Are Netbooks Right for Business?

It was bound to happen. Now that netbooks have hit the mainstream, taking more than 25 percent of the laptop market, vendors have begun churning out models aimed at business users.

In an economy so unforgiving, these ultra-affordable systems (most cost under $500) could provide some relief to IT managers, who might otherwise spring for pricier systems, or postpone purchases altogether. But do netbooks translate perfectly from consumers’ living rooms to road warriors’ lives on the road? While some companies are aggressively marketing to the business crowd, others (and presumably, their customers) are cautiously awaiting a more evolved second wave.

Subtle (But Important) Differences

So far, the main difference between consumer and business netbooks has been design; a business netbook is likely to have a more durable case than its consumer-friendly plastic cousin.

HP’s Mini 5101, which starts at $399, is targeted directly at the business crowd. This netbook has a brushed aluminum lid, while the deck and bottom of the system are made of magnesium alloy. In addition, the keyboard is spill-resistant and coated with a wear-resistant finish. To further differentiate the Mini 5101 from its consumer-oriented Mini 1000, HP also added Computrace LoJack for Laptops support, Corel’s lightweight, netbook-friendly productivity suite, and a fast 7,200-rpm hard drive with a 3D accelerometer, which protects it in the event of a drop.

On the other hand, business netbooks tend to have the same guts—an Intel Atom processor, 1GB of RAM, and a 160GB hard drive—which means a road warrior’s 10-inch mini isn’t likely to be any more powerful than Joe Schmo’s.

“I don’t see a huge difference other than marketing and branding,” said Stephen Baker, vice president of industry analysis for NPD Group. “I’m not sure what you can do on a business netbook that makes it all that different than a consumer one.”

IDC analyst Richard Shim agrees, adding that the 5101’s added amenities are the exception, not the rule. “This market was not here two years ago, and so the [companies] have been like, ‘We have to get our products out there,’” he said. “There’s not a lot of differentiation; they keep pushing out the same box, only with different brands.”

Even Dell has to agree that there isn’t much of a difference between business and consumer netbooks right now. Its Vostro A90 netbook is available only in China. For stateside consumers, Vostro senior product manager Alison Gardner recommends the Inspiron Mini series across the board, whether the customer happens to be a consumer or small business user.

Targeting the Right Audience

One thing is certain: notebook manufacturers are billing both business and consumer netbooks as companion devices. Sarah Bussell, business notebook product marketing manager at HP, says that because of their low price and mobility, netbooks are particularly useful for mobile workers whose needs don’t warrant more powerful (and pricey) devices. Bussell also thinks netbooks are useful, and affordable for in-house training sessions.

NPD’s Baker believes that the idea of netbooks-as-secondary-devices will be especially compelling to businesses trying to save money. “The real value for a business in netbooks would be small size and low cost for road warriors looking to lighten their load, but who need more usability than a smart phone,” he said. “For execs and others who might have gotten a thin-and-light for $1,500 or higher, netbooks are much more practical and cost effective.”

Still, even with more durable designs and professional-grade amenities, it remains to be seen whether business-class netbooks create a strong value proposition. Shim says as long as the performance is lacking compared to a full-size notebook, business netbooks will be a tough sell. “On the commercial side, performance is still the main driver,” he said.

Dell’s Gardner agreed, contending that mobile salespeople, looking to create and play PowerPoint presentations, will do better with larger, more powerful systems. Baker, however, is not convinced that users need a dual-core machine to run an Office suite. “Who needs power for that?” he argued.

Missing Ingredients

In the meantime, Shim says netbook vendors would do well to follow HP’s example, and focus on business-friendly features. Synchronization software tops his list, particularly since netbooks have been marketed as secondary PCs. “If you make a change on your mini-notebook, it’ll be reflected on your primary system when you sync the two,” he suggested. HP will be rolling out its own QuickSync software as a download this September.

But manufacturers have to convince business users of more than just their netbooks’ durability and convenience: they also have to be secure enough. Toshiba, which recently released its first consumer netbook, is observing the business netbook market and evaluating the need for TPM circuitry and encryption—features business users have come to expect on full-size notebooks.

Windows 7 also has the potential to make netbooks more appealing. Up until now, they’ve run best with Windows XP, Microsoft’s reliable but aging OS. In our tests, we’ve found that most netbooks couldn’t handle Vista, a more bloated OS (and, to be fair, many IT managers have chosen not to deploy it anyway). But Windows 7, thanks to a more efficient architecture, runs more smoothly on netbooks, as we’ve seen in our labs.

Having a current OS that runs easily on modest hardware could be a boon for netbooks, but only if IT managers approve, says NPD’s Baker. Whereas consumers buying new notebooks will have no choice but to use Windows 7, IT managers still have the prerogative of supporting the OS of their choice. “For businesses, it’s not relevant until deployment starts,” he said.

The Waiting Game

Regardless of how compelling they are, IDC’s Shim believes that increasingly, IT managers will have little choice but to at least consider netbooks. “We’ve got screen sizes from 7 inches to 20,” he said. “The IT manager is starting to realize the days of the one-size-fits-all model are going away.”

For some of your workers, netbooks might actually be the best choice. If their needs are more mobility- than performance-driven (e.g., people who do just enough content creation that they can’t rely on a smart phone), your company could save hundreds of dollars for every worker to whom it deploys a netbook instead of a notebook (particularly comparably-small ultraportables). In fact, the idea of netbooks as secondary PCs might make more sense for businesses than for consumers.

But in exchange for long battery life and a lightweight form factor, netbook users must forfeit the robust security features they’ve come to expect in small business notebooks, at least for now. Until business netbooks evolve further, it will be up to IT managers and CTOs to determine whether these machines have what they need to make their workforce more productive in the field.