Analysis of Market Opportunities for Indian Software Products - Presentation by Jay Pullur, CEO, Pramati Technologies. Governing Council member - iSPIRT

1. Analysis of Market Opportunities
for Indian Software Products
Jay Pullur (@Jpullur)
Co-founder & Governing Council Member, iSPIRT
Founder & CEO, Pramati Technologies
Parts of this paper have been adapted from Sharad Sharma’s presentation on “Made-in-India Software Products:
Challenges and Opportunities” at CII KM 22Feb2014
APRIL 2014

2. Disclaimer
All opinions expressed here in, are perspectives from a certain
point of view that may or may not be generalized and be
applicable across the board. It is not meant to be construed as a
comment on a company or class of companies
The Analysis is based on current understanding of markets,
strength of the industry and more recent trends that are indicative
of contemporary developments and the direction of future
growth.
Content of this presentation, any individual slide, might be
quoted/used without modification and with attribution (link) for
helping readers to understand context of information presented in
them.

3. Breakup of The Technology-driven Market
IBM, Microsoft,
Oracle, VMWare,
Adobe, Salesforce
Facebook, Twitter,
Amazon, EBay,
Google, Yaatra.com
TCS, Accenture, Wipro,
Infosys, CSC, BCG
Examples here are only illustrative and carry no other associated meaning

4. Internet
Business
Platforms
Digital
Media
E-commerce
Social Media
Gaming &
Animation
Google, Yahoo,
AOL, Vimeo
Neilson, Pandora,
Huffington Post,
Hulu, Netflix
Amazon, EBay,
Travelocity, Priceline,
Staples.com
Facebook, Twitter,
Yelp, TripAdvisor,
LinkedIn
Zynga, Rhythm &
Hues Studios,
Broad picture of “Internet” Businesses

5. Industry > Services** Products Internet
Customers Business-user Business-user, mostly End Consumer
People availability &
Expertise areas
Predominantly
technology, less market
facing skills
Good on technology,
weak on sales and
marketing
Technology skills
matter less than
Operations and
marketing
Scalability Slower and linear Non-linear possible;
Valuations grow faster
Non-linear possible;
Valuations could sky
rocket
Innovation beneficiary Value captured by the
Customer
(“Process innovation”)
Value captured by the
Company
(“Product innovation”)
Value captured by the
Company
(“Market innovation”)
Phase of Growth Mature; Scale game Nascent Emerging fast
Outlook Challenged Open*** Open***
* Limited to areas that bring out contrasting view
** From an India Angle
*** Promising. Discussed further
Comparative Look*

6. Market Opportunity India Global
Platforms & Tools
Development, Runtime systems,
Networking, Cloud Products
Poor1 Good
Horizontal Apps
Workflow, Marketing, Analytics, other
Domain-independent Products
Poor2 Good
Vertical Apps
Banking, Insurance, Healthcare, All
Domain-specific products
Good Good
Consumer Apps
Connectivity, Productivity, Storage,
Mobile apps
Good Poor3
BUSINESS-USERFOCUS
1 Market lag in adoption; Lean towards global brands
2 Use case similarity; Lean towards global brands
3 Difficult to gauge user taste and meet experience needs
Note: Adaptation from presentation by Sharad Sharma at CII KM 22Feb2014
Segmentation on Product Category

7. Global
2000
Small-Medium Enterprise
Midmarket
Mid-large Enterprise
Segmentation on Customer Spread
Large enterprises
- Relationship selling
- Hi-touch service
50k Midmarket Businesses
- Consultative selling
- Channels
- Service & Support Revenue
Millions of Business Users
- Brand-driven selling
- Self-service Models

8. Penetration of SaaS
and Cloud
Penetration of Indian
Services Industry
Global
2000
Small-Medium Enterprise
Midmarket
Mid-large Enterprise
Two Important Dynamics
Let us evaluate market opportunity from two important
realities that confront us in India

9. Global
2000
Small-Medium Enterprise
Midmarket
Mid-large Enterprise
Penetration of SaaS and Cloud
Slower penetration
- Integration issues
- Data security, data ownership
and operating issues
Faster penetration
- Capex reduction
- Lesser integration challenges
- Need Agility & competitive
advantage
SaaS goes mainstream
- Lower spend
- Lesser IT
- Faster time to value

10. Global
2000
Small-Medium Enterprise
Midmarket
Mid-large Enterprise
Penetration of Indian Services Industry
High penetration
- Need for reducing IT costs
- Higher levels of spending
- Prestigious accounts
(acq. During Y2K boom)
Growing penetration
- Sweet spot for most companies
- Freeing IT Budgets for new works
- Constant up gradation of
applications
Low penetration
- Smaller sized, low-
margin projects
- Higher cost of sales
- Hi-touch service

11. Market Traditional
model
SaaS
India
Global
Platforms & Tools Horizontal Apps
Vertical
Apps
Consumer
Apps
Global
5000
Midmarket
Mid-large Enterprise
Small-Medium
Enterprise
Suitability of Models for Indian Products
LEGEND:

12. The 3-way Relationship Opportunity
3-way relationship could be beneficial in traditional model
of software product delivery (non-SaaS)
Product Opportunities
CIO
Product
Company
Service
Company
Service Opportunities