Motorola buys stake in Neoware

Motorola's Semiconductor Products Sector has signed an agreement to purchase a minority stake in Neoware Systems, manufacturer of thin client computers. The two companies will develop Windows-based terminals using core technologies from Motorola alongside hardware and software from Neoware.

Pat Dunne, general manager for Europe at Neoware, said: "This is part of a long-standing relationship in which we have used Motorola's processors in our products. This is an endorsement on what's already been happening."

Tony Clifford-Winters, senior analyst at Bloor Research, believes the Windows-based terminals market will take off. He said: "This is a good market for Motorola to get involved in. "Some companies need to give staff friendlier working environments and access to the Internet, while keeping costs down." Clifford-Winters also said the "green screen replacement market is an interesting area for manufacturers of Windows-based terminals to get involved in. When PCs come up for renewal, a lot will be replaced by thin clients," he added. "This may also lead Motorola into the set-top box market when Internet access in the home takes off."

NeoWare's Dunne added: "The green screen replacement market is one of the top areas of success for Neoware. It gives new buyers the option to run thin clients from a central server."