An industry first ‘visual computing appliance’ has been introduced by NVIDIA Corporation (NVDA - Analyst Report). This new offering from the graphic chip maker is expected to help businesses deliver ultra-fast GPU performance to any client using Windows, Linux or Mac operating systems in their network.
Christened “NVIDIA GRID Visual Computing Appliance (VCA),” this is a powerful GPU-based system, which has the capability of running complex applications from companies like Adobe Systems Incorporated, Autodesk and Dassault Systèmes, sending graphics output over a network structure, which can be displayed on a client computer. GRID provides a visually rewarding graphics experience that a company may otherwise derive from an expensive, dedicated PC.
Although it’s a cost effective offering from NVIDIA, the VCA is mostly targeted at small businesses and it may not present itself as a game changer. Even after a thorough consideration of the GRID platform previously provided by the company, it can only present itself as a high-quality, low-latency, multi-device gaming network available on any connected PC, Mac, tablet, smartphone or TV.
We believe it’s a positive step for the company and NVIDIA's long-term vision is entirely valid. This is a good followup product from he company, after the company recently unveiled Project Shield, and the yet to be released portable gaming device, backed by Tegra 4.
Moreover, NVIDIA’s newly introduced Tegra 4 has four distinct features and is increasingly being used in Google Inc's Nexus 7, Microsoft Corp’s (MSFT - Analyst Report) Surface tablet, HTC's One X smartphone and Sony Corp’s (SNE - Analyst Report) PSP hand-held gaming device. This new technology is especially attractive to game manufacturers as it consumes 45% less power.
So, NVIDIA is constantly making efforts to introduce new products that have the potential to attain t instant popularity. These products are especially targeted at the Asia Pacific region, as industry experts expect this region to determine the immediate future of the gaming market. Although Asia is a big gaming, the video gaming industry in BRIC countries other than Asia is expected to grow in line with their economic expansion.
In a recent investor briefing session, NVDA shared its plan for future growth and the new devices it is planning to launch to win more customers. The company claims that it is making strategic moves to expand its Enterprise Grid Server, VCA and Gaming platforms. Although the company seems to be driven by big ambitions, the ever-increasing competition facing the server-gaming industry may pose some challenges for the company.
Currently, NVIDIA holds a Zacks Rank #3 (Hold).