Ericsson has acquired a minority stake in Novatium Solutions Private Ltd. with an aim to speed up the broadband enabled user services in emerging economies. Novatium launched its commercial service in November 2009 and has 40 employees in its Chennai office and 35 employees in the field throughout India.
Via agreements with various software companies, Novatium offers a PC together with cloud-based services through telecom operators and distributors? network, where the consumer buys his or her choice of a service-package, for example anti-virus, photo editing or office programs, as a thin client on a monthly basis. Primarily, this service addresses the needs of first-time Internet and PC users, both from simplicity as well as from an affordability perspective.
With Ericsson acquiring a minority stake in Novatium, the company will have funding and competence to further develop the offering and grow outside India in markets with similar needs. For Ericsson the agreement offers an exciting opportunity to support an innovative local business in a fast growing market that will further increase the need of mobile broadband.
Acknowledging the importance of cloud based services, Gowton Achaibar, head of Region India, Ericsson, said, ?The business concept PC as-a-service is a strong offering addressing an important growing segment in the Indian market. With this engagement I see potential business synergy benefits to both Novatium and Ericsson and our respective customers.?
Alok Singh, CEO Novatium Solutions Pvt. Ltd. said, ?This strategic relationship with Ericsson encompasses a great opportunity for Novatium as we are partnering with a global organization with the best technology know-how, which will help us develop our offering and introduce it to new markets.?
The middle income consumers and the first time PC owners are the primary contributors to the growth of PC usage in India, while connectivity to internet and cloud based services are important enablers.
The PC-as-a-service with cloud environment also brings a business opportunity to the telecom operators as it provides differentiated broadband pricing based on what services the consumer wants to have access to. This not only allows operators to increase their revenues from a service revenue share but also increases the addressable broadband market by lowering consumers? entry barriers with affordable PC?s and related services.