NComputing, which now claims 15 million virtual desktop users working off of two million physical devices across 140 countries, figures it's got the industry's first USB-connected virtual desktop client.

The so-called U170 plugs into a computer's USB 2.0 port and with the company's vSpace desktop virtualization software lets additional users share that computer.

At under $99 it's an alternate, sort of intermediate, connection approach between NComputing's $70-$200-a-seat PCI-based X-series and the Ethernet-based L-series virtual desktops.

The company says each U170 delivers a 1680x1440 high-definition multimedia experience and has connections for the user's own monitor, speakers, microphone, keyboard, mouse and other USB peripherals.

It draws a mere two watts of electricity and is powered through the USB cable so it doesn't need a power adapter.

Multiple U170s can be connected to a computer either directly or through a USB hub.

NComputing expects it to be popular with small businesses, branch offices and schools, generally environments that lack dedicated IT staff for networking and PC maintenance, but still need a rich PC experience for each user.

The number of users the thing will support depends on the grade of PC it's plugged into but a netbook could conceivably support four users, a $350 box five or six, and a $500-$800 machine 20, all with "perfect PC experience," it claims, and no latency. It'll run a full-screen movie.

The U170 will be available before the end of the year.

Meanwhile, the company's vSpace desktop virtualization software has hit its fifth-generation release - well, at least in beta. It should be out in mid-November.

It's supposed to be the first virtualization software compatible with Windows 7.

The update also adds support for Windows Server 2008 and Vista in turning a single computer into a multi-user device or for use in 1:1 VDI implementations. vSpace 5 also supports Vista and Win7 for digital display systems, multi-monitor and remote KVM extension.

Other new capabilities include virtual network adapter creation and assignment, automatic host-system failover and group device deployment and management.

The company says these features are directed at enterprise customers that demand a reliable and scalable virtual desktop computing solution.

NComputing realized early success in the education sector; it now claims 15% of the K-12 desktop computing purchases in the US. With the economic downturn, it's been pushing into banks, retailers and manufacturers to cut hardware and maintenance costs. It says its customers typically slash their computing costs by 75% and their electricity costs by 90%.

In the third quarter, it says it won over 100,000 enterprise seats, including Big O Tires.

"The global economic crisis has made low-cost, smart computing an imperative for every CIO," NComputing CEO and founder of eMachines Stephen Dukker says. "Our virtual desktops redefine the economics of computing."

vSpace licenses are included with each NComputing virtual desktop device.

Fifteen months ago NComputing had virtualized a million devices after two years in the market. The second million took a lot less time.