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Home > CIO HANDBOOK 2007 > CEO

Low capability devices are doomed to fail
Stephen Dukker, chairman & CEO, NComputing
Sudesh Prasad
Wednesday, December 10, 2008
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Before joining NComputing, Stephen Dukker was the founder and CEO of eMachines, a company he founded to make computers affordable. In its first year, eMachines achieved $817 mn in revenues and quickly became the third largest manufacturer of personal computers in North America. He was also the founder and president of PC Brand, one of the first mail order PC manufacturers in the industry. Dukker has spent his entire career in driving down the cost of computing. He brings more than thirty years of experience in computer manufacturing and retailing to NComputing. In an interview with Dataquest, Dukker dwells on why low cost computing has failed and how the NComputing model of shared PCs will succeed. Excerpts

Low cost computing has not really worked anywhere in the world including India. Your comments?
Some players in the industry do talk about $200 PC now and are saying it will come down to $100 when volumes increase. But this is not a problem of volumes. Almost all initiatives for low cost computing have been fundamentally about lower power and lower computing capability.

At the same time you see technology heads of leading companies continuously talking to the ISV community, saying CPUs are getting so powerful, and thus build fatter software to eat more of this which only makes the problem worse. It guarantees that these low capability devices with 400 MHz CPU are doomed to fail.

Similarly, thin clients failed to take off due to three factorscost, technical complexity, and above all, poor user experience. The poor user experience was largely due to the inefficient communication protocol that was used to communicate between the CPU and client devices. Protocols did not take into account growth of multimedia and they also suffered from many network latency issues. They continue to remain a major bottleneck to the success of thin clients.

How does NComputing want to change all of that?
Computing and its predecessor company worked to build a system that understood multimedia as an important element of the service and created a new virtualization infrastructure that addresses all these issues. Apart from the software, we have a single device where one computer can support from as low as 11 to as high 100 other computers. There are two differnet versions: one is for local connection where client devices are directly connected to the PCs. They can be located upto 10 mts from the PC and in this case we can send uncompressed video as well because it is a local connection. So its the lowest in cost solutions since it does not need switches. This is perfect for class-rooms and costs around Rs 4,000 and is ideal for eleven computers. The second is the Rs 6,000 version which can scale up to thirty computers. This could be the beginning of the end of the barriers of client computing.

Can you provide details of your recent partnership with the Andhra Pradesh government?
Computing has been selected to supply 5,000-school education computing initiative in the Indian state of Andhra Pradesh. The program is aimed at providing computing access to 1.8 mn children throughout the state. Andhra Pradesh will have contracts with leading education IT firms to build computer labs in 5,000 schools totaling 50,000 computing seats over the coming few months. This would be the single largest deployment of NComputings solution in India. The decision to deploy NComputings low-cost and eco-friendly solution establishes the Government of Andhra Pradesh as an innovator in educational computing and provides a blueprint for other governments and institutions considering similar projects.

The government of AP will save $20 mn in up-front and ongoing costs. The government will also use 90% less electricity compared to a traditional all-PC solution. At about $70 per seat, our solution is the ideal platform to enable schools, businesses, and governments to maximize their PC investment. We are the world leader in desktop virtualization and the scale of this deployment further extends our leadership position.

Sudesh Prasad
sudeshp@cybermedia.co.in

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