EDITORIAL
Going back to school
I
am going to propose something that might seem a tad preposterous to you. I believe that this current slowdown can be the start of a new beginning for your business. Often, in the hustle and bustle of everyday operations—more specifically when business is booming—you often cannot spare time for your own personal growth. Have you ever given a thought to the fact that industry practices have evolved significantly in a number of disciplines over the years? But have you been able to keep yourself updated on the latest developments? We all know that managing your time and your business would be keeping you fully occupied. Now, with the slowdown showing no signs of abating, the time has come to think outside the box. Why don’t you look around to see if you can enroll yourself for an educational course to sharpen your skill sets? A short-term management course (institutes like the IIM regularly conduct such programs) for self-employed professionals would do wonders for the way you have been perceiving your business horizons. What’s more, you will be creating a network of extremely important co-professionals, you will be tapping the common expertise of a number of entrepreneurs like you. This can be a very enriching—and professionally rewarding—experience. Industry experts will interact with you, detailing the innovative ways that companies have been adopting to mitigate the slowdown. You will be exposed to the latest in
global best practices being adopted by organisations in your trade. Plus, you will also be exposed to potential recruits whom you will come in close contact with. Selecting the right candidates for your senior managerial positions will become much easier, and the selection procedure will be much more comprehensive than a mere interview. Also, look at the example that you would be setting for your employees. You can even form a core excellence committee in your organisation, by enrolling a few senior executives in such a course—and ensuring that this team becomes a guiding force for streamlining and strengthening your firm. It is not for nothing that they say that knowledge is power. Right here at Digit Channel Connect, we have lined up a number of insightful articles on various facets of organisational functions like sales, marketing, HR and finance. This, we believe, is essential as it will help give an entrepreneur a much deeper understanding of the business. After all, the game almost always goes to the smartest.
sujay.nair@9dot9.in
Now, with the slowdown showing no signs of abating, the time has come to think outside the box
SUJAY NAIR Editorial Director; Digit Channel Connect
SOUNDING BOARD FORM IV STATEMENT ABOUT OWNERSHIP AND OTHER PARTICULARS ABOUT NEWSPAPER DIGIT CHANNEL CONNECT TO BE PUBLISHED IN THE FIRST ISSUE EVERY YEAR AFTER THE LAST DAY OF FEBRUARY
DELIGHTED!
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 last issue was a very interesting one - specially your advice on surviving the economic slump. Business has taken a downturn by almost 30 percent for me. Your tip on marketing actually helped me to retain my staff and with a marginal cost of mailers, flyers and online marketing, I was able to increase my business this month. Please have more marketing and finance tips that can help us. Regards,
UNNI MENON Cochin
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Publisher’s Name Nationality 1[(a) Whether a citizen of India? (b) If foreigner, the country of origin] Address
KANAK GHOSH INDIAN YES
Editor’s Name Nationality 1[(a) Whether a citizen of India? (b) If foreigner, the country of origin] Address
SUJAY NAIR INDIAN YES
Names and Addresses of individuals who own the newspaper and partners or shareholders holding more than one per cent of the total capital
KPT HOUSE, 41/13, SECTOR 30, VASHI, NAVI MUMBAI 400 703
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I, Kanak Ghosh, hereby declare that the particulars given above are true to the best of my knowledge and belief. sd/Signature of Publisher Date: 17th February 2009
DIGIT CHANNEL CONNECT
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MARCH 2009
CONTENTS
19
COVER STORY
GET, SET &
GO! Business growth and efficiency are driving overall IT adoption among Indian channel partners. The community is also spurring technology adoption in the SMB sector
14
PRODUCT REVIEW Moserbaer CDR & DVDR..................... 12
RAM PRASAD
Canon Laser Printer............................ 25
Senior Business Manager-Consumer product group, Epson India
FUJITA SAN
Q&A
REGULARS
MD Epson India
EDITORIAL ..........................................................................05 TRENDS ............................................................ 08, 10,12, 22 SNEAK PEAK ......................................................................28 ANALYST-SPEAK ...............................................................23 CELEBRITY CONNECT ........................................................27 VOLUME 1, ISSUE 4
FINAL WORD......................................................................30
Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh
EVENT COVERAGE
16 Channel Champs Program
ADVERTISERS INDEX EMC ....................................................................................................Cover On Cover Western Digital ...................................................................................................... IFC Jupiter International ............................................................................................... 7 Gigabyte...................................................................................................................9 H T IMPEX .................................................................................................................11 Quick Heal ...............................................................................................................13 Pushpam ................................................................................................................25 Microworld ............................................................................................................IBC IBM .........................................................................................................................BC
DIGIT CHANNEL CONNECT
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MARCH 2009
EDITORIAL Editorial Director: Sujay Nair Associate Editor: Devarajan Mahadevan Sr. Correspondent: Maneka Tanwani
Events Executive: Pramod Jadhav Events Executive: Johnson Noronha Audience Dev. Executive: Aparna Bobhate Audience Dev. Executive: Shilpa Surve Events Programmer : Vijay Mhatre OFFICE ADDRESS
DESIGN Creative Head: Kabir Malkani Art Director: Rohit A Chandwaskar Chief Designer: Abraham K John Illustrators: Shrikrishna Patkar Photographer: Jiten Gandhi SALES & MARKETING VP Sales & Marketing: Navin Chand Singh National Manager - Events and Special Projects: Mahantesh Godi (09880436623) 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: Arvind Ambo (09819904050) PRODUCTION & LOGISTICS Sr. GM Operations: Shivshankar M Hiremath Production Executive: Vilas Mhatre Logistics: MP Singh, Mohd. Ansari, Shashi Shekhar Singh CHANNEL CHAMPS Sr Co-ordinator - Events: Rakesh Sequeira
Nine Dot Nine Interactive Pvt Ltd., KPT House, Plot 41/13, Sector 30, Vashi, Navi Mumbai - 400 703 Phone: 40789666 Fax: 022-40789540, 022-40789640 Printed and published by Kanak Ghosh for Nine Dot Nine Interactive Pvt Ltd. C/O KPT House, Plot 41/13, Sector 30, Vashi (Near Sanpada Railway Station), Navi Mumbai 400703 Editor: 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
TRENDS
ASUS G50V - Extreme Graphics Performance for Total Gaming Experience
W
ith power and performance, substance and style, the ASUS G series will revolutionize your gaming experience. Mumbai, February 25, 2009: ASUS, a worldwide leader in notebook design and the fastest growing notebook brand, today announced the launch of the ASUS G50V – one of the fastest gaming laptops to be launched in India. Aimed at portable gamers, the G50V looks at delivering extreme gaming performance with intense visual computing power. ASUS has equipped the G50V with an Nvidia GeForce 9700M GT graphics processor backed by 512MB of dedicated GDDR3 memory to provide a complete gaming experience for the Indian gaming enthusiast. The 9700M has 32 DirectX 10-class “compute cores” and a 128-bit memory interface, and it is largely derived from the G96 GPU that powers desktop graphics cards like the GeForce 9500 GT. Mr Albert Tung, Managing Director, ASUS India said, “ASUS is already strong in the Netbook segment in India. With the launch of G50V we are strengthening our position in the high end notebook category in India. We are very excited about our new offering and are sure that Indian consumers will see immense value for a total gaming experience.” Mr Stanley Wu, Country Head for Notebook Business, ASUS India said, “We believe in providing the best technology in all our product categories to our customers. The G50V is one of the most revolutionary products in the high end gaming category. With a gaming focused design and strong graphics, the ASUS G50V will redefine performance and enhance the entire gaming experience for the user.”
About ASUS G50V A display to meet gamers´ needs
With the world´s leading 15.6” LCD and fast screen response time graphic effects are sharper with no ghosting and shadows. With exclusive crystal bright screen technology, the game comes alive with vibrant colours and details!
The complete gaming kit Get the full gaming package when you buy a G Series notebook: the must have Republic of Gamers backpack – the right look for your next LAN party; the ideal gaming mouse from ASUS offering real time sensitive adjustment and 1600dpi, and the cool comfort of the Siberia Steelseries Gaming Headset.
A second display for instant messaging Whilst you game the second display screen will keep you posted about any emails and messages, tip you off about a memo note and even tell you that your CPU is loading, so now you can keep on gaming and know what is going down in the ‘other’ world.
Graphics Power for Hard Core demands The latest Nvidia GeForce 9700M GT gives the G Series unprecedented and blistering graphics power promising a smooth, stutter-free visual experience that gives you the best possible 3D performance .
DIGIT CHANNEL CONNECT
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MARCH 2009
event update 17th Convergence India 2009 The event will highlight new technology in telecom, mobility, broadcast, cable, satellite, IT and information security. Venue: Pragati Maidan, New Delhi Tel: 91-11-42795000 E-mail: exhibitionsindia@vsnl.com DATE: Website: www.exhibitionsindia.com 18 March to 20 March 2009
Security Watch Insider data theft accelerated by economic crisis According to a recent survey from the Ponemon Institute and Symantec, a majority of individuals laid off, fired or changing jobs in the last 12 months stole data from their former employer. Some 945 individuals in the United States who were fired or left their job willingly were surveyed and 59 percent admitted to taking company information when leaving. And it seems, according to the survey, email lists are most susceptible to theft. Typically, a bad impression of the company increased the odds of theft; few companies are taking the proper steps to prevent this problem, the survey found. Further, a portion of companies did not revoke employee access to computer systems right away. As news reports and rumours swirl related to a falling economy and jobloss anxiety grows, people feel greater pressure to make rash decisions based on a fear of finding themselves in dire financial circumstances, according to the report. In times of economic hardship, people are tempted to do things they normally wouldn’t do, and that includes stealing confidential data. Though the economic crisis is not fully to blame, economic incentives to take confidential data continue to increase. Of those who took information, 79 percent said they did not have permission to do so. Some 16 percent said they had permission to take the information, because, according to most, “others were doing it” or they “had a hunch it was okay”. Regardless of employee age or level in the QUICK FACT company, there was a common attitude that many people felt “entitled” to the information they took because they created the spreadsheets or the data they stole. The pervasive attitude was that the information was “theirs for the taking.” Sixty-seven percent said they used this of employees data at a new job. who leave The most common type of electronic or paper companies files taken were email histories (64 percent), steal followed by hardcopy files (62 percent), then information word processed documents (48 percent), digital photos (41 percent), electronic spreadsheets (39 percent) and software programs or tools (32 percent). Despite the increasingly dire economic situation and rising layoffs, the survey also found that companies are not taking adequate measures to prevent data loss. 82 percent of respondents said their former employer did not conduct an audit of the paper and electronic documents they took with them when leaving. In addition, few businesses scan what is on employees’ removable media devices before they leave with them. Some companies are even taking a week or longer to revoke former employees’ access to company systems. Unsurprisingly, 24 percent of respondents admitted to accessing corporate systems after leaving, according to the study. Of these, 15 percent said they accessed the system one week later and 20 percent said they accessed it more than a week later.
60%
CORRIGENDUM In our issue dated February 2009, we had carried an incorrect image of a latest product offering, eScan 10. The error is regretted. We carry herewith the correct image.
TRENDS
McAfee organises Partner Forum 2009
M
cAfee, one of the largest security companies, recently organised its Partner Forum in Mumbai. The forum showcased McAfee’s leadership practices in the security space and highlighted the benefits of partnering with the organisation. The program brought 150 channel partners together and discussed McAfee’s strategies and direction for 2009 and insights into the McAfee’s product roadmaps. The forum was attended by Steve Redman, President - Asia Pacific, McAfee, Inc., Kartik Shahani, Regional Director, McAfee Inc., Gavin Struthers, Director, Channel and Operations – APAC, McAfee and Michael Sentonas, Director, SE and Services – APAC, McAfee. Shahani said, “The McAfee Partner Forum is one example of our approach to providing our channel partners with timely information on the market and access to leaders who are addressing existing market challenges.” Steve Redman, President, Asia Pacific McAfee Inc said, “The forum addresses partner needs and offers invaluable networking assistance. The forum has also provided partners with the latest on technology and on the current market trends.”
Check Point launches new software blade architecture
C
heck Point Software Technologies, a player in securing the Internet, has launched in India its software blade architecture that aims to provide new levels of flexibility, simplicity and extensibility. Check Point has also launched Check Point R70, a new version of its security gateway and management solutions. Check Point R70 enables business of all sizes to tailor their network security infrastructure to meet their exact functional and performance needs with centralised management, simple deployment and full extensibility. As part of R70, Check Point is also introducing a new IPS software blade. The new IPS software blade delivers new IPS management capabilities and multi-gigabit performance. The flexibility of R70 allows customers to deploy Check Point’s new IPS technologies on any R70 gateway. “Check Point R70 brings to customers a new approach to deploying network security, one that is flexible and extensible,” said Itche Weinreb, Vice President Sales, APAC, Check Point Software. “With this new release, customers can benefit from the flexibility of the new software blade architecture. In addition, R70’s ground breaking intrusion prevention blade allows customers to deploy preemptive and accurate protections to security gateways with deep granularity, unparalleled threat control and the highest levels of performance.” “R70 will herald a new paradigm in the Indian security industry and help the enterprises meet today’s complex threat environment with refreshing simplicity,” said Bhaskar Bakthavatsalu, Country Manager, India & SAARC, Check Point Software.
OPINION POLL 15% Has the recession shrunk your profit margins?
DIGIT CHANNEL CONNECT
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YET TO SEE
15% NO
MARCH 2009
80% YES
D-Link and Tomizone ink strategic alliance D-Link, a leading provider of networking and communication solutions, and Tomizone, a global Wi-Fi service provider and WiFi hotspot company, have announced that Tomizone has joined D-Link’s Global Alliance Program (GAP) for solution partners to integrate Tomizone’s Wi-Fi hotspot software into select D-Link router models. Users in India with Tomizone enabled D-Link routers can secure a broadband connection for Wi-Fi hotspot sharing to provide paid Internet access to anyone. This means that creating a Wi-Fi Hotspot for anyone with intention to monetise broadband is simple with Tomizone’s self-activation process. This solution also complies with the local Indian regulatory norms. Tomizone is a global Wi-Fi Hotspot company and the largest provider of Wi-Fi hotspots in Australasia with over 10,000 hotspots and Wi-Fi zones in the region. “This alliance is ideal for D-Link and Tomizone in securing a powerful opportunity for both parties to deliver more value to customers,” said Tony Tsao, CEO and President of D-Link Corporation. “We see great potential opportunities in this alliance for large project deployments, with probable orders for hundreds of routers per project, especially targeting at Wi-Fi service providers and hospitality industry, such as hotels, cafes and even campuses requiring Wi-Fi hotspot access service.” With the integration of Tomizone’s software in D-Link’s select routers, customers can now choose to enable the service function for setting up their own Wi-Fi hotspots to offer Internet access services to friends or public users
Logitech launches Pure-Fi Express Plus
L
ogitech has added the Logitech Pure-Fi Express Plus omni directional speaker for iPod or iPhone to enhance its existing range of Pure-Fi iPod/ mp3 speakers. The latest iPod speaker dock is designed to deliver quality sound throughout a room. The innovative speaker technology in the Pure Fi Express Plus speakers help transmit sound evenly in all directions. Pure-Fi Express Plus provides more than just great sound. For added portability, Pure-Fi Express Plus can run on AC or battery power and includes an integrated handle, making it easy to take music from room to room. The new Logitech dock also features a wireless remote. With a range of up to 30 feet (10 meters), the remote lets you instantly adjust volume, play, pause, fast forward, rewind, as well as offering shuffle and repeat buttons. The product is priced at Rs 5995 and is available at all leading electronic stores in India. It also enjoys a replacement warranty of two years. It is distributed by Neoteric and Rashi Peripherals.
TRENDS
Trend Micro holds channel partner meet
T
rend Micro, a global player in Internet content security, recently held its annual meet for its India channel partners, with an aim to outline business strategy for 2009, update its product road map and share ideas on how it can add value to its partners’ businesses. The channel partners got an opportunity to interact face-toface with the global leadership of Trend Micro, including Steve Chang, Chairman & Founder; Eva Chen, CEO and Co-Founder; Mahendra Negi, Chief Financial Officer & COO; Raimund Genes, CTO; and the executive GM of enterprise and SMB business units. Speaking at the meet, Eva Chen, Global CEO & Co-Founder, Trend Micro, said, “Trend Micro invests about 65 per cent of its revenue annually in technology, infrastructure, datacentres, hiring skilled workers and employee training. With cash in hand of $1.2 billion, we will continue to invest despite the challenges ahead.” She reiterated her belief that economic recession accelerates innovation and acceptance of disruptive technologies like Trend Micro’s Smart Protection Network. Commenting on the success of the event, Amit Nath, Country
P R O D U CT
Manager – India & SAARC, Trend Micro said, “India continues to remain a growth market and focus for Trend Micro. The Trend Micro channel meet in Kuala Lumpur, organised exclusively for benefit of our Indian channel partners, is a clear testimony to our focus on India. About 60 people from 45 of our top partners in the Affinity program took part in this three-day meet. Content security threats are expected to increase to over 20 million plus by 2010, as compared to 13 million this year. It is imperative in such times that the channel partners are continually educated and updated about emerging threats as well as newer solutions to combat these threats.” For the first time, Trend Micro Chairman & Founder Steve Chang introduced to the channel partners the concept of World Cafe – a participatory, democratic, knowledge-sharing platform where all channel partners deliberated over four exhaustive sessions to pool in ideas on “How Trend Micro can add value to their business”. Out of these, the best few ideas were then filtered, which will be used to devise Trend Micro’s channel partner programs.
Gigabyte initiates educational programme with JetKing
REVIEW
G
igabyte, a manufacturer of motherboards and graphics cards, has announced its initiatives with Jetking Computer Hardware and Networking Institute to provide special training for its students. The initiative is aimed at enabling the young IT professionals with latest and upcoming motherboard technologies. Gigabyte has started these classes in its pursuit to help expand the IT industry by spreading awareness among students and end users. The firm has held tutor class events in India’s major cities such as Mumbai, Delhi, Bangalore and Hyderabad. JetKing started in 1990 and was the first institute that trained non-technical students preparing them to step into the IT world. Through this programmes, Gigabyte plans to initiate DIY activities, educate students on motherboard technologies. The company also gave an in-depth introduction of its latest product updates, including DES advance and UD3 technology. With this opportunity to educate the students of JetKing, Gigabyte aims at enhancing the quality of PCs and of the IT industry in general. By imparting more knowledge and spreading technical awareness amongst students, the firm plans to enable tomorrow’s tech experts to be able to recognise requirements and build their own PCs and further engender a great platform for wider expansions in the market for PCs and components. Gigabyte products are distributed in India by Avnet (India), Ingram Micro, Redington (India) and Neoteric Infomatique.
MOSERBAER NEWPLATINUM CDR AND DVDR – SCRATCH PROOF
T
he new Moserbaer scratch proof Platinum CDR and DVDR is a superb product with lot of traction from the consumer side. It has international brand quality and is manufactured by an Indian company. This product is completely scratch proof and of high quality thus the usage in environments that are rough is a great plus. It can used in multiple areas such as cars and rough areas. The product has a life of 100 years, so it is increasingly used for archiving as well. One community that we see a lot of sale for this product is photography – they seem to love it. Djs are also using these now.
Saifee Merchant CEO, Best International, Mumbai
Plantronics appoints Rashi Peripherals as national distributor
P
lantronics has appointed Rashi Peripherals as National Distributor for its range of consumer headsets, including mobile, computer and gaming. Plantronics has a strong heritage of developing innovative communication headsets for the consumer market. Its products are distinguished by an uncompromis-
DIGIT CHANNEL CONNECT
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ing commitment to sound quality, comfort and fit, and ease of use. Combining Plantronics’ product excellence and brand preference with Rashi’s strong presence in the mobile memory segment and its strong network of branches across India will be a win-win situation for both. Speaking about this new part-
MARCH 2009
nership Bobby Joseph, Country Manager, Plantronics India, said, “The distribution strength of Rashi and its pan-India presence will help to ensure that our products are easily accessible to our customers. Together, we’ll be able to serve the various local consumer segments with outstanding products and service.”
ATEN launches IP-based Cat 5 KVM switches
A
TEN Inter national, a designer and manufacturer of advanced connectivity solutions, has announced the launch of three new KVM Over the NET switches, part of the ALTUSEN Enterprise KVM Solutions line. These new IPbased Cat 5 KVM products feature remote management functionality and provide secure local and remote access to up to 256 and 512 servers through cascading. “Network administrators, now more than ever, require reliable and stable IP KVM switches to manage their mission-critical datacentres,” said Kevin Chen, President, ATEN International. “With ATEN’s KVM Over the NET, an IT staffer simply needs to travel to the nearest computer to diagnose a problem or reboot a critical datacentre device.” ATEN launched these new KVM Over the NET products with the enterprise market in mind. “Organisations of all sizes are challenged with administering, supporting and monitoring their network infrastructure,” said Chen. “For business to run more efficiently, it is imperative to design an environment that supports remote management. Our new KVM Over the NET switches offer enterprises of different scale with remote management functionality. They provide remote access to server racks and datacentres from anywhere globally via a Web browser—eliminating unnecessary travel and associated costs.”
Q&A
FUJITA SAN, MD Epson India
RAM PRASAD, Senior Business Manager-Consumer product group, Epson
FOR
GOOD SIZE
PARTNERSHIPS, DOESN’T MATTER
ETSUO FUJITA, MD, Epson India and RAM PRASAD, Senior Business Manager – Consumer Product Group, Epson India speak to MANEKA TANWANI about the challenges they face in managing their channel partners and the initiatives they have undertaken for protecting partner interests
DIGIT CHANNEL CONNECT
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MARCH 2009
Q&A DCC: Today, every vendor is talking about ‘partner enablement’ wherein they aim to help their channel partners in expanding their reach and increase revenue growth. How do you perceive the same and what are your strategies for such partner enablement programs? Etsuo Fujita: Epson initiated the channel integration program two years back and enabled our first tier partners to expand the scope of their businesses. The Epson Accredited Partner (EAP) programme has been extremely successful. We have now extended this to the second tier as well. This systematic programme encourages partners to grow their business by dealing in the full basket of Epson products. The partner benefits by doing so through a systematic and organised programme. Incentives, training, pre-sales support, marketing support etc. are just some of the benefits partners can hope to avail of through the programmes. In the past one year or so, we have included our final tier partner as well in this integration program. These initiatives not only provided a platform for our channel partners to grow beyond their set verticals or business strengths, but also leveraged their existing resources for maximising their profits.
DCC: What are some of the challenges that you face in managing your channel partners and in reaching to remote smaller partners? Etsuo Fujita: The key challenge is in ensuring the uniformity of pricing and ensuring the margins for our partners in spite of challenging market conditions and competition.
DCC: When managing channels, vendors struggle with the 80:20 rule which says that 80 percent of channel revenue flows through 20 percent of channel partners. Do you think that this rule still exists? Does this mean that only the top 20 percent of partners get all the attention and opportunity to grow? Etsuo Fujita: As per my knowledge, going by the example of our own business partners, we have started coming out of this 80:20 rule to a large extent. Our business is more spread out today, and the dependency on a few select partners is slowly giving way to more consistent growth for a large base of partners. As I mentioned, our EAP programme and our final tier programme have provided immense opportunities to a large base of our final tier partner in recent years.
DCC: Do you think that there is a need to change this ratio? If yes, what are the efforts that vendors should take to reach out to smaller channel partners? Etsuo Fujita: As we have been moving towards broader based partner coverage we are getting more consistent growth. Also, the reach of our product has increased to our end users. Last but not the least the inventory pressure on partners has also come down considerably due to this approach.
DCC: Small partners have told us that they find it difficult to sustain themselves because often sales targets, credit terms, etc. are thrust upon them. It becomes very challenging for them to survive as they lose their business to larger SIs. Do you think that their argument is justified considering the current economic situation? What efforts do you take
Small channel partners are not at a disadvantage from SIs. They handle different target audiences. SIs primarily handle large corporate accounts while channel partners handle the SoHo and individual consumer vertical. Channels have their own advantage in this space. They have a larger reach, flexibility and can complete their deliverables in a better way.
DCC: The increasingly tough competition among channel partners and the pressure from vendors to meet larger sales targets has made almost all partners to sell below MRP. Do you think that a uniformed price mechanism should be put in place to safeguard the interest of partners? What else can be done by vendors like yourself for the same?
Our key challenge is in ensuring the uniformity of pricing and ensuring the margins for our partners to ensure that realistic goals are set for your small channel partners? Ram Prasad: We always believe in taking along with us all the partners irrespective of their business volumes or size. This is exactly the reason why all our schemes are designed taking into account the smallest partners and we retain realistic numbers achievable by them. Partners who give us business of even two-three printers in a month are covered under our various incentive schemes. We place more value on consistency rather than volume. Lots of our partners from even small towns have gained over the years with their association with us as they believe we provide the level playing field for them.
THE EPSON STRATEGY If five partners are successful in reaching out to the targeted audience, then there is no need for more partners. Our expansion is driven by how many end users we reach, as the sales process will only be completed when the end user buys Epson products.
Ram Prasad: We have always been for price harmony for our products across markets and channels. While we don’t promise the sky, we always deliver the basic assured margins for our partners across the tiers. We always work on more transparent ways with our partners for mutual benefit. Also, due to the changes in the customs duty regulation, the margin gap for the channel has shrunk. Earlier the customs duty depended on the components imported by a particular company. But now, it is 77 percent of the MRP of a particular product. So more the MRP, more the duty. This has forced channel partners to sell closer to the MRP.
DCC: Channel partners are of the view that leading vendors appoint many channel partners in a small location, which leads to partners losing their margins. How should this issue of over-distribution be tackled so that the interest of both stakeholders is not compromised? Ram Prasad: This issue can only be addressed by having an optimal distribution penetration level. With our price harmonisation efforts, we have always worked that our partners don’t lose their margins. Also, our expansion plans are targeted in increasing our customer coverage rather than partner coverage. If five partners are successful in reaching out to my targeted audience, I am happy. I do not necessarily need 20 channel partners. My expansion is driven by how many end users I reach, as my sales process will only be completed when my end user buys my product and not when a partner does it. So, the question of over-distribution doesn’t arise.
DCC: Can you comment on the 80:20 rule? Ram Prasad: About the 80:20 rule, the ratio is slowly shifting to become 60:40 or maybe even 50:50. This is because companies are becoming closer to their remote partners as well. We are constantly in touch with our partners that sell directly to the end user. This plays a two-fold role as it gives them scope to grow, voice their opinion and also cuts down on over-distribution. We have been in the process of a partner consolidation programme for the past two years. Through this we have 180 core EAP members and 5000 ECC (Epson Certified Channels) partners. ECC consists of all our small and medium channel partners. Our sales team is in touch with them on a day-to-day basis so that we are abreast on their inventory of sales and if they have any grievances. We also know if they are indulging in any wrong practices like selling way below MRP, so that we can then take corrective measures.
DIGIT CHANNEL CONNECT
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MARCH 2009
DIGIT CHANNEL CHAMPS The Digit Channel Champs program had an exteremely successful run in the month of February 2009, with LG, NVIDIA and Gigabyte being the principal sponsors of the circuit. The program has now started gaining acceptance among channel members, equipment manufacturers and association members. Due to the slowdown that is impacting most urban areas in the country, Channel Champs is one of the few programs that helps to penetrate the Tier 2 and Tier 3 markets across the country.
CITIES M E E R U T , S O N I PA T , R O H T A K , A G R A , ALLAHABAD, GORAKHPUR, VA R A N A S I , J A M S H E D P U R , T I R U PA T I
February 2009
Ajay Rangila Propriter, G & G Enterprises President of Agra Computer Traders Association
tirupathi
K Vasu Naidu CMT COMPUTERS and VP, Tirupathi Computer Dealers Association
“Recently we face a big movement with UP government on VAT, up to 12.5 percent on IT products. Our association played a major role in bringing it down to 4 percent in UP.”
“There should be more meets for our mutual benefits and would like to have improvment in after sales service.” Ashutosh Kumar Area Sales Manager, Gigabyte
“Time to change motherboards switch to Gigabyte” T. C. Arun Kumar MD, Cyber Computers
“It is the best magazine I have ever seen”
Uday Pratap Area Sales Manager, LG
K Siva Sankar
“It is very nice that DCC is providing a platform to have interaction with Channel community”
“I found DCC event is the best one among the events which I have attended previously” Raghuveer Singh Customer Relationship Manager, Paradise Technology
“Lets, we hope will meet in future”
jamshedpur Kalbindar Singh Proprietor, Prakash Infosys
Sashi Kumar Regional Officer, LG
“To keep a constant touch with the channel people, regular events like DCC should be conducted”
Bishwanath Jha Asst. Manager, Channel Sales, Computer Legend
“Would like to attend DCC in future also”
DIGIT CHANNEL CONNECT
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MARCH 2009
“Every meet is very important but if not regular then it is not successful”
agra
System Admin, Shiva Computers
President, Allahabad Computers Dealers Welfare Association
Mayank singh Area Sales Manager, LG “Days are changed, use flat screen monitors, LG TFT monitors”
“Price quotation and service issues from companies and main thing prices are not quoted properly from companies itself.”
Ashutosh Kumar Area Sales Manager, Gigabyte
“Time to change your motherboards switch to Gigabyte.”
sonipat
allahabad
Rajan singh
Ashutosh Kumar Area Sales Manager, Gigabyte “Like Digit Channel Champs event their should be more events which will help us to penetrate the market.
Anoop kumar L.G Regional Manager
“I feel this is the only way were we can directly can interact with and can discuss the issues of channel cmmunity people.”
“I like it very much and the insights on IT were very good.”
Neeraj Dwivedi Peoperitor, Sachi Computers
“The magazine provides all the information which we look into market for our daily updates.”
rohtak
Rakesh srivastava Properitor, City Compac Systems
Mayank singh Area Sales Manager, LG
“This was my first experience with DCC and I find it pretty good. It also helps us to know the channel partners in a better way.”
Murrary Regional Officer, Gigabyte
“I am very satisfied with the type of event and would look in the future also.”
Manmohan krishna. Properitor, LG Service Centre
“Their should be more interaction with channel community and sponsors.”
meerut
Vishal jain
Manoj Kumar
President Meerut Computer Dealers Association
Brand Head, Gigabyte Service Centre
“Would like to highlight the issues affecting the channel community such as tax and price quoted by the companies”
“The magazine Channel Connect is definitely a satisfactory one.”
Sunil Garewal Area sales manager, Gigabyte
“From my point of view there should be more sessions like DCC, to make channel community people know what new Gigabyte motherboards are into.”
Uday Pratap singh Area Sales Manager, LG
“It was one of the best event I have attended. It helps by meeting all the channel community members under one roof.”
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MARCH 2009
gorakhpur
Vishal Kumar President, Gorakhpur IT Association (GITA)
“Would like to request you to highlight our issues relating to profits, price and service.”
Mukesh Kumar Tiwari Vice President, Gorakhpur IT Association
“Would request problems faced by after-sales service to highlight in your magazine.”
Ashutosh Kumar Area Sales Manager, Gigabyte
“Such kind of events helps us to overcome issues faced by the channel community.”
R .R. Srivastav Properitor, Arya Computers
“Yes I have read the channel connect magazine and it is an exceptional one. I am fond of the magazine particularly about the articles like tips, tricks and hands-on, Q&A.”
varanasi
Sunil Garewal Area Sales Manager, Gigabyte
“DCC helps to keep in touch with the market upadates.”
Vikas Pathak Regional Manager, LG
“DCC is one of the best platforms to get channel community together and give them full information about new product in market like LG TFT monitors.”
Govind Kumar Yadhav Properitor, Network Associates
“I have got to learn a lot from this session and have all the information to convince and guide my customers.”
Sunil Singh Properitor, The Infocare
“I don’t think there should be any changes regarding the format or any other aspect of the program.”
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COVER STORY
Business growth and efficiency are driving overall IT adoption among Indian channel partners. The community is also spurring technology adoption in the SMB sector
GET,
SET & GO!
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COVER STORY
I
ndia channel partners’ businesses are closely linked to the country’s economy. To be sure, the community has seen much better times in the years gone by, when booming IT budgets were the norm rather than the exception. This growth had helped swell the kitties of almost all players operating in the Indian channel space. But now, when the going is tough, what have Indian channel partners been up to?
Enter technology Channel partners have now realised the potential that IT offers them to grow and expand their businesses. Earlier, channel partners used to concentrate exclusively on a city or town, but increasing competition and limited opportunities are forcing them to hunt for greener pastures. And they are doing precisely that, but are increasingly falling back on technology to achieve their objectives. The main reason why the channel is adopting IT is to improve efficiency, cut costs, expand their marketing footprint and also to expand their business ecosystem by trying to target larger Indian customers. Channels are also realising the opportunities that exist in global partnerships—but they understand that they have to leverage technology to service international customers. Channel partners have to produce more customisation, improve communication with clients, drastically reduce turnaround time and keep in touch with clients. And
The SMB-channel symbiosis
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he SMB sector in India is steadily growing and adopting new technology initiatives. Ergo, leading IT vendors are eager to increase their share of profits by cashing in on the demand from this sector. In this endeavour, channel partners are likely to be their most important allies.
Channel partners are a key element in increasing sales to SMB customers. However, being the final point of contact with customers, the channel also acts as the ‘voice’ of SMBs. The channel partners provide vendors with valuable inputs about SMB mindsets and preferences. This helps vendors to come out with customised, tailor-made solutions for this sector. The prime requirement of SMBs from their channel partners is timely sales and support for basic IT products in the computing and networking arena. Indian SMBs are often strongly influenced by the channel when selecting between different brands of IT products and services. Channel partners exert most influence in the computing hardware arena followed by networking hardware & software, and then servers & storage. System/network integrators are the most influential partners for India SMBs and exert brand influence over a wide gamut of IT purchase categories. Additionally, in emerging markets like India, channel partners play a vital role in educating less IT-savvy SMBs about various aspects of IT purchase and usage. These businesses lack sufficient knowledge about IT technicalities and consequently depend on channel partners for guidance. Channel partners are also planning to increase their bouquet of product offerings to the SMB sector by expanding into products such as internally developed software for resell, networking solutions (i.e. WANs) and outsourced IT support.
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adoption of technology is a sine qua non for the channel community. As the channel community increases the size of the pie, a number of them are planning to set up new representative offices across the country. These offices have to be networked to ensure their smooth functioning, and communication and coordination is impossible without systems being installed. Vendors are also lending their active support to these initiatives from channel partners. They now realise that their growth depends on a strong vendor-channel bond, and they are using IT to cement this relationship. On an aside, it would be interesting to note that a number of channel partners have confessed that they are becoming more IT-savvy so that they can enhance their image and standing in the market. Of course, the guiding ambition is to hone competitive skills.
Stages of adoption It has been observed that there are three distinct adoption stages of IT by the channel community. In the first stage, partners have invested in basic IT infrastructure (PC purchase, installing anti-virus packages and adopting office productivity suites). Use of the Internet is fairly common and the company might even have a basic website in place. In the second stage, partners graduate to using their websites for transactional purposes. In the final stage, IT operations are in top gear. Growth of the business also helps channel partners install LANs, firewalls and servers. The organisation might even start using Web 2.0 tools, have a functioning intranet in place, adopt managed security solutions and ERP applications. This is the stage where the partner is leveraging the complete gamut of benefits that technology offers them. At this stage, companies are empowered to maximise workflow efficiencies, save costs and evaluate the complete impact of IT on their bottom-line. The opportunity after a channel partner goes through the third stage is being able to access market intelligence and enhance customer satisfaction. The need of the hour is for policymakers, regulators, IT companies and financing intermediaries to come for helping channel partners overcome the challenges of local and global competition. What’s also needed are regular industry outreach programs which will help channels adopt best practices, and the creation of portals which will help the community resolve its IT-related issues. The IT reseller and channel community also must be empowered to service the IT needs of the SMEs. This calls for a high degree of cooperation and coordination between all players involved in the relationship—be it the government, channel partners or the vendor community. Channel partners also understand that they have to considerably beef up their IT capabilities. For example, a channel member should be in a position to evaluate vendor offerings by first testing out the capability of a product or a service. This means more technology adoption for facilities like an in-house test lab.
TOP THREE IT ADOPTION DRIVERS Manage growth Increase efficiency Influence of large customers
COVER STORY More and more partners are now graduating to specialised software and Internet services—higher valueadd areas—rather than continue to focus on traditional offerings like computing and networking hardware and software. Again, the increasing adoption of a plethora of IT solutions by Indian SMBs and greater concerted efforts by vendors to fine tune their partner programs is also impacting the business scenario.
The times to come Expect some radical changes in the way the channel has been conducting its business activities in the years to come. Customers are demanding ever-increasing levels of service support and product delivery. In a market where there is often only a fine distinction between products offered by different vendors, success or failure of the channel member will solely depend on how he has been leveraging IT to optimise on various fronts. Channel partners will also play
TOP THREE PERCEIVED BENEFITS OF IT Resource optimisation Makes business process hassle-free Offers competitive edge
a vital role in educating less IT-savvy SMBs about various aspects of IT purchase and usage. Further, though computing and networking hardware still remain the major contributors to channel partner revenues, spending on IT services has surged. Channel partners also have to adopt higher levels of technology to meet the growing demand for training, installation and technical support among Indian SMBs. More channel partners— especially in cities—are now equipped to sell top of the line products to a technologically-savvy clientele.
Slash your costs by outsourcing Finding it impossible to manage various functions of your business with small budgets, shrinking staff strength and impossible deadlines? The trick is to go online—and outsource
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here are a number of websites that can help you to carry out operations at a fraction of the cost that it will cost you to have a full-time professional employee manning this function. Various organisations are looking to outsource support functions by tapping into the wealth of expertise and experience that exist in cyberspace. The term for such an outsourcing practice is ‘crowdsourcing.’ If you have a project you want outsourced, you simply post the project on a few specialised websites, who get a percentage of the overall project cost that will eventually be paid out. The actual project is awarded to the best bidder, and terms and conditions are thrashed out. A number of freelancers are now operating in this booming space. Ergo, competition is fierce. This has ensured that the costs of outsourcing are kept down to the barest minimum. What’s more, businesses now have a chance to prune their budgets by slashing overheads like employee compensation, office rent and infrastructure costs. Not all functions can be ‘crowdsourced’ in the above fashion. Functions that are customer-facing are almost always best carried out in-house. You cannot afford to lose touch with your customer. However, functions like payroll management, bookkeeping or administrative functions can be safely handled by freelancers and ‘crowdsourced.’
Let us examine a few tasks that can be crowdsourced, thereby saving costs and freeing up your meagre resources:
Creating websites Why do you have to waste the time of your IT department on a task so routine as website development and site management? A number of websites now give you the option of outsourcing the building of these online properties. In fact, certain advanced sites require top-notch technological expertise for their construction. And you will be able to access this expertise only if you go scouting and shopping online. The selection procedure is also very transparent—and extremely competitive.
Managing PR You might make a great product or market an excellent service, but what use is that if you do not make a splash in the marketplace? A number of sites now offer to carry out your marketing activities for you and ensure that your product is properly positioned. A few specialists can even teach you a couple of things while handling the media. And if you thought that crowdsourcing of the marketing function is carried out only by smaller outfits, you have another think coming. Even conglomerates like Coca-Cola are turning to ‘crowdsourcing’ to keep marketing budgets under control. Companies have slashed up to two-thirds of their costs by going in for this option.
Research and routine tasks As a businessman, you want to know what’s happening to your competition. But do you really have the time—and resources—to keep a tab on what’s going on? Such activities like gathering intelligence can be safely crowdsourced. Some service providers will even perform secretarial functions for you—like handling your correspondence and organising your office functions.
Creative functions You have to produce a company newsletter. Where in the world are you going to get hold of the editorial resources that you need for a job like this? Again, crowdsourcing is a viable option, with freelance writers and graphic designers offering their services through certain websites. You post your requirements online and seal your deal with the best bidder.
Professional services Legal help usually comes with a huge pricetag. But that does not have to be the case, with websites helping you to carry out legal tasks for a fraction of the fee that a big-time lawyer would charge you. Plus, your business might not be able to afford the battery of accountants that you would need for performing tasks like closing and settlement of books of accounts, which a number of professionals now carry out online.
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TRENDS
JBL introduces MX 100 music station
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BL Inc has announced the introduction of its MX 100 high-performance audio system, a compact, all-in-one entertainment component that combines stunning appearance with outstanding sound qual-
ity and multifunction versatility. The MX 100 combines several audio components into a convenient, easy-to-use one-piece system. It features a dock to accommodate an iPod, a CD player, an FM tuner with Radio Broadcast Data System (RDS) text display (where available), integrated stereo loudspeakers, and a clock radio with timer function. The JBL MX 100 is distinctive in design, with curved and tapered front and rear surfaces, an oval top section that is angled forward, and subtle white illumination. The controls are recessed in a contoured vertical slot on the right side that further adds to the MX 100’s sculptured, minimalist appearance. The MX 100 has an elegant high-gloss-black finish, complemented by a matte-black front grille. The MX 100 is an exceptionally versatile audio system. Its universal iPod dock is compatible with most iPod models 4G and later and, when docked, the iPod is charged and can be operated by the MX 100’s remote control. The MS 100 includes S-video and composite-video outputs to enable the viewing of iPod photos and videos on a TV when used with photo- and video-capable iPod models. The slot-loaded CD player can play back CD, CD-R, CD-RW and enhanced CDs, as well as MP3 and Windows Media Audio (WMA)encoded discs. The built-in FM tuner offers six station presets, and its RDS text-display function enables the user to view station, artist, song title and other information on the MS 100’s front panel. Other useful features include a clock with alarm and memory backup; three auxiliary audio inputs with an optical digital input for connection to other audio products; a headphone jack; and a subwoofer output.
Kingston India records sound 2008 growth
K
ingston Technology Company, a global leader in memory products, has announced impressive 2008 business growth in India, recording over 300 percent growth in Flash unit volumes and a market leading record 40 percent growth in Flash business revenue, over previous year’s figures. With the recent launch of its state-of-art Kingston Solid State Drive (SSD) product line, the company has set the tone for aggressive business growth in India for 2009, including 30 percent growth in Flash unit volumes, 100 percent growth in DRAM revenues and a significant ramp up of its DRAM distribution infrastructure in India. “Since its launch in India, Kingston has consistently recorded above market average growth across all our product segments,” said Nitin Malhotra, Kingston Country Manager, India. “With additional product lines, aggressive focus on DRAM and market leading Flash product business and a strong channel program to increase visibility and product availability across multiple retail formats and market geographies, we are all set for a strong growth in 2009 as well,” he added. Focused on garnering higher volumes and improving market reach for its popular DRAM modules, Kingston has drawn plans to add more distribution partners, in addition to HCL and Neoteric. Kingston products are distributed in India by HCL, Tech Pacific India, and Transtek Infoways.
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Tagan SuperRock PSU receives 80PLUS certification
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bertek Company, a manufacturer of high end power supply units, mobile and data storage enclosures, PC accessories and peripherals, has announced that its super silent Tagan SuperRock power supply units, incorporating state-of-art DC-DC technology, have received the coveted 80PLUS Bronze certification. The 80PLUS program is a unique forum that unites electric utilities, the computer industry and consumers in an effort to bring energy efficient technology solutions to the marketplace. Seeking to integrate more energy-efficient power supplies into desktop computers and servers, the 80PLUS certification is increasingly used by large commercial and institutional consumers as procurement specification for energy efficient power supplies. The 80PLUS performance specification requires multi-output power supplies in computers and servers to be 80 percent or greater energy efficient at 20, 50 and 100 percent of rated load with a true power factor of 0.9 or greater. This makes an 80PLUS certified power supply substantially more efficient than typical power supplies and creates a unique market differentiation opportunity for power supply and computer manufacturers. The 80PLUS program offers higher efficiency levels of certification including Bronze, Silver and Gold. “The coveted 80PLUS certification reconfirms the high quality of Tagan SuperRock Series power supply units,“ says Lucy Wang, Marketing Director, Abertek, Taiwan. ”This coveted certification will definitely enable individual and large institutional consumers to differentiate Tagan power supplies from the multitude of poor quality products available in the market today,“ she added.
LG launches Intenna FM radio phones
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G Electronics India has announced the launch of its first mobile phones with Intenna FM radio for India today. These new models, LG GB110 and LG GB106 are bundled as an entertainment package expunging the need to attach a headset while listening to FM radio. These handsets are based on a very strong consumer insight that people are unable to use their FM radio in phone in case they lose their headphone. This feature eliminates the hassle attached with using a headphone. Designed to deliver a credible radiolistening experience, the phones score high on offering complete entertainment to its customers on the move. Equipped with Intenna FM radio, now one can listen to unlimited songs, tune into favourite music shows, sport reports, updates and other information without adding a headset to the phone. Backed up with the talktime of up to 10 hours and 600 hrs standby time for GB106 and 440 hrs standby time for GB110. By adding the most innovative feature, LG GSM has ensured that users can always have access to their favourite channel of infotainment. LG GB110 and GB 106 also sport all desirable features at an affordable price that makes them a suitable choice for any mobile user.
ANALYST SPEAK
PC industry to suffer sharpest-ever unit decline this year
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he PC industry will experience its sharpest unit decline in history, with PC shipments totalling 257 million units in 2009, registering 11.9 percent decline from 2008, according to analyst firm Gartner. Previously, PC units experienced their worst decline in 2001 when unit shipments contracted 3.2 percent. “The PC industry is facing extraordinary conditions as the global economy continues to weaken, users stretch PC lifetimes and PC suppliers grow increasingly cautious,” said George Shiffler, Research Director at Gartner. Both emerging and mature markets are forecast to suffer unprecedented market slowdowns. Up to this point, emerging markets collectively recorded their lowest growth in 2002, 11.1 percent. Mature markets recorded their lowest growth in 2001, negative 7.9 percent. Both emerging and mature markets will handily surpass these previous lows in 2009, with emerging markets expected to post a decline of 10.4 percent and mature markets a decline of 13 percent. “Growth in both emerging and mature markets will be driven by similar dynamics even if the precise impacts vary somewhat. Slower GDP growth will generally weaken demand and slow new penetration, lengthening PC lifetimes will reduce replacements, and supplier caution will keep inventories at
historic lows until confidence in a recovery director at Gartner. “For the most part, users eventually firms,” Shiffler said. “The impact of are moving toward systems with larger reduced replacements will be especially acute screens and greater capabilities; systems with in mature markets, where replacements are 8.9” screens were the standard in the second estimated to account for around 80 percent half of 2008. Naturally, systems with larger of shipments.” screens and greater capabilities cost more but Worldwide mobile PC shipments are prices in general continue to fall. In late 2008, expected to reach 155.6 million units, a 9 the average price in the US for a mini-notebook percent increase from 2008. Desk-based PC with an 8.9” screen, Microsoft Windows XP shipments are forecast to total 101.4 million and a 160 GB hard drive was around $450. units, a 31.9 percent decline from 2008. We expect the average price of the same Mobile PC growth will be substantially boosted machine to drop to $399 by the end of this by continued growth in miniyear. Mature markets continue notebook shipments; excluding to be the primary consumers of QUICK FACT mini-notebooks, other mobile mini-notebooks, but as prices Worldwide PC PC shipments will grow just 2.7 continue to fall, they are likely shipments decline percent in 2009. to attract increasing numbers by about Worldwide mini-notebook of emerging market buyers.” shipments are forecast to total Gartner analysts said overall, 21 million units in 2009, up from original equipment manufac2008 shipments of 11.7 million turers (OEMs) and the channels units. Mini-notebooks will cushare able to react much faster to ion the overall PC market slowchanging market conditions down, but they remain too few to than in previous years. Razor prevent the market’s steep decline. Mini-notethin margins and the lessons learned in 2001 books are forecast to represent just 8 percent have schooled PC vendors and channels in the of PC shipments in 2009. necessity to invest in their supply chains. These “The mini-notebook market is dividing as investments have given them much better visibilvendors offer more systems with 9” to 10” ity of demand, even though products are largely screens in addition to those to with 7” to being built in Asia by third parties and therefore 8” screens,” said Angela McIntyre, research have long lead times.
12%
Survey reveals global trends in online marketing and merchandising for 2009
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dobe Systems has published results of its annual Scene7 survey detailing how Web commerce businesses are building out their online customer experiences in 2009. This year’s results show companies focusing their online investments in the delivery of new rich media and merchandising features, as well as social networking, mobile, and personalisation applications. This is the third annual Scene7 survey and it was run in conjunction with industry trade associations and publications in the online marketing community around the world. “Web marketing continues to be an area of investment and innovation because in challenging economic times it can deliver high-impact marketing programs that can be easily and immediately measured,” said Doug Mack, Vice President, Consumer and Hosted Solutions, Adobe. “Over 90 percent of our survey’s respondents are planning to invest in new rich media and social networking technologies to ensure their brands and products stand out on the Web.” Overall, the top features that are planned for deployment in 2009 are: blogs (32 percent); user ratings, rankings, comments (31 percent); 360-degree spin (29 percent); catalogues and circulars (28 percent); podcasts or live video feed (28 percent); product comparisons (27 percent); and videos (27 percent). Respondents indicated that increased clicks, usage and conversion rates remain the top metrics used for measuring effectiveness of deployed features. This, together with revenues and order size metrics, is used for measuring effectiveness of online marketing efforts.
BUSINESS
Tip HOW TO MAKE A
PRESENTATION PEOPLE REMEMBER
Did you know that the most powerful and memorable way to make a business presentation is to simply stand up in front of people and talk to them, preferably with no script or PowerPoint slides? But if you absolutely have to make a PowerPoint presentation here are three things you should try to do: 1.Never make more than three main points on a single slide. 2.Don’t look at the slide while you talk, look at your audience. 3.And three, don’t read what’s on the slide—give your audience additional information. Source: Business tips for a difficult economy extract from Wiley India’s new book, “Get Your Frog Out of the Well—private lessons for the global economy”
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MONEY MATTERS
Controlling Cash Flow
You can strive all you want to push up your product sales, but how do you keep the cash registers ringing? Cash flow is the lifeblood of your organisation, and management of this is critical for the survival of your business
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nough and more has been said on managing a business during a downturn. Managing your cash flow is essential for you to stay in business. Though the domestic banking industry has been relatively insulated from the gut-wrenching turmoil that has mired international financial institutions, bank credit is increasingly drying up as the industry turns risk-averse. You need credit from your suppliers to get some breathing space. But the flip side is that you are doomed if you offer credit to your customers without keeping a tight lid on payment collections. You need to ensure that you have enough cash in hand to take care of day-to-day operations, as well as unforeseen future contingencies. So how do you keep your cash flow under control? Here’s how you can concentrate your activities:
Keep a close watch on your customers Sure, you have a client base that never defaults on payment. But in these difficult times, you have to ensure that you keep a close watch on even those customers who have been paying up regularly in the past. But past performance is no guarantee of future compliance. For those on your client list with a dubious payment record, you have to be doubly careful. Chances are that those on your watchlist who have defaulted in the past will do so again. You might have to re-negotiate your credit terms and conditions.
Get personal Don’t rely solely on a collection agency to mop up your outstanding amounts. Your personal rapport with a business associate can work wonders. Just be direct—work the phones for smaller amounts, and don’t hesitate to make
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ate detailed debtor reports. You may have to depend on a collection agency for payment—these outfits either charge a flat fee or work for a percentage of the total amount due. Do differentiate between your clients who can and do pay up on time, and those who are not paying up due to their own cash flow problems. You have to draw a fine line between maintaining an ongoing business relationship and jeopardizing your a personal visit if the need so arises. cash inflows. And don’t forget to deal in specifics. You Remember, credit is a useful should get a firm confirmation tool, but it can also deliver a on which day will the payment QUICK FACT deadly blow to your relationbe made. “Is this Friday okay, Credit is a ships. Often, companies extend or can you pay up by Monday?” useful tool, generous credit terms in the hope is an excellent way of getting but it can also of picking up more business, but a confirmed date from your deliver a deadly the burden becomes a tad too customer. blow to your much for the client to shoulder. Be persistent. It is your money, relationships after all. Most debtors will pay up on consistent follow-up. How do you pay? Now is the time for you to renegotiate your contracts. Ask your supplier for Be innovative better terms and conditions. These could be Work out different payment procedures for reduced rates, extended credit periods or lower your customers. For example, you may even interest rates. offer a small percentage cut in your invoice for those customers who can pay you cash upfront for a deal. The credit conundrum Don’t delay generating an invoice. Often, Keep a close watch on your credit ratings money gets stuck in the pipeline because the (both personal and that of your business). invoice has not been prepared. Avoid snail Bank credit is drying up, but financial instimail whenever you can. If you can email your tutions do make exceptions and free up funds invoices, you’ll do a much better job of trackfor regular customers. You never know when ing them; you’ll save on costs and expedite the you will require that sudden infusion of cash payment process. into your business. The slowdown is here, and it looks like it is going to be around for some time to come. The collection process Ensure that your cash flow management is Use your accounting package to the fullest. comprehensive, with inputs updated in real A list of outstanding debtors is not the only time. This will ensure that your business is not report that you should be generating from starved for cash—do keep enough money at your software. Exploring the package will call to tide over unforeseen situations. help you build in credit controls and gener-
MONEY MATTERS
Surviving the recession
P R O D U CT
REVIEW
Here are a few ways to cut your overheads and prune costs to stay afloat
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here is no big-bang or quick-fix approach to cutting overheads. What you have to is to keep a close tab on all items where you can make minor cuts—these adjustments can add up to significant savings. This exercise will help you find ways to free up operational cash. Take a long, hard look at some items of expenditure which you can very well do without. Maybe your company guest house is not being utilised. Or your staff local conveyance expenses might be going through the roof. If you look around, you will find a number of loopholes that can be plugged. Every single item of expenditure needs to analysed. If you feel that something can be cut out, do so. Electricity can be a silent drain on your finances. Are the
machines in your office being switched off after your employees leave? Even PCs on ‘powersaving’ mode will eat into your
ADVISORY Ensure that your employees do not have to face the unkindest cut of them all—a salary reduction
power bills, giving you a nasty surprise at the end of the month. Use awnings for your windows for preventing sunlight from filtering in—you’ll save a heap on your air-conditioning bills. Renegotiate your telephone bills. There are enough companies out there fighting for your business. Consider switching
over to VoIP if you think that’ll help you save costs. Look around for videoconferencing solutions which will help you cut travel costs. Slash inventories whenever you can. Try to get into just-intime delivery arrangements with your trusted suppliers. Remember, this is a recessionary phase that we are going through. Leave aside telephony, you would be surprised at the money you can save by renegotiating even your real estate contracts. However, ensure that your employees do not have to face the unkindest cut of them all—a salary reduction. Cut back on non-essentials, but don’t make any move that will throttle your staff.
CANON- LASER SHOT LBP2900 PRINTER
I
f you want a solid laser printer, then Laser Shot LBP-2900 is the answer for you. It is solid, reliable, provides high quality prints, installs easily, and has a relatively small footprint. Moreover, the documentation is precise while the drivers are stable and self-loading. In short, a quiet economical and efficient machine. Though it isn’t super fast but it is faster than most inkjet printers and is a good value for money. R K Bachhawat CEO Arihant Mercantiles, Kolkatta
BUSINESS
Tip WHEN YOU PRESENT A PLAN GO BIG ON SIMPLICITY AND STRONG ON COMMITMENT When you present a plan go big on simplicity and strong on commitment Too often business people tend to over do it when it comes to presenting a plan . Managements aren’t always interested in the fine details of every plan. What managements really want to know are two things: 1. Does the plan look solid 2. And most important, do the people presenting the plan have the commitment to carry it through to success Of course every plan has to have a good level of detail. But
management isn’t going to memorize the details. They want to see the key points, the reasoning behind the plan, and most of all they want to see how committed to success are the people behind the plan. Management knows that many or all of the details behind a plan may change, perhaps many times, between now and the time the plan is fully achieved. What they don’t want to see change is the determination to make the plan succeed. Source: Business tips for a difficult economy extract from Wiley India’s new book, “Get Your Frog Out of the Well— private lessons for the global economy”
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HUMAN RESOURCES
The people question It’s all a question of how you manage your staff costs—without upsetting your corporate equilibrium
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eople are the largest cost item on your balance sheet. They consume resources, spend your operating capital and of course, you have to fork out wages and benefits. But they are also your most vital resource. Since these are difficult times, you have to become more efficient. And you need to take a closer look at your staffing. But consider this exercise not just from the view of cost reduction. Now’s when you can thoroughly restructure your organisation—and still prune expenses. During good economic conditions, many companies tend to add excess people—a luxury you can ill-afford in the present scenario. So how do you go about your restructuring exercise? It’s time for you to have a word with HR and
BUSINESS
Tip
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pull out all employee files and closely evaluate your staff. Sort your people into the following categories: a) First, you have your excellent employees. You have to hold on to them no matter what happens. Tell them how important they are. b) Then you have good and consistent employees. You need them for your survival. c) Then come along your average employees. You really have to tell them to either become ‘good and consistent’ or pay the ultimate price. d) Finally, there are the underperformers. You have to be merciless with them. Try to become more creative in your job allocation. Try to combine jobs by reallocating work. And of course, high-paid unnecessary jobs have no place in any company, whatever be the economic scenario.
t’s not scientific, but real experience indicates there are three types of people in the work place. And different ways to push their buttons. The three most common personalities in the workplace are: HELPER-EXPERTS RACE CAR DRIVERS And JUDGES Helper-Experts thrive on actually getting work done. Hands-on, up all night, sweat the details, almost always giving more than expected—these are their characteristics. They are the essential backbone and expertise that companies actually run on. They are the producers. Helper-Experts have developed the skills and the temperament to examine the world as it is and make something worthwhile with the tools and resources available.
WHAT KIND OF PERSONALITY ARE YOU AT WORK?
DIGIT CHANNEL CONNECT
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Negative employees, those that fight change, and those who refuse assignments are all people you can’t afford any longer. You have to ensure that all your terminations are carried out quickly, simultaneously and easily. You don’t really have to explain to your staff why the terminated employees are gone. But make it clear to the rest of the staff that the company cherishes their contribution. Still facing a shortage? You can try outsourcing a few functions. And it all comes down to you now. You have to coach your people how to do their jobs better. Involve your whole staff while brainstorming of both cost-cutting and revenue generating ideas. Remember, when it comes to the crunch, always tighten your own belt, first.
Helper-Experts respond well to calls for help, such as “I need your help in figuring out how to get from here to there.” Or are you a RACE CAR DRIVER? Race Car Drivers have one dominant goal in life: They want to win. Race Car Drivers are trophy hunters. And the word “hunt” is an excellent descriptor. They are always on the hunt. Life is a game, and they are out to win the game. If they have some hard grinding work to do, they hate it. But give them the same work in the context of a competition or game that they can win and they will knock you over getting the work done. Winning is their business. How do you push a Race Car Drivers buttons? Challenge them with the need to win, to beat the other guy, to be the best. Or maybe you are a JUDGE. Judges are the most complex, the most difficult to analyze and manipulate of the three types of personalities. Judges tend to be the leaders, the managers and executives. They have
learned to master their emotions, and to think critically and quickly. More than most people, they fully understand that you can’t win every battle, or do everything at once. Hence, they have developed their ability to weigh the pros and cons of every decision. Their frame of reference tends to be the company. They analyze things by asking themselves, Is this good for the company or not? Judges aren’t necessarily smarter than Race Car Drivers or Helper-Experts—they just think differently. How do you push a Judges’ buttons? In a word, carefully. If you want to influence a Judge personality, you have to give them the big picture, the perspective. If you can, outline all sides of the situation. This is what Judges want to know before they make a decision. Source: Business tips for a difficult economy extract from Wiley India’s new book, “Get Your Frog Out of the Well—private lessons for the global economy”
CELEBRITY CONNECT
BRAND STAND
“In the wake of emerging competition, HP has moved aggressively to promote its products by roping in Bollywood icon ShahRukh Khan as its brand ambassador. But it can provide them a short term sales boost. In the long run, it is the quality, reliability, service and brand image of the product that matters.” Sanjay Agarwal, Berlia Compu System, Kolkata
“We deal in the commercial space and celebrity endorsement do not have a direct impact on our customers. But for the end-users, the Bollywood star Shah Rukh Khan endorsing HP products has helped boost its sales. People relate well to the actor and any endorsement by him plays a crucial role in getting recognition among masses.” Sujeet Narula, Associated Business Computers, Delhi
“With a brand ambassador like Shah Rukh Khan, it always helps draw the attention on the brand. But personally I think newcomers give better value of money.” Naresh Kr Bothra, Computer Exchange, Kolkata
“Though Shah Rukh Khan has given HP products a much needed human angle, it still faces a lot of competition from its competitor Acer, who has Hrithik Roshan as its brand ambassador. The merchandising of HP products (because of its quality) are much more than Acer products.” Satish Villait, Bitsy Infotech, Mumbai
The badshah of Bollywood is having an intriguing love affair with Compaq
The Compaq partnership with Shah Rukh Khan has enabled us to reach out to consumers across India and reiterate the Compaq promise of a worldclass product, distribution and service quality that the brand offers. As the No. 1 personal computer brand in India, Compaq offers consumers across geographies a brand value, highlighting leadership, success, performance, passion, universal appeal and the best in its field which brings alive the association with Shahrukh. SRK was the right choice for us, like Compaq, he is No. 1 and his popularity cuts across gender, age, geographies and all the brands attributes fit with his personality as well - leadership, success, appeal, passion and being a go-getter. Shah Rukh Khan is himself a technology buff, and a content Compaq user. The association helped us to leverage his popularity among the masses to educate on the proposition of empowering people with their PCs and is true synergistic blend of two complementing brands. Shubhodip Pal Head of Consumer Marketing, HP-PSG, India
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SNEAK PEEK WE TEST THE LATEST HARDWARE AND SOFTWARE PRODUCTS AVAILABLE IN THE MARKET
Zotac GeForce GTX285 AMP! edition The mammoth has arrived
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VIDIA has just stepped up its game by releasing the GTX285. This is the pumped up version to the great GTX280 that was released last year. Zotac now brings to us an even more pumped up GTX285 AMP! edition. The card looks the same as the GTX280 one of the differences we noticed is the power connectors. This one requires only two 6-pin PCIe connectors as compared to its predecessor (one 8 pin and one 6 pin). The cover on the back was also removed. The AMP! edition comes with clocks of 702 / 1512 / 2592 MHz (core / shader / memory) as compared to the standard edition of 648 / 1476 / 2484 MHz. The GTX280 in comparison comes at clocks of 602 / 1296 / 2214 MHz (core / shader / memory). The GTX285 still comes with 240 stream processors, but the major difference is the move from 65nm to 55nm.
We benchmarked this card in DX10 using a QX9650 with 4 GB DDR3 RAM. 3D Mark Vantage gave a score of 15,206 with a GPU score of 12,533. At a resolution of 1920x1200 in Company of Heroes with AA enabled, we got 202.9 fps. With Doom 3 we got 246.9 fps with 4x AA at 1600x1200. Crysis gave us interesting scores — in DX9, the result we got were 46 at 1600x1200 and 40 at 1920x1200 while in DX10 we got fps of 25 and 22 respectively. Unreal Tournament 3 at 4x AA and 4x AF gave us a score of 141 fps at 1920x1200. The last benchmark we ran was the slightly older F.E.A.R. with 4x AA and 4x AF. The card averaged 167 fps at 1600x1200 and 127 fps at 1920x1200. SPECIFICATIONS: NVIDIA GeForce GTX 285 @ 702 MHz engine clock, 240 Processor Cores @ 1512 MHz, 1 GBB GDDR3, 2592 MHz memory clock Contact: ZOTAC International (MCO) Ltd. Phone: 011-46665666; Email: sales@zotac.com; Web site: www.zotac.com ; Price: Rs. 28,999
BenQ E900HD Best suited for movie buffs
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enQ’s E900HD is an all new ultrawide LCD screen that sports a 16:9 aspect ratio and operates at a resolution of 1366x768. This kind of resolution is perfect for watching movies and that’s what most LCD and Plasma TVs use. This BenQ product definitely grabs everyone’s attention. It has a mix of a glossy black and grey finish to it. It’s got the right design for an everydayuse desktop PC screen. All the buttons have the right feel to them. The stand also shares the same glossy finish as the bezel, and keeps the screen leveled and stable. Like some other brands, the controls are moved to the side, and using the interface is extremely simple — you can get used to the interface in minutes.
Setting up the screen is simple, and the screen does well to display details. The only big difference while using the screen for desktop applications is the reduced workspace in terms of height. The screen also features inbuilt speakers, but they are pretty weak — even after concessions for being inbuilt. The speakers are clear, but just not powerful enough for everyday use, and definitely not so for movies or games. Although 22-inch and above screens would be considered by many as ideal for movie watching on the desktop, this 19-inch still does a fair job at it. At Rs 7,900, it’s a pretty good deal, especially for its sleek design — which you’d expect to pay more for. SPECIFICATIONS 19-inch screen, Resolution: 1366x768 pixels, Response time: 5ms, Dimensions: 18.03x14.17x7.03 inches Contact: Benq India; Phone: 0124-4501400; E-mail: sales.enquiryin@ benq.com; Web site: www.benq.co.in; Price: Rs. 7,900
Palit HD 4870 Sonic 1GB From 512 MB to 1 GB
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he HD 4870 initially launched with only a 512MB GDDR5 version, which was just odd, because such a high-power card deserved to have more memory. Months after the first 4870s came, we see companies coming out with 1-GB versions, one of them being the Palit with its Sonic edition 4870 1 GB card. Palit has not stuck with the standard cooling edition, but has gone in for the same dual-fan cooling like some of the other Sonic series cards. The card has two 6-pin PCIe power connectors towards the back. Now, when you look at the I/O side of this card, it gets a bit more interesting. Palit has moved on from that boring Dual Link DVI setup seen on most graphic cards these days. Instead, we see four different ports – DVI, VGA, HDMI and a new standard display port. There is a small overclocking switch to go from Normal to Turbo mode. Under Normal, the core clocks at 750MHz and memory at 3800MHz QDR. When you hit the Turbo switch, the card automatically adjusts its core to 775 MHz and Memory to 4000 MHz QDR. It’s not a very large overclock, but it’s good to have. The card gave us a 3D Mark 06 score of 15087. We benchmarked Crysis in DX9 at 1280x1024 and 1920x1200 both at 4x AA and 4x AF and got fps
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ratings of 46 and 30, respectively. Unreal Tournament 3 gave us an fps of 115 at 1280x1024 and 69 at 1920x1200 both at 4x AA and 4x AF. With Doom 3 (4x AA) at 1600x 1200, we got 200.5 fps. In Prey, we got 125.5 fps at 1920x1200 and 4x AA, 4x AF. We tested in turbo mode and it did not give us great gains. The only drawback we noticed with this card is that the it’s slightly louder than most cards, especially louder in turbo mode where the fans throttle up to the overclock. At Rs 18,500, the card is great buy for a high-end card. SPECIFICATIONS Memory Support: 1024 MB DDR5, Memory Interface: 256 bit, Sonic Memory / Core Clock: 3800 MHz (950 x 4) / 750 MHz, Turbo Memory / Core Clock: 3800MHz (950 x 4) / 775 MHz; Contact: Tirupati Enterprises, Phone: 09339207519; E-mail: mail@tirupati.net ; Web site: www.tirupati.net
SNEAK PEEK WD My Passport Elite 500GB Slim, portable and spacious
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ortable hard drives are getting smaller and smaller and everybody wants storage. Western Digital has added a 500 GB the My Passport Elite series. design is great as always and has a
d r i ve to Th i s d r i ve soft finish to it. The WD My Passport Elite is a 2.5-inch drive with a nice metallic finish to it with the edge in a black gloss finish. On one side, you find the USB 2.0 connector with four white LEDs next to it. We noticed a flaw here, the lights are on the connecting side of the drive, that means the user can’t really see the lights. The lights should have been on the other side so that users can actually see them. There is also a sliding cover over the USB port which is quite innovative and keeps the port safe and clean. The My Passport Elite was quiet, and in HDTach, it scored an average read speed of 34.9 MBps, and an average write speed of 29.1 MBps. In SiSoft Sandra, the drive Index score was 31 MBps. We ran the drive through some
file transfer test where we did a 1 GB sequential as well as a 1 GB assorted file transfer test and got the following times — 1 GB sequential write time: 36.5 sec, 1 GB sequential read time: 16.4 sec, 1 GB sequential internal copy: 44.7 sec. For the 1 GB assorted files we got a write time of 42.7 sec, a read time of 16.1 sec, and 1 GB assorted internal copy: 38.1 sec. This portable drive also comes with software that includes Google Desktop, Picasa, Adobe Reader 8.1, WD Diagnostics Setup, Backup Utility, Drive Manager, MioNet and a Sync Tool. With 466 GB of actual storage space, this drive is great for its design and build quality. It has a 5-year warranty, but unfortunately, the price tag of Rs. 12,150, it’s certainly not good value for money. SPECIFICATIONS Dimensions: 15 x 126.15 x 79.5 mm, 2.5 inch SATA 5400 RPM Contact: Western Digital; Phone: 09321029204; Email: amarjeet.singh@wdc.com Web site: www.wdc.com ; Price: Rs. 12,150
MSI PR201 The Plain Jane laptop
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he MSI PR201 notebook falls in the Professional series of the MSI group. The PR201 is black, like other business notebooks, but has nice silver insides. This gives a really neat and simplistic feel to it, and you won’t even find stickers of any kind on it. There is a Kensington security slot, VGA port, USB, LAN port, and an optical drive on the left side. The right side of the laptop has two USB ports, a modem port, an HDMI port, a PC card slot and a flash card reader. A few problems we had with this laptop was that firstly the touchpad has no side scrolls or multi-touch functions. Even though this laptop may be going for a plain and neat look, things like that may be beneficial at times. This MSI also lacks a FireWrie port. We ran a series of benchmarks to see the performance of this laptop. PC Mark 05: CPU Score - 5800, Memory Score - 4885, Graphics Score - 2453, HDD - 4461, Overall - 4795. 3D Mark 05: CPU Score - 7951, Overall - 1383. Maxxon CineBench R10 (CPU Score) - 4694. FarCry (fps) (640x480, low detail) - 51.41. The screen quality is just about decent and if it were
a rating on 10 we would give it a 6.5, whereas the audio would score a 7. There are two things that stand out in this laptop. One is the battery life: It lasted a whole 3 hours 27 mins on high performance with full brightness. The second being it’s weight: 1.8 kg. The laptop is definitely business oriented and has great processing power. But then it also lacks some features like a better touchpad and a better optical drive also. SPECIFICATIONS Intel Core 2 Duo P8400 @ 2.26 GHz, Display: 12-inch WXGA (1280x800), SD, MMC, MS, MS PRO Card reader Contact: MSI; Phone: 011-41758808; E-mail: marketing@msi-in.com; Web site: www.msi-in.com; Price: Rs. 62,000
Samsung T220 Different, but at a cost
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ith brands lowering prices and a lot of choice available, Samsung’s T220 moves away from the norm of plain thin bezel screens. The T220 is identical to its 19-inch sibling – the T190 which came to us a few months back. In terms of design, things aren’t any different. The Bordeaux treatment is still there. There bezel around the screen is semitransparent with a hint of color thrown in. The power button is using a touch-sensitive button. The menu controls are on the side. The build quality of the screen itself is great but the stand isn’t so. The stand only allows you to move the screen back and forth quite a bit. The display quality is somewhat similar to what the T190 has. Calibrating the screen using Displaymate was a little tricky with the brightness and contrast settings not playing along well. The blacks aren’t very deep and the colors are pretty decent overall. Being a TN panel, banding is present, but not visible as much in all colours.
Movies and games look fine but there is nothing extraordinary. The T220 is destined for users who want their desktop setups to look good. The T220 is on target in that aspect, but the performance of the screen is not as good as we’d like it to be. It’s still an above average performer. The price is clearly more than most 22-inch screens. This is something that you should only spend on if you really want design and elegance. SPECIFICATIONS 22-inch screen, Resolution: 1680x1050, Response time: 2ms, Dimensions: 20.47 x 17.4 x 8.46 inches Contact: Samsung India Electronics Pvt. Ltd.; Phone: 011-41511234 E-mail: rengith.nair @samsung.com; Web site: www.samsung.com; Price: Rs 15,000
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FINAL WORD
Interim Budget:
A mixed industry reaction
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irroring the sentiments across sectors, the domestic IT industry has thrown up a mixed response to the Union Interim Budget. Since the government was presenting its last budget and with general elections approaching, there were no positive expectations from the IT industry towards the whole exercise. The industry did not get any specific sops, nor were there any new measures announced by the government. Since the IT industry has anyway grown over the years by leaps and bounds, without any major intervention from the government, industry leaders on a whole expressed the opinion that it would be business as usual for them. One major opinion that was voiced by a number of industry experts was that the government’s silence on the extension of the Software Technology Parks of India regime was disturbing. The industry was expecting an extension beyond 2010. On a whole, various commentators agreed that the government had merely used the budget as platform to showcase its achievements over the past few years, as was expected in an election year. There were no longterm measures lined up for any sector, and no policy decisions were announced.ab This course of action that the government has preferred has considerably dampened sentiments among a significant section of the IT fraternity. These industry-watchers were expecting that the government would come up with some sops for the Indian IT industry, which is already reeling under the effects of the slowdown. Though the government has placed considerable emphasis
on allocations for infrastructure and knowledge-based programs, it remains to be seen if these budgetary allocations will help to kick-start the Indian IT industry. Analysts have identified the public sector as a potential technology demand driver, considering the huge role that the government would continue to play in IT implementation. The hitherto untapped rural sector also holds significant opportunities for the industry, as the government continues to allocate significant amounts to various agricultural schemes. Hence, the industry does not perceive any direct benefits accruing to IT in the budget. However, the continued importance being given to manufacturing and infrastructure is bound to give a fillip to the IT industry, say a few experts. NASSCOM has clearly stated that the IT industry had no expectations of any major announcements from the government, this exercise being a vote-on-account. However, the trade body did call for a major overhaul in the procedural mechanism to ensure that IT entrepreneurs do not suffer under archaic regulations. It also welcomed the spends on infrastructure, pointing towards the spin-off benefits accruing to the IT industry. NASSCOM also urged the government to boost domestic IT demand by continuing to focus on allocating funds for the IT sector. “It is important to free up the bandwidth of companies, from these issues so that they are able to better manage the downturn and focus on business. This is also important to ensure India remains a preferred partner to do business in and with,” said NASSCOM in a statement.
Industry did not get any specific sops, nor new measures
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Stimulus package welcomed Various trade bodies have welcomed the recent stimulus package announced by the government. The government has reduced the CENVAT rate (excise duty/CVD) by 2 percent, and slashed service tax by 2.5 percent. According to the package, the government also proposed the extension of 4 percent reduction in CENVAT beyond March 31, 2009, and in excise duty from 10 percent to 8 percent. Depending on how firm the rupee holds against the greenback (and recent reports have not been very encouraging), the industry feels that CENVAT reduction will help stabilise prices at least over the next few months. Service tax reduction is also expected to boost demand for IT services in particular. The telecom sector is also expected to get a major boost owing to phone bills being slashed by 2 percent across the board. The reduction in excise duty and service tax is also expected to boost demand for technology. MAIT, the body representing India’s IT hardware, training and R&D services sectors, has also welcomed the announcement of the third package for economic stimulus by the government to give a boost to domestic consumption and provide relief to the industry. Expressing satisfaction on the recent announcements by the government, Vinnie Mehta, Executive Director, MAIT, said, “The 2 percent reduction in CENVAT rate (excise duty/CVD) will help bring down the prices of IT products other than computers. With this, hardware equipment would attract eight percent excise duty while desktops and notebooks will continue to remain at the same rate. We are also glad that the service tax has been brought down to 10 percent. This will provide some relief to the local computer manufacturing industry which was under stress due to CENVAT overflow as the service tax on software was significantly higher than the excise duty on computers.” MAIT also called for the government to facilitate easy funding for IT hardware and solutions by disbursing loans to SMBs and home consumers. “As several e-governance projects are being rolled out, these need to be replicated across all the states in the country and completed at an accelerated pace,” concluded the MAIT statement.
BUSINESS
Tip
10
THINGS TO CONSIDER WHEN WORKING WITH AMERICANS
A survey of thousands of young professionals and managers in the IT industry asked them: “What’s your advice in dealing with Americans in business.” Here are the top ten pieces of advice from the best and brightest in our IT industry: No.1 Be honest. No.2 Remember that Indians love arguments, but Americans love consensus. No.3 Don’t be afraid to say NO. No.4 If you don’t like something, say so. No.5 Don’t hesitate to sell yourself and your ideas. No.6 Don’t assume anything. Nail everything down. No.7 When you ask for something, ASK for something. Be specific and direct. No.8 Go easy on all the background and history, especially if you are just showing off how bright you are, and GET TO THE POINT. No.9 It’s high time for Americans to start learning something about Indian culture. No.10 Use your common sense. Source: Business tips for a difficult economy extract from Wiley India’s new book, “Get Your Frog Out of the Well—private lessons for the global economy”