1. Thin Client - New Technology Deflection Point Presented to: LITWG of Washington State Everett Public Library January 10, 2002 Presented by: Dr. Chong Lee Veicon Technology, Inc Beaverton, OR Copyright 1997-2001 © Veicon Technology, Inc. All rights reserved.

2. What is a Smart Terminal™? A computing model where applications are running on a server, while a desktop device is a simple display unit with keyboard and pointing device Also referred to as “server-based computing” or “client/server model” Similar to old day’s time-sharing except the desktop device is a full graphics unit

3. Client Types Thin client (i.e. terminals with no local hard disk) Thick (fat) client (i.e. PCs or converted PCs)

4. Client Examples X Window terminals for UNIX MS Windows terminals for Microsoft NT or 2000

5. Smart Terminal Hardware Vendors Wyse Technology IBM NCD Boundless others

6. Server HW Platform Vendors Compaq Dell HP IBM Intel Sun Microsystems others

7. Platform Software Vendors For Windows terminals –Microsoft, Citrix For Linux thin client –Linux software vendors, i.e. RedHat

8. A Brief History Mid 90s: X Windows terminals for UNIX did not take off, as UNIX growth has slowed down 1996: Introduction of MS Windows-based terminals Late 90s: Microsoft partnership with Citrix fueled the growth of the Windows terminal market

9. Smart Terminal Advantages Centralized computer resource management, resulting in lower support and ongoing maintenance cost High system and network security High system availability (uptime) Longer product life cycle Energy saving Space saving

10. Smart Terminal Disadvantages Dependency on the server (single point failure) High level technical expertise required

11. Solutions for Disadvantages Back up servers and redundancy –i.e. “fail over” Commercial solution –i.e. Veicon, eliminating the need for in-house development and maintenance

12. Why did thin client technology not take off in libraries? PC-based solution is quick and easy to grow Uncertainty and lack of experience with the new technology Lack of budgetary information Unavailable, qualified IT person Lack of certain solutions with the early thin client features, i.e. floppy disk option

13. Smart Terminal vs. PC MTBF (Mean Time Between Failure) –thin client: 98,000 hours –PC: 20,000 hours

14. System Price Comparison: Smart Terminal (ST) vs. PC Capital vs. non-capital cost –Ratio: 1:2 Capital cost: ST with Server vs. PC –Ratio: 1:1 Non-capital cost: ST vs. PC –Ratio: 1: 3 Overall TCO (Total Cost of Ownership): ST vs. PC –60% - 70% savings with TC solution

15. Capital Cost vs. Non-Capital Cost Capital cost: Equipment Non-capital cost: installation, moves and changes, staff training, security, applications, systems/network management, technical support, and on-going maintenance

16. Smart Terminal Solution:

17. About First commercially available thin client “integrated” solution for libraries –Proven for 3 years since 1999 Patented with 29 claims (US Patent: 5,958,007; other patents pending)

18. Key Features Patron Internet access Full range of e-mail clients including AOL, CompuServe, Outlook Express, Eudora, Pegasus, and Telnet –POP3 & IMAP4 Choice of web browsers, IE and Netscape MS Office Tools

19. Key Features (continued) Multi-level Security –Privacy, System and Network Virus protection filter Website filter VTM (Veicon Time Manager) Printer support: Local and Network Magnetic Stripe Reader (MSR) option

20. Expansion of Solution Dual function: OPAC/Internet stations New release on its way: V3.0 Modal browser Web filtering and virus protection server (for all desktops - PCs and thin clients) Advance Time Manager Cost recovery print management

21. Financial Options Fee based “service” model –A library buys terminals with ongoing service and support, including server access Server consignment (no charge) for 20+ terminals Bundled solution purchase option American Express Leasing Partnership for special municipal lease agreement

22. Server vs. Terminals Number of TerminalsServer Option Note: Minimum bandwidth 256K DSL

23. Benefits of In-house R&D for thin client no longer needed Proven solution over 3+ years Financial information available for budget process Overall cost saving, 60% - 70% TCO Available NOW

24. Technology Deflection Points (over 50 years of computing history) Existing technology trend slows down, while a new technology trend accelerates –Mainframe to Mini –Mini to PC –PC to “thin client computing” driven by broadband Internet (wired or wireless) and high speed servers

25. Summary

26. Cost per Station over 3 years Capital Non-Capital PC Desktop & S/W Smart Terminal Server V-Link X$ 3X$

27. Buy vs. Build File system Mgr Time Mgr Client Opt & Config Veicon Patented 8 man-years Basic Thin-Client Proven, Turnkey Security, Training Low maintenance Auto-updates Low I.T. support Integrated user I/F

28. On Location