Analysis: why the business world won't want the XC

First there was the PC. Then came the NC. Now we have the XC. Manufacturer Acer is responsible for the X-Computer (XC) and claims shipments will outnumber those of PCs in 2010 by a ratio of 10-to-1. But Acer has underestimated the importance of the business market in its extravagant calculations.

Acer defines the XC as a class of easy-to-use, application-specific digital devices built upon open industry standards. Basically, it's a lightweight PC, based on the x86 Intel architecture, and uses Internet Protocol for Net access and general comms. Acer claims the range will be priced from as low as $199, up to a maximum of $1,000. It is aimed specifically for use in the education and entertainment markets, and for electronic commerce applications.

The planned product line will move Acer into an arena that already has companies delivering Windows terminals. So, what does the XC offer that isn't already available?
The Mobile X100 is - as its name suggests - aimed at the mobile user. With an embedded operating system, the user can send or receive emails, surf the Internet, write and edit documents, and transfer data.

For the home and business environments there is the Desktop X500. This is based on an embedded x86 processor and supports functions which target TV-centric applications, such as video-mail, photo/image editing and Web browsing. Three other models complete the range.

Sounds good for well under $1,000? Well, reading the small print, you realise the machines don't come with a monitor or any other form of screen. However, here Acer reveals - if not explicitly - what it believes is its target market. Conventional monitors can be used, but the machines work equally well with a home TV set. The consumer market is much more likely to be swayed by this kind of feature.

Having said that, the range does tackle some of the most pressing problems that face all IT departments. PCs are expensive and seriously over-specified for the vast majority of users. So using the lightweight Windows CE operating system in cut-down hardware could be an answer.

Even so, firms looking to reduce their total cost of ownership through removing the excess functionality of conventional PCs may still be wary of Acer's products. They will not touch the product if it doesn't come with a full service and support package. The company hasn't focused on this in its early sales spiel.

Acer will certainly target the consumer market first, and then make a bid to become a credible alternative for businesses. It will have to succeed in both arenas to get anywhere near its bold shipment targets. But while good penetration into the consumer space is feasible, it is far less likely to make a serious impression on the business market. The other thin clients already available are a more viable solution for the corporate world.