LFR's - The New Reality by Bhupinder Sharma

Vol 02 | Issue 04 | Rs.50

LFRs

THE NEW

REALITY Large Format Retail chains are no longer an impending threat but something to live with for a majority of traditional channel partners Comp-Ex 2010

Vidarbha Associationâ&#x20AC;&#x2122;s event at Nagpur put the spotlight on the central Indian city PAGE 29

Monitors Market

LCD displays are lighting up the space and edging out CRTs PAGE 23

Looking Back, Looking Ahead

New year messages for partners from vendors PAGE 25

January 2010

editorial

What’s in Store? E sanjay.gupta@9dot9.in

Money flows in the direction of economies of scale, bigger footfalls or future potential

veryone goes to the malls but nobody shops there. Most people just hang around, watch a movie and eat (mostly at the food court).” Or so goes the conventional thinking. But then, conventions are changing thick and fast in an economy still propelling ahead of most others. In the rough and tumble of technology sales, one long-held norm has been of going to the friendly neighbourhood reseller – the guy who could tell a hard drive from a processor – whenever people needed computers. A few fortunate ones who had uncles and aunties abroad would ask them to bring snazzy gizmos home on their next trip to India. Forget all that. (No, I don’t mean people would stop asking for stuff like Kindles and iPhones that’s still expensive or unavailable here.) But consider the new facts of life for tech dealers and distributors in our country. As per industry estimates, India will have 120 million square feet of shopping real estate spread over 350-odd malls by the first quarter of 2011. A dramatic change from almost zilch seven or eight years back. And of late, a growing proportion of this space is being allocated to gadget sales by the likes of Biyani, Tata and Ambani (you know which one). Already, many IT vendors see 10 to 30 per cent of their sales coming from the so-called large format retail stores (LFRs). And already, a growing number of yuppies and enthusiasts are cavorting around the colourful, trendy netbooks, laptops and accessories

with previously unknown pleasure. Initially, traditional dealers reacted to this new sales paradigm with alarm, often displaying vehemence or collectively boycotting some vendors. To be fair, some of this opposition was – still is – valid, because vendors did not support their ‘old friends’ in the channel with pricing or marketing help. But like in most businesses, money flows in the direction of economies of scale, bigger footfalls or future potential – and IT is no exception. So big vendors with big targets tapping into big stores (even pumping their own money for a long-term play) is something dealers should’ve foreseen. In fact, many of them did, and found their footing by extending distribution to the LFRs or developing vertical and technology niches instead of focusing solely on consumers. Apparently, some of those mall stragglers do indulge in a little bit of Windows shopping.

SANJAY GUPTA Editor Digit Channel Connect

sounding board sounding board

Naishadh Diwanji, Director, Pace Computer Consultants (Ahmedabad): “LFRs (large format retail stores) have impacted the traditional partners quite significantly and this change is most visible in entry-level products and accessories.” n Stanley Wu, Country Head – Notebooks & Eee PC Business, Asus India: “The reason we have started focusing on LFRs is because of the visibility factor. The kind of visibility offered by an LFR store is at par with advertising in various mediums. It places products in the hands of the target audience very effectively. This gives the consumers a first-hand experience about gadgets and their efficiency.” n Amit Shah of AB Infotel (Baroda): “Are LFRs maintaining their bottomline is a question, but they are certainly damaging the bottomline of most traditional partners. Sales executives at these LFRs treat customers as a commodity. People who visit these big stores often complain about multiple service issues. Thus, retention of consumers will be a big concern for these LFRs in future.” n

Vol 02 | Issue 04 | Rs.50

January 2010

LFRs

THE NEW

REALITY Large Format Retail chains are no longer an impending threat but something to live with for a majority of traditional channel partners Comp-Ex 2010

Vidarbha Association’s event at Nagpur put the spotlight on the central Indian city PAGE 29

Monitors Market

LCD displays are lighting up the space and edging out CRTs PAGE 23

Looking Back, Looking Ahead

New year messages for partners from vendors PAGE 25

Write to the Editor E-mail: editor@digitchannelconnect.com Snail Mail: The Editor, Digit Channel Connect, K-40, Connaught Place, New Delhi 110 001

DIGIT CHANNEL CONNECT

JANUARY 2010

contents

VOL 02 ISSUE 04 | JANUARY 2010

Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh

LFRs

EDITORIAL Editor: Sanjay Gupta Sr. Correspondents: Charu Khera (Delhi), Soma Tah (Mumbai)

THE NEW

REALITY

DESIGN Sr. Creative Director: Jayan K Narayanan Art Director: Binesh Sreedharan Associate Art Director: Anil VK Manager Design: Chander Shekhar Sr. Visualisers: PC Anoop, Santosh Kushwaha Sr. Designers: Prasanth TR & Anil T Photographer: Jiten Gandhi

Large format retail chains are no longer an impending threat but something to live with for a majority of traditional channel partners

BRAND COMMUNICATION Product Manager: Ankur Agarwal SALES & MARKETING VP Sales & Marketing: Navin Chand Singh National Manager - Events and Special Projects: Mahantesh Godi (09880436623) Business Manager (Engagement Platforms) Arvind Ambo (09819904050) National Manager - Channels: Krishnadas Kurup (09322971866) Asst. Brand Manager: Arpita Ganguli Bangalore & Chennai: Vinodh K (09740714817) Delhi: Pranav Saran (09312685289) Kolkata: Jayanta Bhattacharya (09331829284) Mumbai: Sachin Mhashilkar (09920348755) PRODUCTION & LOGISTICS Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh

SPECIAL REPORT

CHANNEL Q&A

“A major challenge in distribution is the optimum utilisation of resources”

THE SCREEN LIGHTS UP

VK BHANDARI, CHAIRMAN & MANAGING DIRECTOR, SUPERTRON ELECTRONICS

LCD displays are lighting up the monitor market and edging out CRTs

CHANNEL CHAMPS Sr Co-ordinator - Events: Rakesh Sequeira Events Executives: Pramod Jadhav, Johnson Noronha Audience Dev. Executive: Aparna Bobhate, Shilpa Surve OFFICE ADDRESS

OTHERS

OUTLOOK 2010

LOOKING BACK, LOOKING AHEAD

advertisers index

A snapshot of some vendor messages for channel partners DCC received at the beginning of 2010

COMP-EX 2010

Destination IT -Nagpur 2010 Vidarbha Association’s event at Nagpur put the spotlight on the central Indian city

EDITORIAL.......................................................... 03 TRENDS.............................................................. 06 FOCUS................................................................ 16 VENDOR SPEAK........................................... 21, 32 GUEST EXPRESSION........................................... 34

HP.........................Cover On Cover, Inside False Cover, IFC EMC................................................................Back Cover Lenovo...................................................Inside Back Cover Kingston.........................................................................5 Rashi Peripherals.............................................................7 Jupiter............................................................................9 Gigabyte.......................................................................11 Supertron......................................................................13 Supermicro/Mega..........................................................15 Quick Heal....................................................................17 Epson......................................................................21,37 Pusham.........................................................................25 India Antivirus...............................................................27 Genius..........................................................................28 eCaps...........................................................................29 Abacus.........................................................................31 KGS..............................................................................35 Priya Ltd........................................................................39

Nine Dot Nine Interactive Pvt Ltd., KPT House, Plot 41/13, Sector 30, Vashi, Navi Mumbai - 400 703 Phone: 40789666 Fax: 022-40789540, 022-40789640 Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd. C/O KPT House, Plot 41/13, Sector 30, Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 Editor: Anuradha Das Mathur C/O KPT House, Plot 41/13, Sector 30, Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 Printed at Silverpoint Press Pvt. Ltd, TTC Ind. Area, Plot No. : A - 403, MIDC, Mahape, Navi Mumbai - 400709

cover design : prasanth t r

DIGIT CHANNEL CONNECT

JANUARY 2010

trends NEC holds two-city roadshow

EC India recently organised a two-city roadshow to display its latest POS products. During the roadshow in Chennai and Mumbai, NEC India displayed its solutions - Twin POS3500G1, Twin POS5500Ui, Twin POS3500B1 & V-POS - suited for applications required in fast growing retail sector. The roadshows were attended by a large number of partners and system integrators. The Twin POS3500G1 with 12.1-inch TFT resistive touch is an ideal system for businesses with Windows Embedded for point of service (PoS) supporting plug-nplay for peripherals along with 2.5GB flash storage model with

E zero spindle architecture to mitigate hardware failures. The Twin POS5500Ui has 15-inch TFT resistive touch and is highly durable against temperature, water spill and dust, typical troubles for retail IT equipments. The V-POS features 15-inch TFT and comes in table and wall mount options offering value and quality to retailers across formats. n

D-Link announces training program for partners

-Link has announced the launch of two-day training program for its partners titled ‘Sales Pro-2010’. Kicked off on January7 2010, it will cover 10 cities in the first phase. ‘Sales Pro-2010’ is a technology education program that will address the networking concerns of partners’ techno-sales and pre-sales team. It has been devised with the purpose of giving insights to attendees on network design and helping partner understand customers networking requirement in a better

way. The two-day exclusive seminar will cover various topics like Switching and Routing, Security Solutions, Wireless and Broadband, IP surveillance. ‘Sales pro-2010’ is expected to cover 25 cities and all memberd of techno-sales and presales teams will be eligible for this program. On successful completion of this program partners will be honored with ‘D-Link Sales Pro’ certification. It will also enables partners to sign-up for the Global partner program (GPP) and appear for DCS online exams. n

Belkin announces scheme for partners

elkin has announced ucts from Belkin authothe Belkin Premier rised distributors/volume League for its chanresellers in India. These nel partners. Under this runs can be redeemed scheme, partners will get against a gift. The gifts gifts on scoring runs by range from branded bags, purchasing selected Belkin watches, to LCD TVs, Split products. This scheme is ACs and refrigerator s valid from January 15, 2010 Mohit Anand, MD, along with branded Mobile to March 31, 2010. phones, MP3 player s, Belkin India Under this scheme, the Digital Cameras, washselected Belkin products have been ing machines etc. Also, these gifts allocated some runs. Channel would carry warranty/guarantee partners will score runs on their from their respective manufacturpurchase of these selected proders/dealers. n

DIGIT CHANNEL CONNECT

eScan launches new website

JANUARY 2010

Scan has announced its celebrations of the onset of year 2010 with the launch of its new website http://www.escanav.com. This change in domain name from earlier www.mwti.net to www.escanav.com is in keeping with the positioning of the eScan brand and increase brand connect with customers. As per the company, the new website brings an easy and friendly user interface to its visitors. The website is targeted to address the needs of both the channel partners and the end-users. Through unique functions like RSS feeds for ‘eScan Hotfix Alerts’ and ‘eScan Virus Alerts’, the website will provide visitors with product information and updates on critical information that will help them to be safe online. One can subscribe to the eScan RSS Feeds to get real time update on security. The new website also offers better navigation through the different pages and layers making it easier to search for information and help. With the new social media connections, one can now easily keep up to date with the latest in the world of online security by following eScan’s updates on popular social networking sites like Twitter and Facebook and others with just a click. Also the enhanced support option on the website provides a hassle-free approach to a customer to reach out to eScan for support. n

Confed-ITA to hold next summit at Ooty

he Confederation of IT Associations (Confed-ITA) will hold its third annual summit in the southern hill city this year from 20th to 21st February. The association has now expanded its membership to as many as 19 channel associations. The next summit will aim to review the confederation’s operations, plan its agenda for the next year and will also see new office bearers assume office. The new team for the year 2010-11 comprises: S Prakash as President (from S Prakash, new Salem IT Association); K Dhayalan as Vice President of Confed-ITA President (from Dindugal Association); B Kuberan as Secretary (from Trichy Association); Ramachandran as Treasurer (from Kanyakumari Association); and M Kumaran (Vellore) and M Natarajan (Coimbatore) as Jt Secretaries. This is the third team taking over at Confed-ITA in as many years, demonstrating a smooth leadership rotation process. The theme for the February summit and for the incoming team is ‘Partnering to Progress’ – which will involve work focusing on improving relationships within associations, as well as with distributors and vendors. There will be ample exhibition space at the venue for launching new products, and Confed-ITA is in discussion with major vendors and distributors for sponsorships. n

trends Gigabyte to focus on accessories market in India

igabyte has redesigned its go-to-market strategy to consolidate its accessory sales in the Indian market. The vendor has recently introduced a new range of chassis, enclosures, power supply and cooling products, which are currently available in India with company’s distributor Priya Limited. Gigabyte has even taken some new channel alignment plans with the distributor. Explaining the new channel alignment plans, Aditya Bhuwania, Executive Director, Priya Limited says, “We will work closely with the motherboards channel and will also try to tap the corporate sector. A strong focus would also be on the gamers and the end-user market where we are looking to focus through the retailers and resellers partners.”

Gigabyte being a strong name in the components market, the vendor will be leveraging the brand strongly to promote the products in the Indian market. “The accessories will not only complement Gigabyte’s presence in the motherboard segment, but will also help us in offering a complete solution to buyers,” says Bella Tsai, Senior Account Manager - Channel Sales, Gigazone International. The vendor has released 17 new products in this products category. The focus is more on the power supplies and cooling products. Priya has also chalked out some channel engagement programmes aligned with their new channel initiatives, which will help to make a strong presence of the brand in the accessories market. n

HCL Infosystems opens Enterprise Resource Centre

Chief Minister of Puducherry, Thiru V Vaithilingam, innaugurates the HCL centre

CL Infosystems has announced the opening of its Enterprise Resource C e n t r e ( E RC) in Puducher r y. Operating as a Managed Service P r o v i d e r ( M S P ) , t h e E RC i s part of the company’s Remote Infrastructure Management setup. The ERC will use and deploy various remote support and management tools that will allow it to control and manage a customer’s entire IT operations offsite. The

DIGIT CHANNEL CONNECT

high-tech facility was inaugurated by the Chief Minister of Puducherry, Thiru V Vaithilingam. JV Ramamurthy, President and COO, HCL Infosystems said, “With a vision to transform HCL Infosystems into a services and solution centric organisation, inauguration of ERC at Puducherry is one such step in the direction.” HCL has become the first ICT Company to set up a knowledge hub in Puducherry. n

JANUARY 2010

Quick Heal launches Dhamaka 2010

uick Heal has launched Dhamaka 2010 offer for its partners (from 10 January to 31 March) . The offer is designed to reward partners and has interesting gifts ranging from Digital Photo Frames to handycams and iPods. The highlight of the promotion is a trip to Thailand. Any partner doing a business of as low as approximately 10 licenses per month during the scheme period will take away an assured gift. “Under this scheme we are looking at about 400 plus partners to join us in the exclusive luxury trip to Thailand,” says Abhijit Jorvekar, Country Head- Sales, Quick Heal Technologies. n

Seagate optimistic for storage market

elebrating completion of 30 years, Seagate has projected a positive outlook for the storage industry in 2010 and expects the growing digital lifestyles and exploding enterprise data to drive growth. As per Seagate, India is key player of growth strategy as anticipated investment in IT infrastructure, of which storage is a key component. Indian enterprises will be looking to rationalising their storage with adoption of newer technologies like storage virtualisation, de-duplication, thin provisioning, thin cloning, data storage is well on the way to recovery. Seagate is confident that as the technology and market leader, it is well poised to be at the forefront of this potential market. n

Confidence shaken within social networking: RSA

SA has announced the results of its 2010 Global Online Consumer Security Survey that polled more than 4,500 consumers about their awareness of online threats. As per the results, consumer awareness of phishing attacks has doubled between 2007 and 2009 but the number of consumers who reported falling prey to these attacks has increased six times. In addition, the survey exposed that nearly two in three (65 percent) people who belong to the online communities (particularly social networking) indicated they are less likely to interact or share information due to their growing security concerns. Social networking websites have become a hotbed for online criminals because of their global reach and this makes these communities prime targets for exploitation by criminals who seek to steal personal information through socially engineered attacks. Reflective of this trend, the survey exposed that four out of five (81 percent) people using social networking websites displayed concern with the safety of their personal information online. In the 2007 RSA survey, one in three (38 percent) consumers reported they were aware of the threat of a phishing attack – and this figure doubled in two years where three in four (76 percent) have become aware. Additionally, nine in ten consumers (89 percent) reported concerns caused by the threat of phishing. But despite increased awareness, there have been a growing number of online users that have fallen victim to a phishing attack. In the 2007 RSA survey, only one in twenty (5 percent) consumers cited they had fallen victim to a phishing scam – and this rate increased six-times in 2009 to represent three in ten (29 percent) consumers. n

trends Indian Internet users vulnerable to cyber frauds: VeriSign

sur vey conducted by VeriSign of over 5,000 Internet users across 10 cities suggests that users are becoming increasingly concerned about online security. 91 percent of respondent have experienced some case of cyber fraud such as phishing, key logging, identity theft and account takeover. Survey highlighted that 60 percent respondents access Internet frequently and 44 percent shop online with 53 percent engaging with user generated content. Awareness and knowledge are the keys to combating cyber fraud. To this end, VeriSign has compiled five tips to follow for a safer online experience: n Look for visual cues. Prominent misspellings are signs that a website is fraudulent. n Check two-factor authentication. Most sites are accepting a second form of user authentication that comes from physical devices such as a token, credit-card form factor, or a USB drive. Each device provides users with a dynamic one-time password. The extra layer of security hinders potential fraudsters from accessing personal accounts by adding a second factor of user authentication. n Compare the checkout experience to wellknown sites and look for anomalies. Most well-run websites—such as Amazon or eBay—send order confirmation, shipping confirmation e-mails. Beware of a simple form with no visual cues. n Know your vendor. Read their ratings and

NetApp appoints Progressive as Gold partner

etApp has announced the appointment of Progressive Infotech as a Gold Partner. Progressive will market NetApp’s storage and data management solutions across India given their expertise in providing data management suite of solutions. This partnership will widen NetApp’s presence and help drive storage efficiencies across government, enterprise and MSE segments.“We are delighted to join hands with NetApp. NetApp solutions have immense potential for businesses to attain the flexibility they are seeking in their IT infrastructure, along with increasing efficiency and reducing costs. This will be particularly relevant in a country like India where the demand for storage is rapidly growing and discerning customers seek bestof-breed storage solutions. Given NetApp’s commitment to the success of its channel partners and our highly experienced team we are looking forward to effectively meeting the needs of our customers,” said Prateek Garg, MD and CEO, Progressive Infotech. n

DIGIT CHANNEL CONNECT

JANUARY 2010

reviews from other customers and take red flags seriously. Finally, try to find out where the company is based in their “about us” section. n Pay attention to the order form. The site should not ask for more than your name, shipping address, billing address, credit card type, number and expiration. Data such as social security number, bank routing number, etc should not be collected. n

McAfee appoints Ambarish Deshpande as channels head

cAfee has a p p o i n e d Ambarish Deshpande as Director – Alliances, Channels & Mid Market for South Asia. He will be responsible for driving McAfee’s mid-market business Ambarish and strengthening the Deshpande company’s relationships with its partners in South Asia. With more than 15 years of experience in the security industry, Ambarish brings to McAfee experience in growing new businesses and driving growth through channel and enterprise sales. Ambarish joins McAfee from IronPort Systems, a Cisco business unit, where he was the Country Manager responsible for growing its business in India. n

Sybase appoints Inflow as ND

ybase Software has announced an agreement with Inflow Technologies that will enable Inflow to extend the benefits of Sybase’s offerings, particularly analytics and enterprise mobility to the growing market in India. This agreement with Inflow comes in the wake of Sybase strengthening its focus on building the competencies of its partners for its database, BI and enterprise mobility offerings. The agreement with Inflow is an inte-

Sunil Jose of Sybase and Byju Pillai of Inflow

gral part of the strategy behind the new Sybase partner program that includes a partner portal, marketing programs, e-Learning onDemand, training and sales enablement tools, specialised packages and data centers for key channel partners.n

Cyberstar partners Wipro

yberstar Infocom announced a partn e r s h i p w i t h Wi p r o Infotech for distribution of their range of Servers, Laptops and PCs. Raj Rat h i , Fo u n d e r a n d MD, Cyberstar Infocom says, “Our relationship with Wipro will help us achieve our objective to Raj Rathi, MD, get into Laptop and PC Cyberstar Infocom business in a big way.” Ashok Tripathy, GM & Business Head, Wipro Systems & Technology says, “Wipro is focused on creating and marketing products that enable business agility for customers. In our endeavor to maximise reach, we use a hybrid mix of sales channels. The distribution-reseller-retail channel is an integral part of this go-to-market. We believe that our alliance with Cyberstar will not only help us increase our presence in unrepresented markets but would also open up the growing retail segment for our exciting line-up of lifestyle products.” n

trends A-Data launches Portable HDD CH94

-Data Technology has introduced a Portable HDD - the CH94. As per the company, the ergonomic streamlined enclosure of CH94, resembling the shape of a notebook, gives a smooth touch to consumers as if an actual diary is held in hand. With the thickness just less than 20mm and the built-in wraparound USB cable, CH94 is neatly designed to fit right in the pocket. Providing both convenience and easy portability, CH94 is the perfect companion for users who need to be constantly on the go. Besides its compact design, CH94 is also an ideal external storage device for those who are keen to express their unique individuality.

Intex launches multimedia speaker systems

n order to keep the consumers enchanted, Intex has launched two new multimedia speaker systems – Intex IT 4850 and Intex IT 4800 Blaster. Intex IT 4850 is an allin-one 5.1 multimedia speaker unit. It has FM, a USB support and multimedia card reader. All these functions are digitally enabled through a full-function remote control. As per the company, a distortion-free audio output coming through the aesthetically designed wooden speakers further make it eligible to be on the walls of music/ entertainment zone. It is priced at Rs 4,500.

As per the company, Intex IT 4800 Blaster is one of the the company’s finest offerings in the 5.2 channel genre. The configuration entails presence of two sub units in the main unit and five speakers (5.2) – giving it an edge over the 5.1 variants. The powerful output is distortion free and the flat frequency response curve makes all kinds of music sound lucid and pleasing. Music buffs smitten with impeccable audio quality and great looks would surely love to bring home this dusky black set comprising of six units (five speakers and 2 subwoofers built in one unit). Its plug-n-play feature makes it easy to operate. It is priced at Rs 4,200. n

DIGIT CHANNEL CONNECT

JANUARY 2010

Users are free to personalize their own CH94 with the self-adhesive letter stickers that come with the package. This unique DIY feature makes CH94 a fun hard drive to play with. The smooth surface of CH94 enclosure allows users to decorate the drive freely with their own original creativity. CH94 is offered in four colors - black, white, pink and aqua blue, along with a full range of capacity from 250GB to 640GB. It supports all the latest OS via the simple plug-and-play and USB 2.0 interface. Users of A-Data portable HDDs can also download value-add software HDDtoGO, OStoGO, Norton Internet Security 2010 (60-day trial) for free. It is backed by three-year product warranty. n

Moser Baer launches TFT monitors

oser Baer India has launched an all new range of energy efficient, stylish and feature rich TFT monitors, augmenting its existing TFT monitor range. Four new models are included in the range with sizes varying from 15.4 inches to 21.5 inches. The products offer high resolution and fast response time of 5ms. The range is designed to give the best to the consumers with its stylish appeal and offer special technologically advanced features that will cater to the needs of the corporate houses. The elegance of the Moser Baer TFT Monitor is not just limited to its sleek design but also its vibrant colours and superior clarity. The new models are available at a starting price of Rs 5,500 to Rs 12,000 for high-end models. Moser Baer is showcasing its expertise in the segment by equipping the multimedia models with advanced features and 2 watt + 2 watt speakers for good sound quality and offers users a perfect balance between performance and price. It comes with a warranty of three years and is available at most electronic stores as well as Moser Baer exclusive outlets. n

WD introduces external drive W

estern Digital has introduced My Book external hard drive, certified with SuperSpeed USB 3.0 interface. Offered standalone, or in a kit that includes a USB 3.0 PCIe (gen2) adapter card, the 1 TB My Book 3.0 drive is available now at select retailers. SuperSpeed USB 3.0 interface provides transfer rates of up to 5 gigabits-per-second and is compliant with the USB-IF SuperSpeed USB 3.0 standard to provide compatibility with other USB 3.0 and USB 2.0 products. SuperSpeed USB 3.0 is backwards compatible with USB 2.0 and USB 1.1. It is priced at Rs 9,990. n

trends MSI announces 2010 Notebook Lineup

icro Star International (MSI) has expanded one of the broadest product line-ups for laptops in India with the announcement of 14 new models across 5 series. The laptops cover the high-performance G-series gaming notebooks, the elegantly styled Classic series, the visually-stunning E-series entertainment notebooks, the extra-lightweight and fashionable X-Slim series and the ultra-thin, ultra-stylish U-series Wind Netbooks. MSI G-series GT640 and GT740 notebooks feature Intel Calpella flat-screen 15.4-inch and 17-inch monitors and pack Intel C i7 Quad-Core processors, combined with Nvidia GeForce GTS 250M 3D discrete graphics. These two notebooks are optimized for use with Microsoft Windows 7. The G-Series notebooks from MSI are priced at Rs 88,000 upwards, depending on configuration. MSI has even launched EX465 notebook. With a 15-inch LED backlit display and Intel Core Duo processor, the EX645 weighs 2kg and comes with 6-cell battery. The EX 465

from MSI is priced at Rs 38,999 onwards, depending on configuration. Furthermore, there are CR420, CX420 and CR620 in the Classic series that boast performance enhancement by 20 percent over the previous generation and an operating speed enhancement up to 30 percent. Prices for the Classic Series of notebooks from MSI start at Rs 38,000 and depend on configuration. MSI has also increased the X-Slim series notebooks that hide a power-performer with the Intel CULV (Consumer Ultra-Voltage) energy saving platform, and Intel Core2 Duo processor. The MSI X350, X420, X620 and X430 comprise the new additions to the X-Slim series. Common across the series is 3D Boost Technology for 3D computing, chrome treatment, the tactile chiclet keyboard and Color Film Print technology. The X-Slim series of notebooks from MSI are priced at Rs 45,000 onwards, depending on configuration. MSI has also launched Wind U130 and U135 –special edition. The outer shell is coated with Color Film Print and features

Sony launches 24X DVD writer

Motherboards with USB 3.0 interface

ony has announced the launch of a DVD writer, which can record at a speed of 24X and comes wrapped in an eco-friendly retail packaging. With the increase in speed, time spent burning discs is significantly reduced, enabling users to finish tasks at hand faster. As per the company, the new DVD multiwriter DRU-870S will amaze users with its features as it manages DVD-Rs and DVD+Rs at 24X. For users this new, speedy feature will open up new dimensions as it reads and writes to other formats at a high-performance level. The retail packaging is made from recycled paper, which is in keeping with one of Sony’s corporate social responsibility goals, which is to create a sustainable society and environment. The DRU-870S ZR drive can record and read all DVD & CD formats for Windows Vista/ XP/ 2000 on just one drive at an accelerated speed of 24X. Sony DRU-870S ZR also ensures quality and reliability for long term use by implementing Dust-Proof mechanism. Rajesh Goenka, VP – Sales & Marketing, Rashi

DIGIT CHANNEL CONNECT

JANUARY 2010

flowing silver lines and rippling water designs. The U135 comes in four colors – refined silver, wind-dancer black, trendy blue and cherry red, while the U130 comes in angelic white and wind-dancer black. The Wind U135 and U130 both use Intel’s newest ATOM N450 processor with low battery consumption. Prices for the Wind U130 and U135 netbooks from MSI are Rs 19,000 and Rs 21,000 respectively. Also, MSI Wind U210 and U230 are the first netbooks in 12-inch display size. Featuring AMD’s Ultrathin Platform, a dual core processor, they retain the ultra-thin mobility. The dula-core processor architecture provides consumers a performance experience on par with standard notebooks. Supporting HD video output, and DirectX10 technology for stunning Audio and Video entertainment on a 16:9 lifelike display, they even incorporate HDMI output ports to easily connect to large-screen TV or other multimedia devices. Prices for the Wind U210 and U230 netbooks from MSI are Rs 23,000 and Rs 28,000 respectively. n

Peripherals, said, “When a consumer purchases SONY DRU-870S ZR drive he not only gets Sony brand value and quality commitment but also service support from Rashi along with fastest burning speed in eco-friendly packaging.”

Features: n Speed: 24x DVD read/write, 48x CD read/ write n Optimised writing quality n Buffer under run protection n Loaded with dust proof technology n Vibration reduction system n Eco-friendly retail packaging n Dimension (WxHxD)- 146x41.3x165 mm Sony DRU-870S ZR rewritable drive is available in India at Rs 1,900.

igabyte Technology has announced its latest generation H55/H57 series motherboards, based on the Intel H55 and Intel H57 chipset and leveraging the success of Ultra Durable 3 design featuring 2x copper PCB and delivering Smart6 PC management tools, Energy Saver 2 power saving utilities, DualBIOS and support for Energy Using Products Directive (EuP), for a powerful multimedia platform. “Gigabyte once again leads the motherboard industry and sets the standard for delivering high-speed data transfer and richer video playback capabilities for HD multimedia home entertainment devices,” commented Tim Handley, Deputy Director of Motherboard Marketing at Gigabyte Technology. “Featuring next-generation storage capabilities including USB 3.0 and high performance digital DisplayPort connectivity, as well as 3x USB Power Boost, GA-H57M-USB3 and GA-H55M-USB3 provide a compelling solution for users wanting the ultimate multimedia system.” Both GA-H55M-USB3 and GA-H57MUSB3 motherboards support SuperSpeed USB 3.0 technology. n

trends

Kingston launches SSD with TRIM support

Kingmax launches 32GB SDHC memory card

ingston has announced SSDNow V Series 30GB Boot Drive, the latest addition to its V (Value) family of solid-state drives (SSD). It offers Windows 7 TRIM support, which helps the SSD maintain high performance. The drive is available with a bundle that includes cloning software, 2.5-inch to 3.5-inch mounting brackets and SATA data and power cable extenders. It is backed by three-years warranty. Features: n Speed: Up to 180MB/sec read; 50MB/sec write n Innovative: 2.5-inch form factor; uses NAND Flash memory components n Silent: Runs silent and cool with no moving parts n Reliable: Less likely to fail than a standard hard drive n Shock resistant: No moving parts; handles rougher conditions than a hard drive n Supports S.M.A.R.T.: Self-Monitoring, Analysis and Reporting Technology n Capacity: 30GB n Power Specs: Read: 1.4W (TYP), 2.5W (MAX); Write: 1.7W (TYP), 4.2W (MAX) n Life Expectancy: 500,000 hours MTBF

ingmax has announced the 32GB Class 10 SDHC memory card featuring fast writing, large capacity and waterproof features. With a writing speed of over 20MB/sec on a total capacity of 32GB, users can display the full continuous shooting speed of cameras without worrying about insufficient storage space. Also, the IPX8-compliant waterproof performance helps professionals prevent data damage from accidents. The memory card ensures high resolution (AVCHD) and complies with full HD (1920x1080) picture quality.

Specifications:

Capacity: 8GB /16GB/32GB Dimension: 32*24*2.1 mm (L*W*H) n Voltage: 2.7V~3.6V n Complies with SD 2.0 standard n Up to 22MB/sec read/write speed n n

DIGIT CHANNEL CONNECT

JANUARY 2010

focus Repair Outsourcing reaction very uncertain. Our company keeps customers updated on the issues with the product and expected time of delivery online on a real-time basis,” says Shammi Moza, MD of RT Outsourcing. The company’s customers, especially Fortune 500 companies, typically do not carry out component-level repairs but module repairs, which means the turnaround time is quicker. “We are part of an OEM process and have set SLAs,” he says. Service delivery depends on OEM policies, warranty period, kind of refurbishment or repair required and the availability of spare parts and accessories.

The Business of

FIXING MUNTAZIR ABBAS

As more OEMs and ODMs are turning to low-cost outsourcing model for their warranty support and repair needs, this segment is expected to grow manifold

f late, the market for repair outsourcing in the channel industry is transforming into a lucrative business, though much business in the sector is still unorganised as many end users prefer locally available – and often cheaper services. However, the scenario may soon change with more branded players getting into the fray and with customer demand for repairs growing. A higher rate of technological obsolescence and faster upgrade cycles, especially in lifestyle-oriented products, will further boost the fortunes of repair outsourcing segment. In India, some of the active players in the IT products repair segment include Real Time Data Services (RTDS), Koosh Logistics, and distributors such as Redington (through its subsidiary Cadensworth), among others. As more OEMs and ODMs are turning

DIGIT CHANNEL CONNECT

to low-cost outsourcing model for their warranty support and repair needs, this segment is expected to grow manifold. According to Vinay Chhabra, Regional Manager, RTDS, “Repairs and remote troubleshooting is a huge industry and the companies are offering remote help desk support and technical expertise through outsourcing model, which is cost-effective.” The company maintains a help desk with service engineering staff, and offers technical support to end users. One of the key companies in this segment that have grown significantly as a national player is RT Outsourcing. The company operates more than 400 service centres in 200 cities throughout the country. “In today’s highly competitive market, the customer doesn’t have the time to wait too long, and any hardware and software downtime is productivity loss to him. Any delay in delivery or longer turnaround time makes customer

JANUARY 2010

Tie-ups with partners

With the recent investment of Rs 65 crore from the US-based venture capital firm, New Enterprise Associate (NEA), RT Outsourcing is aggressively planning to expand its presence to support customers in electronic security products, high-end networking, integrated infrastructure management services, and building management and storage systems.

Channels partnerships have been the backbone of the company’s reach and expansion plans. RT Outsourcing plans to enlist more support through the franchisee model with channel partners. “We expect to expand our franchisee centres to more than 500 by the end of 2010,” says Moza. To bolster its support operations, RT Outsourcing recently initiated the Tech Gurukul programme for training engineers, science graduates and diploma holders in various technologies such as networking, GSM and CDMA, BTS installation, RF technologies, Windows Server, routers and switches. “Our technical training and development arm, Tech Gurukul provides franchisee model for channel partners for opening centres for training fresh graduates and engineers on job-oriented courses in various IT domains. We also train fresh graduates and engineers to provide our customers with a readily deployable workforce. This will be another of our major thrust areas of growth wherein we will be increasing our reach to all major cities through franchisees,” says Moza. With the recent investment of Rs 65 crore from the US-based venture capital firm, New Enterprise Associate (NEA), RT Outsourcing is aggressively planning to expand its presence to support customers in electronic security products, high-end networking, integrated infrastructure management services, and building management and storage systems. The company also figured in the list of Deloitte Technology Fast 50 India for the past three years. For the next couple of years, there seems to be no letting up for RT Outsourcing in particular and the whole repair outsourcing segment in general. n editor@digitchannelconnect.com

cover story Retail

LFRs

THE NEW

REALITY Large Format Retail chains are no longer an impending threat but something to live with for a majority of traditional channel partners

CHARU KHERA

DIGIT CHANNEL CONNECT

JANUARY 2010

cover story Retail

t’s been a couple of years since LFRs entered the IT products business in India and the brands—the likes of Croma, eZone, Staples, Jumbo, HyperCITY, Reliance Digital and P3—already seem to have emerged as strong competitors to the traditional IT channels. As per industry experts, besides ambience and space, the biggest advantage that LFRs offer is the variety of product range for consumers to choose from. LFRs also provide an enhanced, interactive environment for retailing products.

The new road No wonder then, the proportion of IT sales to end consumers through LFRs has changed. According to Rengith Nair, National Marketing Manager at Belkin India, “Vendors estimate that there has been more than 10 percent of yearly growth in the LFR sales in India. With LFRs, retail itself seems to be coming of age in India.” Belkin, a supplier of audio, video and computer cables, iPod accessories, and desktop and mobility accessories, currently works with 14 LFRs nationally—including Croma, Staples and

TIPS FOR TRADITIONAL PARTNERS n Presence n n n n

n n

of LFRs: Accept it for life long Give consumers what they demand: Understand their psyche Get support from vendors and gain their trust Be committed to serving your customers 24/7 Attract new customers by lucrative discounts/offers, good service support and innovative marketing Enhance your credibility in the market and create a niche for yourself Be innovative and create a differentiator between yourself and the LFR next-door Educate customers about the benefits of buying from dealers as compared to LFRs Don’t make your USP price-centric. Instead, take a service-centric approach Make optimum use of channel associations to get fair pricing and support from vendors Keep abreast of the latest market and technology trends and help educate customers

Jumbo, among others. Nair further says that LFRs provide consumers with a great choice and offer them a platform to conveniently touch and feel several brands and products from every category under one roof. There are several reports to prove that consumer behaviour undergoes a major change when consumers are given an opportunity to experience the products primarily because of the sense of satisfaction of being able to select a product after seeing how it works. The customer demand for wide choice has compelled most IT vendors to abandon or tone down their exclusive retail strategies. “Today most brands have designed their retail strategies to suit a multibrand environment. Earlier, IT vendors preferred exclusive stores to multibrand outlets. Even their traditional IT retailers too believed in the monobrand model. But with the arrival of LFRs, there has been a perceivable change in the thinking of brand owners,” says Nair. Visibility is another key factor that has compelled many a vendor to follow the LFR route. Stanley Wu, Country Head–Notebooks & Eee PC Business at Asus India, says that though Asus has always been present in the Indian market offering an array of products through the reseller route, the company has decided to take a direct go-to-market approach for the notebooks, something that LFRs are perfectly suited for. “The reason we have started focusing on LFRs is because of the visibility factor. The kind of visibility offered by an LFR store is at par with advertising in various mediums. It places products in the hands of the target audience very effectively. This gives the consumers a first-hand experience about gadgets and their efficiency,” he says, adding that consumers prefer to visit a large retail store for electronic products such as laptops, mobile phones and computer devices. A major benefit that LFRs have over traditional players is the range of products that they offer under a single roof and a cosy ambience. “Though the retail opportunity was already present in India (via a few traditional players) even before the advent of LFRs, these LFRs took advantage of the situation and started offering consumers a shopping experience that appealed to the customers quite well, particularly in large metropolitan areas,” explains

“Channel is left with no choice but to accept the entry and existence of LFRs. Most partners feel the brunt and have started looking towards alternatives available.” - NAISHADH DIWANJI, DIRECTOR, PACE COMPUTER CONSULTANTS, AHMADABAD

“LFRs are at advantage over traditional players only because they get best deals from vendors for doing bulk purchase.” AMIT SHAH AB INFOTEL, BARODA

Gareth Williams, Vice President - Sales, Emerging Markets, AVG Technologies. For this Internet security solution provider (AVG), LFR outlets represent an important route to market and therefore the company aims to continually work with LFRs to ensure that their products are well represented and are properly displayed. “We currently have associations with LFRs such as Croma, HyperCITY, Reliance Digital, and P3. Our research and experience indicate that most Indians typically prefer to buy a product via a retail outlet,” says Williams. However, he also believes that though LFRs offer numerous advantages to a vendor, the smaller resellers still play an extremely crucial role in the Indian IT market. “Clear, traditional players will remain a trusted option for both consumers and businesses,” he says.

LFRs: Friend or foe? For long, partners have been complaining about loss of business due to LFRs. As per industry observers, most LFRs buy products in bulk from vendors and distributors at lower price than the market-operating price (MoP) and sell the stock at lower prices as compared to small retailers. DCC spoke to some of these partners who believe that LFRs pose a big threat to their existence but there are few optimists as well who are of the view that these large outlets provide them encouragement to expand and be innovative in attracting new customers. Fortunately, partners tend to believe that while the LFRs did initially grab a substantial market share, things are looking brighter for traditional players once again. Many of the smaller partners that DCC spoke to expressed the need for channel partners to find their own niche and develop their own specialisations. And the mantra seems to be simple: Attract customers with good service support, try to get support from vendors and give priority to customers’ demands. “LFRs have impacted the traditional partners quite significantly and this change is more visible in entry-level products and accessories,” says Naishadh Diwanji, Director of Ahmedabad-based Pace Computer Consultants. He recalls that the initial reaction of the channel community towards these large retails outlets was very bad—almost violent.

DIGIT CHANNEL CONNECT

JANUARY 2010

cover story Retail However, he says that the reactions have somewhat subsided because of helplessness. “The channel is left with no choice but to accept the entry and existence of LFRs. Most partners feel the brunt and have started looking towards alternatives available. One of the most common solutions adopted is to buy and sell to end users with delivery, installation and service advantages. This worked initially but now

ASSOCIATION POWER n Various associations across India such as Delhi-based Progressive Channels Association of Information Te c h n o l o g y ( P C A I T ) B a r o d a Information Technology Association ( B I TA ) , M u m b a i - b a s e d Tr a d e Association of Information Technology (TAIT), Amravati Computer Dealers Association (ACDA) and Bhavnagar IT Association (BITA), among others, have often tried educating traditional retailers (through various roadshows, seminars, etc) with the ways to cope up with the huge losses due to the emergence of LFRs. n TAIT, to combat rising competition from LFRs has set up TAIT Retail Group that comprises 100 odd partners. The group is headed by Satish Bhatija. The association has even conducted various seminars in Mumbai to educate partners about the survival strategies that can help the community survive the cut-throat competition posed by LFRs. n Pune’s Computers and Media Dealers Association (CMDA) has gone a step further and rather than seeing LFRs as a threat, the association has decided to set up an IT mall in Pune to counter the situation. Similar efforts have been taken by BITA, which does not want LFRs to stop selling in Baroda and instead has shown willingness to do business in association with LFRs. The association spokesperson (in a press statement) said that there should be a middle way where both sectors should not suffer and a way out can be that partners should deal into corporate products whereas LFRs can focus on home customers. n A few associations such as South Gujarat Information Technology Association (SITA) and Gandhinagar IT Association (GITA) have in the past boycotted vendors (such as HP) from pursuing special policies for the LFRs.

DIGIT CHANNEL CONNECT

even LFRs are offering the same,” he says.

What the partners can do So, what will make the traditional players win over LFRs? Partners suggest that team work, personal care to customers, credit facility to referral customers, corporate business as well as service and solution support can together help the channel community win back their IT market share. According to Vinesh Modi of Suratbased Roman Telecom, “Channel players should serve customers better, give them customised solutions and provide a personal touch.” He also suggests that traditional players should analyse the tactics followed by LFRs and then see what it is they can offer better and how. A good example can be to offer operational assistance with any electronic gadget—be it PC, mobile, LCD or projector. Another way to attract more customers is to bundle products and create value offerings. Partners also need to constantly invest in the business to grow it and improve the quality of service through proper training, marketing and servicing. Rajat Chadha, a tech enthusiast (DCC caught up with him at an LFR store), says, “Personally, I will buy from the place where I believe I will get best advice, service and support, coupled with what I see as a fair price. An advantage with a traditional partner is that most often these stores have skilled employers that have a better understanding of the product. In most [traditional] retail outlets, the back office job is done by the retailer himself.” Voicing the concerns of the retailers in Baroda, Amit Shah of AB Infotel says that LFRs are at an advantage over traditional players only because they get best deals from vendors for doing bulk purchase. “Are LFRs maintaining their bottomline is a question, but they are certainly damaging the bottomline of most traditional partners. Sales executives at these LFRs treat customers as a commodity. People who visit these big stores often complain about multiple service issues. Thus, retention of consumers will be a big concern for these LFRs in future,” he says. A recent development on the LFR front is that the stores are launching their own brand of IT products. For one, Croma recently unveiled its own PC brand. And while the company

JANUARY 2010

“There has been more than 10 percent of yearly growth in the LFR sales in India and with LFRs, the retail itself seems to be coming of age in India” RENGITH NAIR, NATIONAL MARKETING MANAGER, BELKIN INDIA

“The reason we have started focusing on LFRs is because of the visibility factor. The kind of visibility offered by an LFR store is at par with advertising in various mediums.” STANLEY WU COUNTRY HEAD–NOTEBOOKS & EEE PC BUSINESS, ASUS INDIA

plans to have only a few models to begin with, eventually it is looking at expanding the product range. This may create competition with the vendor products that Croma stocks and, in the process, compel those vendors to divert the pricing support to traditional channels. Another bright aspect for channel is that these large stores are also part of the channel fraternity. These chains mostly buy products from the very IT distributors who also cater to the traditional channel network. So if IT sales through LFRs go up, disties that supply to these stores stand to benefit, too. On the flip side, many vendors have restructured their channel teams, orienting them more toward LFRs than local partners. The old, familiar bonds that many resellers used to have with vendor execs are wearing off to some extent. “Most of the senior players in the channel community believe that their role is now limited and their business will be dwindling very soon,” says Diwanji. The respite for the channel, he says, is to spread to talukas and smaller towns where LFRs don’t exist and cannot operate profitably. All the same, large stores have started to encroach on reseller turf. Besides selling to end users, many are now reaching out to corporate buyers. This is like a double whammy for traditional partners, who are already reeling from direct approach to their business accounts by some vendors. In spite of the growing might of LFRs, traditional channels cannot be written off. According to Williams of AVG Technologies, “We will see continued growth of LFRs, particularly amongst people who are new to IT or who are looking for bundled offerings, which are often typical through LFRs – although I do not believe that this growth will necessarily come at the expense of smaller outlets that are able to provide local, personalised levels of service and support together with more customised packages.” With more LFRs stocking IT products and more outlets opening in big cities beyond the metros, the IT sales proportion of LFRs in the overall domestic pie is bound to increase in the next few years. In order to survive, traditional partners must keep their ear to the ground and continually adapt to the changing market dynamics. Keep watching this space. n charu.khera@9dot9.in

vendor speak Microsoft India

“WE ARE CONSTANTLY TRACKING SALE OF PIRATED WIN7 CDs” Sant shares with Charu Khera some of the key initiatives that Microsoft has taken to prevent the piracy of Windows 7 in India

DCC: Microsoft has made significant investments to educate customers as well as partners to curb piracy. Please share some details.

Microsoft believes that obtaining and using pirated software can pose a serious security threat to organisations and individuals. Often, counterfeit software is bundled with malicious and unwanted software that can lead to a corrupted system, a loss of data, and even identity theft. Thus, Microsoft has adopted a focused approach of Education, Engineering and Enforcement (EEE) to counter piracy. The endeavor is to work with customers, businesses and partners to drive awareness for piracy as an issue, and to educate them on how they can

work towards minimising this menace. Access to original software is one of the most critical elements to reduce piracy in India and thus we have undertaken various initiatives. We have an online portal called eCommerce Platform (www.buyoriginalms. com), which is a one-stop shop for all Microsoft FPP (Retail Packs) products, including Windows 7, Windows Vista, Office, Servers and XBox and games. DCC: What initiatives has Microsoft taken to prevent the piracy of Win7?

Prior to the launch of Windows 7, we conducted a 16-city partner roadshow that aimed to educate partners on the new operating system. More recently, in partnership with TAIT, Microsoft

Access to original software is critical to reducing piracy and we have taken the initiative to provide original software online and telephonically.

—Vipul Sant, Director – Original Software Initiative, Microsoft India initiated a campaign entitled 4G to prevent its piracy in the market. DCC: Have there been instances where you have caught partners selling pirated version of Windows 7?

We have been constantly tracking the sale of pirated Windows 7 CDs by collecting samples from across the country. We found that 88 percent samples were Windows 7 beta versions that had already expired on 1st August, 2009. But none of these samples of Windows 7 could get installed. We will continue to keep a watch. n charu.khera@9dot9.in

channel Q&A

“A MAJOR CHALLENGE IN DISTRIBUTION IS THE OPTIMUM UTILISATION OF RESOURCES” VK Bhandari, Chairman & Managing Director, Supertron Electronics

In an exclusive interview to Soma Tah, Bhandari shares his business expansion plans for 2010 and talks about some of the key challenges and roadblocks lying ahead DCC: It’s been almost three years now since you stepped into the national picture? Has the move really paid off?

We had plans for going national from day one when we started getting our name associated with various brands, but instead of hurrying our way, we chose to do it in a phased manner. But in the last three-four years, we decided to consolidate as a national distributor as we have the strength, experience, expertise and resources that we could utilise. I feel it was the right decision at the right time and that is why we are in the top 10 bracket of national distributors today in India. DCC: How do you view the national distribution scenario in India in the current economic climate? What growth prospect do you see in the upcoming quarters?

Rather than mere fulfilment, the national distribution model in India is more about contributing to the sales and marketing of products and in focused distribution both have very important role to play. Growth prospects for distributors at our level are in tandem with the industry growth. Introduction of new products and having new tie-ups further enhances the growth rates for a distribution organisation. DCC: What are the key challenges national disties face?

The key challenges for any business are common, be it at the city level or state level or national level.

DIGIT CHANNEL CONNECT

Everybody is working on wafer-thin margins and is exposed to credit threats. However, one of the major challenges also lies in the optimum utilisation of resources. In distribution, one cannot afford to be relaxed. DCC: Being headquartered in Kolkata, do you face any particular disadvantage from the operational or logistics perspective?

No, we do not see any disadvantage in the same. In today’s scenario the information flow is so fast that one hardly comes across any problems on the operational front. Kolkata office is for the back office operations, finance and administration only. We have a few of our product managers operating out of Delhi and as far as logistics is concerned, our warehouses and billing locations are spread across the country to have seamless operation. Imports are also being done at various ports. DCC: You have recently broadened your brand portfolio by adding more products to your kitty. What growth prospects do you foresee with these moves?

We keep adding products to fuel our growth prospects. It is not that the introduction of new products has in any way disturbed our growth or switched our focus from any existing product lines, but they have actually furthered our growth prospects. We have an extensive product basket with almost all the components, peripherals, desktops, laptops

JANUARY 2010

Rather than mere fulfilment, the national distribution model in India is more about contributing to the sales and marketing of products. The rules of the game for our own brand and distribution are different and in the current structure there is hardly any overlap between the two.

right now. Perhaps printing and imaging is the only products category that has remained untouched by us so far and could be added in the days to come. DCC: Being a national distributor, how do you do justice with your own peripherals brand?

Supercomp and Solitaire - our two brands are managed entirely by different teams and that has nothing to do with our distribution business. The rules of the game for our own brand and distribution are also different and in the current structure there is hardly any overlap between the two. DCC: Is there any geographic expansion plan on the cards, too?

Yes, we have expanded our branch network by opening offices in Raipur, Chandigarh and Ludhiana last year and now we have presence across all locations in India except Goa and J&K. We would like to increase our presence in most of the upcountry locations to move much closer to the customer and to have a better grip on the business. To build a strong relationship with partners in the secondary markets, we have already started opening up satellite branches in upcountry locations like Kolhapur, Nasik, Surat, Hubli, Calicut, Faridabad and Jamshedpur, among others and we will open some more this year. These branches will be controlled by the main branches nearby. n soma.tah@9dot9.in

special report M

onitors

The

SCREEN Lights Up

The picture of the monitor market is brighter and clearer than ever before – all thanks to LCDs TAMANNA AHUJA

5000000

4000000

t is sleek, fast, good looking, powerful, economical and currently a rage. What we are referring to here is the LCD, which has taken the monitor market by storm. LCD has changed the face of the monitor market in less than two years. The shift from CRT (cathode ray tube) to LCD (liquid crystal display) in India began

India LCD Monitor Market

somewhere in the year 2007. In 2009, the 3000000almost complete; so much so, shift seemed that the industry experts claim the ratio of LCD to CRT to be as astonishing as 95:5. 2000000 With those figures in purview, everyone would argue that CRT is dead. And the fact 1000000 that several CRT manufacturing plants have already seen the sun go down upon them 0

India CRT Monitor Market

(unit shipments) 3500000

4,800,218

5000000

4000000

3,733,517

3,273,896

(unit shipments)

3000000

4,032,156

2500000

1,867,263

2000000

3000000

1500000 2000000

1000000 1000000

Year 2007 Year 2008

January to September 2009

Source: IDC’s Asia/Pacific Quarterly Monitor Tracker, Q3 2009, December 2009 release

3500000

252,960

500000 0

Year 2007

Year 2008

Jan to Sep 2009

Source: IDC’s Asia/Pacific Quarterly Monitor Tracker, Q3 2009, December 2009 release

corroborates the observation. However, the question is, has Armageddon really struck the CRT technology? Or is there still hope for a second coming? Is LCD the answer to all monitor woes? And what is the future of the thin screen? The monitor market is bubbling with these questions. And now that we have found the questions, we shall try to provide answers as well.

Thin versus curvaceous Hold on! We are talking about the monitors here. However, when it comes to striking a comparison between the sleek and the rounded monitors, the sleek is definitely on a high. The LCD seems to be scoring on all fronts, including shorter response time or no flicker display and lesser power consumption or high definition picture quality. Seeing the enthusiasm for LCDs in the market, most players, including LG, Samsung and AOC, cut down on CRT production last year and concentrated on LCDs in a big way. While this came as bad news for the CRT market, it did result in a lot of innovation in the LCD arena. A lot of R&D went into the development of the LCD monitors. Although R&D was done primarily to create a niche product and USP in the market, the outcome led to interesting and innovative LCD monitors. LG led the R&D front, and climbed several

3000000 2500000 2000000 1500000

DIGIT CHANNEL CONNECT

JANUARY 2010

special report M

onitors

Top 3 Monitor Vendors in India LCD + CRT Combined (market shares % in terms of unit shipments)

18.1% 44.7%

14.5%

Acer

Technologically yours

12.7% Others

Samsung

Source: IDC’s Asia/Pacific Quarterly Monitor Tracker, Q3 2009, December 2009 release

NUMBERS ON THE SCREEN n According to IDC, a total of 6.6 million monitors were shipped in India during 2008. n More than 70 per cent of the monitors were LCD monitors. n While the overall monitor market shrunk by 1 per cent in 2008, LCD monitors recorded a growth of close to 20 per cent. n The sale of CRT monitors fell by more than 50 per cent. n The market leader in the standalone monitor segment is LG with close to 30 per cent market share. n In the bundled segment, it is HP with around 30 per cent market share. n The total monitors market in India is around Rs 4,500 crore. n Around 55 per cent of this market comprises stand-alone monitors.

steps to become the market leader in the monitor segment. A lot of efforts also went into creating unique marketing campaigns. A clear example was set by LG with the launch of its maiden television commercial on LCD monitors featuring microscopic picture clarity. The action resulted in tremendous brand recall among end users and helped LG to increase its market share. TPV Technologies is another company which successfully turned AOC into a brand to reckon with. With so much happening in the LCD space, the CRT screen remained virtually unstirred. Though most industry watchers are predicting the end of CRTs, some analysts aver that they will survive, if only in a restricted market.

DIGIT CHANNEL CONNECT

According to George Paul, Executive VP, Marketing, HCL Infosystems, “CRTs tend to be used in certain typical areas that demand it. Medical, for example is one field where contrast and shape is very important. Therefore, the requirement for CRTs remains in fields like medicine and animation.” However, he also agrees that except in these specific areas, CRT adoption is dying down.

Behind the LCD hype lies some serious technological innovation. And come to think of it, the technology used in LCD has moved leaps and bounds since the time of CRTs. According to Paul, one major trend that LCDs have bought about is the shift from CCFL to LED-based monitors. Another technological advancement is in terms of graphics. Most of the LCDs available in the market today boast of high-definition picture quality. The display technology is also advancing rapidly towards 3D graphics. The latest industry trends include16:9 aspect ratio, 50,000:1 or higher dynamic contrast ratios, resolutions supporting full-HD view, display interfaces such as HDMI and DVI, inbuilt webcams, speakers, faster response times (12-16 milliseconds) and wide viewing angles (170 degrees plus). There has also been a shift to 2-lamp technology with even lower power consumption compared to the traditional 4 lamp. Refresh rates have gone up to 120 Hz, at which the monitors can support 3D view. As per Daya Prakash, CIO, LG Electronics, one technology that LCDs have really brought to the fore is heat dissipation. LCD monitors dissipate much less heat when compared to their CRT counterparts. “Owing to higher wattage, CRT monitors consume more energy than LCDs and hence dissipate more heat,” says Prakash. These days most IT manufacturers are turning to RoHS (Restriction of Hazardous Substances) compliant products and LCDs are no exception. Some of the leading monitor vendors such as LG, Samsung and HCL are fully RoHS compliant and are doing their bit to keep the world green. Power saving is another benefit that is now becoming a part of the LCD package. According to Prakash, a standard 17-inch LCD consumes about 30 watts of energy when it is switched on, as compared to 73 watts consumed by CRT in a similar mode.

JANUARY 2010

The figures become more interesting in the standby mode. While a CRT consumes 15 watts in the standby state, LCD consumes only 1 watt!

The channel story

“Owing to higher wattage, CRT monitors consume more energy than LCDs and hence dissipate more heat.” DAYA PRAKASH, CIO, LG ELECTRONICS

The market sentiment is clearly in favour of LCDs as far as sales are concerned. “In the market, people are only demanding LCDs. CRT is like an end-of-life product,” says Subjash Karak, Sales Manager of Challenger Computers. He says that the company is selling around 2,000 monitors per month and out of these, only five-odd are CRTs. The rest, he says, are LCDs. Ask him if the consumers are asking about any new things within the LCD domain and he says that the latest LED is creating ripples in the market. Somesh Narang, CEO of Elcom Trading, has a similar story to tell. He insists that CRTs are now redundant. “Like no new system is coming with XP operating system, similarly, no one is buying new CRTs.” He goes on to add that organisations whose refresh cycles are due are also now going the LCD way and are getting rid of their CRT monitors in a phased manner.

Through the crystal ball

“In certain areas medical, for example contrast and shape is very important. Therefore, the requirement for CRTs remains.” GEORGE PAUL, EXECUTIVE VP, MARKETING, HCL INFOSYSTEMS

So, what is in store for the monitor market? For one, 2010 is expected to see an (almost) absolute shift to LCD screens, thus making CRT a thing of the past. Some analysts are of the view that technology shall make possible LCDs that will replace the CRTs even where they are indispensible as of now (like in medical applications). Another futuristic trend is the allin-one phenomenon. Monitors with advanced capabilities that merge the TV and the computer screen and yet are sleeker than ever are in the works. And yes, monitors are expected to take the “touch revolution” even further. Although HP did experiment with touch monitors last year, it didn’t get as much traction from consumers as one would expect. But touch remains a very promising technology with immense benefits. For one, the new touch technology is said to take care of the calibration issues dogging the use of monitors for precisiondriven applications. With advances like these and more reaching consumers and businesses through LCD monitors, the future of those dealing in LCDs can only get lighter yet brighter. n editor@digitchannelconnect.com

outlook 2010

LOOKING BACK, LOOKING AHEAD

Raj Kumar Rishi

A snapshot of some vendor messages for channel partners DCC received at the beginning of 2010

Director, Inkjet and Web Solutions and Consumer Business, IPG, HP India

George Paul

Executive Vice President HCL Infosystems

ur recently announced initiative ECC (Enterprise Commercial Channel) has received an overwhelming response from partners and we thank them for all their support. Partners are seeing opportunities beyond boxes with us and investing in solutions and application sales. This is a positive sign and hope we can collaborate with all our partners in driving success for their businesses in 2010 too. We welcome all new partners to join hands for our ECC platform and enable a sustainable business for tomorrow.

Sambamoorthy

Senior General Manager - Sales & Marketing, Epson India

pson has been present in India for a little over 10 years now and we have grown in leaps and bounds. With a value market share of 19.5 percent (as per IDC), we are a strong number two in the overall printer market in India. For other segments, we will be looking to more actively connect with the end consumer to convey the clear benefits of using an Epson product. Engagements with partners at different touch points will be the key. I take this opportunity to thank you, esteemed channel partners, for taking us to this strong position in which we are today.

t HP India, we treat our channel

partners as an integral part of the company. Currently, HP has a footprint in over 300 cities with more than 3,500 channel partners. Channel education will continue to be an intrinsic part of our strategy and we will focus on increasing our engagements with them. We are channelising our energies towards growing our partner network, introducing new products and services, improving partners’ profitability and expanding our reach in more cities across the country.

I would like to take this opportunity to thank all our channel partners for their continuous support toward HP India.

Abhimanyu Gupta Director Actis Technologies

Aries Kiosk

he audio visual industry is one of the fastest growing sectors in India. And to stay ahead of the pack it has become business critical for vendors to build as well as sustain solid channel partnerships and alliances. Our partners have been with us for over two decades now and have played a significant role in helping us elevate our market position. We are now known as India’s most trusted AV specialists, and we thank our channel partners for the teamwork and support they continue to provide, which has made us what we are today.

POS TIII Printer

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Authorized distributors Kolkata :- Pushpam

Contact : Shantanu Das 9331267018. email : pushpamkolkata@Pushpam. com

Nashik :- Vertex Systems

Indore :- Magnum Computers

Hydrabad :- Distinct Solutions

Chennai :- Computer Planet

Contact : Tushar Rahane : 942252166, Sujit Kulkarni : 9422252165. email : sujit@vertexindia.com Ph:- Landline:040-66339273/74-66382374, Mr. Manish(M)9391012215), Mr.Sushant,9346769245. E-mail: distsol@gmail.com, sushant.gchembram@gmail.com

DIGIT CHANNEL CONNECT

Ph.: 91-731-2516003, 91-731-2527504 Contact : Mr. Prithvi Wadhwani 9826038677. email : saitech@sancharnet.in Contact – Vinod 98409 52976 Sanjay – 98847 84929 – Direct – 43227474. email : complan@vsnl.net

JANUARY 2010

outlook 2010 Navin Jacob Mathews

Ben Corser

s we enter 2010, we can look back at a year in which we made steady progress and gained the trust of our customers. This would have been impossible without the support of our partners who showed a high degree of competence in carrying forward our value proposition in the Manufacturing, Banking, Software, Telecom and other verticals. We would like to thank all our partners for consistently exceeding customer expectations and look forward to a lasting association. We wish you all the best for 2010.

ndia has been one of the highest performing markets for RSA globally from a growth perspective in 2009. Our partners have significantly contributed to this growth. RSA acknowledges this contribution and would like to thank them for their continued support. In 2010 specifically, we are anticipating a fairly significant continued spend in security. Certainly, the cloud and virtual environments have become important areas of focus around security. We are closely aligning ourselves with those partners who have strong strategic engagement around security practices. At the same time, we are empowering our channel to go to market with the most effective solutions and the end-to-end RSA approach to meet their customers’ needs.

Sunil Kripalani

Rajan Sharma

would like to wish my channel partners a happy and prosperous new year. We at eScan have introduced quarterly incentive scheme due to the tremendous encouraging response that our four schemes have received in past year. The four schemes that worked are Golden Bonanza, Monsoon Bonanza, Festival Bonanza and New Year offer for customers. Our partners have been the last mile of connect to our customers and hence we invite them to be associated with eScan for better return on their investments (RoI) and a longstanding relationship. Partners can also equip themselves and become AV specialists through our regular training program and increase their bottom-line with the same. We would like to wish them great success in 2010.

t Gigabyte, we acknowledge that our partners have played a pivotal role in bringing the company on a growth path in India. Gigabyte motherboards are today fast becoming a household name in all A, B and C-class cities. The credit for this popularity lies with our network of channel partners and resellers. We would like to thank our partners for the immense support and trust they have shown for us all through the year 2009. The year 2010 will see a lot of new platforms and technologies being launched. Gigabyte will focus on 333 series promoting and educating channel on 333 acceleration, USB3.0 and SATA3.0 products. We will focus more on upcountry, non-metro locations for increasing our reach and visibility.

B Raghavendran

Rajesh Goenka

Channel Director - Asia Pacific and Japan EMC Corporation

Director Sales - Enterprise Networks ADC Krone

VP - Global Sales & Marketing eScan

GM, Sales & Marketing, MB & VGA Business Unit, Gigabyte India

VP - Channel Operations & Commercial Strategy Cisco India & SAARC

n India, almost all of Cisco’s business is done through channel partners and thus, it’s of paramount importance to ensure that our partners accelerate growth, differentiate their business and increase profitability using Cisco certifications, specialisations and incentives. In 2010, we plan to evolve our Partner Programs and incentives to increase Cisco’s relevance for all partner types – resale, technology and service-led, and expand our offer types to meet the needs of our partners and customers. Cisco will also help its partners navigate the current economic storm, while positioning them to accelerate during the upturn. We will continue to offer our partners a six-month channel financing stimulus program to provide the working capital partners need to grow their business. Furthermore, we will be evolving our Value Incentive Program (VIP). We wish all our partners great success in 2010!

DIGIT CHANNEL CONNECT

JANUARY 2010

VP – Sales & Marketing, Rashi Peripherals

he year 2009 started on a slow footing but as time progressed we saw improvement in the business month over month with the channel fraternity using the downtrend to clear ageing inventories, correct payment cycles and improve their margins. The year 2010 will be a good year with steady growth for partners. To bring in the good year, at Rashi, we launched the fifth edition of our annual channel event, Channel Business Forum, last year, which will continue to run up to mid February 2010. CBF V is based on a theme - ‘It’s time to change’ wherein we are urging and training our partners to adapt to new technologies, new products and better brands. We are also looking at adding a few products to our kitty to provide a fuller basket of solutions. We urge partners to plan their finance and infrastructure on the basis of lessons learnt in the last year and work towards a better tomorrow. Have a great 2010 ahead.

outlook 2010 Princy Bhatnagar

Puneet Datta

e at Xerox India share a great relationship with our partners. The growth has been mutual; we have grown in India and have helped them grow in their businesses. We expect 98 percent of revenues to come through partners in 2010. With support from channel partners and three concrete growth planks, viz driving enterprise customers towards business efficiency solutions; being technology provider in solution space and Government; and aligning channel training needs to drive solution selling approach within existing partners and new partners, Xerox India is poised for a growth story in 2010.

hroughout 2009, we witnessed a series of success and our partners played a key role in the growth of our business. We constantly engage with our partners to educate and evangelise them. In order to take our relationship to the next level, we have regrouped the existing and new partner programs under one umbrella titled “ROCKS”. With the aim of enhancing partners’ skills and enabling them to climb the value chain, we have launched Gurukul program. We would continue to launch such innovative programs for our partners throughout 2010. We wish our partners great luck in 2010!

Vinay Shetty

Gaurav Kanwal

Director, Office Business Group, Xerox India

Senior Marketing Manager, BIS Division, Canon India

Country Head – Component Business, Asus India

Sales Manager, Consumer Products & Solutions, Symantec

sus would like to thank all partners who have supported the company throughout 2009. The aim now is to discover new heights of success in 2010 with focus on increasing business and profitability for our partners by taking further our concept of ‘Selling Right, Selling More’. We are also looking at growing our Asus family and urge all partners to join us. We will be extending our focus to B-, C- and D-class cities. I wish you all the very best for the year 2010 and pray that the year becomes a landmark year for the entire IT industry in India.

t Symantec, evolving the channel strategy is an ongoing process. We place strong emphasis on educating our partners with information on emerging Internet threats. With such information, our partners can provide recommendations to customers. Programs such as the Norton Champs have met with tremendous success and will continue in 2010, wherein channel partners get rewarded for contributing to Norton’s business. Thanks to our partners, we continue to succeed in helping our customers secure and manage their information.

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DIGIT CHANNEL CONNECT

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outlook 2010

Manisha Sood

Country Manager, SanDisk India & SAARC Region

hannels play an extremely significant role in furthering the growth of flash memory in India as they act as a bridge between SanDisk and its existing, potential and prospective customers. SanDisk portfolio includes mobile camera cards and USBs. We are hence present in photo channels, mobile channels, IT channels and consumer electronics channels in order to popularise our products in each category. SanDisk is the only company in India in this category that has taken the responsibility to train and educate channel partners about high-end and high-capacity cards, their benefits and the burgeoning demand for USBs and memory cards. For 2010, our endeavor is to extend our product portfolio and channel partners will play an instrumental role in creating awareness about our products. We, together with our channel partners, would be focusing at growing the flash memory market in India.

Vishak Raman

Regional Director, Fortinet SAARC & Saudi Arabia

he year 2009 saw dynamic changes for Fortinet and this would not have been possible without our valued partners and their much appreciated support. In 2010, we will continue to accelerate our presence with the best-in-breed security technology, in order to align closely with the channels and our end customers to address the key challenges and security pain points in key industry verticals such as finance, government, service providers, education and so forth. Another key area of focus is to leverage on the momentum Fortinet has in the channels and jointly continue to help more end customers secure their networks in a very effective yet cost-competitive manner.

DIGIT CHANNEL CONNECT

JANUARY 2010

Rajesh Sahore

VP - Channel development, D-Link (India)

he year 2009 was challenging for the IT industry. Our core objective in 2010 is to strengthen our position as an end-toend Networking solution provider. Our key agenda will be to reach untapped market and create more awareness and for this we will have to continue to work closely with our partners. In 2009, we announced various campaigns, including ‘bits2009’ and ‘D-Link Premier League (DPL) for partners. 2010 will be no exception and partners can look forward to many such campaigns. We have already launched ‘Global partner program’ and ‘Sales Pro2010’. I believe that throughout 2010, partners should invest in upgrading thier skills to succeed.

events Comp-Ex 2010

Destination IT -

Nagpur 2010

Nagpur Municipal Commissioner Aseem Gupta lighting the lamp

Vidarbha association’s recent expo was billed as the largest IT event in central India SOMA TAH

idarbha Computer and Media Dealers’ Welfare Association (VCMDWA) recently concluded the first chapter of ‘Destination IT- Nagpur’ in the central Indian city in Maharashtra. The concept was jointly developed by VCMDWA and Nagpur Municipal Corporation (NMC) and it was a one-of-its-kind event solely intended to make the city a key IT destinations in India. The official inauguration took place on January 14 at Hotel Centre Point, where the event was flagged off by Sachin Pilot, the Minister of State for Information Technology, in the presence of the association members, industry executives as well as other representatives from the local government bodies. Among those present were Subrotah Biswas, Country Head of Logitech; Nitin Kulkarni, VP of Persistent; Aseem Gupta, Municipal Commissioner of Nagpur; and Prashant Ugemuge, President, VCMDWA, to name a few. The inauguration was followed by a brief ceremony of ‘Comp-Ex 2010’, which finally set the ball rolling for the five-day consolidated event comprising the product exhibition and a series of business and IT career seminars. Explaining the rationale for holding events like ‘Destination IT’ in Nagpur for the first time, Ugemuge said, “It can be a great knowledge-sharing platform for people who make business decisions in organisations to and will help them make informed decisions. The city houses a large number of cooperative banks and manufacturing facilities, especially from the steel and cements industries, which have considerable IT-automation and infrastructure requirements for the IT indus-

Audience at one of the sessions at Comp-Ex

A jam-packed career session in progress

DIGIT CHANNEL CONNECT

JANUARY 2010

events Comp-Ex 2010 try to flourish in Nagpur in future.” An IT directory-cum-souvenir was released on the occasion, which contains useful information on the important local bodies (government and trade), IT and ITeS companies, technical training, etc. The event was co-sponsored by Maharashtra Airport Development Company (MADC), Maharashtra Industrial Development Corporation (MIDC) and Nagpur Improvement Trust (NIT) and supported by the Government of Maharashtra.

Multi-faceted agenda The event clubbed together four key agenda items – Comp-Ex, Business Seminars, IT Career Seminars and a Live CEO Talk session by CNBC – in one compact package. The association has been holding Comp-Ex twice a year for the last three years and this was the 18th edition of the expo. All products were on display at about 24 pavilions and 91 stalls at the venue along with a range of Internet solution products, educational software, antivirus solutions, games, etc. Though the stalls have been made spacious and the prices of the stalls have been decreased, the all-inclusive budget for the entire event has increased by more than 50 percent and reached about 1.25 crore mark this year. “We got an encouraging response from the principals and the previous participants. Almost all the stalls have been booked on the first day of the booking,” said Ugemuge. However he voiced the concerns of not having the right facilities to hold such large-scale events or conventions in Nagpur. The association is in discussion with the state authorities on the project and is hopeful of coming out with a formal statement in this regard within the next six months. IT Business Seminars were meant for matured IT users, who want to understand the latest trends and technologies from the IT field. About 12,000 students attended the seminars. The topics of the business seminars covered the areas like security solutions, data storage, IT infrastructure management, enterprise collaboration, Green Ethernet, data centre, wireless networking, imaging and printing, etc by the executives from HP, Symantec, D-Link, Computer Associates, Persistent, Emerson, etc. Around 2-2.5 lakh people attended the five-day expo. n

Proud members of VCMDWA

Sachin Pilot receiving a memento at the inaugration of ‘Destination IT’

soma.tah@9dot9.in

Subrotah Biswas of Logitech speaking at the event

Showcasing the IT directory released at the event

DIGIT CHANNEL CONNECT

JANUARY 2010

VCMDWA President Prashant Ugemuge addressing the gathering

Gathering at the inauguration of Comp-Ex

vendor speak Siemon

“THE CHALLENGE IS TO CONTINUOUSLY INNOVATE TO OUTLAST THE COMPETITORS” - Carl N Siemon, President and CEO, Siemon

One of the leading global network cabling players today, Siemon boasts of over 400 active patents and a huge R&D focus. Carl Siemon shares the company’s strategy with Jatinder Singh DCC: Siemon is expanding its presence in the global market. In view of this, how challenging is it to stay flexible to adapt to regional market conditions?

I believe it is more of an advantage than a challenge. In the past few years, the main focus was on the core global company values. Over the past 7 years, we have invested heavily in our global expansion and added over 25 offices and R&D operation centres worldwide. To set things straight, we see all our regional operations as a single global unit. It helps us to leverage assets and expertise around the world and multiply our effectiveness. For instance, if a global enterprise account adds a location in India, the local sales and technical services group can reach out to their counterparts in the other regions to gain knowledge and leverage information on the account and successes in other regions. This pooling of information enables us to provide consistent solutions to our customers and partners in a better way. DCC: Innovate or die is the golden rule followed by solution providers across the globe today. How well does Siemon understand this?

Innovation is definitely a critical component if one has to outlast the competitor in the present day market conditions. We therefore, consistently innovate and engage with industry bodies and development organisations such as TIA, ISO/IEC, IEEE and BICSI, etc, to understand the key business requirements of the customers. This

DIGIT CHANNEL CONNECT

helps us to bring in the best of breed solutions for the end user. For example, Siemon’s category 7A TERA connector interface was standardised by ISO/IEC, way back in 1999. This fully shielded solution is still the best performing twisted-pair copper cabling system available in the industry and is being considered for speed beyond 10Gb/s. So customers who installed our TERA system in the last 10 years still have a future-proof solution that will last them as long as, or even longer than, any industry-standard copper cabling system installed today. Moreover, in the past year alone we have launched innovative products across all of our product families – which includes the Z-MAX copper cabling solution, XLR8 pre-polished fibre connectors, enhanced MTP-based fibre solutions, MapIT G2 next-generation intelligent infrastructure management, and VersaPOD data centre cabinet solution, etc. These products were specially developed to meet the global customer and market needs. DCC: Pertaining the economic slowdown, what are the challenges and opportunities that you foresee for the channel community?

The recession did slow down the growth to a certain extent; however, there are several opportunities as far as the structured cabling market is concerned. IT-driven enterprises such as data centres, knowledge centres, BPOs, and disaster-recovery centres are fuelling the growth of

JANUARY 2010

Innovation is definitely a critical component if one has to outlast the competitor in the present day market conditions.

We do plan to launch a few of our latest offerings in the Indian market. As far as technology is concerned, we will continue to update both our customers as well as partners on the developments besides offering the latest technologies to the Indian structured cabling market.

structured cabling in India. Highbandwidth and high-speed demands are pushing the limits of data transmission in LAN networks. India is a huge market for us. The demand for advanced applications such as fast Ethernet and gigabyte Ethernet are pushing cabling solutions to reliably transfer voice, video and data information. The challenge is to continuously innovate as per the market needs and there lies our main focus. DCC: What are your plans for an India centric channel in FY 2010-11? What are the major focus areas?

We soon plan to launch our latest offerings in the Indian market. As far as technology is concerned, we will continue to update our customers and partners on the developments. We will also focus on educating our customers so that they can take wellinformed decisions and add value through design assistance and technical expertise. Besides, we plan to leverage our knowledge and successes within the global accounts to position ourselves locally. Siemon will continue to invest in resources and expand its partners in India. This will help to grab a high market share in the near-term and prepare for a certain rebound. Nonetheless, we are committed to focus on R&D and bring innovative and futuristic products to the Indian and global market as well. jatinder.singh@9dot9.in

guest expression Storage

Choosing the Right Storage

TECHNOLOGY Taking the risk and cost factors of various storage technologies into consideration can help you choose the one that fits your needs as well as budget Satheeshiyer

usinesses are subject to a new wave of regulatory compliance legislation that directly affects the process of storing, managing and archiving data. Although the need for storage is evident, it is not always clear which solution is right for the organisation. There are a variety of options available, the most prevalent being Direct-Attached Storage (DAS), Network-Attached Storage (NAS), Storage Area Networks (SAN) and Unified Storage Systems (NAS + IPSAN + Backup). Choosing the right storage solution can be as personal and individual a decision as buying a home. There is no right answer for everything you choose. Instead, it is important to focus on the specific needs and long-term business goals of the organisation directly. Let us understand how the technology need and business goals differ according to the size of the organisation.

The need for networking I can see many enterprises still using DAS as there is a value of sharing IT resources is high. However, the majority of storage for application servers is still on DAS (It may make the economic sense for some environments and it can become a management nightmare as the requirements and capacity grows). Since the DAS is a point to point device, it cannot have data stored from

DIGIT CHANNEL CONNECT

a centralised server, and as the value of data increases on day to day operations, the size of the data gets increased and finally there is a need for higher storage. In today’s fast paced environment, there may be even greater consequences, the more DAS systems, greater the risk. Since DAS is a single point of failure, the applications become unavailable and process of taking backup becomes tedious. So the majority of companies cannot tolerate more than four hours of downtime on average for mission-critical applications without a serious negative impact on their business. Unified Storage/SAN provide various levels of high availability and reliability. Unified Storage/SAN systems typically are not single points of failure. In the unlikely event of a failed storage controller, a redundant controller still provides access to the data. Unified Storage/ SAN systems can be typically used as a centralised storage server. Additionally, Unified Storage/SAN systems provide advanced functionality such as snapshot technology and remote mirroring. DAS systems are inefficient in their utilisation of physical storage because they are unable to share resources. For example, one DAS system can be 70 percent full while another is only 30 percent utilised. Unfortunately, with DAS, the system that is 70 percent full cannot share capacity with the

JANUARY 2010

SATHEESHIYER

Choosing the right storage solution can be as personal and individual a decision as buying a home. There is no right answer for everything you choose. Instead, it is important to focus on the specific needs and long-term business goals of the organisation directly.

system that is 30 percent utilised. Therefore, the customer has to buy more storage capacity for the system that is 70 percent full, even though they already have enough storage capacity between the two systems. In a Unified Storage/ SAN systems environment, all of the servers can share a single pool of storage over the network. But for the reason that companies cannot invest huge money on FC SAN, many companies prefer Unified Storage Systems. Today Unified Storage has gone to the extent of having 10G support on it, thereby adding values to data transfer when compared to FC’s 4/8Gbps. 10G Ethernet provides big performance gains for virtualised systems, as long as the network adapter can offload the heavy lifting from the host server. The combing 10G adapters with Unified Storage server provide the industry’s best I/O performance for single or multiple Windows and Linux virtual machines. Hence, Unified Storage is very flexible including everything from low cost filers to block level deployments. Unified Storage is designed to solve many capacity and performance requirements.

Some features of Unified Storage deployments are as follows: n Basic NAS appliance can reduce the file server sprawl. n IPSAN extend the access to pricey SAN Storage. n Unified Storage helps to consolidate the use of file/SAN servers.

Conclusion Although DAS has a single point in storage, the information that is stored in the DAS system is well-suited for SMBs for a certain point, and further if the system needs to be upgraded, there is a limitation and risk factor is very high. In this situation, you have to go in for a higher storage device. Further if your organisation size is large, you can go in for a Unified Storage, where you have a lot of options, firstly you can chose 10G Ethernet adapter along with Unified Storage as it gives the best I/O performance. The risk factor involved with the device is very less and the cost factor is far less compared to Fibre Channel SAN/NAS devices. By this way, the storage appliances are chosen based on the technologies involved and also analysing the factors like risk and cost along with it. This gives you a clear idea in choosing the right storage technology. n Satheeshiyer is Executive - Presales, Int’l Business, Sanat Technologies.

guest expression Data Insight insight and keep business operations running smoothly. But getting value out of data can be hard. Here are some of the common challenges: There’s so much data all over the place— Not knowing what a business has and where. Even if you can figure out what data you have, it usually takes too much time and work to access it. IT often expends an inordinate amount of effort just to pull out data. n Once you get access to the data, it’s difficult to get it where it’s needed, when it’s needed, in the shape needed. Different people and applications need the data differently at different times. n The data is almost certainly dirty— full of errors, omissions, and inconsistencies. Worse yet is to not know what data is dirty, or in what way. It can take a lot of time-consuming analysis of the data to figure out the quality issues. n Data quality is a problem everywhere. Even if you fix a quality issue in one place at one time, the same issue can crop up elsewhere, or at a later time. You need to use the same rule for fixing data quality issues in different places, to ensure consistency and to save you from reinventing the wheel. n The business needs to be involved. The active participation of the business is essential because it knows the business rules for the data and what it should look like. But it’s very difficult to get business executives and managers involved in an active, ongoing way. Usually, the business indicates data rules in the crude form of spreadsheets, which then get passed to IT to implement in a database or application. Fundamentally, business and IT aren’t speaking the same language. n It’s hard to set and enforce policies for how data is managed. How private or sensitive is the data? How fresh does it need to be for a given use or application? How clean does it need to be? If policies about such characteristics even exist, they’re almost impossible to enforce in a broad or consistent basis without a huge, costly programming effort. n It’s challenging to prove the business case. Bad data in organisations is an old problem. What is new is that as departmental boundaries are coming down and data is free to flow between applications, data quality problems are having a larger impact on the business, causing projects and processes to fail. Because data is flowing between departments and business units, very n

The

Data Driven

Enterprise

In the information age, most organisations must realise that their data is also a critical asset – just like a physical one SUGANTHI SHIVKUMAR

rmed with data that is timely, data that they can trust, organisations can rapidly uncover new markets, attract and retain valuable customers, eliminate costly operational errors and delays, deliver products faster, and make smarter decisions. However, to achieve these benefits, enterprises must set themselves up to make sure they are managing and using their data in an optimal way. This can be a daunting endeavour. Businesses have to invest in the people,

DIGIT CHANNEL CONNECT

JANUARY 2010

processes, and technology needed to know where the data resides, to understand it, to clean it and keep it clean, and to get it to where it is needed, when and how it is needed. Enterprises that have taken these steps are able to take advantage of their data assets to work faster, better, and smarter, beating the competition. They are data driven.

Why it is hard to get real value from data If it were easy, everyone would be using their data to make brilliant decisions

guest expression Data Insight often a business case has to be made at both the departmental level and the enterprise level— and this takes time.

What data-driven means Overcoming these challenges requires enterprises to make investments and change their culture. But the payoff is worth it. Data-driven enterprises maximise the business value of their data by establishing the organisation, processes, and infrastructure necessary to manage their data as a strategic asset. Here are the components of a “data-driven enterprise” Business value: Even though data is often considered to be a problem that is handled by IT, the use and value of the data is for the business. n Organisation, processes, and infrastructure: Managing the data effectively requires that the right processes are in place, the right people with the right skills are on board, and that enterprises have the right supporting technology infrastructure to support those people and processes. n Relevant: Not every piece of data is important or even useful to the business. It’s important to focus the limited n

resources on the data that is the most relevant for driving the business. But it takes effort and discipline to determine which data is most relevant. n Trusted: The business has to be able to trust and have confidence in the data that it is working with. It needs to know where the data came from and that it’s clean and accurate. n W h e n , w h e re , a n d h o w : Different people and applications need the data at different times and in different ways. A customer service rep may need to see a specific customer’s full transaction history when he or she receives a call from that customer. A marketing analyst may need to see all the transactions from all customers for the past three years to find patterns. n Changing needs: The business is changing all the time, and so its needs for data also keep changing.

The Payoff So what do enterprises achieve from being data driven? Consider the impact of being able to: n Gain virtualised access to data in the systems of an acquired company and combine it with their own data

SUGANTHI SHIVKUMAR

Data-driven enterprises are more nimble, and they have more efficient, lower-cost business operations.

immediately after acquisition. With the combined data from both entities, enterprises can provide the consolidated financial reports required by Wall Street and identify net new customers gained from the acquisition. n Create a single view of customers across the enterprise by virtually combining data from dozens of different sources, and apply a single set of data quality rules for all applications where customer data resides. With consistent, clean customer data, enterprises can furnish the highest quality of service and at every contact point. n Measure the quality of operational data—for example, product/account codes, customer contact information, supplier data—so that data quality problems can be made visible to the business process owners. n Efficiently produce data for compliance reporting. Data-driven enterprises are more nimble. They have more efficient, lowercost business operations. They have more valuable relationships with customers. They make smarter decisions. And they beat the competition. Suganthi Shivkumar is MD, South Asia, Informatica.

guest expression Online Security

Handling

MALICIOUS Hackers

Just as online fraud attacks become more sophisticated, so must the response SHAILENDER KUMAR

magine this: A hacker creates a look-alike site of a well-known bank. He sends across e-mails to customers requesting for confidential information claiming the bank’s website is undergoing a revamp or reconstruction. The information sought is critical and confidential customer data. The e-mail has a link embedded in it, which, by default, directs the customer to the fake site that the hacker has created. The customer, thinking it to be a genuine communication from the bank, provides the details, which the hacker saves and later uses for fraudulent transactions. Not a secure situation to be in! The rapid growth of online commerce has brought increasing sophistication in Internet fraud. Fraud is being conducted across multiple access channels. Threats from Phishing (criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication), Pharming (a hacker’s attack aiming to redirect a website’s traffic to another, bogus website), Trojans (type of malicious software), Key Logging (useful to retrieve online password entries), and Proxy Attacks, combined with regulations and mandates (HIPAA, PCI) governing online data piracy, place online security at a premium. If you take a closer look at the instance I brought up at the beginning of this article, you will realise that a simple login procedure makes it easy for

DIGIT CHANNEL CONNECT

a hacker to access online accounts and transactions. To thwart hackers, banks are adopting stringent levels of login procedures, which are more personalised and secure. Some of them include the introduction of additional levels of passwords, personalised background image for login, virtual keyboards or even a virtual mouse, among others. While user access has been established, it is equally important to prevent frauds and enable real time risk assessment. The tools available today profile the historical behavior into a “virtual finger print” of a user, and now with automated rules one can decide the risk and threat associated with the user transactions. Such automation is what we refer to as ‘fraud detection and risk assessment technology’. It enables proactive, realtime fraud prevention and strengthens transaction security.

Holistic approach Online fraud detection requires the use of multiple IT security tools. It needs to be able to evaluate risk by analyzing data from a variety of sources, including profiles, device fingerprints, IP and other network forensics data, geo-location information, and transactional data. By bringing together various risk factors in a single policy, a well-implemented solution can score the relative risk of a transaction, proactively prevent fraud, and instantly alert the organisation to threats. Such technology provides real time and offline risk analysis to maximize the efficiency of capturing and analyzing real-time transaction data, matching the risk profile of the current

JANUARY 2010

SHAILENDER KUMAR

According to a survey of India’s top 40 banks, 30% of banks reported to have been victims of identity theft during the last one year, while 30% of the banks reported to have been victims of phishing at the same time and 10% of the banks were victims of man-in-themiddle attack at the same time

While user access has been established, it is equally important to prevent frauds and enable real time risk assessment. The tools available today profile the historical behavior into a “virtual finger print” of a user, and now with automated rules one can decide the risk and threat associated with the user transactions

transaction against historical patterns. To define and refine fraud prevention policy, investigation and forensic tools are also needed to simplify inherently difficult administrative tasks such as policy authoring, risk monitoring, incident investigation or audit data analysis. Security policy needs to be able to adjust to new threats without needing to bring down a production system. Specialised fraud detection technologies give security administrators the ability to experiment with different security policies, assess their usefulness at blocking fraud, determine the potential performance impact or specific rules, and track the difference in system behaviour as a result of policy change. So companies can minimise the chances of letting anyone use a stolen credit card for multiple, fictitious transactions like flight bookings or online purchases or even financial or trading requests. As companies aggressively embrace the Internet for sales, selfservice and information sharing, online security is core to establishing trust between companies and users. A recent survey from a cross-section of India’s top 40 banks by ReadiMinds ‘State of Online Security in Financial Institutions in India - 2008’ has highlighted the issues pertaining to online identity theft and online financial frauds. According to this survey 30% of banks reported to have been victims of identity theft during the last one year, while 30% of the banks reported to have been victims of phishing at the same time and 10% of the banks were victims of manin-the-middle attack at the same time. Online security has become a business issue. There seems to be a strong link between the business performance of a financial institution and the online security measures implemented by it. Over 70% of banks that reported to have implemented stronger security, also regularly deliver better business performance compared to their peer group. But the worrying issue was that over 57% of banks still do not have a dedicated budget for online security. Online security is still part of the IT budget. But the good part of the finding was that 100% of respondents were aware that integrating stronger user authentication, with fraud detection, and risk based transaction verification is the strongest form of defense against online identity theft and financial frauds. n Shailender Kumar is Vice President, Oracle Fusion Middleware, Oracle India.

guest expression Wi-Fi

THE

CONNECTIVITY GAP

There’s no reason why the growth of Wi-Fi hotspots in India should remain stunted Girish Hiremath

he world over, Wi-Fi hotspots have played a great role in enabling wireless broadband connectivity to business travellers, tourists and to anyone on the go. Wi-Fi hotspots are those venues where ‘Wi-Fi is available either for free or paid usage’ for guests/visitors and these could be cafes, hotels and airports with robust login and billing system. With over 1 billion Wi-Fi enabled devices estimated to be shipped out by 2012, there are not many useful and secure places away from the home or office to use them, especially in a country like India. As a nation of over half a billion mobile phone users, India’s demand for data capabilities of the network has only got bigger and bigger. However, unlike mobile operators in USA, France, Japan and China, Indian operators are yet to realise the importance of Wi-Fi hotspots. Consider the scenario in developed nations. For instance, T-mobile operates a large hotspot network in six countries as they’ve identified the potential of

off-loading the data traffic on to these hotspots. T-mobile or AT&T does not just stop at that. They bundle the Wi-Fi minutes with their mobile minutes to make the whole proposition attractive. This is quite different from their original competitive stance. In developed nations, Wi-Fi hotspots have not only influenced the usage of broadband, but have also helped the venues to develop a strong bouquet of value-added services on Wi-Fi connectivity. Coffee chains like Starbucks and Esquires have come to recognize the benefits of Wi-Fi and leverage this friendly technology to weave tactical promotional messages around their offerings in order to build stickiness and interaction with the brand. However, in a stark contrast, growth of Wi-Fi hotspots has been very limited in India. Today, there are only around 1,800 hotspots as compared to 71,767 in USA or 37,006 in China. In all, there are 294,049 paid and free Wi-Fi hotspots worldwide as reported on JiWire directory. A study by the Wi-Fi Alliance

G. HIREMATH

In developed nations, coffee chains like Starbucks and Esquires have come to recognize the benefits of Wi-Fi and leverage this friendly technology to weave tactical promotional messages around their offerings in order to build stickiness and interaction with the brand. A study by the Wi-Fi Alliance bullishly predicts that the Indian Wi-Fi market will grow to $744 million from the current $41.57 million.

DIGIT CHANNEL CONNECT

JANUARY 2010

bullishly predicts that the Indian Wi-Fi market will grow to $744 million from the current $41.57 million. There are many factors for the stunted growth of Wi-Fi hotspots here, despite India being the most exciting telecom market. Telcos in India have been predominantly focused on the mobile subscriber growth and value added services around the mobile phone usage. With market drivers being in place and computer penetration going up, telcos will have to relook at their strategy of relying solely on their already congested networks to generate more traffic and revenues. The fact that the guest/user has to go through a login system makes existing Wi-Fi systems cumbersome. Unlike the home Wi-Fi or corporate Wi-Fi systems which work on local WEP/WPA-based encryption, public access Wi-Fi hotspots do need to provide a strong authentication and billing system, so that the user feels secure and is thus prompted to use the services. Other barriers have been lack of awareness of the public Wi-Fi hotspots and exorbitant rates being charged by five star hotels, where the service is predominantly available at present.

Lack of smart solutions Until recently, there were no smart Wi-Fi solutions to enable a public Wi-Fi hotspot easily in a DIY (Do-It-Yourself) fashion. Most of the local solution providers focused on large venues like star hotels or airports with their venue-centric systems, which invariably are complex from deployment and maintenance perspective. Also, the gestation period for the recovery of investments was long. With the smart Wi-Fi solutions available today, enabling a Wi-Fi hotspot has become very easy. Resellers can now benefit from bundling these solutions along with the sale of Wi-Fi equipment and should explore segments such as educational campuses, hotels and lodges, service apartments and PG hostels. It’s well acknowledged that in India, resellers play a mammoth role in providing reach for products and services to various vendors. Today, their major share of revenues comes from the sale of networking equipment, software and AMCs. However, this is set to change as we move to SaaS and cloud computing, so one should look at a share in recurring revenues on an ongoing basis, as long as the customer is serviced. n Girish Hiremath is Country Head, Tomizone India Pvt Ltd.