Sources: Microsoft preparing XP thin clients

Microsoft is working on two thin client versions of Windows XP to offer a lower cost operating system alternative for users of server-centric computing, people familiar with the company's plans say.

The Windows XP-based thin clients will cost less than Windows XP Professional Edition, but offer the same management features and availability of a broad array of hardware drivers. The operating systems are being designed to run on low-end PCs that could be used for simple tasks such as data entry and as a way to access server-based applications, the sources say.

Microsoft is developing the two releases under the "Eiger" and "Mönch" codenames, after two mountains in the Swiss Alps, says Microsoft enthusiast Steven Bink, who publishes the Bink.nu Microsoft news website and runs IT Solutions BV, an IT consultancy company in Amsterdam.

Microsoft told select partners about its thin client plans in January, says Brian Madden, an independent technology analyst and author of several books on thin client computing.

"The motivation for Microsoft is to get a true managed Windows platform on as many desktops as they can. Once they realised that this thin-client model is here to stay, they figured they might as well make an offering that can support SMS, WSUS, etcetera, to encourage as many people as possible to use these products," Madden said in an interview via email.

SMS (Systems Management Server) and WSUS (Windows Server Update Services) are Microsoft systems management and patching products.

With the thin clients, Microsoft would be competing with open source products and potentially with partners such as Wyse Technology and Neoware Systems, which sell thin clients based on XP Embedded and Windows CE.

Neoware, however, does not see Microsoft's move as increased competition, says spokeswoman Sharon O'Shea. "A thin client version of Windows XP would be a natural product for Microsoft, given the growth of the thin client market," she said in an email message.

"A thin client version of Windows XP would not be competitive with Neoware’s products. In fact, we would likely benefit from its development as we could bundle it with our thin client devices," O'Shea says, noting that Microsoft has created thin client products in the past, including a thin client version of Windows CE.

Madden believes the thin-client versions of Windows XP will likely be easier to use and less expensive than Windows XP Embedded. Essentially, he says, the operating system releases will let users convert an old PC into a Windows manageable thin client device.

A thin client typically is a slim terminal computer that has little or no software installed and instead runs applications off of a central server, making it easier to manage. It is considered to be a low-cost alternative to the bulky desktop PC. Sun's Java Desktop System, which includes Linux, has also been used for thin clients.

Both the Windows XP thin clients will run with 64MB of RAM, a 50MB hard disk drive and a Pentium class processor, according a description of the products published by Bink earlier this week.

Eiger is the simplest offering. Its features include a remote connection client, Internet Explorer, local and network printing, Office viewers, Windows Server Update Services and support for Systems Management Server, according to the product description.

Mönch has all the Eiger features, plus support for Windows Mobile devices, Windows image acquisition, wireless networking, virtual private networking and advanced IP security, according to Bink.

"Companies that use server-based computing today could switch to these thin clients. And companies wanting to make the step to server-based computing will be able to do that more easily by using their current PCs with the thin XP client," says Bink.

But Michael Cherry, an analyst with Directions on Microsoft, does not see why Microsoft would need special thin client versions of XP. "I am not convinced that there is a hole in their product line right now. It sounds very much like what somebody could do with Windows XP Embedded."

Microsoft declined to comment.