It's a file server, a web server, a mail server, a print server, a fax gateway, and much more...
It combines a modem, PPP software, basic firewall and router functions, and ethernet hub, as well as providing a disk drive, a CD-ROM, and connections for printers, scanners, and other peripherals.
What it isn't, is a PC, a cheap bridge from a LAN to a modem, a simple web server, or a terminal.
Medium and large organisations don't need netservers - they already have a lot of sophisticated infrastructure providing their needed services and a whole range of professionals to operate, administer, maintain, and upgrade it. Netservers are only for home, SOHO, and small business.
What it doesn't contain is new ways to access the Internet, or new applications. It embodies a different way of thinking - a system transparent to the user. Users spend time on their tasks, not fighting with the technology. Embodying all the administration, operation, and maintainance knowledge of many professionals into software and making it highly reliable isn't easy, but not impossible. This simple interface in now necessary - in the same way that very complex cars have a simple interface - brake, accelerator, gears, steering wheel, and instruments. Only Apple Computer, has ever made a serious attempt at this level of usability before.
To get a fully functioning home system, people need to buy both a netserver and some sort of terminal - Java, X-11, or NetPC. This will be about the same cost as buying a standalone PC. People can even reuse an old 386 or 486 as a terminal.
The next and subsequent 'computers' in a house, one for the parents, one for (each of) the kids, etc, come cheaply and incrementally. Terminals must always cost less than PC's - they contain much less hardware and very simple, standard software - just enough to load programs from the netserver. Upgrading them is limited to more memory or a new CPU /motherboard. Most of the cost is in the graphics and screen, so when you need better graphics you need a new terminal. However, the old terminal still works, and can be redeployed somewhere less demanding.
Network games, are very well suited - only extra cheap terminals are needed - all the other infrastructure - LAN, hub, router, server - is already there in the netserver.
The netserver can be upgraded as necessary - another disk, a little more memory, another better network link, connections to the TV and VCR, and so on, in just the same way that you can add extra phones, a fax, a modem, and an answerphone as necessary to your phone line. Upgrades or new applications will be loaded, securely, across the Net or via CD-ROM. This is a serious attempt to break the current cycle of forced PC upgrades. If you want to read files from current software, you can't do it on your old 386/486 because you need the new application which needs WIn 95 or NT which needs more memory, disk, and a faster CPU...
At some point people will make the decision that it is cheaper to buy a whole new netserver with all the functionality they want already integrated. The old netserver can be relegated to other duties, in just the same way old TV's and stereo's never seem to die, just get passed down till they finally stop.
Whilst the netserver and terminals won't be entirely future-proof, they should have an average useful life of 5 years - over double that of PC's, and people should trust they will continue to interoperate with whatever Net technology is 'out there' for 10 - 15 years. Really, 10-15 years life is probable - just as my folks still use an old rotary-dial black bakelite phone and it still works the same. The current Internet technologies can be supported easily in the future. Of course, you don't get all the fancy new facilities with the old technology, but you don't have to lose any either.
The "everything you need to connect to the Net" covers the hardware, software, administration, and Internet connection plan. Like mobile phones, there has to be a network providor and a merchant selling the device with the service. The merchant configures it - and it works immediately.
This new integrated environment will take time to ramp up. Internet Service Providors have to co-operate with merchants, merchants stock netservers and terminals, manufacturers build them, content providors make their wares future-proof, and software houses create their applications to run on these terminals.