaptors and LANDesk Client Manager software. In turn, IBM will incorporate those Intel products into all future versions of its desktop PCs powered by Pentium and Pentium Pro processors beginning in the first quarter of 1997.
The two vendors will work to allow PCs to be controlled uniformly from both Intel's LANDesk Configuration Manager and IBM's LAN Control Client Manager. They will also integrate Tivoli Systems Inc.'s TME 10 enterprise consoles with Intel LANDesk management tools and IBM NetFinity tools for workgroups, according to the release.
In the future, the two companies plan to develop new PC management software, PC networking management hardware, and simpler-to-use desktop systems. While the initial products will be reflected in Intel's and IBM's product lines, the companies hope the solutions will be adopted as industry standards, according to the release.