Events like TechXNY are a good barometer of the state of the technology industry. Vendors large and small bring their latest wares to New York to provide evidence that the pulse of technology innovation is still beating. Indeed, the pulse of innovation is steady, but not strong enough to fuel a major buying cycle based on what I saw here.
The main attractions of the show were the proliferation of wireless-enabled devices (mostly 802.11b, aka Wi-Fi) and the latest introduction of Microsoft's Tablet PC platform. While those products demonstrate that incremental innovation continues to occur, they won't provide the catalyst to reinvigorate IT spending. We live in an environment that rewards cost containment and rapid return on investment (RROI). It's hard to justify building out wireless networks or buying new Tablet PC laptops except for specific applications in which the RROI and competitive advantage is absolutely clear.
In the case of wireless, the potential advantages are compelling. Wireless LANs can be far less expensive than wired LANs to install and more flexible to configure. You could work just as easily in the company cafeteria as your own office. In recent surveys tracking CIO spending plans, wireless typically shows up high on the wish list.
For most companies, however, providing a higher degree of mobility and flexibility is more of a nice-to-have than essential to business continuity. Allowing employees from remote offices to be logged on without requiring a wired plug or to go from the office to a sunny park bench and maintain connectivity to corporate e-mail doesn't exactly pass the RROI test. In addition, the technology is relatively new and the standards continue to morph. You will have to deal with issues such as interference in the Wi-Fi bandwidth and the complexities of managing a wireless network with hundreds if not thousands of access points (See Wireless Special Report).
Wireless also has well documented security vulnerabilities. During a speech at TechXNY, Hal Hendershot, chief of counterintelligence/counterterrorism at the Computer Intrusion Unit of the National Infrastructure Protection Center, described how he drove around Washington, D.C. to test the vulnerability of Wi-Fi networks. Using a Pringle potato chip can, a couple of parts from Radio Shack hooked to a laptop, and freely downloadable software, Henderson said he easily picked up data on wireless networks from law firms and other businesses during his drive by.
Over the next several months, these problems will be resolved and the RROI on wireless will start to look more favorable, especially for provisioning new installations.
The Tablet PC also falls into the "nice to have, but what are the critical business problems it solves" category. By now you may have read various reviews and opinions about Microsoft's much-touted Tablet PC platform. I have been following the evolution of pen-based computing for the last ten years, and I can attest that the Tablet PC is a good step forward. I took Acer's prototype convertible laptop running Tablet PC software for a short test drive, and I was impressed with the ease of stroking ink onto the screen and incorporating "written" documents into the file system. However, the handwriting recognition--converting digital ink to text --could not deal with my atrophied cursive script. I suppose I could learn to write so that the machine could interpret my handwriting, but I prefer that it conform to my idiosyncratic scrawl.
The bottom line is that Tablet PC is an extension of the Windows XP operating system, not a replacement. If you have specific applications planned that require digital ink, investing in the forthcoming new convertible laptops or other tablet devices that support the Windows XP Tablet PC edition is worthwhile to consider. For others, Tablet PC is a luxury unless the new functionality comes at a nominal increase in cost, which is not going to happen. The convertible screen, digitizing components and new software will ensure the machines are priced in the mid to high range of current laptops.
For now I will stick to the trusty keyboard, safe with the knowledge that in about two years all the functionality in the Tablet PC will become mainstream features in Windows and that it will still not be able to read my handwriting.
Do the Tablet PC or Wi-Fi solve any of your critical business problems? Would either simply be nice to have? Or could you care less? TalkBack to me, or e-mail us at techupdates@cnet.com










