The Hindu News Update Service

News Update Service
Sunday, April 29, 2007 : 1045 Hrs

Sci. & Tech.
Made in India PC for just about $ 100

New Delhi, April 29 (PTI): While global computing giants like IBM and AMD are 
yet to give shape to their ambitious plans for a computer that costs 100 dollars
or less, an Indian company has already set its eyes on 10 million potential 
customers with its up-and-running PC priced at Rs 4,500 only.

The machine, launched by Chennai-based Novatium Solutions in 2004, costs a 
little over 100 dollars as of today in the US currency, thanks to the 
depreciation
in the greenback, but it was priced at less than 100 dollars till a few months 
back.

Novatium is targeting 10 million users in the next five years for this 
innovative product, company CEO Alok Singh told PTI from Chennai.

The company has already started a successful commercial pilot for its NetPC 
computer in Chennai, he said.

"Since our trial was commercial in nature, we plan to stick to it. Going 
forward, we plan to expand into 6-7 big cities in the next year. Some of our 
immediate
plans are going into two new cities in this quarter and two more in the next 
quarter," Singh said.

Novatium was co-founded by US-based Analog Devices chairman Ray Stata, Netcore 
Solutions managing director Rajesh Jain and professor Ashok Jhunjhunwala
of IIT Madras.

The company's NetPC works on a "thin client" concept. This is a small box and 
does not contain any software or application. It is linked to a central server,
which hosts all applications.

"Network PC (NetPC) costs around 100 dollars (less than Rs 4,400) and along 
with a monthly subscription of around Rs 400, it provides you with internet
connection and almost everything like authentic softwares, applications etc," 
Singh said.

"The use of mobile chips forms the basis of our low-cost computer model," he 
added.

NetPC is probably one of the very few successful attempts when a company has 
been able to replicate a business model that combines philanthropy with sound
economic sense.

US-based business software giant Oracle Corporation's founder Larry Ellison had 
mooted the idea of a low-cost network computer way back in 1990, while Nicholas
Negroponte, the former director of Massachusetts Institute of Technology Media 
Labs, has been long outlining designs for a sub-100 dollar computer.

In 2005, chip maker AMD also ventured out in the low-cost computing space and 
similarly, while Intel is also investigating ways to make low-cost PCs available
in Eastern Europe, India and other developing areas.

When Negroponte, now heading the ambitious non-profit global project One Laptop 
Per Child, first unveiled his 100 dollar computer model in 2005, the computing
legend Bill Gates scoffed it for not being a "decent machine."

Things have changed a lot since then and when Negroponte revealed the machine 
finally last week, it turned out to be running on Microsoft's operating system,
Windows XP Starter Edition.

However, the cost of the product coming out from One Laptop Per Child, designed 
for school children in developing countries, has been put at 175 dollars
-- which is quite higher than that of the Indian NetPC product.

According to experts, the price of softwares especially operating systems and 
expensive add-ons ramps up the price of desktop computers. This has a domino
effect and when it finally arrives to the end-user it costs at least 300-400 
dollars (Rs 14,000 -17,500).

"While TV and mobile phone penetration has gone up by leaps and bounds, 
computing is nowhere. A way to increase computer users in the country could be 
by
making computers at a less cost and then offering the same at a lesser price," 
Singh said.

Novatium devices support all the common network operating systems, namely, 
Windows 2000, Windows 2003, Solaris 9 and 10, Red Hat Linux and other Linux 
distributions.

"The company has tied-up with various partners and is planning to ramp up 
operations soon," Singh said.

"Due to our business-model we had to tie up with partners that take care of 
content applications, server applications, he said, adding that these partners
provide critical links for our personal computer network.

"The challenge for my company is to bring in new users and with the kind of 
targets we have set, we are confident more and more people will use NetPC,"
Singh said.

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