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NEC and Sify to Promote Thin Client Computing in India

March 2, 2007

NEC Corporation and Sify have announced a strategic partnership to jointly promote thin client computing in India.

The collaboration will enable thin client computing in India with NEC supplying virtual PC centers ("VPCCs") to Sify, which will utilize them to provide thin client systems to customers as an outsourced service, to enable the spread of VPCC services to companies in India.

The commercial PC market in India is growing at the thriving pace of 24% per year as the Indian PC market is still in a stage of infancy and has great potential. As Indian companies consider alternatives for commercial PCs, NEC and Sify will promote thin client computing as an outsourced service, which greatly reduces the total cost of ownership ("TCO") for the client. More importantly, thin client computing also enables an enhanced security environment for conducting business. Sify will also promote the installation of VPCCs in its Internet cafés and customer call centers.

The partnership aims at the installation of 100,000 client terminal units and 6,000 server units within the first three years of business in India. NEC India Pvt. Ltd will promote the concept of VPCC thin computing together with Sify for the delivery of services.

Mr. Kazuhiko Kobayashi, Executive Vice-President of NEC Corp, said, "With more mobile innovations in the ICT industry and faster technological adaptations in recent years, NEC believes that businesses and economies worldwide are evolving from a PC-based computing model to a network-centric computing model. We are optimistic about this new thin client business, and plan to grow it into a US$1.25 billion business for our global operations in the next three years."

Mr Raju Vegesna, Chairman and CEO, Sify Limited, said, "We believe that the availability of a network-centric computing model with its many advantages, especially cost and security, will accelerate the rate of IT adoption in the country. Sify, along with NEC, intends to catalyze the market for such services in India . We are ideally positioned to do so with our sophisticated infrastructure comprising of a world-class Internet Protocol network and our data centers, as well as our expertise in provisioning managed services.”

Outline of collaboration

1. Deployment of VPCCs in India

Through NEC India, NEC will provide a VPCC package of 6 servers ("Express5800/VPCC Virtual PC Servers" with middleware and client OS) and 100 thin client terminals to Sify. The new package represents a high-availability model suitable for new installation in large-scale thin client terminals. Sify will install "Express5800/VPCC Virtual PC Servers" and "Express5800/VPCC Management Servers" in its data centers, and commence the provision of thin client terminal outsourcing services to corporate clients as a service rather than expecting users to purchase, construct and operate their own systems. This service will allow corporate clients to enjoy premium security functions, such as the prevention of information leaks and high-quality internet protocol ("IP") telephony and video processing, and reduce the TCO. Sify will promote thin client computing through a dedicated sales force, in addition to its current enterprise sales channel.

2. Installation of VPCCs into Sify's own systems

Sify will promote the use of VPCCs in its 3,500 Internet cafés in India , and installation and active utilization of VPCCs in its own call centers and office processing systems. NEC and Sify will leverage their market leadership and capabilities to develop the thin client computing business.

 
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