NComputing fortifies India market

17.10.2008
Desktop virtualization player, NComputing is keen to increase its India customer base. As a part of this plan, the company has recently bagged an order from the Andhra Pradesh State Government. The project involved a 'low-cost' computer education program for about 18 lakh school children across 5000 schools in the state. Executed at a cost of about Rs 4500 (US$91) per seat, NComputing completed its largest India project to date, with the assistance of its education collaborators such as NIIT, Educomp and IEG, to name a few. Also in the pipeline are more projects with other state governments, the details of which the company is not ready to disclose at the moment.

The company is also marking out on scaling its vertical reach through implementations in retail, banking, IT and ITES, among others, what with about 70 percent of its global revenues coming in from government and education, and about 15 percent through ITES and BPOs. Stephen Dukker, Chairman and CEO of NComputing, admitted that, given the population and the sheer numbers, India was heading to be one of the company's biggest markets over the next 2 --3 years. He remarked, "About 60 percent of our current deployments can be attributed to the developing countries." NComputing has to its credit, to date, about 10000000 seats (deployments) in more than 90 countries, with about the adoption rate at 7 percent in the US education market.

Further as part of its go-to-market strategy and expansion plans, NComputing has strengthened its channel model, with the appointment of Redington as its national distributor. In the Tier II category , NComputing has appointed regional distributors across major cities of the country and has about 200 resellers in its network. Dukker observed, "We really believe that being partner-centric is the way to grow in the emerging markets such as India." NComputing says it has a value proposition to take to its partners; its partners can reportedly make about 15 percent as margins at the distributor tier, which according to Dukker, is way above the industry average, and this percolated way down the Tier II as well.

Going forward, NComputing also hopes to launch wireless versions of its solution based on the Wireless-N standard sometime in the second half of 2009. Dukker commented that the combination of hardware and software that the company provides made it a viable price-competent solution for customers. "We hope to continue the momentum in balancing market development activities and social responsibility in India," he said.