business-standard

Priyanka Joshi / New Delhi September 04, 2007

OFFICE LIFE: Online desktops could be the next big step in the IT revolution - 
bandwidth permitting.

Virtualisation is fast touching data centres, but it's the desktop where the 
next round of advances is expected. For now, the offtakes of virtual desktops
or online desktops appears slow.

A couple of strong-willed companies like Nivio and Red Hat are busy pumping 
money into research and development and marketing, so as to get the product
right for the masses, but the buying proposition for online desktops is yet to 
be clarified to the 40 million internet subscribers in India.

Online desktops are best described as operating systems that keep all their 
information online. Using virtual desktop services, a user can take his PC 
environment
to different machines (including mobile phones) without physically transferring 
data.

For instance, if he logs into a newly-installed computer, or is travelling, his 
PC environment will be waiting for him, with no set-up to redo. If you find
moving information between machines painful, then consider using an online 
desktop.

"Thanks to online desktops, software and files no longer run on users' 
individual computers or local file servers. Instead, all applications, data, 
email
and are delivered from a managed data centre. IT is thus centralised and 
simplified, and all you need is an internet connection," explains Sachin Duggal,
CEO, Nivio.

The company is offering a virtual Windows XP environment to users at Rs 399 
(per month), where one can select software suites like Microsoft Office, Adobe
tools, instant messengers, security software and multimedia applications, among 
others.

A Red Hat spokesperson says that the company is preparing to release in India 
this month the new Global Desktop that over time will grow into an online
desktop, integrating online services into a client desktop platform.

Red Hat has teamed up with Intel for the platform. Local PC manufacturers will 
build the actual systems, which will target small businesses and governments
in emerging economies, while the software will be made available on Intel's 
Classmate PC, a low cost notebook computer for students.

"Integrating the online services with local data is what we will provide for 
our next-generation online desktop," explains the Red Hat spokesperson, adding,
"We won't be recreating a Windows paradigm, but delivering a customised Linux 
desktop instead."

Red Hat has planned online Linux desktops in around seven regional languages in 
India, so that it can convince users and government institutions to invest
money.

Nivio seems to have gathered some steam, having raised over $3.5 million 
through private equity. Earlier, the company had voiced its intentions of 
raising
$5 million to fuel expansion, a search for investment that ended with AMD 
investing an "undisclosed sum" in R&D. Red Hat will also be announcing tie-ups
in India to promote its global PC.

"We think that migration from local applications to rich, collaborative online 
services such as Google Apps and Flickr potentially represents a huge 
opportunity
for open source on the desktop. So we're working to define and implement a 
contemporary desktop experience for this connected world," says the Red Hat
spokesperson.

Also striking an optimistic note, Duggal says, "If you like web-based instant 
messengers, why stop there? Web-based operating isn't a bad idea either."
Nivio targets registering 100,000 users by end-December 2007.

Nivio's business model will be structured on selling storage beyond the five 
gigabytes that comes free and selling subscriptions to a forthcoming enterprise
version of the service. Duggal says his company works on the belief that IT 
should be a commodity accessible to all regardless of socio-economic 
circumstances.

But first, companies need to ensure that they bundle a broadband connection 
with the online desktop products. While Nivio is already working on the concept,
Red Hat seems to have no plans to tie-up with internet service providers. One 
close competitor here would be Sify, which recently launched Sify Anywhere,
which too works on the virtual PC environment idea.

One wonders: what is the real target market for the online desktop? Emerging 
markets may seem the likely answer.

But the fact that these markets are plagued by low or no bandwidth 
availability, extreme conditions, power issues, old or incompatible machines. 
And despite
all optimisn, all these factors could combine to make online desktop services a 
tough sell.

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