Nemertes Impact Analysis:

GoPC, a cloud provider of desktop services, is now using NoMachine NX to provision its cloud-hosted Linux virtual desktops, highlighting growing enterprise interest in both virtualized PCs and cloud provisioning. Nemertes' research shows improvements in desktop management and security are the key drivers of desktop virtualization. Half of enterprises expect to use virtual desktops before 2011. GoPC and NoMachine clearly hope ride this trend by emphasizing security and desktop management.

Impacts

Enterprises: Cloud desktops give you a safer, easier way to experiment with virtual desktops and open source; use the opportunity, and make sure to coordinate with your other desktop plans (say, for soft-phones or video conferencing).

Vendors: Make sure your application licensing terms are friendly to cloud service providers and cloud deployments.

Investors: IBM (NYSE:IBM), Sun (NASDAQ:JAVA) and others offer desktop-as-a-service models; smaller vendors, including GoPC and Moka5 (privately held) are also building the market, and are take-over prospects for large service providers including Global Crossing (NASDAQ:GLBC) and Tata Communications (NYSE:TCL).
--By John Burke, Principal Research Analyst

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