With more than 1.2 million thin-client computers sold in developing countries, NComputing has a big hit on its hands as it delivers low-cost computing to those who can’t afford or don’t need full-fledged computers.

Today, it’s launching a new model — consisting of a computer that connects to three thin clients (i.e., minimalist computers that allow the heavy-duty computing to occur on another device) — that is smaller and cheaper.

The Redwood City, Calif.-based company makes desktop virtualization kits. The new X350 model consists of a full-fledged desktop PC that can be networked with three thin clients that can be attached to computer monitors. In effect, you can get four people working on a single computer for a total cost of $249. And each thin client uses a watt of electricity, compared to 110 watts for a typical PC.

This virtual desktop costs as little as $70 per seat, making it ideal for government or classroom computers. Yet this thin-client allows each user to experience full multimedia and full-screen video performance. The company previously introduced its $449 X550 version, which supported 11 users per PC, in November.

The first models sold more than two years ago. Now there are 40,000 organizations in 140 countries using it. Ultra low-cost computing just keeps on marching forward. We interviewed NComputing chief executive Stephen Dukker at the Consumer Electronics Show in January.

Ncomputing was founded in 2004 by a team in Germany and South Korea. Besides the $8 million first round led by Scale Ventures, the company also raised $28 million in a second round led by Menlo Ventures last year.

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