Thursday, August 14, 2008

BUY IT FOR $100

Welcome to the world of Net-based PCs

While the world’s top technology firms like Intel are finding it difficult to come out with the first $100 PC for the masses, a small Chennai based firm has made its mark in the ultra-cheap PC domain. Catering to millions of middle income households, Novatium Solutions has launched a home PC at an unbelievable price of Rs.4,500, which includes a monitor, keyboard and a mouse. While you might be astonished at the absence of the CPU from the list, the fact is that this Net-based PC is based on the concept under which computing software, and security and software updates are delivered directly from the central server. In order to reduce the costs further, the company provides the buyers with computer storage space on their central server, thus eliminating the expensive hard disk from the machine. Not only this, the company provides access to the internet at a price of Rs.400 per month.

As per company sources, “Novatium aims at making computing a utility for Indian homes by allowing customers to run variety of applications and software without having to worry about maintenance or paying at least Rs.25,000 for a machine.” Recently, the company has tied-up with MTNL in Delhi to offer the innovative and cheap Net-PC to customers in Delhi. Before the commercial launch, Novatium ran pilot projects in outskirts of Chennai. “At this point of time, B & C category towns are witnessing broadband penetration. Broadband population is even going rural and we will definitely to ride on it,” says Alok Singh, CEO, Novatium Solutions. He adds, “We want to provide freedom, simplicity and unlike competition, the Novatium’s Net PC will not become outdated with time as we constantly offer our customers with new software and services.”

Though the concept of cheap computers is not new to India as players like Zenith, Sahara & Acer have promoted it, but none of them have been able to come near the Rs.5,000 mark. Well, with its cost advantage, Novatium Solutions aims to make inroads in Indian market, where the penetration level is just over 4%. By 2009, the company aims to have one million customers by tying-up with more internet service providers like the state-owned BSNL. Though the target looks optimistic, the low-cost route will help it inch closer to the one million mark. And hopefully, equip every village household with a PC.
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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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