NEW YORK -- Microsoft Corp. and Oracle Corp. squared off over the issue of NCs versus PCs at Fall Internet World 97 as more companies look to lower-costs choices for running their business.

Bonnie Crater, vice president of strategic marketing at Oracle's Network Computer Inc. division, touted the network computers --stripped-down machines without hard drives that get most of their power from the network -- for their low price and simplicity. But she said the devices will compliment, not replace, PCs.

"The debate has turned not to NC versus PC, but PC and NC, how do you integrate them together?" Crater said.

The company is eyeing NCs to replace simple terminals in the corporations and complex PCs for people who just want Internet access and word processing in the home market. Oracle has long said that PCs are more suitable than NCs for complex processing like complicated multimedia and running data.

She added that the company is working on software to enhance network computing for laptop computers and phones and will be examining other devices as the NC market grows.

Crater also said NCs would push the number of people with access to data and information to 1 billion over the next quarter century -- up from 100 million today -- in part because the NC would enable more people to buy the cheaper machines and connect to the Internet.

But Microsoft Corp.'s spokesman questioned the need for the devices, saying its stripped-down NetPCs and Windows-based terminals were as simple to use as NCs.

Noury Berhard-Hasan, product manager for the Windows product team, said upcoming Microsoft products would reduce the need for NCs. The company's planned Hydra server and Intellimirror synchronization feature will enhance the performance of stripped-down, Windows-based machines, he said.

He also accused NCs of not living up to their low-price promise.

Meanwhile, users are struggling to determine when they should choose an NC over a PC.

Internet World attendees had questions about the reliability of the NC, such as what happens when the network goes down or data pipes get crammed?

"Today whether you're using a PC or a terminal, we're all dependent up on a network," Crater told an Internet World audience. "I would argue that with the NC you're no more dependent on the network than you are today in terms of getting data and applications," Crater continued, adding that NC users can continue working on the application in front of them when the network goes down. Plus, the company is developing laptop software that will be able to run when not connected, Crater said. The products will be available in 1998.

Crater also said Oracle is working to make its NCs run Java faster than they currently do. The machines have come under fire for being slower than Windows NT machines.