This is a better strategy than Microsoft's I think (see the previous post). Instead of renting a high-end PC for some of the time, Intel has taken the time to design an appropriate machine for the market. The key figure here is that emerging markets account for 40% of worldwide PC sales. MS could see the same degree of revenue from emerging markets if it were to make a cost-reduced software package!
Interestingly enough, the big war between Google and MS may play out differently in BRIC (Brazil, Russia, India, China). Given the lower Internet penetrations here, and often unreliable connectivity (inherent with wireless), a server-based platform is less appealing than a PC-based solution. This inherently gives MS the upper hand in these markets. If MS can move fast to consolidate its position, it may pre-empt Google. Of course, Google's best bet is to proliferate connectivity and broadband: the more bits that fly around, the more that will stick on a Google property!
Software on tap... sort of. MS is essentially treating a PC as a cache for software, with payment for time used. I think this is prettty bogus. What if you spent all your time with Word recovering from a malware exploit? I don't think I would count that as productive work! Why then should I pay? What about hidden OS tasks that run even if I am not aware of them? If the clock ticks as long as the PC is on, then there is an incentive to keep turning the machine off (or diddling with clocks). This seems counter-productive!
If MS really wants to bridge the divide, it needs to drastically slim down its bloated Office suite (and its bloated OS) and sell this for a whole lot less. Of course, what they are worried about is that its not just third world users who want a tight, slim, Office: this will likely eat into first world sales as well!
Onward and upward with CMOS
An interesting view on India. In particular, note the emphasis on rural kiosks!
Is the future of kiosks in banking? Certainly there is a strong case to be made for this. Banking, especially if coupled with micro-finance, is information-rich, yet can touch every member of a community. Banks, by definition, have deep pockets to ride out short-term problems. And, there is a vast market to tap. For these reasons, it may well be that the leadership shown by ICICI will be copied by other banks who want to address this large market. Feynman and Prahlad can't both be wrong ("There's plenty of space at the bottom")!
