All posts by Sanchit Gogia

Wipro likely to beat Nasscom’s growth estimates this fiscal, say analysts #Press #Media #HinduBusinessLine

Strong deal pipeline will help the IT major forge ahead

Analysts believe that on the back of a strong deal momentum, the company which has been growing at a lower rate than peers like TCS, Cognizant and HCL Tech is expected to bounce back this fiscal year.

In a research note, Espirito Santo Securities said that the strong deal wins in the recent quarters should drive 3-5 per cent quarterly growth guidance for the second quarter of 2015 fiscal. In the last couple of quarters, Wipro has bagged three multi-million dollar deals from companies like Citigroup for $500 million, a $400 million from Takeda Pharmaceuticals and $1.1-billion deal from ATCO.

In 2013-14, Wipro’s revenues grew 16 per cent over the previous fiscal at ₹43,755 crore, while net profit rose 17.5 per cent to ₹7,797 crore. However, this lags behind peers like TCS, which posted a 29.9 per cent growth, followed by Cognizant, which posted a 17 per cent growth in the last fiscal.

Wipro is expected to announce its first quarter results on July 24 and is in the silent period. However, in the last quarter, CEO TK Kurien had told Business Line that the way Wipro is exiting the 2014 fiscal and coupled with its strong deal pipeline, points to growth ahead.

This momentum also indicates that the turnaround strategy pursued by Kurien is on track.

Others agree. “Initiatives taken to improve internal process and an increased focus on automation, instead of depending on people additions have been successful,” said AK Prabhakar, an IT analyst.

Espirito Santo Securities also believed that win rates for large deals have improved by 50 per cent over the past two years and this is visible in higher large deal wins and improving revenues growth.

Further, these deal wins come in geographies such as US and Europe, which contributed about 79 per cent of Wipro’s overall revenues in the last fiscal year.

Sanchit Vir Gogia of Greyhound Research believes that large contracts helps Wipro get access to more high-profile deals at a time when outsourcing demand looks stronger when compared to previous years.

Source: The Hindu Business Line

Tata Communications to up data centre size, spend $200 million #Press #Media #HinduBusinessLine

Global communications and enterprise service provider Tata Communications said the company expects to lead the data centre business in India with around 26 per cent market share right now.

According to the company, it tops the data centre market right now and it is growing at around 22 per cent year on year. The company plans to invest more than $200 million towards doubling capacity in India from five-lakh square feet to 10-lakh square feet over a period of three years.

The data centre business is primarily driven by the market trends such as social media, mobility and cloud.

“Therefore, the amount of data that needs to be stored is a huge challenge and also opportunity for companies like us to handle those data. We expect this market will grow significantly over the next five years and one of fastest growing sectors because of data explosion,” Rangu Salgame, Chief Executive Officer – Growth Ventures, Tata Communications, told BusinessLine.

New data centre

Looking at such opportunities, the company on Wednesday opened a new data centre here, which is 12th in India and 44th in the world. The company now has two data centres in New Delhi, three in Mumbai, two each in Bangalore and Chennai and one each in Hyderabad, Pune and Kolkata.

Globally, it has data centres in places such as Montreal, New York, Los Angeles, Paris and London, Salgame said.

As part of its global expansion initiative, the company recently also entered into strategic partnerships with NEXTDC in Australia, Interxion in Germany and Austria, as well as Pacific Link Telecom in Malaysia.

However, while the market for data centres has already grown big globally, India still needs more investments from companies such as Tata Communications.

Though, there is no data available on the market size right, analysts said the data centre market is growing well at around 12-15 per cent year-on-year.

Other players

“Lot of enterprises are now transferring their data on cloud and ‘on premise’ data centres are now falling over last two years because of such reasons. And, that is fuelling the growth of data centre business,” Naveen Mishra, Research Director, at Gartner India, said. He said because of such reasons, not only Tata Communications, other players such as Sify, Wipro and Netmagic Solutions are also growing.

Therefore, Tata Communications has to work hard on getting better businesses from its clients. “It had earlier launched InstaCompute, which only received a marginal success. This time around it needs to be aggressive in partnering with various Independent service providers, which will ensure its success,” Sanchit Vir Gogia, Chief Analyst and Group CEO at Greyhound Research, said.

Source: The Hindu Business Line

Apple-IBM alliance unlikely to shake up Indian market #Press #Media #FinancialExpress

The global alliance between IBM and Apple for iPhone and iPad devices targeted at enterprises is unlikely to shake up the Indian devices market in the near term.

Under this partnership, IBM will bring its new class of business apps involving big data and analytics capabilities to Apple’s iPhone and iPad devices, which will be targeted at various segments of the enterprise category.

However, this alliance is expected to have limited impact in a growing market like India, especially in the smartphone segment given Apple’s limited market share.

Vishal Tripathi, principal research analyst, Gartner told FE, “Frankly, I do not see a huge impact in an emerging market like India which is still price sensitive unlike the mature economies.”

He felt that if a similar announcement were to be made by Samsung then the situation would have been different given their dominant market share. “We are not an Apple country,” he added.

The alliance with IBM gives Apple a strong push into the enterprise segment. Sanchit Vir Gogia, Chief analyst and CEO, Greyhound Research, terms this partnership as “interesting”.

He said this alliance would play a key role in shaping the bring your own device (BYOD) concept in Indian enterprise market, while adding that IBM will also bring in its expertise in connecting different kinds of technology platforms. Analysts felt Apple would certainly gain from IBM’s deep strength in the enterprise segment, whose financing arm could provide the much needed leverage in selling these devices.

Apple’s market share in India is below 10% in the smartphone segment, which is dominated by Samsung and followed by other homegrown players like Micromax, Karbonn etc. Similarly in the tablet segment also, Samsung is the market leader followed by Apple’s iPad.

This alliance will also likely to test Google, Microsoft, Samsung and Blackberry.

The Android operating system is the dominating software both in smartphone and tablet segments and it remains to be seems how this alliance will tackle this. Tripathi felt that these players may adopt a wait-and-watch policy before they take any decisions.

“We can expect a different kind of a war and enterprises are most likely to be given a lot more discount on Apple products,” Greyhound’s Gogia said.

Source: The Financial Express

Hard Facts Enterprise Mobility #Press #Media #ITVARNews

Like some magic wand, CIOs and enterprises have taken to quoting mobility as one of the top emerging technologies in their wish list.  It would be the answer to a large number of issues that enterprises face, and maybe the panacea to some of them. But getting this technology to the market is another ball game all together, Kalpana Singhal speaks with industry leaders to find out if organisations are ready to adopt this technology and how far solution providers have reached to implement it.

With the advent of the Smartphone, a box computer has become all but redundant, even for corporate functions. Even the ubiquitous laptop that defined the IT industry is on its way out. It mobility in the palm of your hand all the way now. New business models are therefore pushing their head above the ground, to take the place of the older business paradigms. Is this a fad? “No way, “says Anuradha  Makhija,  MD, OneNetwork India,” it is definitely not a fad, it’s the need of the hour. There is only one way to go! Looking at number of mobile SmartPhones and tablets adoption at very fast rate itself shows BYOD to some extent already been accepted.” Neeraj Mendiratta, Managing Director, AceData is also very enthusiastic, but, he adds – It’s just that the entire ecosystem needs some time to grow to being full fledged.

Channel partners are very enthusiastic about it. Adds Saravanan Namasivayam, General Manager-Consulting and Business Solutions, Kaar Technologies, “Organizations have moved from desk to mobile. Most analysts predict by end of 2014, mobile phones will outnumber humans. Even in IT industry, we are seeing a new trend of collaboration between traditional IT models and cloud service providers to cater to the growing enterprise mobility. Standalone ERP system is a passé. ERP systems supported with mobile apps are catching up and all large scale players have already adopted this model. Being in the technology consulting space, we often recommend enterprise mobility to our customers.”

Anuradha believes channel partners play a big role in the adoption of enterprise mobility and the support they can provide is critical,”Channels help to design a Future -ready network for the enterprise customers to achieve enhanced mobility. Secondly they help to enable the High-IQ enterprise — an open, smart approach to enterprise networking that allows customers to fundamentally transform the user and operator experience,” she says.

With such a positive response, one would expect a fertile roadmap for the enterprise mobility industry. Analyst trends too indicate a strong tide in its favour over the next few years.

Growth will be facilitated by various factors, one of the biggest ones being the push to develop all enterprise applications like ERP, SCM to name a few, onto mobile platforms. This actually is the next step in adoption of mobility – BYOD was probably the first.  MADPS, (Mobile Application Development Platform) and MDM (Mobile Development Management) will be the way forward for these enterprises and they seem to have support of the channels to get them into the market.

From the users’ perspective, it is the deluge of consumer mobile applications in the market which are creating a space for choices. This in turn is driving every enterprise to opt for a higher version of iOS or Android apps, an even more sophisticated Smartphone or a smarter tablet.  But this relationship cannot be so casual. It is critical that organisations understand the utility of these devices, their attraction for the employees…and utilise this strength of these bonds for enterprise efficiency. They will then have better insights of how these SmartPhones and smart devices can be used for a better mobility management process.

In the sea of application and opinions, MDM seems to hold the key to the confidence in mobility adoption, the manna for all ills. An efficient MDM system can take care of a whole range of challenges, from security to interoperability. Is anyone complaining? Not at all. In fact as Sarvanan points out, “When organizations move to mobile-based operations, it is essential to protect business data. Identifying devices that have access to network systems and other company information through proper patch management is an absolute essential. Hence data security cannot be taken very lightly. However, the risk associated with data security can be mitigated with MDM. SAP’s mobile secure solution portfolio allows organizations to secure mobile devices, apps and associated content,  and the major advantage is these solutions are device and OS agnostic, so it’s absolutely BYOD compatible.”

Challenges driving trends

But this brave new world comes rife with challenges. To utilise the powerhouse of mobility for enterprise purposes, there will be strategies and pathways need to be created, that will build up some clear trends and add-ons.  Gartner has collated some of them:

1.            With increasingly mobile workforce, stronger Identity and access management (IAM) will be needed to authenticate user   access. This will need to focus on:

single sign-on,

adaptive access control and


This too, may not be adequate, especially for smaller devices, so there will a trend towards Adaptive Access Control, using additional information like user location and behavioural patterns to increase the security assurance.

2.   A number of cross device and platform security controls may sometimes even defeat the whole exercise. Managing so many access codes is a challenge in itself, so security capabilities will need to be on a single, uniform platform- preferably on a cloud.

3.  User Experience (UX) is today’s measure of success for any mobile device or project.  This, then, is emerging as the most critical component of mobile app development, especially for enterprise applications.

4.  Greater use of mobile-enabled enterprise social networks driven by content is slowly making the enterprise workspace a giant office with no boundaries – both in terms of content for communication as well as corporate data.

5.  Increasing use of WLANs for mission critical communication give rise to issues like poor performance, insufficient coverage or lack of service for the BYODs. Especially the unique BYOD challenges need to be factored in the updates security policies for mobility.   The solutions could create a whole new trend in   network capacity, managing bandwidth, separating BYOD devices from corporate devices, adding IP voice services and expanding online data mobile access.

6. Enterprise is embracing BYOD for various reasons of productivity and customer support but this trend seems to be on its way out, Gartner estimates, 38% of the CIOs will withdraw BYOD from their orgs by 2016. The challenges are not new – information security, device management and workspace delivery. The answer often lies in a strong MDM, which is consistent across platforms, and this may be the way forward for a controllable BYOD risk.

So these are the expected trends that will keep the future of enterprise mobility shining.

But are enterprises ready for this disruption? Industry sources mull over the question, and then feel that some of them are and some of them are in the process of upgrading the networks to make them open and converged. From the point of view of being technologically prepared, the new gen applications, channel partners feel, are totally future ready for the connected environment. “In fact,” opines Sarvanan, “enterprises have already started seamlessly operating in a connected environment.  SAP offers real-time user experience through its product offering SAP Fiori that delivers unmatched responsiveness using the power of SAP HANA platform. Its business suite applications use SAP Fiori UX to provide a more personalized and role-based user experience for enterprise-wide engagement across various lines of businesses. Furthermore, it provides optimal usability on multiple devices for the best business interactions. These next age technology products are completely designed to aid a collaborative and connected work environment.”

Challenges and Mitigation

However, despite these trends, what is really the future of the technology per se, in the eyes of enterprise? Suffice to say, not all are fawning, there are some grey areas where confidence in the golden glow of enterprise mobility slightly wanes.

Let’s start with some hard facts that speak a not too clear story. In a research done across 100 CIOs across Asia Pac and Mideast-Africa, the emerging markets, Greyhound Research discovered some of these grey areas. Let’s get the positives first:

•  More than 70 percent of the enterprises interviewed were either already running or planning a mobility technology expansion project

•  More than 70 percent of the respondents have plans to spend on new enterprise mobility projects like CRM, BI and HCM getting on to the mobile.

•  More than 65 percent organizations believe mobility adds to employee productivity, and hence have earmarked IT budgets for them.
And now for the grey parts:

•  More than 30 percent faced unclear policies for multiple users and roles among others.

•  More than 32 percent organizations were finding it a challenge to develop  apps that can run efficiently  across multiple operating systems

•  More than 50 percent IT decision makers did not know where to source mobility applications and how to deal with the ensuing security issues.

•  More than 30 percent respondents were unclear on identifying a partner for enterprise-grade mobility apps

The Channels Role

The CEO of Greyhound ResearchSanchit Vir Gogia has very clear doubts about how the markets are taking to enterprise mobility.  From channel partner perspective, he feels, we have not yet reached the mark of perfection.  “Clearly most channel partners do not understand mobility from a complete perspective.  They know MDM, they know devices and they do have insights into what these can do for the enterprise. But to be able to sell it, one needs a value chain perspective.” A large number of legacy application users are struggling with this new paradigm, maybe it’s more important to get them upto modernising first.  Channel partners, he feels, should be the right people for offering complete solutions, but that will happen only when they have clarity on what mobility can do. That is still a long way off.  What they need to work on is how to make the mobile apps enterprise ready, so they can add value more than mere the convenience of mobility. They need to ensure the applications can be operable on the cloud- be cloud ready, in order to move any further.  They need to be clear on access control applications, the other security policies and technologies that are so essential for mobility. These nitty gritties need to be taken care of before the channels become real partners in the business of enterprise nobility. “Of course there are some really good support and channel partners in the market,” he adds,”but the bulk is not there yet.”

It works both ways. Communication of the benefits is key to clarity. As Neeraj says, “Channel partners need   work with clients and educate them regarding the availability of niche applications and solutions in the market which can drive their productivity. So a conversation giving a clear picture of Enterprise mobility benefits is necessary for channel partners.”

So, while adoption of enterprise mobility is the new way forward, what is really relevant is, how is the seller’s market fighting the doubts and mitigating the challenges.

Clearly, the biggest challenge in selling a technology and related devices is its adoptability and relevance to the market. India, unlike the global market is a people driven market place. Merely being a proficient an extremely versatile technology may not cut the deal. “As a technology, it is perfect on paper. But its real value lies in its adoptability and how fast or easy it can be implemented,” says Subramaniam Madhira, founder and CEO of Chennai-based OmniNet Systems. “In India, there are certain barriers that may be the bigger challenges to the popularity of enterprise mobility, the biggest being the infrastructure and connectivity.  Interoperability and systems integrability is one of the major challenges in adopt as well as channel sales.  Agrees Neeraj,” Most of the standard applications are compatible with the three operating systems and an application can be modified as well to become compatible with any operating system so interoperability is not a big challenge. The biggest challenge is a lack of consistent network coverage which prevails even in major cities of the country.”

But Sanjiv Bhavnani from Mentorpreneur Advisors feels that the infrastructure in the country is all set in the Enterprise Mobility Space, “The networks are good in the country and the presence of abundant devices and applications for Enterprise Mobility reflects that the technology is ready to take a launch in the country,’’ he says.

Sarvanan of Kaar Technologies feels an efficient channel partner can meet all these challenges, “with a detailed Mobility technology roadmap and an appropriate business -mobile process mapping, smooth mobility migration is always easy for any enterprise, “he says.  Even for organizations operating with legacy systems (or) multiple standalone systems, mobile adoption and integration will not be a challenge if the right mobility-based IT and business strategy is in place.

Agreeing to Anuradha, Manish Sanghrajka, Founder of ComPrompt Solutions adds that channel partners should create awareness among the enterprises via demonstration of Enterprise Mobility’s capability. ‘Channel Partners if possible should implement Mobility in their premises first and need to initiate a conversation with the organisations detailing them the benefits of the technology,’’ says Sanghrajka.

Another challenge – that of making every business application compatible with enterprise mobility and that will actually drive adoption as well. Sounds confusing but, IT teams across enterprises gearing up to getting all their business operations to be mobility friendly. But with the kind of varied landscapes and legacy applications that most function on, it’s an uphill task. Traditional enterprise apps have been mostly windows, and the rest of the applications landscape is extremely varied. Getting them all together on one platform will be a challenge for any team- and then there is the small matter of making them mobile friendly. “Enterprises are ready to switch to Mobility However the real problem which organizations are  facing is transforming to a more mobile environment which is daunting process and lack of clear cut policies are adding to the problem,” opines Neeraj.   No mean task, this!

Security, many argue, is a big challenge as well, but with an efficient and robust device management and MDM in place, the risk can be mitigated to a very large extent. “Data leakage is getting to be a serious threat due to adoption of SmartPhones and tablets which opens up access for mails and intranet applications, “says Anuradha, “”currently there is a trend for need of MDM solutions but customers with compliance point of view are only trying to address it by keeping the devices away from enterprise network.” All the organisation needs is to have security policies that tie in with the newer apps, and ensure they are all on a connected platform, preferably on the cloud. That will ensure no tying down for any app and threats and vulnerability will be much better mitigated.

Ronny Serrao from Essen Vision further briefs about how secure the Enterprise Mobility Ecosystem has become from the data security perspective. ‘’With the adoption of Enterprise Mobility Organisations can cut down on their CAPEX by skipping the investment on new PCs and other IT peripherals. Also with new security solutions in place there is an effective categorisation of data taking place with which Enterprises can decide as to which applications will be managed by the enterprise which can be wiped out remotely in case of a device theft,’’ he says.

With increasing business volatility and the uncertain climates that never seem to end, mobility may be just what enterprises can use for meeting their current business challenges. Budgets that are slashed to the bone, and then some;  connected markets that leave no scope for error and furiously fast emerging technology paradigms, all are creating a climate of super speedy  product and services development. After all, in the lethally competitive markets that we see today, speed is of essence. Here enterprise mobility may play a vital role in generating efficiencies and crunching timelines and costs. Teams armed with the anytime, anywhere advantage of enterprise mobility, can be just what the organisations need to keep afloat.  Soon, it will not be a choice but a business imperative. In some industries it already is, and all others are not far behind.

The trick to get it right, so as not get diverted or shackled by the myriad this mercurial technology poses, is to keep a focus on the goal- its utility and its functionalities. In fact, due to the pervasiveness of mobility in enterprise, business models are being changed and upgraded.

The roadmap for the way ahead needs to be focused on how it can provide even greater value to customer experience, because at the end of the day, that is the key to business success.

Source: ITVAR News

Budget 2014 Impact: Mobile Phone Prices May Go Up #Press #Media #SiliconIndia

Consumers may have to shell out more money for buying mobile phones as the government has proposed education cess on imported electronic products.

The move may push up costs of handsets by up to 8 per cent, especially smartphones that are mostly imported, analysts said.

Presenting his maiden Budget today, Finance Minister Arun Jaitley said the demand for electronics is growing very fast.

He said the government will “exempt all inputs/components used in the manufacture of personal computers from 4 per cent special additional duty (SAD) and impose education cess on imported electronic products to provide parity between domestically produced goods and imported goods”.

According to the Budget document, the education cess for all taxpayers will be 3 per cent in the 2014-15 fiscal.

Reacting to the proposal, IDC South Asia VP and General Manager Jaideep Mehta told PTI: “The education cess on imported electronics, including PCs and Smartphones, will challenge consumption growth as it will increase street prices.”

Greyhound Research CEO Sanchit Vir Gogia said manufacturing is still in nascent stages in India.

“There is hardly any manufacturing that is done in the country. Considering that most handsets are imported and add to that the education cess, we could see prices going up as much as 7-8 per cent,” he added.

Handset makers including Microsoft Devices (Nokia) and Micromax however did not comment on the impact on prices.

Source: Silicon India

IT Report Card to the NDA Government – Evaluating the Union Budget 2014-15 #Press #Media #Firstpost

As a follow-up to our previous blog where Greyhound Research highlighted pain points IT decision makers are facing in India, below is an IT report card for the NDA Government post the announcements in Union Budget 2014-15. This report card assesses various schemes and initiatives announced by the new government and the expected outcomes for the IT sector.

While a can of worms might be in the offing when the government rolls out more details, the budget announcement has only marginally uplifted sentiments in the technology sector. With a mixed bag of hits and misses and little definitive guidance, IT buyers and providers are still left shooting in the dark. Does this ring worry bells for the sector? Read on.

• The NDA Government has failed to address long pending issues hurting CIOs. In a recent blog Greyhound Research highlighted issues that have long troubled IT buyers. These issues had failed to garner attention from the UPA Government in the previous budget as well. Greyhound Research was expecting these to be addressed this time around, however little has been done by the NDA government. This has been explained in detail in the report card below.


• The budget did not offer clarity on announcements from previous year. The need for accountability, transparency and effective governance are key reasons why the NDA Government came to power with clear majority. But the announcements made in the Union Budget 2014-15 did little to clarify the government’s stand, vision and next steps on the announcements made in the previous budget by the UPA government. Greyhound Research highlighted some of these in a blog last year where we raised serious concerns on the effectiveness and outcomes from some of these policies. For more details on how the NDA Government tackled each of these announcements, refer to the report card below.


• Union Budget 2014-15 – definitive opportunities for IT vendors, but big on guidance and low on details. While the NDA Government has done well to offer broad details on some of the key programs it wishes to pursue during its tenure, very few details have been offered. Clearly, a lot of critical announcements made in the budget have been aspirational in nature with very little or no real outcomes in the near future. Having said that, the new Finance Minister has surely understood the need to bring the Indian economy back to a double-digit growth figure and focus on sectors like Small and Medium Enterprises (SMEs), Insurance, Real Estate and Defence. While Greyhound Research expects these initiatives to create fresh demand for IT, not all initiatives will benefit IT vendors equally. The report card below highlights some of the key announcements and the resultant outcome for IT vendors.


The author is the chief analyst and CEO of Greyhound Research, an independent IT & Telecom Research & Advisory firm. He is a recognised IT analyst, consultant and advisor who is known for his passion for emerging markets and technologies.

Source: Firstpost