Thin client specialist Wyse Technology announced a new generation of terminal products with space-saving designs this month. But despite banging the drum for the cost savings of server-based computing, the firm still faces a lot of scepticism from companies over the business case for swapping networks of Windows PCs for thin clients.

Like earlier models from Wyse, the new S and V classes of Winterm thin clients are designed to access applications running centrally on servers - and so cut out many of the expenses that arise if IT staff have to manage and support a sprawling network of Windows PCs.

Yet desktop PCs remain the dominant clients in large organisations. The reluctance of end-users to swap their PCs is often suggested as a reason for this status quo. "Lots of users, including IT managers, think their work experience is linked to the processor badge on the front of the box. They think they will lose out if they move to a thin client," said Stephen Yeo, European marketing director for Wyse.

To try to dispel this belief, Wyse recently commissioned a study in which volunteers completed everyday Windows tasks on a thin client and a typical two-year-old PC. Users only saw the screen, keyboard and mouse of each system, and so did not know which was which.

The results showed that 54.5 percent of participants found the thin client more responsive and over 60 percent said they would prefer it for everyday productivity work.

To make the test a fair comparison, the thin client was hosted on a server bought second hand for £380, according to Yeo. "We even weighted the server with processes in order to simulate a dozen other users running programs at the same time," he added. One reason for the perceived speed of the thin client setup was that an application on the server did not have to be fetched from disk if it had been opened previously, Yeo explained. "To a second or third user, it seems to open in the blink of an eye," he said.

But there are other hurdles to a thin client strategy. An earlier survey by research firm Gartner revealed that many IT directors are wary of server-based computing because it can involve a large up-front investment. Servers may have to be upgraded to move applications from the desktop to the datacentre.

Software licensing can also be an issue. Some IT managers have complained that vendors refuse to transfer desktop licences to a server-based installation of their applications, and instead require new licences to be bought. For such reasons, server-based computing is often seen as more attractive for "green field" deployments into a new branch office or department, rather than to replace an extant PC network.

Yeo also said that PCs have become a commodity, so many firms do not even look at alternatives when replacing ageing desktops. "They are an habitual purchase, like ordering stationery. People are unwilling to think differently," he said.

The situation may change next year when Microsoft ships Windows for 64bit Xeon and Opteron servers, according to Yeo. Such systems are currently restricted to a 4GB memory space, but 64bit Windows will give each user their own 4GB space, or more. "Terminal Services on 64bit Windows will have a big effect because of the resources it will make available to users," he added. This development is expected to allow thin clients to be used for many demanding applications that currently require a desktop PC.