The netbook wars are heating up.
Earlier this year, Verizon Communications(VZ), AT&T(T) and Sprint Nextel(S) began selling low-power notebook computers, called netbooks. The offers were similar to those for smart phones: Businesses get 50% off the price of the device for signing a two-year contract with data access for about $60 a month.
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The trend is gaining steam. This week, electronics giant Best Buy(BBY) started offering these deals. But before you rush out to buy, know that the savings and risks for small businesses can be significant.Take Hewlett-Packard's (HPQ) HP Mini 1152NR netbook computer. Best Buy is offering this hot little mini for $499. For $399, you can get the same computer with an embedded Verizon broadband connection. For $199, you can get the same computer with AT&T service. And get ready for this: It sells the same computer with a Sprint connection for just $99. That's one computer, three different carriers for four different prices. Does your brain hurt? Mine does. To compare the values in play here, I ordered the HP Mini device from Verizon for $199 with a two-year service plan and a HP Mini 2140 that starts at $399 directly from Hewlett-Packard. The comparison provides some telling insight into the upsides and downsides of buying a business laptop through your cell phone company. What you get: Assuming you're planning to pay for broadband service, you get a perfectly reasonable computer at a perfectly reasonable price,. Verizon's HP Mini is the same machine Hewlett-Packard sells. It runs a first-tier Intel (INTC) Atom processor and offers 1 gigabyte of memory and hard drive that's a bit small at 80 gigabytes. Windows XP Home Edition comes installed and it has a cool Web cam.
This 3-pound computer manages the most basic business tasks such as word processing through computer-based programs like Microsoft (MSFT) Office and Web-based options like Google (GOOG) Apps.
Even better, Verizon has worked hard to make accessing its network easier. I struggled in the past with installing the ironically named VZAccess Manager. But not with the HP Mini. Installing, configuring and logging on to Verizon's broadband network took six clicks and less than 5 minutes.
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And most importantly, the HP Mini is cute. It's the size of trade paperback. You'll be the talk of the Economy Plus class when you whip out this baby on that next awful flight. What you don't get: Don't expect a computer that does everything you need. For all of the value of Verizon's HP Mini, it has some serious limitations. First off, Verizon isn't Dell (DELL). This is the only computer Verizon sells and there's no configuring drives or storage or anything to suit your needs. Unlike the Mini sold by Hewlett-Packard, there's no Ethernet jack on the Verizon HP Mini, which means you can't plug in to your network at the office. It also lacks a traditional multi-pin monitor connector, which restricts its ability to dock at a desk. There was also only one audio jack, limiting how you use headsets to either USB headphones or single-jacked units. And you're stuck with only 80 gigabytes of hard drive storage. None of these are deal breakers. But you see the issue.
Bottom line: Verizon's HP Mini offers easy mobile connectivity. It lets you log into your company Web site in style, and do basic word processing and presentations.
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