Tuesday, January 15, 2008

NComputing - $75 "PC's" based on Virtualization Technology

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http://venturebeat.com/2008/01/13/ncomputing-raises-28m-to-spread-cheap-computers-to-poor/

Yet another "Ultra Low Cost" Solution for the emerging market segments & for Education solutions .  Unlike the other PC's like OLPC, CMPC etc, which are based on their individual architecture, this is based on a Client Model and designed on Virtualization.    This is a hot new area, and a terrific solution to bringing down the cost of ownership. 

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Consider these price points -

1. US$75 for the cost of a device

2. Resellers will make 10%

3. Cost of the machine is around $11.

My take?

- This may be the beginning of the model for the Virtualization technology moving into the Low End of the pyramid. 

- This will entail more and more opportunities as the business model evolves.  

How will this end?

- Any  new technology  needs the ecosystem to develop. At these costs, forget about having an organization selling these products.  This will need to be in the domain of partners who will drive this.

- Solutions need to evolve for this - and this demands new licensing to sell the software.

- Many software vendors are beginning to explore this model - but it also affects their current revenue stream in a big way.  It will therefore take some time before they fall in line & put their maximum effort. 

In my view, this is a good evolution - and, it is just that.  It will take a few more iterations, as the entire ecosystem evolves & till then, these are good test studies/ cases. 

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