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| SAP's India arm fastest growing within APAC |
| Business Standard: June 29, 2011 |
| Mumbai: For Peter Gartenberg, the Managing Director of SAP India, managing growth in this market is a bigger concern than competition with peers like Microsoft, IBM and others.
According to the Germany-based firm’s annual report 2010, its India subsidiary reported revenue of euro 395 million (Rs 2,539.8 crore) reporting a growth of 35 per cent from euro 291.6 million (Rs 1,874.9 crore) in 2009, representing about three per cent of SAP’s global revenue of euro 12.46 billion. The revenue includes SAP Labs India and SAP India Ltd.
India will be the fastest growing region for the company with a 35 per cent growth year-on-year. Whereas the other two regions within APAC (excluding Japan), Australia and China, grew by 23 and 22.5 per cent respectively. In terms of revenue India would be the second largest region for SAP within APAC, with Australia leading the revenue of euro 427.7 million.
Gartenberg, though did not share any specific numbers, does agree that India has been one of the fastest growing regions for the company with a customer base of over 4,700. “I think, India is still a growth market for us. There is still room for implementation of core ERP systems in the enterprise segment and the fast growing small and medium enterprises. A lot of this growth comes from replacement demand, as many firms still have legacy systems or want to move vendors,” he said.
While SAP has been one of the leading players in the enterprise resource planning segment, Gartenberg said with the acquisition of Sybase last year, they are also a leading player in the enterprise mobility space.
“I think mobility is something that every customer relates to and already has some application for mobile users. The growth has been phenomenal in this segment. Mobility will continue to grow as we think desktops are declining in terms of usage in the enterprise segment. Even laptops are reducing. Rather, we think, among enterprises many might just jump to mobile environment,” he said.
The other factor that has helped the company manage to grow in India has been the presence of SAP Labs. “India SAP Labs is the second largest in the world,” he said. He believes SAP India has leveraged the presence of the global localisation team sitting out at SAP Lab India to the fullest. “Over the last one year, we have been able to leverage this. The major competitive advantage for India is that we have by far the most localised offering. When a customer implements a solutions from SAP they do not have to spend time on other expenses etc., these are lot of hidden expenditure,” he said.
The other area that SAP has seen good traction has been its cloud offerings. “We have been surprised by the interest taken by the Indian customers. We thought that the cloud adoption will take some time but things are very different here. For instance, our business-by-design, provides ERP on cloud, it has taken off really well in the last six months. Especially among the mid-tier firms,” he said. |
| IBM ranked as leader in domestic Indian IT market with a 31.4% share in revenues |
| The Economic Times: June 28, 2011 |
New Delhi: IBM India led the domestic Indian software market in 2010 with a 31.4% share in the industry's revenues last year, according to research firm Gartner Inc.Customers, such as HDFC , SBI, Bharti Infratel and Indian Railways, contributed to IBM India's 55% market share in the application infrastructure and middleware ( AIM )) software segments. IBM competes with firms such as Wipro Infotech , TCS, Firstsource, Intelenet, CMS Computers among others for the domestic IT market pie. SAP, Oracle, Microsoft are global players in business analytics which compete with IBM.
The India application infrastructure and middleware software market grew to $228.2 million in 2010, up 12.7% over 2009. IBM was ranked leader in India in business integration (BI), collaboration and systems management.Worldwide, SAP leads in these categories globally followed by Oracle and SAS . IBM is ranked fourth globally in these categories, where it leads in India.
IBM India's revenues in 2010 grew 15.4% over 2009 in development software, systems management, collaboration and business integration categories, according to Gartner.IBM India and South Asia software group director Pradeep Nair attributes the rise in revenues to contracts coming from the small and medium businesses.The company is known to pick software development and maintenance contracts from small cooperative banks and manufacturing firms. Infosys, TCS and Wipro - India's largest IT services companies - have still not delved deeply into the SME business, as it may erode their high profit margins."IBM is expanding into new locations, building new capabilities which has enhanced customer loyalty and profitability," Nair said. The company is extending its reach beyond the metros into tier II and III cities servicing clients such as Paragon Footwear with pay-as-you-go cloud based solution. Financial services, telecoms and contracts from government contributed about 20% each to the company's revenues.
For instance, in a project for the government, the company is developing technology to check money laundering by creating analytical monitoring system which tracks the ordinary banking transactions. IBM's helped to reduce 30% fuel costs for Bharti Infratel used to power more than 33,000 of its telecom towers in 2010.Worldwide business intelligence (BI) platform, analytic applications and performance management software revenue has reached $10.5 billion, a 13.4% increase from 2009.
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| Ozonetel offers virtual PBX for start-ups |
| Business Standard: June 28, 2011 |
| Hyderabad: Ozonetel Systems, a Hyderabad-headquartered cloud telephony services firm, has launched a virtual PBX system that does away with the need for on-site equipment and wiring of a conventional PBX system as well as the need for a separate PBX for different offices of a company.
According to CSN Murthy, director, Ozonetel Systems, the system is mainly targeted at start-ups that have not already invested in a telecom system and at small and medium enterprises (SMEs), for whom affordability is a factor.
He said it works as a ‘plug-and-play’ system based on cloud (ie, hosted in remote data centres) with no equipment on the user’s premises, and offers scalability and convenience.
“We will provide fixed wireless phones to the client, for which we have tie-ups with telecom operators. Say you want three connections, 10 extensions and a PBX. I provision my data centre accordingly and give you the numbers, say, ‘1’ for sales, ‘2’ for operations, and so on, the way you want,” he said.
With this, companies having multiple offices would not need to install a separate PBX at each of their office premises. Instead, it allows them to scale up to any number of extensions on the basis of a single pan-India telephone number, Murthy said.
The charges are Rs 2,000 per port, with each port allowing five extensions ideally, but extendable depending on the usage, Murthy said. It also offers value-added features such as an interactive voice response system and distributed call centre.
The service has close to 30 subscribers at present, most of them based around Chennai and Bangalore. They include white goods maker IFB, e-commerce firm ZipDial and microfinance firm Basix. Murthy said there have been enquiries from Bangladesh and some Caribbean countries for the PBX product.
Ozonetel is also in talks to livecast the proceedings of the INK (Innovation+Knowledge) technology forum. The service would allow anyone to call a specified number and listen to the conference proceedings live. |
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