Neoware, a maker of software used to run network-connected terminals that work as an alternative to personal computers, will unveil on Monday low-cost software to turn obsolete PCs into modern terminals.

Upgrading existing office PCs rather than replacing them with more expensive machines undercuts the long-anticipated PC replacement cycle that some investors have hoped would re-energize sales of business PCs later this year.

Neoware and rival terminal makers make up a tiny but fast-growing niche in the commercial computer world. Players include Wyse of Taiwan, Neoware and Citrix Systems, who boast they can upgrade PCs for under $200 per machine.

"Today, it's all about saving money," Neoware Chairman and Chief Executive Michael Kantrowitz said in an interview, referring to solid growth of terminal computer purchases by buyers looking to replace obsolete PCs while cutting overall technology costs.

Terminals, or so-called "thin client" machines are diskless computers that store and access data from central computers.

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