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May 12, 2006 4:00 AM PDT

Perspective: The $100 box? It's already here

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The $100 box? It's already here
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Nicholas Negroponte and Bill Gates have publicly dueled for months about how best to supply inexpensive computing to the world's masses.

Negroponte, the co-founder of the Media Lab at the Massachusetts Institute of Technology, has put forward specifications for a pedal-powered laptop, as many countries targeted by the One Laptop Per Child plan do not have electric power in remote areas.

Negroponte's best guesstimate is that the organization will have a workable machine ready for shipment within the year. He claims that an initial 5 million to 15 million test units will become available by that time. But even if he hits that target, that's a veritable eternity in the computer business.

At this point, Gates' plans are even more ephemeral. Seems the only thing Microsoft's co-founder is sure about is that he does not think much of Negroponte's proposal. During a Microsoft-sponsored event for government leaders in March, Gates dismissed the idea of a shared computer--a barb apparently aimed at Negroponte.

"If you are going to go have people share the computer, get a broadband connection and have somebody there who can help support the user. Jeez, get a decent computer where you can actually read the text, and you're not sitting there cranking the thing while you're trying to type," Gates was quoted as saying.

OK, but if the point is to deliver a 21st century computing device to the world's masses, it may already be here. While Gates and Negroponte continue to debate the form and function of their respective plans for the $100 PC, a South Korean startup called nComputing has already beaten them to the punch.

Why haven't you heard about nComputing?

Could be because it's been flying too far below the (American) radar for most people to notice. But in the last 18 months, nComputing has shipped about 80,000 units to customers in the Asia Pacific and Latin American regions at prices, in some cases, below the magic $100 mark.

More recently, the company won a high-profile contract to supply the World Trade Organization's December meeting in Hong Kong. nComputing also received the award for best server-based application at the CeBit conference in Hannover, Germany, earlier this year. Now the company's stepping up its presence in the U.S.

The odds are admittedly against a newbie entering a commodity hardware niche in an increasingly hardscrabble market. But if we've learned anything about the history of the technology business, it's that the constellation is always in motion. It wasn't so long ago that the digerati determined we were forever destined to live in an all-Microsoft Windows world. Then came Linux and Java--not to mention a revived Apple--and you know the rest of that story.

nComputing has something else in its favor. Steve Dukker, a savvy technology veteran who put eMachines on the map as its founding chief executive, has signed on to help do the same for nComputing in this country. (The CEO is Young Song, who was a co-founder of eMachines.) It's hard to handicap the chances of any start-up, but management savvy counts for a lot. Dukker did this once; if the stars align in the right way, maybe he can do it again.

I've seen the systems up close. They run structured applications, such as spreadsheets or word processors, without apparent problem. Each system on the network operates as if it were an independent terminal. You might run into performance issues with transaction-intensive computer games. But that's not the market these guys want to target--and if we're talking about reaching the untethered and underprivileged billions, the story becomes quite interesting.

nComputing's systems do not use chips from Intel or Advanced Micro Devices (or Microsoft operating systems).

The company instead has implemented an entire "thin client" system on a single chip with no operating system or application programs. As nComputing increases product volume, it expects prices per unit will plummet. Dukker says the margins are still sufficient to support a business.

An add-in card supports up to three additional users, hardwired up to 30 feet away from the host CPU over regular unshielded twisted pair wiring. You can add up to two cards into a single, low-end PC to support a total of seven users. That pushes the cost-per-user below the $70 per seat mark.

nComputing also sells a couple of versions of a terminal server for Windows.

One runs natively under Microsoft Windows and, for that matter, Linux. That version generates an environment where a number of users can share a single copy of Windows or Linux loaded onto the host PC. The second version is deployed in conjunction with VMWare, so you have several virtual machines, each running its own copy of Windows or Linux (or both) in a mixed environment.

None of this means nComputing is destined to beat out the efforts of Negroponte or Gates. This promises to be a protracted and competitive race where name recognition and industry throw-weight count for an awful lot. But wouldn't it be something if the underdog snuck past the big dogs because they were too busy arguing with each other?

Biography
Charles Cooper is CNET News.com's executive editor of commentary.

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Thin clients wont work!
by happy62780 May 12, 2006 6:04 AM PDT
The biggest flaw in this new system is the lack of wireless/satellite link-ups. That is the biggest advantage of the systems coming out later this year. We can't have 3rd worlders relying on each other to be able to hard-line into one another. nComputing doesnt stand a chance, they know it too, they are just getting a few bucks before the real competition starts.
Reply to this comment
Thin clients won't work?
by gthurman May 12, 2006 10:16 AM PDT
My check book size thin client has been working well for a year at highway speeds up to 80mph. A popular priced thin client will become the infrastructure, not the client, for a host of add-ons, much like the industry created by the iPod. 2/3 of the planet does not have cellular, but many could be advantaged by the Internet.
Thin clients wont work!
by happy62780 May 12, 2006 6:04 AM PDT
The biggest flaw in this new system is the lack of wireless/satellite link-ups. That is the biggest advantage of the systems coming out later this year. We can't have 3rd worlders relying on each other to be able to hard-line into one another. nComputing doesnt stand a chance, they know it too, they are just getting a few bucks before the real competition starts.
Reply to this comment
Thin clients won't work?
by gthurman May 12, 2006 10:16 AM PDT
My check book size thin client has been working well for a year at highway speeds up to 80mph. A popular priced thin client will become the infrastructure, not the client, for a host of add-ons, much like the industry created by the iPod. 2/3 of the planet does not have cellular, but many could be advantaged by the Internet.
Let's hope for nCom if not the One Laptop Per project
by jabbotts May 12, 2006 11:55 AM PDT
Billy Gates continues to be a meglomaniac bent on convincing the world that his over priced and buggy products are what we all can't live without. He continues to be disgruntled by not being able to turn a profit getting third world countries hooked on winblows. These are facts anyone with more than a month of IT knowledge knows. Computer folk hate him, business folk think he's the second coming and IT service providers are just happy that his products mean repeat service calls to customers.

I say hope for nComputing of not the One Laptop per child. Basing an affordable computer on linux means giving kids the equivalent to a billion peices of lego to build what they will. They can play with the software set installed or mix and match programming code to build new things. If we can't provide opensource systems to them then at least get them understanding information with nComputing thin clients.

At least they can be free to learn without being limited by Redmond's bloated code designed to require major hardware overhauls with every version.
Reply to this comment
Let's hope for nCom if not the One Laptop Per project
by jabbotts May 12, 2006 11:55 AM PDT
Billy Gates continues to be a meglomaniac bent on convincing the world that his over priced and buggy products are what we all can't live without. He continues to be disgruntled by not being able to turn a profit getting third world countries hooked on winblows. These are facts anyone with more than a month of IT knowledge knows. Computer folk hate him, business folk think he's the second coming and IT service providers are just happy that his products mean repeat service calls to customers.

I say hope for nComputing of not the One Laptop per child. Basing an affordable computer on linux means giving kids the equivalent to a billion peices of lego to build what they will. They can play with the software set installed or mix and match programming code to build new things. If we can't provide opensource systems to them then at least get them understanding information with nComputing thin clients.

At least they can be free to learn without being limited by Redmond's bloated code designed to require major hardware overhauls with every version.
Reply to this comment
Where's the monitor?
by strobhen May 13, 2006 2:24 AM PDT
Where's the monitor?
The portability?
The ability to read in direct sunlight?
The ability to charge it in areas sans electricity?
What if the internet connection fails?
How do you set up a mesh network with it?
Does it even have wireless support?
If not, how will it support that village in the middle of Africa?
How will children carry it back and forth to school (one of the main points being reducing the cost & giving children access to higher quality textbooks)
Am I missing something? All I see are thin clients you can hook a monitor up to.

Don't get me wrong, it is nice that someone finally got the idea of what a thin client is supposed to be (rather than trying to sell a 3-500 dollar "thin" client)

But I don't see it as a replacement for a small hermetically sealed laptop designed to run just about anywhere, sans interent and electricity if necessary.
Reply to this comment
Good point!
by irlandes May 13, 2006 6:46 PM PDT
yeah, I thought that was pretty lame comparing that machine with one that will work where there is no electricity available.

It could be, however, the beginning of another view of computing, and in the long run, that could achieve the same result.
Where's the monitor?
by strobhen May 13, 2006 2:24 AM PDT
Where's the monitor?
The portability?
The ability to read in direct sunlight?
The ability to charge it in areas sans electricity?
What if the internet connection fails?
How do you set up a mesh network with it?
Does it even have wireless support?
If not, how will it support that village in the middle of Africa?
How will children carry it back and forth to school (one of the main points being reducing the cost & giving children access to higher quality textbooks)
Am I missing something? All I see are thin clients you can hook a monitor up to.

Don't get me wrong, it is nice that someone finally got the idea of what a thin client is supposed to be (rather than trying to sell a 3-500 dollar "thin" client)

But I don't see it as a replacement for a small hermetically sealed laptop designed to run just about anywhere, sans interent and electricity if necessary.
Reply to this comment
Good point!
by irlandes May 13, 2006 6:46 PM PDT
yeah, I thought that was pretty lame comparing that machine with one that will work where there is no electricity available.

It could be, however, the beginning of another view of computing, and in the long run, that could achieve the same result.
This is possible without thin clients
by Ben Li May 15, 2006 9:10 AM PDT
In the last four years, we've sold thousands of locally-connected workstations powered by multi-station PCs that don't require any proprietary hardware. Our hardware cost (USB keyboard, mouse, standard video card head, cables) is about $40 per additional station without the monitor, which is competetive with the nComputing product and much less expensive than the sealed laptops for fixed deployments.

Plug: http://openuserful.org, http://userful.com
Reply to this comment
This is possible without thin clients
by Ben Li May 15, 2006 9:10 AM PDT
In the last four years, we've sold thousands of locally-connected workstations powered by multi-station PCs that don't require any proprietary hardware. Our hardware cost (USB keyboard, mouse, standard video card head, cables) is about $40 per additional station without the monitor, which is competetive with the nComputing product and much less expensive than the sealed laptops for fixed deployments.

Plug: http://openuserful.org, http://userful.com
Reply to this comment
Sounds like old dogs and new tricks
by pachycephalas May 15, 2006 9:51 AM PDT
Back when hardware costs were higher and our charity could not afford PCs for everyone, I installed about ten units of BUDDY, a Win98 based system remarkably like nCom's.

It worked, but crashed a lot. The only problem was that it could not handle the demands of two users with all of Office 2000. Prior to Buddy there were several DOS-based (not Unix) systems using Wyse terminals and shared DOS software. It also crashed a lot.

My question is this: How reliable is this nCom setup? Its predecessors were choices that led to great frustration.

Another question: How does this option help those in the powerless bush lands?
Reply to this comment
Sounds like old dogs and new tricks
by pachycephalas May 15, 2006 9:51 AM PDT
Back when hardware costs were higher and our charity could not afford PCs for everyone, I installed about ten units of BUDDY, a Win98 based system remarkably like nCom's.

It worked, but crashed a lot. The only problem was that it could not handle the demands of two users with all of Office 2000. Prior to Buddy there were several DOS-based (not Unix) systems using Wyse terminals and shared DOS software. It also crashed a lot.

My question is this: How reliable is this nCom setup? Its predecessors were choices that led to great frustration.

Another question: How does this option help those in the powerless bush lands?
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:39 PM PDT
Hundreds of school Districts have already purchased ncomputings this since the release of the x300s and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I Think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station the price of the gas would be 70 cents. You'd line up for days at that gas at that station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:39 PM PDT
Hundreds of school Districts have already purchased ncomputings this since the release of the x300s and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I Think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station the price of the gas would be 70 cents. You'd line up for days at that gas at that station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:43 PM PDT
Hundreds of school Districts have already purchased ncomputings X300 since its release. The x300s and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I Think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station the price of the gas would be 70 cents. You'd line up for days at that gas at that station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:43 PM PDT
Hundreds of school Districts have already purchased ncomputings X300 since its release. The x300s and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I Think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station the price of the gas would be 70 cents. You'd line up for days at that gas at that station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:45 PM PDT
Hundreds of school Districts have already purchased ncomputings X300 since its release and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station, the price of the gas would be 70 cents. You'd line up for days at that gas station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
Hundreds of School Districts have already purchased
by romulo_perez May 24, 2006 7:45 PM PDT
Hundreds of school Districts have already purchased ncomputings X300 since its release and it is working beautifully. Just think what saving 80% over buying a single user PC means to a school district. This product is already saving our country millions of educational dollars and this is just the beginning. This product may not work in 100% of all environments but how many things do. I think is is more like 95% of all environemnts can use this technology successfully.

We have 3 GHZ servers with thousands of users hitting the hard drive and memory at once. Why is it a big deal to have a 3GHz Workstation service 4-7 students running office or Accelerated Reader? It only makes sense.

The bottom line is that it is saving the consumer 80% over buying a single user PC or laptop. If you could buy gasoline at 80% off at a local station, the price of the gas would be 70 cents. You'd line up for days at that gas station. This is the same thing and works beautifully and it saves you 80% on educational technology purchases. These are dollars that our educational entities can use for other things beside filling the billionares pockets who really don't need the money.

Deep Thoughts by Jack Handy.
Reply to this comment
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