Ashok Jhunjhunwala met Rajesh Jain in the most unlikely of places-in a taxi speeding through Bangalore's rush hour traffic to theairport on a cold November evening. It was during that fateful drivein 2003 that Jain sounded out Jhunjhunwala about developing a low-cost computing device. Jhunjhunwala, a professor at IIT Chennai, andfounder of the TeNet Group, had already incubated several hightechnology companies in the telecom and networking space; and Jain,currently the Chairman of Netcore Solutions, had become famous duringthe dot.com boom for selling his Indiaworld.com to Sify.com for Rs500 crore. He had been talking of affordable computing since early2003. His vision: develop a computer that supports most of theapplications already in the market and one that would always remain"current". The solution: server-centric computing. Shorn of thejargon, it means the monitor at the user's end has little or nostorage space and computing power; it is merely an access device thatallows users to link up to and work on a central server. The benefitsfor the end user: little chance of obsolescence (since softwareupgrades are done centrally), few maintenance and breakdown issuesand total security from virus attacks. The concept is not new.Corporates have been using thin clients (computers withoutprocessors), but these had only limited functions. "To make computinga mass market phenomenon, we needed to utilise the power ofbroadband. The solution needs to address the problems of computing byproviding an access device that requires zero management and isaffordable and operates on a 'pay as you go' business model, muchlike in mobile telephony," says Jain.
Jhunjhunwala carried out the R& D validation of the concept in2004 at IIT Chennai and the technology was transferred to NovatiumSolutions Ltd, the company he, Jain and Ray Stata, co-founder andChairman of Analog Devices, set up for the purpose. The first alpha,or base-level, products rolled out in June-July 2005 (the productsare outsourced from WeP's plant in Mysore), following which some fine-tuning was carried out. The Nova Net pc-price: Rs 4,500-resembles aflat voltage stabiliser, allows users access to a central server andis compatible with any monitor and keyboard, which can be purchasedfor Rs 4,500. Thus, one can get a fully loaded computer for Rs 9,000;and the cost of accessing the server is Rs 250 per month. It will bylaunched by the end of April. Says Yuvaraj Galada, Head of BusinessDevelopment at Novatium: "For telecom operators in the country, thiswill be one way of increasing revenues."
The business proposition looks compelling. The country has 110-120 million TV sets; cable penetration is at 70 million; there areover 50 million landline phones and 75 million mobile phones but only5 million pc users. The new technology could turn computing into amass market phenomenon like television and telephony, both of whichwere considered elitist preserves till not so long ago.
But this is not the only thing Novatium is offering. It has alsodeveloped Nova Net TV, which is targeted at people who need to doonly basic computing. The Nova Net TV, which costs Rs 5,625, isanother convergence appliance that transforms normal television setsinto basic computing devices and does away with the need to buy a pcmonitor. It allows users to browse the internet, send e-mails, chatand also supports simple computing. The display quality is not verygood, but Novatium is working on improving this. A third product, theNova Nion, enables connectivity with either PCs or TVs.
The big challenge before Novatium is to sell its concept totelecom companies and multi-service operators. But, company officialsdon't consider this a very daunting task. Says Alok Singh, CEO ofNovatium Solutions: "Media centre PCs"-these enable seamlessdownloading of content from a TV to a computer-are coming into vogue.And telecom operators are looking for ways to provide video on demandthrough their existing networks." But media centre pcs cost at leastRs 35,000. There are also additional charges for this 'premium'service; and maintenance becomes a big issue. "The Nova Net pc andNova Net TV offer all the features of a media centre pc but at farlower price points and, thus, guarantee service providers theirrevenues."
But, the business model has to evolve. Equipment vendors, telcosor cable operators have to offer consumers winning propositions-either lease the monitor, keyboard, mouse and Nova Net for about Rs250 per month; or offer an outright purchase option with onlycomputing charges levied per month.
Several overseas players are very enthusiastic about the Novatiumconcept. Its products are being pilot tested in the US, the UK,Canada and Brazil. Says Victorien Ndounou, who runs the us-basedVersa Global LLC, which is working on bridging the digital divide inAfrica: "Even at its present stage of development, the Nova Net pc isa very valuable tool. It's quiet and small and does not take a longtime to boot. I've used it for hours for browsing, gaming andedutainment and it's actually cheaper than some cell phones." TerryBienstock, CEO and co-founder of the us-based WorldExtend, whichprovides software solutions relating to securing remote access tonetworks and individual computers, is another convert to thistechnology. "Novatium's products open up opportunities in the usmarket that did not previously exist. I believe both cable companiesand telecom companies will be interested in these devices. But, theyhave to come with wireless capabilities as consumers in the us don'tlike a lot of wires."
But, one worry is that cheap pc's aren't exactly setting themarkets on fire. The Kolkata-based Xenitis Group, which launched onein April last year, has shipped just 1,300 units till date. SaysIndrajit Sarkar, Country Manager (Product R& #163; D) of XenitisInfotech: "That's because the low-end PCs are not really 'current'and have only limited uses."
But Jhunjhunwala is unfazed. Novatium's products do not sufferfrom the infirmities plaguing other sub-10k PCs, he says, "And I wantNovatium to become a billion-dollar product company." Adds Singh:"Novatium is really a big organisation in its early days."
THE NOVATIUM RANGE
Nova Net PC
What is it: A box that is actually a network computer. It has tobe linked to a server. It has no configuration as there is noprocessor. Server-centricity allows for generous storage, high speedand guarantees data privacy through an authentication process. Theserver can be hosted by a company for its own use or by a telecom/cable operator who has the last-mile running to the home, and canprovide the computing services inclusive of internet for a monthlyfee.
How much: The basic set costs Rs 4,500. A new monitor, mouse andkeyboard will cost about Rs 4,500. Total price: less than Rs 10,000.Alternately, all the equipment can be leased, depending on thebusiness model offered by the service provider who could be the telco/cable operator/internet service provider who has the last-mile accessto the home. Companies can set up the servers for their own use.
What does it do: Supports applications based on voice, streamingvideo, data and graphics. Needs no upgrades at the server level,which acts as the processor and storage device. The service providerprovides the upgrades and the applications you need and takes care ofthe viruses with his anti-virus software. Has virus protection andneeds no UPS because data is stored and protected in the server. Youcan switch on to the page you left in case of power failure withoutlosing any data. It provides for rich graphics and multimediacapability.
Advantages: Low rate of obsolescence; technology will remain"current" for at least eight years as upgrades are done centrally;zero maintenance costs; offers roaming access under the grid systemas data is not locked up in a hard disk.
Disadvantages: User has to pay a fixed sum, perhaps around atleast Rs 250 per month to the service provider; does not have a CD-ROM, though a pen drive can be used.
Nova Net TV
What is it: A home network computer that doubles as both a homeentertainment and a computing device. It can connect to bothtelevision and computer networks.
How much: Rs 5,625 for the home network computer. The televisiondoubles up as a monitor. Novatium provides the remote keyboard andmouse if the user wants these for an extra cost.
What does it do: It allows for digital audio and video recordingand storage for later viewing; supports simple online interactivegames and has Voice over Internet Protocol capability.
Advantages: Does not require a computer monitor; low power cost,no maintenance.
Disadvantages: Resolution not at par with PCs; is best used forlimited applications unless one is using a plasma TV. As it is server-centric like the net PC, user has to pay for computing services.
THE OTHER CHEAP PCS
HCL Ezeebee Pride
Price: Rs 9,990.
Specifications: 128 MB RAM and 40 GB hard disk.
Processor: 1.6 GHz VIA or AMD chip.
The 15-inch monitor has a CD-ROM drive and internet readykeyboard. Comes with Linux.
Advantages: Supports word processing, spread sheets, internet-browsers, e-mail, video conferencing and some games-and enablespresentations.
Disadvantages: Limited applications; high risk of obsolescence,needs a UPS and regular maintenance. And an operating system.
Zenith Premium PC
Price: Rs 15,750.
Specifications: 128 MB RAM and 40 GB hard disk.
Processor: Celeron 2.4 GHz. Operating System of buyers' choice(so, it comes with nothing at all).
Advantages: Comes with current technology double data randomaccess with other accessories, such as optical mouse, speakers, 4 USBports and multimedia kit apart from internet-enabled keyboard, CD-ROM drive and a one year comprehensive warranty. Is Rs 2,000 cheaperthan other computers in its class.
Disadvantages: Needs UPS; and additional cost of maintenance athome from the second year.
Xenitis Apna PC
Price: Rs 9,790.
Specifications: 128 MB RAM and 40 GB hard disk.
Processor: Cyrix 833 MHz or Celeron 9 MHz. Comes with Linux.
Advantages: Useful for first time users and others with limitedcomputer usage.
Disadvantages: Limited use in graphics works. Almost outdatedtechnology; needs a UPS.
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