E DE IDTI TOO RR IIAAL L
In defence of the RoI
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how me the RoI.” I am sure that most of you have heard your clients say this more than often. Selling IT services and hardware has always been about cost advantage. Times are tough, projects are less, margins are bleak and budgets are belt-tightening. While having a conversation with your SMB client, it is important that you go with a bottom-line value proposition rather than the technology and benefits of the solution. The business approach will be the best fit way to sell in these hard times. And when you do change the focus of your selling strategies, you will see that there are plenty of opportunities out there. Customers, specially the SMB players, who are new adopters of technology and have named, limited IT budgets, are more focused on cost avoidance. But if you probe further – having the right conversation – you will see that they are willing to put their monies into projects that yield immediate or near-term cost savings. It is extremely important for you to re-look at your sales strategies – that will discuss cost and RoI value proposition with the small and medium businesses. Focus sales meetings on the customer’s business concerns rather than how technology works and the inherent benefits. Talk about adoption from the perspective of mitigating risks, improving competitiveness and business growth. This will ensure your good foot into your customers IT departments.
The customer will appreciate more, if you can actually demonstrate short-term, mid-term and long-term RoI with IT services approach. Internal adoption of web and presentation technologies can help great deal here to visually articulate this. Customers would rather partner with tech-savvy solution provider than a mere technology pusher. Smarter solution providers already know about the technologies that provide cost savings to IT services customers – the SMB ones. It is high time you put that know-how and turn your expertise into real-time opportunities for more service engagements in a shrinking economy. This will also help as the launch pad for higher business growth when the economy turns around. Another trend that we see in the channel market is the changing focus towards vertical alignment. The changing economic environments have cleared the fog on industry verticals that are unaffected. These businesses, which reside in vertical markets such as healthcare, telecom, government, education, etc. are high-growth areas for channel professionals who can effectively market, deliver, and manage technology services.
sujay.nair@9dot9.in
The changing economic environments have cleared the fog on industry verticals that are unaffected
SUJAY NAIR Editorial Director Digit Channel Connect
SOUNDING BOARD DIFFERENT AND INTERESTING Dear Editor, Though Digit Channel Connect is an interesting magazine to read in terms of content, layout as well as the print quality, I would like to suggest you to be a bit different from rest of the channel magazines that comes to us every week/month. You can consider doing case studies with elite members from the channel community along with providing some of the best practices that can help the channel sail through this current economic slowdown. Regards,
PK SHARMA Proprietor, Computer Associates, Punjab
GREAT INITIATIVE
Write to the Editor E-mail: editor@digitchannelconnect.com Snail Mail: The Editor, Channel Connect, KPT House, Plot 41/13, Sector 30, Vashi, Navi Mumbai 400703
Dear Editor, The thought process of having eminent channel partners and association heads as the editors of your July issue is a great initiative. It stands to prove that it truly is a magazine that is the voice of the channel partners. Regards,
TRADE ASSOCIATION OF INFORMATION TECHNOLOGY Mumbai
DIGIT CHANNEL CONNECT
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JUNE 2009
CONTENTS COVER STORY
21 GOING GLOBAL
VOLUME 1, ISSUE 7 Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh EDITORIAL Editorial Director: Sujay Nair Sr. Correspondents: Maneka Tanwani, Charu Khera DESIGN Art Director: Rohit A Chandwaskar Chief Designer: Abraham K John Illustrator: Shrikrishna Patkar Photographer: Jiten Gandhi BRAND COMMUNICATION Head: Kabir Malkani Team: Thomas Varghese, Jayant Varade, Nilanjan Ghosh, Subodh Dalvi
The Indian economy is becoming truly global. The new mantra for the channel community is to break boundary barriers and look at opportunities worldwide
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 Co-ordinator - MIS & Scheduling: Aatish Mohite Bangalore & Chennai: Sanjay Bhan (09341829285) Delhi: Pranav Saran (09312685289) Kolkata: Jayanta Bhattacharya (09331829284) Mumbai: Ganesh Lakshmanan (9819618498)
Q&A “Consumers are delaying buying decisions, hitting channel growth”
15
ARTHUR LIU, SUPERVISOR, SALES DEPARTMENT-ASIA SALES DIVISION, GIGABYTE AND PRAMOD VYAS, COUNTRY HEAD, GIGABYTE INDIA
PRODUCTION & LOGISTICS Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh
PRODUCT REVIEW
CHANNEL CHAMPS Sr Co-ordinator - Events: Rakesh Sequeira Events Executives: Pramod Jadhav, Nitin Kedare, Johnson Noronha Audience Dev. Executive: Aparna Bobhate, Shilpa Surve Events Programmer : Vijay Mhatre
Transcend StoreJet 320 GB External hard disk.........6 Acer Aspire One Netbook .......................................10 HP D2568 Deskjet Printer .........................................12
OFFICE ADDRESS
REGULARS EDITORIAL ..........................................................................03 TRENDS ............................................................ 06, 08, 10,14
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
CELEBRITY CONNECT ........................................................31 ANALYST-SPEAK ................................................................32
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
ADVERTISERS INDEX HP ...............................................................................................................................................................................Cover On Cover Seagate ..........................................................................................................................................................................................BC Hp ............................................................................................................................................................................................. IFConC Cubix ..............................................................................................................................................................................................IBC Gigabyte.......................................................................................................................................................................................... IFC Topnotch ...........................................................................................................................................................................................4
Editor: Sujay Nair 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
Neoteric ............................................................................................................................................................................................ 7 Microworld ........................................................................................................................................................................................9 Quickheal – FPC..................................................................................................................................................................................11 Pushpam ..........................................................................................................................................................................................32
DIGIT CHANNEL CONNECT
COVER DESIGN : KABIR MALKANI
5
JUNE 2009
TRENDS Indian SMBs lead in Green IT initiatives
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tudy findings show 63 percent of Indian IT organisations have deployed Green server rooms to increase energy efficiency or have a pilot project underway A c c o r d i n g t o a gl o b a l s t u dy jointly released by IBM and InfoTech Research Group, even in a very difficult economic environment, Indian small and medium enterprises (SMEs) are eager to actively invest in initiatives that reduce the environmental impact of their information technology. The study is based on a survey of more than 1,000 information technology executives at companies with between 100 and 1,000 employees across industries and in a dozen countries including the India, United States, Canada, France, Germany and the United Kingdom. The findings show that more than 55 percent of Indian companies are going to, or have already commissioned third-party environmental audits, purchased emission credits, or have made improvements in their supply chain efficiency to reduce energy consumption. 63 percent of Indian IT enterprises have completed a retrofit of existing server rooms to increase energy efficiency, or have a pilot project underway. Almost two-thirds of all companies globally are currently, or are planning within the next 12 months, to add virtualisation technology to their servers, consolidate storage systems, or retrofit their server rooms. Saving electricity requires the measurement of IT electrical consumption, something many companies cannot do. However, the survey finds that more than 50 percent of companies have implemented some form of energy measurement for their information technology infrastructure, and about one-quarter plan to do so in the year ahead. About 60 percent of the total respondents weigh the importance placed on business benefits against environmental benefits, suggesting that IT initiatives to help improve energy efficiency must yield financial returns in order to get the green light. Countries with some of the highest fuel prices in the world have not, up to this point, turned to remote conferencing and telecommuting initiatives to reduce both cost and energy consumption. The survey found that 50 to 60 percent of Indian, Brazilian, North American and British businesses are up and running with telecommuting and virtual conferencing capabilities, Germany, France, and, to a lesser extent, the Nordic countries have been slower to adopt these technologies. Initiatives intended to reduce travel are clearly receiving the most attention from geographically “big� countries over the next 12 months. From Brazil to Canada, more than 30 percent of businesses will aggressively pursue remote conferencing and telecommuting strategies. The Indian marketplace boasts of more than 35 million small and medium businesses and is now competing globally. They will need to gain a competitive edge to win amidst global competition and technology provides them this edge.
McAfee to acquire Solidcore Systems
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cAfee announced a definitive agreement to acquire privately owned Solidcore Systems for approximately $33 million in cash up front and with an earnout of up to an additional $14 million if certain performance targets are met Solidcore uses dynamic whitelisting to protect against vulnerable or malicious applications and ensure that only pre-authorised software and code can run on servers, endpoints, fixed function devices and mobile devices. Following the completion of this proposed acquisition, McAfee expects to couple Solidcore’s whitelisting and compliance enforcement technology with McAfee compliance mapping and policy auditing to deliver an end-to-end compliance solution. Customers will benefit from centralised management and reporting of the integrated technologies through the McAfee ePolicy Orchestrator (ePO) console. Solidcore currently protects more than 200,000 endpoints from malware and unauthorised changes with its patented whitelisting software, which includes systems such as ATMs, POS systems, process control devices, mobile devices, servers and workstations. Its customer base is geographically diverse, with customers in more than 40 countries, at more than 100 financial institutions and across more than 15,000 retail stores. Following the closing, the Solidcore team will be incorporated into the McAfee Risk and Compliance business unit, headed by George Kurtz, Senior Vice President and General Manager, McAfee. The acquisition is expected to close in the second quarter of 2009. McAfee expects the impact of the acquisition of Solidcore on second quarter 2009 results to be slightly dilutive to non-GAAP earnings per share and more dilutive to GAAP earnings per share. Jefferies & Company acted as exclusive financial advisor to Solidcore in connection with the transaction.
REVIEW TRANSCEND STOREJET 320 GB EXTERNAL HARD DISK
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he Transcend 320 GB External hard disk is very competitively priced and stylish in design. In Meghalaya it sells for a p p r ox i m a t e l y Rs 3700. It is only 2.5 inches in size and weighs around 200 grams. The only complain customers have about this product is its missing FireWire support. Other than that, this product is very easy to use and is powered by USB.
Sanjay Agarwal, Proprietor, Sajjan Electrical, Shillong, Meghalaya
Canon India reaches out to regional market
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anon India reinforces its focus on regional markets by announcing the launch of the Canon Print City project in Ahmedabad. The project will largely focus on connecting better with the local customer and generate acceptability in the market by regionalizing all communication and promotional activities. Canon is investing Rs 2 crore on this project and aims at securing 33 percent of the Indian printing and imaging market.
DIGIT CHANNEL CONNECT
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JUNE 2009
Last year the first phase of Print City was launched and executed very successfully in six cities namely Guwahati, Chandigarh, Ludhiana, Jaipur, Cochin, Indore. The Print City campaign aims at adding regional flavor to its activities in specific cities. This is done to encourage consumers to own a Canon in these cities. The attraction for channel partners in this campaign will be a host of exciting incentive-
based schemes including gifts, movie tickets, cricket matches, along with the launch of a range of new products in laser printers and allin-ones. Special training programmes will be designed for the channel partners to help them better understand and address local customer needs, concerns and sentiments. There would also be exciting mystery shopping schemes, branding and merchandising initiatives to encourage more footfalls.
TRENDS Tirupati Enterprises expands its footprint to Central India
Gigabyte receives Windows 7 logo for socket 775 motherboard
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irupati Enterprises-the Kolkata based distributor, has extended its reach to Central India with a branch office in Indore, Madhya Pradesh that will cater to the markets of Bhopal, Jabalpur, Gwalior and Indore, among others According to Abhishek Kejriwal, General Manager, Tirupati Enterprises, “We were missing our presence in the Central India market and with this branch we are now happy to have presence in this crucial market as well. We plan to add more branches to our network and at the same time add more new brands to our portfolio of products”. Dheeraj Parwani would be heading the operations at Indore as Regional Manager. Parwani is an experienced and known face in the Channel community and is renowned for his strong sales and aggressive approach to the market along with deep knowledge of components. Currently Tirupati Enterprises, is head quartered at Kolkata, and operates directly from its 12 other branches in addition to its country- wide network of C&F agents and partners. The product portfolio includes the entire range of MSI products namely motherboards, graphic cards, notebooks and server solution; ABIT motherboards; Powercolor ATI-based graphic cards; Corsair range of memory products including desktop, notebook, server, gaming and flash memory, power supplies, etc.
Fujitsu launches unified datacentre and cloud computing management software
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ujitsu has announced the launch of a new resource—ServerView Resource Coordinator VE, which enables enterprises to create dynamic infrastructure from virtual and physical servers in datacentres and cloud computing environments This server management software also harnesses all physical and virtual resources within complex IT server topologies – including cloud computing environments – providing simplified, unified management and ensuring that resources are dynamically optimised to deliver best performance at all times. As server virtualisation has gone mainstream, so it has added a new dimension to datacentre management, as arrays of virtual machines are hosted by individual physical servers, all of which must be managed. This has led to increasing complexity and management cost for IT administrators, including patch management, routine maintenance and break-fix. Furthermore, effective server farm management demands that that optimal system resources are automatically allocated at all times. The new offering also solves this challenge by offering the simplified, uniform, automated management of diverse, heterogeneous pools of virtual and physical servers, and providing intuitive server lifecycle management from a graphics-based management console. In addition to PRIMERGY blade servers, RCVE supports PRIMERGY rack and tower servers as well as x86 servers from other vendors. It also integrates leading virtualisation hypervisors including VMware, Microsoft Hyper-V and Xen. By securing entire arrays of productive systems with one or a few standby units, RCVE provides cost-effective high availability for entire server pools. As a result, organisations can enjoy large savings in hardware costs as well as greater system utilisation without increasing downtime by offering this “N plus 1” option instead of shadowing every single productive server with a hot spare.
DIGIT CHANNEL CONNECT
8
JUNE 2009
A-EP45-UD3P motherboard receives Windows 7 logo for an Intel P45based motherboard guaranteeing complete compatibility and the enhanced user experience Gigabyte has put the GA-EP45UD3P through its paces, with a rigorous evaluation and testing process in order to ensure complete compatibility with Microsoft Windows 7. By receiving the Windows 7 Logo, GA-EP45UD3P is guaranteed to deliver the best possible Windows 7 experience, enabling users to witness first hand new improvements on ease-of-use, performance, power management, compatibility, and a multitude of other exciting new features that only the Window 7 OS can deliver. WHQL (Windows Hardware Quality Lab) certification sets a high bar for quality and reliability, and is considered essential by many home and business users. This certification demonstrates the company’s ability to deliver the stability, incredible 3D game performance and smooth multimedia playback needed in order to help bring the new features of Windows 7 to life. Leveraging an already advanced set of specifications and features, the motherboard’s has the revolutionary Ultra Durable 3 technology, a consumer desktop motherboard design to feature two ounces of copper for both the power and ground layers, delivering dramatically lower system temperature, improved energy efficiency and enhanced stability for overclocking. Gigabyte continues to work closely with Microsoft to test a number of its motherboards in order to offer customers feature-rich Windows 7 solutions.
KSCA becomes technology savvy
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arnataka State Cricket Association (KSCA) has opted for Procall, a Digital Radio Trunking service in India featuring Motorola’s iDEN (Integrated Digital Enhanced Network) for use among the umpires officiating in matches held in Karnataka, the ground’s men and other officials, to coordinate more smoothly and efficiently. With this KSCA becomes the first association to adapt the digital radio with the PTT facility (Push-To-Talk). The new digital technology gives the umpires, ground’s men and other officials easier, swifter and effective communication gadgets that will ensure smoother proceedings in all matches. Commenting on this development B K Ravi, Honorary Assistant Secretary (Tournaments), KSCA, said, “We were earlier using analog walkie-talkies which our umpires found too bulky to carry – especially because they need to constantly move around and even run during a match. When we took Procall’s Digital Push-To-Talk service the umpires and ground staff found the handsets sleek and easy to carry around. They are now more flexible and agile and are happy with the technology. We have already used the Digital PTT for Ranji Trophy and Duleep Trophy held recently here.” Procall has acquired the Digital Public Mobile Radio Trunking (PMRTS) license for the circles of Mumbai, Delhi, Kolkata, Maharashtra & Goa, Tamil Nadu, Karnataka and Andhra Pradesh and plan to make it a pan India operation soon.
TRENDS HCL Infosystems to implement ‘System Integration Project’ for BSNL
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CL Infosystems has been selected to implement ‘System Integration Project’ worth Rs 240 Crore for state-run Bharat Sanchar Nigam Ltd (BSNL). The contract involves the implementation of over 60,000 ERP licences, making it the largest rollout in terms of licenses issued for any single project in the country. As a part of the BSNL’s business transformation programme, HCL will migrate the company’s finance, commissioning and operations functions onto a single ERP system. The project rollout includes setting up of the main datacentre at Hyderabad and the disaster recovery datacentre at Kolkata. Installation and commissioning at these centres will streamline these business processes, provide a single view of the business, aiding compliance to storage system, security system, enterprise management system, network management systems, access management system, etc. of existing datacentres. The decision to cover the whole organisation countrywide by investing in ERP licenses clearly communicates BSNL management intent to create a single seamless platform all over the corporation. The project contract is for seven years, including configuration, business process reengineering, hardware, networking, operations and maintenance customisation, training to BSNL employees and program management. This will enable BSNL to deliver services in a more costefficient way. In addition to replacing legacy systems, this BPR & ERP transformation program will yield better efficiencies for BSNL, due to creation of standardised platforms and common infrastructure, along with lower cost of integration and maintenance. BSNL has also selected HCL to provide ongoing support services for the project. “This project for BSNL is in line with our focus on the System Integration business. There is no better endorsement than being chosen to provide ongoing ERP support services for BSNL, as this demonstrates the value that we bring to implementations of this kind in the system Integration arena. We believe that a countrywide ERP solution is critical to capture and map various business processes and management of work flow in order to provide better decision pathways in organisations with major footprint across the country” said JV Ramamurthy, COO, HCL Infosystems.
Now is the time to prepare for business growth, says Gartner
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hile the recession is still under way, now is the time for IT leaders to prepare for business growth, and organisations should aim to complete these plans by July 1 of this year. Gartner acknowledged that many countries are experiencing everincreasing levels of unemployment, rising home mortgage payment delinquencies and business bankruptcies while also seeing reductions in consumer confidence, business earnings and overall economic performance. However, in recent months, many organisations are reporting that their staffs are working at near-or full-capacity levels. This demand level will almost certainly increase when businesses start detecting resurgence in demand from customers, a more stabilised economic climate and a far-healthier lending environment from which to access credit. “As these improvements translate into new IT project demands to help businesses identify new revenue and profit opportunities, companies will need a way to manage the already high project load with a new wave of projects,” said Ken McGee, Vice President and Gartner fellow. “However, waiting until that new demand arrives will be far too late to appropriately meet it, and we are recommending that companies start preparing for business growth now with a view to having these plans completed by July 1, 2009.”
DIGIT CHANNEL CONNECT
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JUNE 2009
WD expands its line of hard drives by including 2 TB capacity
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s demand for higher capacity storage continues to increase due to large video applications, including high-definition video, WD expanded its WD AV-GP line of hard drives to include a 2 TB capacity. WD AV-GP hard drives with WD GreenPower Technology provide cooler and quieter operation and lower power consumption. Designed to withstand the stringent environment of the surveillance and security markets, the WD AV-GP line of hard drives for audio and video applications reduces power consumption by as much as 40 percent over standard drives in their respective classes. The new hard drive is perfect for applications such as DVRs (digital video recorders), media centers, media servers, as well as surveillance video recording that demand a higher capacity hard drive and exceptional reliability. The features of this line of hard drives include long-term reliability, minimised noise levels, reduces power consumption, compatibility with a broad range of AV products, etc. The WD AV-GP 2 TB hard drive (model WD20EVDS) is available from select distributors outlet. Maximum suggested retail price (MSRP) is Rs 15,500.
Airtel launches cloud computing service on broadband
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harti Airtel announced its entry into the cloud computing space with the launch of Airtel Net PC – a low-cost online computer for its broadband customers. The Airtel Net PC is a ready-to-use computer - inclusive of a 15 inch LCD monitor, keyboard, mouse and Nivio companion. It is available at Rs 7999 exclusively for Airtel broadband customers in Delhi, Gurgaon and Noida. The Airtel Net PC – powered by Nivio and Microsoft claims to provides a friendly operating system with the Windows-based online desktop, 10 GB space to store documents, photos, presentations, etc. at a central location and 100 percent data security assures no loss of data or computer crash
REVIEW
ACER ASPIRE ONE NETBOOK The Acer Aspire One is a very affordable and compact – perfect for the home segment. It is very popular among students. The major plus point is its low pricing without any compromise on the features. The various colours that it is available in make it even more attractive. The keyboard is a comfortable size with wide gaps between buttons and doesn’t feel cramped. The netbook is 245mm x 165mm x 25 mm (WxHxD), but has everything you’ll really need for basic purposed packed inside. For connectivity, it has three USB ports and an SD card reader.
Ronak Meghani, Proprietor, Hiya Infotech, Ahmedabad, Gujarat
TRENDS Corsair sales revenue jumps 97 percent
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orsair Memory announced a 97 percent increase in India operations revenue in 2008 in spite of the economic slowdown Corsair’s growth reflects the rapidly developing marketplace in India for high quality, performance PC components. The highest growth areas wherein product areas catering to India’s PC enthusiasts and gamers. Corsair’s XMS gaming series of high speed memory experienced volume growth of 152 percent and Corsair Gaming Power Supply (PSU) growth exceeded 140 percent. USB drives and Value Select memory achieved growth 130 percent and 47 percent respectively. Corsair also forecasts exciting growth in 2009 with further expansion of the Gaming market as well as an imminent India launch of Corsair SSD’s and Gaming Casings. “This outstanding growth in the face of very challenging economic times show that consumers have really embraced the Corsair brand since it diverted focus on India over one year ago” commented Scott Thirlwell, Corsair Sales Director-APAC. “We are particularly happy to see the explosive growth in Corsair XMS Series Gaming Memory and PSUs” “2009 growth looks to be exceeding even 2008 marvelous result with Corsair distributors and their customers reporting very healthy profit margins on Corsair products” commented M.A Mannan, Corsair India Country Manager. “By focusing on the premium end of the PC component market Corsair partners are able to avoid the cut-throat pricing at the low end.”
Quick Heal Technologies acknowledges its channel partners
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une based Quick Heal Technologies-an antivirus vendor in India had conducted its All India Premier partner meet ‘Dhamaka Night’, where it rewarded its performing partners. The company ran the Dhamaka offer for its partners from November 2008 to January 2009. This initiative was aimed at increasing their market share. Some of the notable winners were NCS Computech (Kolkata), Reliable Infotech (Kolkata), Insat Lynx Computer (Pune), Amity Software (Surat), Sujata Computers (Pune), Data Care (Pune), Radiant Technologies (Mumbai) and KK Software (Delhi). On this occasion Quick Heal also appraised its partners with its latest enterprise security offerings and its roadmap to tap the enterprise segment. Kailash Katkar, CEO, Quick Heal Technologies said, “We have rewarded all types of partners from small to big players under this scheme. We will continue to carry on such schemes in future also. The company has given away cars (two Maruti Suzuki SX4, two Hyundai I10 and seven Maruti Alto), 20 motor bikes, and many LCD TVs, mobiles phones, washing machines, digital cameras, premium watches and shirts. In all quick Heal gave gifts to more than 600 partners across India under this scheme.
Transcend launches antivirus USB flash drive
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ranscend announced its alliance with Trend Micro to offer advanced Trend Micro USB Security software preloaded on its newest USB flash drive, the JetFlash V15. With this powerful combination of Transcend hardware and industry-leading Trend Micro software, user s can now share, store and manage valuable data more safely and securely than ever. To combat against a rise in Autorun malware that infect removable drives and then spread across corporate networks that Trend Micro threat researchers discovered last year, a unique software program called Trend Micro USB Security was developed specifically to protect against malicious content
in files transferred to a USB flash drive. With its easy-to-use interface and simple one-step activation process, Trend Micro USB Security protects the JetFlash V15 from the first moment it is plugged in. If threats are discovered, users will be alerted and all infected files will be quarantined. When the JetFlash V15 is plugged into a computer with Internet access, Trend Micro USB Security will automatically download and install the latest security updates directly onto the drive. This product can freely be used in any computer without having to worry about malicious data hitching a ride while transferring files. Transcend’s capless JetFlash V15 flash drive comes with three years warranty. Four GB capacity is prices at Rs 1500 and eight GB at Rs 2900
NVIDIA and Lenovo advance mobile computing
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VIDIA ION Graphics provide advanced capabilities in small laptop from Lenovo by introducing a laptop that delivers up to 10 times faster graphics performance than today’s small laptops. Lenovo used NVIDIA ION’s design to create a thin, lightweight, low-power laptop with a 12-inch screen and improved application compatibility. The Lenovo IdeaPad S12 has the graphics horsepower to support high definition media and many PC games which will not run on most low-cost small PCs. NVIDIA ION enables these capabilities with the industry’s best graphics performance for low-power CPUs. “NVIDIA ION is one of the latest technologies available for the PC industry for small, low cost laptop PCs, and we’re excited to be among the first to use it,” said Stephen DiFranco, VP and GM of consumer and commercial channels, Americas Group, Lenovo. “With its 12-inch display, full-size keyboard and rich multimedia options powered by ION, the IdeaPad S12 balances an improved computing experience along with the size and affordability many consumers are looking for today.” NVIDIA ION graphics support all versions of Windows XP, Vista, and Windows 7, HD video including 1080p and Blu-ray movies, video through an external monitor via HDMI, popular games including Spore and Battlefield Heroes and direct X 10 graphics with advanced digital display connectivity
DIGIT CHANNEL CONNECT
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JUNE 2009
REVIEW
HP D2568 DESKJET PRINTER The HP 2568 Deskjet Printer is an entry level printer and economically priced at Rs 2000. The printing output is of high quality, both in black and colour. It is very user friendly. It prints around 2000 pages bringing the cost per page to Re one – making it a preferred choice.
Girish TG, Branch Manager, Positive Systems, Calicut, Kerala
TRENDS Simmtronics launches 2GB memory modules for desktop and notebook users
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immtronics has announced the launch of 2GB DDR3-1333 MHz 240-pin DIMMs for both desktops and notebooks, targeted towards power users including gamers, animators, graphic designers, etc. DDR3 is the successor to DDR2 Memory, and is expected to soon become the industry standard for PC Memory Modules. Compared to DDR2, it offers faster transfer speeds and better bandwidth with an 8-bit as opposed to 4-bit prefetch buffer, and is a perfect match for modern systems using dual or quadcore processors. DDR3 Modules can transfer data at a rate of 800–1600 MHz using both rising and falling edges of a 400–800 MHz I/O clock. In comparison, DDR2’s current range of data transfer rates is 400–800 MHz using a 200–400 MHz I/O clock, and DDR’s range is 200–400 MHz based on a 100–200 MHz I/O clock. The operating voltage of DDR3 Memory Modules reduces actual memory power consumption by 20-30 percent as compared to systems with DDR2 Memory. Simmtronics’ DDR3-Modules are currently available in 2GB capacity with five years warranty and is priced at Rs 3400.
HDS brings in enterprise-class storage innovation
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itachi Data Systems launched the Hitachi High Availability Manager - an open systems storage array clustering technology – which according to the company, delivers 100 percent accessibility of business-critical data assets and offers customers future-proofing of their storage investments over time. In the current climate of economic slowdown and capital constraint, the need for an efficiency optimised storage infrastructure has become paramount. Compounding this challenge is the significant operational risk associated with data migrations as legacy storage systems come off lease, or as a result of extended or unexpected downtime. By consolidating, increasing utilisation and improving data mobility through Hitachi virtualisation technologies, customers can maximise the investment return and protection of their storage assets and save money. The Hitachi High Availability Manager’s architecture enables local and remote clustering for seamless, transparent movement of storage pools from one USP V storage platform to another system, with zero disruption to business operations. Its failover capabilities, helps customers protect data assets during both planned and unplanned outages, and eliminate the potential risk of data inaccessibility from the host to primary storage. Claus Mikkelsen, CTO of Storage Architectures, Hitachi Data Systems said, “Application downtime, for any reason, is one of the highest priority concerns of customers that can cause billions of dollars in lost business opportunity. Clustering is a critical feature of an integrated virtualised storage strategy and Hitachi is the only storage company that is delivering this type of innovation in the market today. Hitachi is extending its leadership in providing innovative capabilities for customers, which translates into storage investment protection and the assurance that critical data assets are optimised and protected.”
DIGIT CHANNEL CONNECT
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JUNE 2009
TRENDS MAIT welcomes new ministers at Ministry of Communications and IT
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he Manufacturers’ Association for Information Technology (MAIT) has issued a press statement welcoming the UPA government on its historic win. Welcoming A Raja, in yet another innings, as the Union Minister for Communications & IT, Vinnie Mehta, Executive Director, MAIT said, “We are confident that continuity with A Raja and the further strengthening of his team with Sachin Pilot and Gurudas Kamat would ensure concrete steps towards realisation of ‘Goal- 511’ set by him in his earlier term. “ He further said that this goal envisages transformation of India into a knowledge economy and connecting the unconnected 500 million Internet users, 100 million broadband connections and 100 million connected devices in India by 2012. With lower than expected sales of IT products in the financial year 200809 owing to the global economic meltdown, expectations in the IT industry are high and it hopes that the new minister will take adequate measures to boost the consumption of IT in the domestic market. Elaborating further on the industry expectations, Mehta said, “It is essential to roll out mission mode IT projects in sectors such as education, SMEs, households, e-governance, telemedicine and for rural India. These will go a long way in contributing to our national goal of ‘inclusive development’.” MAIT also said that Pilot and Kamat, the two new Ministers of State for Communications and IT will bring in a healthy blend of youth and freshness with experience.
Fluke Networks organises workshops on efficient network management
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luke Networks is organising workshops that aim at providing network engineers and managers of enterprise networks the best of technical know-how required to manage networks efficiently. The workshop will also also reaches out to heads of departments of engineering colleges who would like to enhance their curriculum with lab sessions in network engineering studies. “Today’s network engineers and managers are faced with the challenge of doing more with less while providing high levels of service and user satisfaction. Through these workshops our aim is to educate these network engineers and managers to maximise the performance of their networks and avoid unnecessary network upgrades thereby improving productivity and reducing the downtime of their networks,” said Alamuri Sitaramaiah, General Manager-Sales, Fluke Networks India. The sessions will be conducted by Ted Chiou, a Fluke Networks trainer. The series of two day workshops will be held in Chennai, Hyderabad, Bangalore, Ahmedabad, New Delhi and Kokatta
Digicare inaugurates service center in Mumbai
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i g i c a r e, t h e service and support division of D-Link India inaugurated a service center in the busiest IT market of Mumbai – Lamington Road. Digicare had planned to locate its RMA centers closer to the IT hubs in all major cities, with primary objective of making its warranty support infrastructure more accessible to partners and customers. In last few months it opened the RMA centers at Nehru Place in Delhi and at S P Road Bangalore. By far, Digicare has added 24 service centers across India to its basket of offerings and plans to reach the count of 50 soon.
? PHOTO: JITEN GANDHI
Q&A In a free-wheeling interview, PRAMOD VYAS, Country Head, Gigabyte India and ARTHUR LIU, Supervisor, Sales DepartmentAsia Sales Division, Gigabyte, speak with SUJAY NAIR about best practices that channel partners and vendors can incorporate to beat the economic situation and benefit from each other’s success ARTHUR LIU
PRAMOD VYAS
“Consumers are delaying buying decisions, hitting channel growth” DCC: What has been the impact of the recession? How badly has the IT industry been hit? How has your business been affected? Pramod Vyas: The recession has certainly been detrimental to growth not only in the IT sector but other verticals like pharma, telecom, retail, etc. as well. To put it simply, companies have not achieved the growth rate that they predicted say, eight months ago. But there has certainly been some growth even after the slowdown. The OND (October-November-December) quarter last year was very challenging for us and we need not meet numbers as were expected. This is because end-consumers are delaying buying decisions and the channel business has been hit because of it. But we are moving very aggressively in the Indian market. Last year we saw more than 45 percent growth over the previous year in spite of the recession.
DCC: What measure are you taking with the help of the channel community to see that both stakeholders are not adversely affected by the economic situation? Vyas: Most importantly we are trying to promote a linear buying pattern. We have been education our channel partners about providing value-adds to customers. We are also exploiting opportunities
in non-metro cities. We found out that the scare of recession, stock level constraints, etc. was limited only to the metros. Tier II cities still are showing a lot of potential that we can tap. We have a total of 300 partners who are helping us do the same.
But again, I am not justifying a careless attitude. According to the gravity of the situation, decisionmaking needs to be fast and solutions need to be provided to the partners to help them run their business smoothly.
DCC: When we become the voice of the channel community, we often witness an unresponsive behavior from the vendors on consumer complaints. Why does that happen?
DCC: Can you talk about the concept of e-tailing? Has it caught on in India?
Vyas: Being unresponsive and aloof it is not the right way to go. It gives out a perception that the company does not care. Ideally the vendors and channels should partner and come together to resolve problems. It is critical that both parties understand that they benefit from each other’s success. But to answer your question, from a vendor’s perspective, the most common reason to stall such problems is that the vendor - could be HP or Gigabyte – does not have a concrete solution that they can bring to the table. Being global organisations, decisions on sensitive issues need to come from the top. Bureaucracy could be a reason for delay. Another reason would be attrition of the concerned people. In such scenarios it is not clear as to who would take the responsibility or blame for things gone wrong. These are some of the issues that vendors face.
Arthur Liu: E-tailing concept is not prevalent in India. Customers do search the web and go to retailers with specific model numbers in motherboards, PDAs, netbooks etc. There is definitely a large market for it here. In Korea, almost 100 percent of all PC components are bought over the Internet. 70 percent consumers check products and buy on the Internet while the rest will first check specifications, prices, etc. on the Internet and make up their mind before going to the shop to make the purchase.
DCC: Do you still follow the channel 80:20 rule – where 80 percent of the business comes from 20 percent of channel partners? Vyas: Till last year the ratio was about 70:30 but since the last six months it has come down to 60:40. That has especially helped us in tapping new markets and expanding our footprint.
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Q&A
“Our greatest strength is our ability to understand customer’s unique requirements” ‘The Sultan of South’ is how Bangalore-based Frontier Business Systems is commonly addressed. RAVI VERDES, Founder and Director, Frontier Business Systems speaks with CHARU KHERA about his business expansion from being a box pusher in 1994 to currently being one of the most comprehensive IT infrastructure and security solutions provider DCC: When was Frontier Business Systems formed and how has it grown over the years? We started as a box-selling channel partner in September 1994 and today have evolved as one of the leading System Integrators (SI). We currently have a turnover of over Rs 210 crore (as on March 2009). We are targeting a turnover of Rs 300 crore this year. Moreover, we are focusing on bottomline numbers, and are witnessing a 25 percent growth YoY. The company has struck a number of mega deals over the years. We are into information security consulting, virtualisation consulting, IT infrastructure management services and have completed some of the major deals in BFSI, education as well as government sectors. We have recently received ISO 22001 certificate. Frontier has a national footprint with offices in Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Cochin and many tier-II cities. In addition, we have a strategic relationship with several vendors such as Systimax for structured cabling solutions, Cisco and Symantec for networking and security, Emerson for power conditioning solutions, Citrix for software solutions, and IBM for TotalStorage solutions.
DCC: What according to you are some of your main strengths? Our greatest strength is our ability to understand customer’s unique requirements and offer effective and efficient solutions and services. Moreover, ours is an environment friendly company. We have been taking several initiatives to conduct our business in the most environment friendly manner possible. For example, we have a Green building and a Green datacentre in Bangalore, confirming to Leadership in Energy and Environmental Design
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(LEED) Green building standards rating from the US Green Building Council (USGBC). We have invested considerably in automating our business processes. Internally we maintain a state-of-the-art IT infrastructure for operational effectiveness.
DCC: Do you have a vertical-wise focus? What are the verticals that you are currently focusing on? Right from the beginning, we have ensured that we focus on all verticals to balance eventualities. Hence, we are trying to spread our focus to verticals like government, PSU, education, ITeS, BFSI, manufacturing, etc. We try to de-risk our model so that in the event of one sector being adversely affected by economic slowdown, we are not hit as a company. Starting from design and execution of enterprise backup power requirements to personal computing, networking, network security, thin client computing, virtualisation, enterprise computing, storage area networks, infrastructure management services, IT infrastructure consulting, and information security consulting – we have the domain knowledge and technical skills in every aspect of IT infrastructure – solutions or services.
DCC: Pertaining the current economic slowdown, what are some the challenges as well as opportunities that you foresee for the channel community? Though the channel community has also been hard hit by the current economic downturn, it provides the fraternity a major opportunity with regards to availability of skilled manpower. Moreover, each deal today has to be fought hard and those with good strategies in place are still doing well.
Cash flow is the biggest threat for the channel today. Customers today tend to delay payments for every small reason. In addition, the opportunities are limited so those with real skills and more value-adds are doing better today.
DCC: Is customer retention a big concern of the channel community? What are the strategies that you have adopted to attract new customers? Customer retention per say is not a concern for our organisation. We have a clear-cut plan and strategy in place to attract and retain customers. We approach our regular customers from time to time with new offerings. We help customers increase efficiency and optimise their IT investments and suggest measures that can help them bring down costs. With new solutions in areas like IT optimisation, Green IT, etc. customers are keen to understand how they can cut costs as well as utilise their existing investments better.
COMPANY PROFILE Frontier Business Systems was established in 1994, and generated sales of $50 million last year. With over 600 skilled professionals, Frontier has a national footprint with offices in Bangalore, Chennai, Hyderabad, Mumbai, Delhi and Cochin and many tier-II cities, besides support locations across the country - ensuring a pan India presence. Frontier has invested considerably in automating its business processes and internally maintains state-of-the-art IT infrastructure for operational effectiveness.
Q&A
“TAIT SERVED A PRIME ROLE IN GETTING REDUCTION OF SALES TAX” Photo: Jiten Gandhi
“United we stand, divided we fall,” is the motto that TAIT believes in. PRAVIN DHOKA, Spokesperson and Director, TAIT shares with CHARU KHERA the growth journey the association has undergone to represent over 300 IT companies comprising IT distributors, resellers, SIs, software and networking companies in Mumbai DCC: When was TAIT (Trade Association of Information Technology) founded and what was the purpose/aim behind its formation? TAIT was founded in March 1996 to represent the interest of computer traders of Mumbai. TAIT has 360 members today. The association aims to bridge the gap between hardware/software manufacturers and dealers and helps them unite and forge new trade alliances forming an invaluable network in the industry. We also provide our members access on a regular basis to all information regarding computers, peripherals, spares, software and service and skill upgradation. Moreover, TAIT provides a platform where diverse subjects such as excise and custom laws, sales tax, new technologies, business trends, sales organisation, and service issues are debated with the help of experts.
DCC: What are some of the main challenges that the channel community in Mumbai currently face and how has the association helped them address the same? TAIT had served a prime role in getting reduction of sales tax for its members, especially for products like UPS, cabinets, cables and cameras and is also constantly following with BMC (Bombay Municipal Corporation) for reduction of octroi on IT product. The association has also tied-up with various exhibitors to allow the industry to reach out to the masses. We have conducted few management training programs to train the new entrepreneurs and managerial staff of our members. We even have cordial working relationship with other trade bodies like MAIT (Manufactures’ Association of Information Technology), NASSCOM (National Association of Software and Services Companies) and IMC (Indian Merchant’s Chamber).
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We regularly circulate updates on legal matters, government issues, new rules and regulations regarding sales tax, octroi, etc. to our members. Moreover, we recently launched our own website, tait-mumbai.com to educate and constantly keep our members abreast of latest developments.
DCC: It is common knowledge that with the economic slowdown, the channel margins are being affected. What steps has TAIT taken for its members to address this issue of low margins? Yes, margins have really come down, but still there are many areas of services where partners can make money. And for the same, we plan to conduct some regular training programs for our members wherein we will invite some prominent speakers from the industry as well as from other allied fields who would educate our members on the available option to sustain the economic slowdown. For example, from being just box pushers, partners should consider expanding their horizon, opt for broad basic billings, expand into other verticals such as software as a service (SaaS) and much more.
DCC: While piracy has been a threat to the channel fraternity, what is TAIT’s stand on the same? Have you taken some initiative to combat piracy in your region? Piracy is a very big threat and to protect the interest of the partners, it should be treated with great concern. We have conducted few seminars on this for our members in association with Microsoft, Tally, eScan, Mcafee, etc. wherein the vendor companies provided guidance to partners on identification of counterfeit products. Also discussed were the advantages of using genuine software. We have even requested these vendor companies to educate end
customers and explain the benefits of purchasing genuine software.
DCC: Brief us about the events, expos, etc. that TAIT conducts for the channel community in Mumbai? Has there been an impact of the economic slowdown on your regular events? We have our annual expo called COM-IT Expo, an international exhibition and conference on computers, IT products and services and software with the motive of creating a platform for the industry to address the audience on new products, brand awareness, barriers to entering a particular market. During this expo new dealers/distributors are also appointed. It is a networking opportunity for channel partners to meet other members of the community and the end-consumers. It is usually a two-day conference. Last year, more than 300 delegates attended it. Over 19 speakers shared their experiences while 80 exhibitors showcased their achievements and expertise during the show. To conduct the show this year, we will take a call after June 15, 2009 after considering the market dynamics. We even organise a yearly mega event for industry promotion under the umbrella of Diwali Mela, where big IT industrialist are invited. TAIT has its media arm called ‘TAIT Classified’ since 1996. It is a weekly tabloid, which was introduced to help the traders advertise and promote their products and offerings. We have started an arbitration cell, which helps resolve the disputes between the partners legally. We are planning to organise various seminars for educating our members about new opportunities like boosting their after-sales services, increasing their product portfolio, expanding regionally and entering newer markets, etc.
COVER STORY
GOING GLOBAL
The Indian economy is becoming truly global. The new mantra for the channel community is to break boundary barriers and look at opportunities worldwide. CHARU KHERA and SUJAY NAIR analyse this trend...
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lobalisation is clearly on the cards for the more matured channel partners, SIs and VARs. The geographic expansion is part and parcel of making sure that they stay in market not only to be closer to clients, but also be closer to and have access to labor pools essential for expansion. In terms of going for pure market growth and speed, going global makes sense. But the challenge and advantage will be to grow as fast as one can
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without impacting customer satisfaction, which is extremely critical in such a volatile market. Globalisation is not a new phenomenon and for a couple of decades now, companies have been expanding beyond their national borders. What is new is the dramatic acceleration of this process by the channel community. Many solution providers (SPs), system integrators (SIs), value-added resellers (VARs) that this magazine interviewed said they want to explore opportunities that will help them grow their business
COVER STORY in addition to leveraging on their existing clientele and skill-sets. Though some of them are in doubt that regional as well as product portfolio expansion is the right way to go, there are many others who are considering global expansion. The Indian economy is becoming truly global and over the years, the Indian channel community has seen an unprecedented growth and is now focusing on the inorganic growth strategies. The new mantra for the community is to break the boundary barriers and look at opportunities worldwide. From being a box pusher to a reseller to becoming a SI - the channel community is moving up the value chain in terms of offerings, mergers and acquisitions (M&As), expanding product portfolio and expansion - regionally as well as geographically. The world seems to be a universal playground for SIs/VARs as they explore markets abroad. A large New Delhi-based integrator says, “We have a three-dimensional model that is geographic, horizontal application based as well as industry verticals, and we deliver most of our solutions through what we call a solution center. We have two of them in India and one in middle-east. Most of our workforce works in solution centers.” Trends indicate that most partners are looking at expansion in developing markets as the entry barriers are relatively less and they do not have content
with much competition. This is not the case in the western world as it is difficult to gain a foothold in the matured markets of US or UK. “The markets in the most developed countries have reached saturation point and hence they present limited growth prospects,” explains Champakraj Gurjar, MD, Maxtone Electronics, Mumbai. Most service providers expand by hosting remote management, BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) services. Another way is the M&As (mergers and acquisitions) route.
Challenges The first step towards global expansion is to realise the potential and core area of strength of an organisation. This should be followed by a strong research for key markets for expansion, and knowledge about the target customer. Consulting legal advisors is another key element that partners should consider to ensure security and safety of the business. Moreover, one should always establish clarity on payments and other terms and conditions. In addition adopting a flexible approach, having proper HR policies in place and hiring local sales and marketing staff are key elements for setting up a successful enterprise abroad. A major challenge with regards to global expan-
Why go global? To grow revenues To increase brand and shareholder value To achieve competitive edge as well as maintain financial security To leverage low cost, high quality Indian talent pool in new geographies To reduce dependence on home market To learn and take advanced technologies across geographies To leverage on the existing corporate infrastructure To boost competitiveness
Team to tango You have been operating a subsidiary in the US. When and why did you expand internationally?
We were servicing a client in India who wanted to replicate his Indian success at their branch office in New York (US). While working for them, we realised that there is a huge requirement of quality services at attractive prices. We continued our success and expanded from there to other clients in the collection and insurance domain. In 2007, we spread our wings and incorporated our US office under the aegis of Team Business Solutions LLC. We currently offer remote management of Business Intelligence (BI) applications to our US clients. Why did you choose to tap the US market?
With our first client, we got a strong foothold in the US market. Moreover, there were no hassles with regards to the availability of Indian technical workforce in the US. They realised the branding Team has in India and hence inroads were at least clear if not easy. In addition to this, our directors have been traveling to the US for professional and personal engagements and had prior relationships in the country. This helped us scale our operations in the country. What have been the growth drivers for Team Computers in the international market? Delhi-based Team Computers strongly believes in the motto ‘The faster the pace, the better it is.’ Ranjan Chopra, CMD, Team Computers shares his strategy for ensuring faster growth and the plans for the company
Complete focus on customer delight has been the success mantra for us in the international market. We have gone ahead and ensured satisfaction for clients even if that meant spending more than what the project called for. Moreover, constant R&D led to innovative solutions. We have participated in many international industry events. We regularly meet our customers meetings and have picked up local industry experts to ensure acceptance and adaptability. What are some of the common errors that partners make while expanding globally? What were the challenges that you faced while expanding globally?
Most partners who plan to expand beyond their geographical boundaries tend to have a short-term view of acquiring and servicing clients. Impatience during the warm up stage is another common error that partners tend to make. One should always focus on quality and work processes alignment and should not have very high expectations in terms of profitability during the initial years. We faced few challenges during our global expansion phase. Operating from India posed limited scope in the overseas market from sales and marketing point of view. Moreover, partnerships and tie-ups were short lived and painful despite maintaining transparency and good faith as ground business realities in the US are quiet different from India.
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COVER STORY sion is that most often the organisations that plan to expand globally has no clear idea/aim as to what 1. Think globally exactly it wants to do expor t a product, open 2. Have a focused international growth strategy office in a different coun3. Assess the international potential of your organitry or appoint distributors. sation and globalise where the return is greatest “Most often the objectives 4. Conduct market surveys to determine potential change in the process of locations best suited to the business globalising and as a result there is no clear vision as to 5. Study the market carefully what the company wants to 6. Expand where you understand the customer do. A focused international base, market, language, laws and the culture growth strategy is very 7. Analyse well the cost and ease of doing business essential while expand8. Understand and track your competitors well ing globally,” said Hemant Bakshi of Punjab based 9. Establish a comprehensive local sales and Business Systems. marketing campaign and advertise in international Another common error publications that most first timers make 10. Build local infrastructure to create presence while expanding internationally is that there is no specific person appointed for the project. Most often, it is allocated to a marketing manager, business development manager or anyone who has a vague idea about international business. As a result, the project is stalled each time
10 best practices to ‘Go Global’
an important decision has to be made and there is no structure in place to successfully develop the project. “There is a common belief among a lot of partners that most information required for an international project is available online. Though there are a lot of sources of information on the Internet but it is important to have some valuable insights also about the targeted place, business practices, customers, laws, culture, language, etc.” explained Bakshi.
Mergers and acquisitions M&As are becoming the most common norm for the channel fraternity to consolidate and grow as they provide partners with a wider reach, financial strength, broader skill-sets and expertise. A leading SI with burgeoning global M&As aspirations is Mumbaibased Allied Digital Services. The company posted a turnover of Rs 302 crore in FY08 and has 80 percent stake in US-based $40 million SI, EnPointe Global Services. “We are looking at more such acquisitions, which will be strategic fit to our business strategy of off-shoring remote infrastructure managed services around the globe,” said Bimal Raj, Executive Director and CEO, Allied Digital Services. Bangalore-based Apara Enterprise Solutions has been exploring new avenues, both in terms of geographical expansion and product portfolio. The company has opened Apara Global Services branches
No shortcuts in life Apart from Boston, Choice Solutions had a branch office in UK. But the UK branch was shut down. What were some of the challenges that made you close the UK branch office?
As part of our global expansion plans, we started off in Boston, US in the year 2000. We decided to go global as we could foresee a lot of opportunities in the US market and we have build up a lot of expertise around that. Moreover, many of our key investors/partners were living in the US. This provided us an edge. It was around the same time (in 2001) when we opened another office in UK. After the downturn, which occurred in 2002-03, we temporarily shut our UK operations. Another key challenge that we faced was lack of business (due to the economic meltdown) and inadequate funds. When we started our operations in UK, the value of rupee to pound was 66, whereas in 18 months, when we decided to move on, the value of pound was Rs 88. Hence, we had to recall all our employees. In the US, my own partners and investors were running the show; whereas in UK we were entirely dependent on the local manpower. We thus decided to adopt a step by step approach and shut our UK office. But we are currently in the process of reopening it sometime this year. Also, we are contemplating to open a branch office in Atlanta in the next two months.
Global expansion has been the bottleneck for sustained growth for Hyderabad-based Choice Solution- an end-toend IT solutions provider. KV Jagannath, Managing Director of Choice Solutions says that there are no shortcuts to success in life as he shares the plans that he envisages for the company
What were the issues you faced with regards to business regulations while expanding to the US market? What are some of the crucial factors that partners should consider before planning to expand internationally?
Business regulations were the easiest aspect to deal with as we strictly adhered to the processes. But we were unprepared in putting certifications (such as ISO) in place. Another challenge was the cultural differences. While going global, partners should identify with the niche area of services and understand the opportunity of doing a service. Channels should consider a partnership model for global expansion and put its processes, infrastructure and certification in place. I would also recommend recruiting marketing talent regionally. All these factors played a crucial role in making our company a success globally. One should follow a careful and well-planned strategy while expansion in international markets. Why did you choose to tap the US market? What according to you are some of the top global destination for expansion for Indian channel community?
As I have mentioned earlier, I had investors and partners in the US. People are more open minded and take risk in the US as compared to people in UK. We cater to the education vertical in US. We develop an ERP package called Edfusion for our US clients. One should first focus in India rather than expanding globally. India is riding high on e-governance project. Thus one should look at opportunities in the country. Partners should also look at UN projects for expansion. Underdeveloped nations such as Africa, North America are some of the best destinations for global expansion.
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COVER STORY in UK, Netherlands and the US. Additionally, the company has invested in rolling out Global Enterprise Management Services to offer remote management services to customers. Another leading player is Omnitech Infosolutions. The company is eyeing various international players and plans to initiate a fund-raising exercise for an acquisition.
Betting on products While many like Allied and Omnitech are acquiring firms internationally, there are many others who have taken the product route to make a mark in the international arena. New-Delhi based Team Computers, for instance, has been operating a subsidiary in the US and selling its Business Intelligence (BI) reporting and analytics tools. “We have witnessed a very positive traction for our international business. We have been following a product-led strategy to expand abroad and call this approach the ‘Guerilla way’ – i.e. low operating costs and more targeted marketing activities. We have developed our own BI reporting and analytics tool and over the years have acquired 12 clients internationally for our solutions and services,” said Ranjan Chopra, CMD, Team Computers. Further elaborating on the future plans, Chopra added that in 2008, Team made roughly $1 million from international operations and is close to rolling out a specialised ERP for the ocean transportation industry. Analysts believe that many companies are using
the current scenario to rethink their business plans, develop new products, and prepare to enter new markets around the world. This holds true for many VARs and SIs who believe that expansion globally is the best way to sail through the current economic slowdown. “Our geographical expansion is helping us sail through the recession as it has helped us in streamlining our sales strategy. As part of our geographic expansion strategy, we have opened offices in the US, Singapore and the Middle East. Within India, we have presence in Mumbai, Chennai, Hyderabad, Trivandrum, Kochi, Madurai, Vishakhapatnam, Trichy, Coimbatore and Pune,” said RS Shanbhag, Chairman and President of Bangalore-based Value Point Systems.
Five key issues to deal with while expanding globally Taxation agreements Import and export rules Business regulations Cultural differences Protecting proprietary information and communication
Going ahead With aggressive global aspirations and determination to make it big in the international market, the channel community is all set to take a leap in their evolution cycle. However, it is just the beginning and while the future success will depend on how well they can market themselves. It is important that they build products and solutions at par with the industry standards and aggressively provide post-sales services. Whether partners will be able to emulate the markets abroad will depend entirely on how well they execute their strategies and sustain their growth momentum. sujay.nair@9dot9.in charu.khera@9dot9.in
Climbing greater heights You currently have offices in US, Singapore and the Middle East. What are the services that provide in these regions?
We currently have direct presence in the US – one in Fremont and other in Hueston. We have been operating the Fremont branch since 2005 whereas the Hueston office has been inaugurated very recently. We also have associates in UK, Middle East and Switzerland. We offer services such as remote infrastructure management services (RIMS), network operating services, storage and server consolidation services, migration from one platform to another (such as from Lotus to Excel), etc. We even offer IT allied services such as data translation work (migration from one language to another), data-related litigation services as well as services for offshore development centres. According to you, what type of Indian channels have expanded globally?
Trends indicate that partners who have gone for IPOs generally look for global expansion. The main reason for the same is that most often IPOs generate a lot of money which is then used for global expansion. Tier-II SPs/SIs, who have been involved in mergers and acquisitions too tend to expand their reach beyond India. Under commit and over deliver’ is the success mantra for Bangalore-based Value Point Systems. RS Shanbhag, Chairman and President of the company shares some of the significant global achievements of the organisation
Since the major chunk of your business is focused in the US, what has been the impact of recession on your revenue?
Though the economic condition in the US is deteriorating, there has been no direct impact of recession on our business. The IT allied services that constitute a major part of our services offer enterprises with reduced operational costs as well as increases efficiency. Therefore, even at these times of economic downturn, companies have been opting for services to reduce cost. What has been your global success mantra? Can you suggest some of the best practices that will help partners who plan to expand internationally?
A main growth factor for us is our efficiency and timely delivery. We believe in constant innovation by adopting some of the best practices from the industry. Service level agreement (SLA) is ant important factor that should be considered well before expanding internationally. A SLA should be well thought and consulted with a lawyer before being signed (read well between the lines). Knowledge about local taxation policies is also a must. Moreover, one should avoid signing an exclusive contract with a vendor. Be careful with the term of the contract. Avoid signing a contract for five to six years. An ideal deal should be for a year or two. A crucial factor that partner who expand internationally should keep in mind is that India is your base and do not loose focus in your home market.
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GREEN IT
Channelising
the greenbacks
The IT industry is going green with a vengeance. With power bills reaching the stratosphere and the regulators getting into the act, companies are learning that managing the ecology makes for good economics
T
he world, it seems, is finally waking up to the perils of global warming. What better proof of this awareness can there be than the awarding of the Nobel Peace Prize for 2007 to Al Gore and the UN’s Intergovermental Panel on Climate Change? The former US vice president used the media glare to warn that “global warming is the greatest challenge we have ever faced.” The environmentalists are finally making their presence felt. The spotlight, you would expect, would be on the usual suspects-the traditional polluting industries. So why is eco-awareness now becoming a top concern for most companies? Why is Green Computing on the top of the agenda for most IT transnationals? According to Sun Microsystems, datacentres alone account for around two-three percent of total global energy use-with IT gobbling up almost five percent of the total energy consumed in the world. In most large companies, it has been estimated that one-fifth of the total energy consumed would be accounted for by Information Technology. Further, according to a Gartner study, the energy cost of running computers would be greater than the cost of acquiring them by 2015. In fact, this equation might
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already be true for a few megacities in the developed world. “With a billion people participating online today, the network consumes more than 100 billion kilowatts of electricity and costs businesses around $7.2 billion in utility bills annually. And since the power consumption of datacentres doubled between 2000 and 2005, it’s no surprise that 25 percent of an IT budget is consumed by energy costs alone,” says K P Unnikrishnan, Director-Strategic Alliances & Teleweb Sales, Sun Microsystems. Gartner cautioned that the power requirements to run (and cool) datacentres accounted presently for a quarter of all global CO2 emissions from the information and communication industry. The clincher was when a senior analyst from the research firm cautioned that not enough attention was being paid to datacentre emissions, despite widespread publicity over the issue. The main reasons for a check not being put on datacentre emissions were due to lack of floor space, failure to house high-density servers and increased power consumption and heat generation, according to the analyst. Green is moving up the corporate agenda. Close to 48 percent of European respondents in the report ‘Tapping buyers’ growing interest in IT’, conducted by researcher Forrester, said that environmental concerns were “very important” while they were planning their company’s IT operations. The sample size of the survey was 124 IT professionals in Europe and North America. Forrester warns on the usual power guzzler, the datacentre, and says that possible legislation and a carbon tax are the main reasons for IT departments taking green action. The pull factors are customers who will demand action, says the report. “Energy savings are now right on top of a company’s agenda. And the situation is particularly critical in an energy-starved nation like India, where power outages are the norm, rather than the exception. With erratic supply and huge T&D (transmission and distribution) losses and ever-growing demand, cutting down on power bills is the only way out for technology managers if they want to manage the IT budget”, says Champakraj Gurjar, MD, Maxtone Electronics. Datacentres globally and in India are a sore point for companies in terms of operating efficiency and the kind of investments they require. According to the Bureau of Energy Efficiency, India will have an energy demand for 20,000 megawatts of electricity by 2015 and
GREEN IT rolled out a National Energy Labeling Program, but this did not cover going by the present state where there is a deficit of 10-11 percent PCs, laptops or servers. in peak load, there is a huge power problem and has to be addressed So what more should the government do in India? Should there be immediately. incentives for green computing like tax cuts for more efficient machines Since going ‘green’ makes both economic sense as well as ecologior stricter regulations? There seems to be no specific incentives available cal sense, isn’t the ecological path the only way for the IT industry to for green computing from the government. It is overall factored with go? In addition to economic and ecological benefits, going green is a enterprise commitment towards climate compliance. great contribution to mankind. This even can be described as the most The need of the hour therefore is a concerted effort from all endscritical challenge to world habitat. Adverse climate change is clearly from the government to enforce strict laws and from the corporates a blunder done by civilized society. Unfortunately, awareness among where awareness on the emerging energy issue as well as identifying Indian organisations for energy conservation is low as priority is always solutions to address this issue is required. The efforts of the two parties for deploying projects and managing costs. To the few, there is clear must complement and supplement each other,” says Unnikrishnan. understanding and sensitivity of broad benefits by going green. It is His organisation had collaborated with IIT-Delhi to also a corporate and IT goodwill enhancer. study the environmental impact of the IT industry Dave Douglas, Vice President of Eco Responsibility through e-waste generation. The study attempted to at Sun Microsystems had once famously said, “Eco analyse the present scenario in the context of two means both ecology and economics.” So essentially, major concerns: the increase in energy consumption a number of corporates do not see any fundamenand the production of e-waste and its disposal. tal drain on their budgets when they push towards becoming more ecologically sensitive. After all, the dollar is green in color, isn’t it? “It’s clear: what’s The main recommendations were: good for the environment is imperative for busiRevisit the proportion of time and funds spent by ness. This axiom drives Sun’s commitment to governments on increasing the supply of energy at designing and delivering eco-friendly processors, the expense of efforts to decrease the demand systems, programs, and services that help busiEstablish tax incentives and government procurenesses reduce their power consumption, environment guidelines that motivate computer professionmental impact, and energy costs. All Sun’s eco als to purchase energy efficient servers and other projects have measurable business benefits, which datacentre components is why one can say the ‘eco’ is for economics as well Foster voluntary industry efforts to develop energy as ecology,” says Unnikrishnan. efficient computing products and engage in publicHowever, at this juncture, one has to add a note private partnerships that promote the cost benefits of caution. An IBM-sponsored research revealed of energy efficient datacentres that companies have a long way to go before they thrashed out a strategy in tandem with the The road ahead technological function to tackle environmental There was a big hue and cry in the west when lead issues. Nearly half of the IT executives polled in was found in a few toys imported from China, but the survey said that their respective organisait is true that a potentially much more toxic trade tions did not monitor IT-related energy spending. exists in the transfer of used computers being Shockingly, half of the respondents admitted that shipped to Third World countries for the purposes their companies did not measure the environmenof recycling reusable parts. Greenpeace, the global tal impact of their IT systems and policies. campaigning organisation that aims to protect But globally, a number of customers want to and conserve the environment, has warned of a reduce their carbon footprint. This in turn is of “dangerous explosion in electronic scrap (e-waste) course pushing manufacturers to design systems containing toxic chemicals and heavy metals that accordingly. What is the scenario in India? Are entercannot be disposed of or recycled safely.” It urges prises worried about their carbon footprints? manufacturers to take full life cycle responsibility CHAMPAKRAJ GURJAR While awareness is catching on in India, costs MD, MAXTONE ELECTRONICS for their goods, and once the products reach the remain prohibitive and it is only those companies end of their useful life, take them back for re-use, which have an international presence which seem safe recycling or disposal. to be taking the steps to provide more energy efficient systems. Large Goverments are also cracking down-the Waste Electrical and enterprises have woken up to the large problem of energy consumption Electronic Equipment directive was finally passed in the UK in July looming in front of them and have started realising the importance of this year after much wrangling, where manufacturers and retailers of energy efficient processors. technology will have to pay a percentage of the total recycling cost of their equipment-depending on how much they sell or produce. And if you thought the green movement was confined only to the The Green diktats optimum utilisation of hardware, you have another think coming. And of course, globally, governmental regulations and policies are also Green software is also taking its first steps. As we all know Microsoft helping the IT industry move towards a more ‘green’ future. A case in has tied up with the Clinton Foundation to develop a set of technology point is the Electronic Product Environmental Assessment Tool (EPEAT), tools that will help cities all over the world to monitor and control their which is a rating system that grades environmentally friendly PCs greenhouse gas emissions. The software giant is providing a Web-based and monitors. The EPEAT is driven by the US-based Green Electronics tool which will help cities measure their carbon footprint. According Council, which operates under the following guiding principles: to Craig Mundie, Chief Research and Strategy Officer, Microsoft, (To) Implement market-driven systems to recognise and reward envi“Technology has the power to make a positive, long-term contriburonmentally preferable electronic products tion to solving the world’s environmental challenges.” Build the capacity of individuals and organisations to design and The writing on the biodegradable wall is very clear. Technology manage the lifecycle of electronic products to improve their environmanagers will have to account for the environmental impact of mental and social performance their IT buying decisions going forward, and manufacturers will An Executive Order passed by the US President has mandated that have to ensure that they pack in increasing amounts of computall federal agencies buy EPEAT-certified products for at least 95 percent ing power in machines that become more energy efficient in the of their needs. In India, though, the government has yet to institute years to come. such a comparable program for IT products. In 2006, the government
“Energy savings are now right on top of a company’s agenda. And the situation is particularly critical in an energy-starved nation like India”
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SMB FOCUS
5 best practices for
SMB networking
Small and midsized business networks require much of the same network hardware needed by enterprise networks, but SMB routers, firewalls and other network appliances should be tailored for smaller networks. These tips will help SIs and VARs to enhance their SMB business…
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hile SMBs still need essential network security equipment such as firewalls and intrusion detection systems, these organisation are often limited by tight budgets and smaller staffs. DCC attempts to offer valueadded resellers (VARs), security consultants and systems integrators best practices for setting up and administering a network firewall and IDS for an SMB. Firewalls and intrusion detection systems (IDS) are essential parts of an SMB’s network and its security. With the number of attacks on SMBs on the rise, a robust system is equally important for an SMB as it is for a large enterprise. And despite the challenges of recent Web and application-level attacks, a strong perimeter defense of firewalls — as old-fashioned as it may sound — is still necessary to protect your SMB. But with tighter budgets and smaller staffs, you need to carefully plan where to place and set up these important network tools. As with
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other IT projects, the key to keeping costs and maintenance in check is careful planning.
Choosing the right VPN for your customer: VPN options There is widespread agreement that access to corporate networks should be secured with a virtual private network (VPN), and chances are, your customers know they need one. But which VPN do they need? That’s where you come in. This feature looks at three popular types of VPNs (IPsec, OpenVPN, and SSL VPNs), and when each is appropriate, to help you recommend the right VPN to your customers.
IPsec VPNs IPsec is the IETF standard VPN. IPsec is an industrial strength VPN that is very flexible and configurable. It comprises three protocols:
SMB FOCUS Authentication Header (AH), which provides message authentication; Encapsulating Security Payload (ESP), which provides message encryption and authentication; and Internet Key Exchange (IKE), which provides key management and protocol negotiation. Because almost all of the AH functionality is duplicated in ESP, AH is usually used only for special purposes, and we won’t consider it further. The most useful way to configure ESP is tunnel mode, in which the VPN connects two networks or a single computer and a network. This covers the familiar cases of connecting two corporate sites and of connecting a road warrior to the corporate network. Traffic carried through such a VPN is encrypted, making it safe from snooping, and authenticated, making it safe from undetected alteration. Because IPsec operates at the network (IP) layer, it works with any protocol carried by IP. This makes it an ideal general purpose VPN for customers that require strong security and flexibility. IPsec implementations are available from all the major vendors, including Cisco, Juniper and Microsoft. On the other hand, IPsec can be difficult to configure and requires an experienced technician to keep it running.
OpenVPN Another general purpose network-to-network or computer-to- network VPN is OpenVPN. Although similar in functionality to tunnel mode ESP, OpenVPN is more lightweight and easier to configure than IPsec. OpenVPN is a user mode program that runs on Unix/Linux, Windows and Mac systems. It uses TLS (SSL) for key and configuration negotiation and an ESP-like protocol to transport the IP datagrams. It can be configured to use shared keys — simple but less secure — or certificates for key management. When used with certificates, OpenVPN provides a very robust VPN solution. OpenVPN is simple enough for use by your SMB customers that don’t have a dedicated IT staff. Although this VPN is robust enough for most security requirements, the fact that it is a user mode program means that it may experience some performance problems under very heavy load and thus may not be appropriate for large businesses with heavy traffic. However, it is an ideal solution for securing enterprise WiFi systems.
enjoy many of the advantages of VoIP without a complete replacement of your current PBX.
VoIP creates savings in multiple ways: Allows calls to be routed between company sites over the data network, thereby avoiding phone company charges. Reduces and simplifies office wiring. VoIP enables you to run a single set of wires to each desktop to support both data and voice. Enables unified messaging so voicemail can be accessed from a phone or from a PC. Enables access to the PBX from softphones so employees can route calls through the PBX from home or when traveling. Eliminates the need to update the PBX when users move from office to office since the phone number moves with the IP phone set.
Recommended steps in implementing VoIP A first step in the transition from TDM to VoIP often consists of adding an interface to the PBX to connect it to the company data network: an easy first step because there are no changes to connections to the desktops. Calls from one company site to another are then routed over the data network, avoiding phone company charges. A TDM interface to the public switched telephone network (PSTN) remains in place to handle calls outside the company. If problems occur with the newly added interface, intra-company calls can be temporarily routed over the PSTN. The next step can take place when a new block of offices is added or an existing office area is remodeled. Adopting VoIP for these offices means saving the expense of running phone wiring. You will wire the area only for the office data network, which will need to be installed in any case. VoIP means that there is no need to run traditional phone wiring to the new offices.
How to choose the best router for your customer
Finally, there are SSL VPNs, which link a single computer to an application gateway on the corporate network. Because SSL VPNs leverage the client’s Web browser as an interface, additional software is often not needed on the client machine. This means that installation and support of client computers are simplified tremendously and that the client machines can run any operating system that supports a browser and SSL. The disadvantage of this type of VPN is that to avoid extra software on the client machine and to realise OS independence, they are restricted to proxying Web pages and therefore are restricted to HTML/ HTTP-aware applications. By adding a small amount of software on the client, SSL VPNs can perform application translation. This allows the VPN to handle specific non-Web applications for which the vendor has built support into the SSL VPN gateway — mail, telnet and file services are examples. If your customer requires secure remote access to Web-based applications such as online catalogues, price lists, directories or manuals; order entry; customer contact reporting; or similar applications, SSL VPNs are an ideal solution, regardless of the size of the business.
The network manager has told you that the network may need a new router. Now it’s your turn. As the channel partner, what do you recommend? Assuming your customer already has a functional network, there are many reasons why you may want to recommend a new router. Obviously, scalability is one reason. The customer may have run out of Ethernet ports on their current router. The router may be near its shelf life (perhaps it has been serviced too frequently and is off of warranty and/or support), and you know it’s time for a newer model. Or the customer may have a new requirement to support a different protocol than they have been using — such as RIP2, BGP, IGMP, HSRP, IGRP or OSPF — and perhaps their existing router does not support this protocol. Be very careful to check this out, as you don’t want to be accused of buying unnecessary equipment to pad your account manager’s wallet. The customer may want to implement VLANs into their network or work with spanning tree. They may also have a new requirement to provide better failover and redundancy than their existing router provides. Perhaps they want an integrated router/VPN, without having to rely on a firewall. There are pros and cons of doing it this way, but clearly if there are budget constraints, an integrated packet filtering router that also provides VPN services for remote client connectivity may help them. Your responsibility is to define the pros and cons, and let the customer make the actual decision.
VoIP migration made simple with hybrid PBXs
Some things to consider
Voice over IP (VoIP) offers many advantages for its users. However, SIs and VARs are going to have a hard time convincing customers to tear out an existing phone system. The advantages of VoIP have become clear over the past few years, but the thought of ripping out and replacing a functioning phone system is a frightening prospect. Hybrid PBXs support both traditional Time Division Multiplexed (TDM) phones and VoIP, easing the transition from TDM to VoIP. Suppliers of traditional PBXs such as Avaya and Nortel offer addon boards or gateways that enable you to turn a traditional PBX into a hybrid PBX, providing a step by step path to VoIP. You can begin to
When upgrading the customer to a new router, you must understand the level of support available from the vendor, unless your company is fully staffed to provide that support. If you try to go with a lowpriced router, it may not have the technical staff to help you deal with potential problems. One must also consider the platforms that WAN engineers typically use, as it will be easier to support the environment with industry-standard products that are fully utilised by the majority of companies, small and large. For both the enterprise and SMB, it is important to choose a manufacturer that cares enough about their products to educate the engineers responsible for deploying their products (and not just box pushers).
SSL VPNs
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Illustration: Shrikrishna Patkar
LEADERSHIP
seven The
golden rules for effective decision-making
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LEADERSHIP Good leadership is all about taking informed and timely decisions and such decisions at the top level can spell doom or mark the success of an organisation. To know how you can buck up your decision-making technique, read on… MANEKA TANWANI
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he Indian channel community is growing at a fast rate and organisational structures are becoming complex. It is becoming critical that such channel partners develop their leadership skills to sustain and grow, especially in today’s era of globalisation. One of the key leadership skills that can make or break a company is the ability to take effective decisions. As you climb up the corporate ladder, your job entitles, above all to make decisions. You are always involved in some or the other kind of decision-making – be it reviewing reports, coming up with innovative ideas to get that edge, hiring somebody, proposing a budget or evaluating alternatives for a problem. Poor decision-making is a serious problem for business, eventually affecting a company’s reputation, long-term growth, employee morale, productivity and revenue. It is becoming quite apparent that businesses need to understand how decision-making affects their bottom line. Every senior executive has a different style. There are some who like to gather as much as information possible about an issue. They like to conduct research, understand all possibilities and options. They strive to be perfectionists and come to a decision only after they are sure they have the best possible solution. There are also some who like to make a verdict as soon as they have sufficient data to supplement it. Then there are others who strike a balance in the above two and adapt according to the demands of the situation. To build your own decision making style is a trial and error exercise. Only after you try out various things, will you know what suits you best to make informed and right decisions. There are few techniques that will help you do that. Understand the type of problem – Seasoned leaders know how to tackle different problems. The key lies in knowing when to respond immediately and when to wait. Some problems go away is left alone for a while and some need immediate attention. You can arrive at a decision by looking at it one step at a time. Taking a systematic approach can prevent being overwhelmed by the situation. Never take a hasty decision as the consequences can be pretty scathing. Anticipate problems – Learn to anticipate problems so when they occur you are not caught off-guard and end up making the wrong choice in that moment. Train yourself by looking at various situations and predicting what might happen. This will help in dealing situations in a better way as you will be prepared to tackle the problem with multiple possible solutions. Though it is not possible to be know every time, with practice you will be able to understand how each member of your team works and that will make it easier for you foresee problems. The 24 hour rule – Try to sort most problems within 24 hours of its occurrence. This reduces unnecessary delays and also helps you avoid making instant and hasty decisions. It gives you enough time to ponder on a particular problem and choose the right course of action. Again, there are various decisions that need a cautious approach. Sleep on these decisions before taking any action. This allows your subconscious a chance to participate in the process and possibly provide you with new insights. Also, there are many issues that become clearer when given due thought and sleeping on them makes these decisions easier. Don’t try to be a superhero - Just because you are the skipper of the ship doesn’t mean that you have to take every decision pertaining to the business. Prioritise and delegate. Get as much help in the process as possible as it will provide with multiple options to choose from. This solves two purposes – it leave you time to deal with mission-critical issues and it shows that you trust your team members. This motivates them to work harder and feel ownership to the business. Not to forget, delegating builds future leaders. Base decisions on concrete facts – This is easier said than done but
How to make effective decisions Failure of a leader to arrive at a right decision, at the right time can lead to unnecessary delay and productivity loss. There is no guarantee that the decision taken is correct. Not making a decision, however, can result in disaster. Though the following method is very simple, its impact cannot be understated. It is concrete and strikes at the root of the problem. Write down what the problem is. Analyse the problem so you understand the complexity of it. Most decisions fail because the problem is not fully comprehended. Collect the essential data but don’t be too fixated with laying your hands with every piece of available information. Identify the actions needed to accomplish your established goals. Write down what you can do about it. Penning down various solutions or alternatives can help you get a better picture of the scenario. It also helps in not missing out any key elements. Decide or choose what to do. You can then use the technique of elimination and come to a sound and apt decision. Act on it as soon as possible. Stick to the solution and set the chain of action.
don’t let personal prejudices bias your decision. Get the right facts and figures in front of you, weigh the pros and cons. Don’t get influenced by hearsay. Involve your team to get different points of view to debate and come to a sound decision. Understand the consequences of the decision before you make one. Be in control – Be calm and collected. When making group decisions make your point effectively. Listen to other people. Don’t force your decisions. Try to persuade them and not force them. Don’t decide when in doubt. Clear thinking is the only way to make the right choices. Be confident when you make a decision and stick to your decision till the end. It is impossible to make the right decision all the time but it is important that you do not lose your conviction and self belief. Learn from poor decisions made in the past and focus on bettering your skills. And most importantly, never compromise your ideals. Stand up for what you truly believe in. Follow your gut instinct – Most accomplished leader s follow their intuition. Experience gives that instant feeling of what is right. Trust that feeling and go with it. This is tough to do for methodical people but when your instinct tells you that something is wrong, pay attention to it. Making a smart decision is the key. It can take a few minutes or a few days to make that. To avoid going round and round in circles, wasting time and negatively hitting the bottomline, concentrate on making timely decisions sooner rather then later. It is all about finding the right balance between efficient use of time, relevant research, delegating when needed and listening to you gut instinct.
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CUSTOMER INSIGHTS Adding value through customer relationship Being customer-driven is crucial in today’s marketplace. Here are some tips that will help you be more customer friendly and create business value…
and loaded into the organisation’s interaction database, the next step is to make the information available to everyone who needs access to it. Train them to use the database and the information effectively.
Strengthen relationships
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here to start’ is the big question. Answering this is difficult for many organisations. The key aspect is to appraise existing relationships, determine the value of each and work to strengthen the promising ones. One of the first steps in increasing the value of business relationships is to understand the relationships your organisation maintains. The challenge is to weed through every existing relationship to evaluate and classify each one. If you have a database dedicated to managing organisational communications and interactions, use that. Otherwise, buy or build such a tool. There is a huge repository of customer relationship management (CRM) tools available and they come with a variety of capabilities and price tags. In the event your organisation is able to afford a higher-end solution, consider lowcost and open source solutions. These systems are also feature-packed, and relatively easy to configure and implement. If your organisation does not have a CRM application and cannot afford to purchase one, use Microsoft Outlook, Excel or anything else available that can manage rows and columns of information. Outlook offers better data storage flexibility and interaction tools, but Excel is easier to use for financial analysis and sorting.
Determine value of relationships If you have an information management tool implemented or have adopted an alternate solution, load all the available information about your organisation’s relationships into the database. Then begin classifying. Common
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classifications include the type of relationship (lead, prospect, customer, sales partner and vendor) and the status of each relationship (active, inactive or archive). Categorise each relationship with respect to industry, company size, geography and products or services used. If your organisation has information relating to the marketing activity that initiated contact, record that as well. Document sales history, returned orders, referral business and other events that affect the value of the relationship. Then identify the three most important elements of the relationship from the other party’s perspective. Finally, classify each relationship according to its current value and again according to the potential for increasing long-term value. Try to use no fewer than three – but no more than five – classifications of value and potential. The organisation elects to recommend its poorest relationships to its competitors. This can be a smart move when there is little hope of building a profitable relationship with the contact. The organisation also plans to grow its keepers through regular interaction. Marginal relationships will receive followup contact each quarter. Average relationships will receive contact every month. And relationships the organisation values the most will receive weekly attention. Because the organisation also ranks its relationships according to future potential, its people are able to attack the most promising relationships first and work on the least promising ones using costefficient methods, such as e-mail. Once every relationship is classified, ranked
Your organisation’s technology users should be able to access pertinent, up-to-date information from any location at any time. That is why CRM applications are better solutions than spreadsheets and homegrown databases for organisations attempting to be customercentric. With all available information in one place, staff can act in unison, and the organisation can create a coordinated response that grows relationship value. Consider the advantages of a staff able to handle all of a caller’s issues without transferring the call or placing the call on hold, compared with one that puts its customers on hold or forces them through an endless maze of menu options. One of the most frustrating things for callers is a maze of menu options followed by time spent holding on the line for a person to answer the call. Callers’ frustration levels rise when the person answering the call has to run around looking for information or has to transfer the call just to respond to callers’ needs. This is not customer service: This is customer disservice, and it negatively impacts the long-term value of relationships.
Train employees Properly train employees and give them authority to take action. Make sure your automated phone system is easy for callers to use and keep wait times down to a one-minute average. The objective is to make sure calls are handled quickly and do not have to be transferred for requests or problems to be resolved. The primary goal is to build the value of every relationship with each interaction. An organisation is truly customer-driven when it properly manages information, makes it available to the right people at the time needed, and trains its staff to use it to build relationship value. Creating a repository of information and sharing it throughout the organisation is just one step that must be taken along the way.
CELEBRITY CONNECT
Y CELEBRIT CONNECT
AMD’s Grand Master
“By asking customers to make an informed choice, Vishwanathan Anand has helped in creating a mindshare for AMD in the customers’ mind. This approach has been critical and consumers today have started researching for more information before buying a product.” Himanshu Jain, CEO, SMC International, New Delhi
“Vishwanathan Anand’s association with AMD has helped build a human connect and has created awareness about the company in the minds of consumers which wasn’t the case earlier.” Ganeshan, Proprietor, Mensel Computers, Coimbatore
“With the association of a gifted mind like Vishwananthan Anand, AMD has created combination of brilliant minds and brilliant products.” Dinesh Heda, Proprietor, Shwetha Computers, Hyderabad
“In the game of chess, every move has multiple options. A well-thought decision makes the difference between winning and losing. Similarly, at AMD we strongly promote taking informed decisions among our customers and partners. Customers need to be aware of all the choices and then make an informed purchase based on the specific requirements. The brand synergy between AMD and Vishwanathan Anand has helped us in more ways than one by creating a better recall for our philosophy and build the mindshare amongst employees, customers and partners. We even started a website called AskVishy.com, which was quite successful in providing an open platform to our stakeholders for information exchange to enable informed decision-making. We believe that increase in business comes at a later stage; it is utmost critical to persuade the customers to evaluate their choices. Channel partners are the foundation of our existence in the Indian market and we have been extremely fortunate to have their support in this campaign. Our efforts are directed at continuing to seek their support in making the customers aware of their choices and at working together to meet the customers’ needs.” . Deepanshu Sharma, GM - Marketing, Strategy and ISV Alliance, AMD India
“The three similarities between computers and chess are performance, speed and memory. I believe that AMD and Vishwanathan Anand are true leaders in these three parameters. He is the perfect brand ambassador for AMD. We have effectively leveraged this association to educate our customers about AMD products.” Vikas Parekh, Proprietor, Samvik Marketing, Mumbai
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ANALYST SPEAK Beating the downturn – back to basics
A
lthough the picture for the Asian mobile services industry is one of resilience, it would be a mistake to conclude mobile network operators are having it easy. Operators are suffering from reduced roaming revenue, declines in usage and spending, and currency fluctuations. So what can be done to thrive in this environment? “The downturn intensifies the imperative for operators to get the basics right - plan ahead, evaluate risks, and cut costs – while treating the customer as king”, said Nathan Burley, Ovum Analyst. The economic downturn means those carefully prepared three-year-old plans are probably outdated. Now is the time for mobile network operators to reassess their core strategy. MNOs (Mobile Network Operators)
should ask themselves: Who are our customers and how much longer will they sustain their telecoms spending? Should we dispose our non-core assets? How will we adapt to new competitive threats? This is the time to plan for the unexpected. How much operations can be sustained with reduced capital expenditure? What will happen to your profits if governments impose new taxes? What about increasing unemployment? Slashing discretionary spending, trimming jobs, outsourcing network operations, streamlining supply chains and renegotiating dealer contracts are some of the options. “Although, while the temptation is there to cut marketing costs, this is no time to abruptly slash the marketing budget”, advised Burley. Customers need to know about all the good
things MNOs are doing. “The recession may also open cheaper marketing opportunities, such as lower media costs, and MNOs should exploit those”. Additionally, customer facing units must place a renewed focus on meeting and exceeding their customer needs. In an industry where churn is accepted as normal, now is the time to focus on holding on to customers. Good customer relations are a priority and this is the time to understand customers better — their wants, preferences, and spending habits. During this downturn, MNOs need to empower their customers by offering them value-based products and services. “Low-cost providers in Asia have already mentioned the ‘positive’ impact of the downturn”, concluded Burley.
Indian SMBs falling short in deploying security
T
here is a growing awareness among the SMB segment in the country towards the various threats to their data, deployment of relevant solutions to counter this threat has not matched up, states Symantec 2009 SMB Security & Storage survey. This survey has covered verticals such as BFSI, healthcare, telecommunications, manufacturing, retail, professional services, education, etc. While SMBs in India are aware of the need to protect information (84 percent), protect the network (76 percent), protect the desktop (53 percent), protect the servers (81 percent), protect e-mail (67 percent), and backup & recovery of data (83 percent), the stark reality is that the awareness has not necessarily translated in users actively deploying solutions that ef fectively protect their corporate data. “The survey shows that small and midsized businesses in India want to protect their information, both internally and externally, but wafer thin budgets, coupled with inadequate and under-trained manpower are clearly stopping them from doing so”, said Ajay Verma, Director, Channel and Alliances, Symantec India. “As information within Indian SMBs continues to grow, there will be enormous pressure on these organisations from their customers and partners to effectively and appropriately, secure and manage their information.” According to the survey, 61 percent of Indian SMB’s were unaware of the present day IT security threats. While a majority of respondents are extremely concerned about basic security issues like virus attacks (73 percent), phishing scams (60 percent) and spam (64 percent), a large number of respondents did not consider data loss (68 percent),
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employee ignorance (70 percent), unauthorised network access (50 percent) and unen-
crypted laptops (61 percent) as major security threats.