NComputing Readies Channel Push

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NComputing aims to drive more demand for its multiuser terminal solution in the channel but faces some resistance over potential Microsoft licensing issues.

The Redwood City, Calif.-based company, started in 2003 by the founders of eMachines, plans to launch a formal partner program by the end of the year to develop a wider market for its innovative PC sharing technology.

Its Ethernet-based NStation L100 and L200 network computing products, which have been on the market for more than a year, can transform one Windows PC into as many as 30 Windows terminals out of the box. And its Xtenda X300 solution, a PCI card and multiterminal box solution, allows users to instantly create seven Windows terminals from one Windows PC.

NComputing is expected to launch new form factors in 2007 and Windows Vista support in April.

To prepare for its channel push next year, NComputing recently announced a major distribution deal with D&H Distributing and a deal with Synnex in Canada, in addition to current deals with Ingram Micro and ICG.

D&H quietly started selling NComputing's products two months ago and has seen good results. Sales of NComputing products by the distributor's Computer Products Division and Education Division doubled from October to November, said Dan Schwab, vice president of marketing at D&H.

"We're very excited to be in business with NComputing and are encouraged by some impressive sales launch figures," Schwab said.

NComputing's channel chief said the company's technology gives resellers a unique opportunity to differentiate themselves in the market and make a good margin -- 15 percent to 20 percent per deal -- because they can deploy the multiuser terminal solutions quickly and easily.

"Many of the resellers we are targeting have chosen to exit the hardware side of the business, but our technology gives them a way to re-enter and compete very effectively against the likes of Dell or HP," said Steve Halland, general manager and vice president of NComputing North America.

The solution saves in hardware costs. But users can generate even bigger savings by deploying the solution without additional Windows client access licenses (CAL), and that's where the trouble can start, industry observers note.

In spite of those potential licensing issues, a number of solution providers that have begun reselling NComputing's products are happy with the ease of installation and the margin they earn on the product.

NEXT: The cost factor vs. Windows.

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