The New Computer

Is the Internet killing the local area network? The computer as we know it may soon go the way of the columnar pad. And if it goes, it may take with it much of the traditional application software we use to write reports, crunch numbers and perform database functions. It may even antiquate the software and the hardware for local area networks (LANs). What's behind all this? The Internet. What started as a slow, clumsy communication tool for researchers and the military has become a communication superhighway for anyone with a telephone and a computer. And now, with the development of some unique software and the growing use of highspeed phone lines--integrated services digital network (ISDN), which can handle considerably more data than ordinary analog phone lines--the Internet may revolutionize how we work with computers. The impact of all this? Surely it will affect all computer users--including the sole CPA practitioner as well as all the accountants in the finance department of a Fortune 500 company. THE DAYS ARE NUMBERED Before you rip out your network cables, junk your new Pentium computer and toss out your copies of WordPerfect and Lotus, be aware that not everyone agrees that the days of today's computer are numbered. And even those who do concede its end is inevitable are reluctant to put a date on this computer Armageddon. To understand the significance of all this, some background is necessary: Whether you're working in a small or a large office, it's likely that your computers are networked-- linked by wire or came so that each machine can communicate with all the others on the network. And, depending on the size or technical status of your organization, all your application programs (such as your word processor or spreadsheet) and the data they generate are stored either on the hard disk inside your computer or on a central, remote computer, called a "server." The server literally- serves up the application or the data you need to work, and the LAN system transports them through its maze of cables to your desktop. Enter the Internet, which is analogous to a LAN, except it runs on phone lines, not special LAN cables, and its reach is worldwide--extending to all of the millions of computers linked to the Internet. Thus, even if your office is not expensively wired for a LAN, you can exchange files with a colleague down the hall as long as both of you are connected to the Internet. Ditto with a colleague in Tokyo, London or Nashville. Admittedly, for most users Internet data transmission is a bit slow, since information must flow through conventional phone lines using a relatively out-of-date analog design. But with the new' high-speed digital phone systems and modems, data zip along at least four times faster. And some of the compression techniques for packing the data in tighter bundles effectively increase the speed even more. As a result, many users--especially businesses--appreciate the economies of high data-transmission speeds and are converting to ISDN. How practical is it to use the Internet for intracompany communications? Levi Strauss & Co., the jeans maker, thinks the Internet provides a snug fit for its needs. It is installing modem links so its 10,000 employees worldwide eventually will be able to exchange information electronically: Such private linkups are called intranets--as opposed to Internet. Steve Levandowski, a computer specialist at Levi Strauss, says the company has no current plans to transmit sensitive financial data on its intranet because the Net still isn't secure enough. In the meantime, he adds, the network is being used for general communications--mostly by the marketing and sales staff. The finance department will be wired in later this year. Other intranets are sprouting at Lockheed Martin, the aerospace company, and at Merrill Lynch & Co., the brokerage house, to name a few; THE ECONOMICS A typical LAN connection costs nearly $1,000 per workstation; that includes the software licenses and the cable and connection hardware. …