India as a product Destination: Opportunities and Strategies Sushant Dwivedy Program Manager, Micros

1
India as a product Destination Opportunities
and StrategiesSushant Dwivedy Program
Manager, Microsoft India
2
Indian IT Opportunity Size
Indias market share
Size of global opportunity
B
1.5
IT Services
Software Products
0.2
3
Opportunity Categories

• Offshore product development partnerships
• Development and delivery of specialized
  components
• Product acquisition and development
• Shrink wrapped product development

4
Potential Market Strategies
Developed Markets
High-Potential
Emerging Markets
Domestic Market

• Very tough market
• Extremely demanding Customers
• Indian companies lack deep customer insight

• Highly potential market due to similar
  customer needs
• Customers find Indian products less expensive
  and easy to implement

• Offers a significant Test bed
• Various opportunities exist

5
Limiting Factors

• Cash flow of typical partner today
• Thousand

• High initial investment for decent ROI
• Easy services route availability
• Poor quality image
• Financial ability to carry products to market
• Leadership with industry standards
• Lack of respect for IPR

• Relatively comfortable ongoing profitability
  (EBIT margin 30)

200

• ?

150
100
50
0

• Unclear options for partner

-50

• Slow ramp-up primarily due to inability to add
  customers quickly

-100
-150

• Year

1
2
3
4
5
6
7
8
9
10

• TV

• Large upfront investment with delayed payback
• Start-up headcount

6
Challenges

• Technology
• Platform currency - web services
• Keeping abreast of Industry waves
• Improve quality of software
• Sales and Marketing
• Increase brand visibility and credibility of
  product offering
• Build the right partnerships for technology and
  market reach
• Building a healthy prospect pipeline
• Value for IPR
• Business Readiness
• Maintaining standards
• Infrastructure barrier for product development
• Management issues - maintain cash flows, retain
  people, control operational costs

7
Integrated Approach
8
Technical Readiness Ongoing investments
Platform readiness Application
certification Solution Builder Program
Staying current on technology trends
9
Technical Readiness Ongoing Investments
Applications Verified for Windows Server 2003
Cooptions
Over US150,000 on testing applications
Product readiness Migration support
covering over 100 ISVs in the country
10
Certified Applications
11
Our Programs
Over 350 ISVs In India
12
Sales Marketing Ongoing Investments
13
Business Readiness Ongoing Investments
14
Business Readiness Developing Indic Applications

• No standards in place
• Domestic market potential
• Make computing accessible for all
• Deep support required in platform
• Industry government collaboration
• e.g. http//www.bhashaindia.com

15
Business Readiness Ongoing Investments

• Focus group sessions
• Less knowledge/experience in
• Business administration and management
• Finance
• Sales and marketing
• Set up Regional Advisory Board
• To understand local ISV needs and create relevant
  local programs
• Partner with EDRI

16
Advisory Board
IIM Bangalore Southern Cross University Manakau
University Management Development Institute,
Singapore
Nasscom China Industry Software
Association Singapore Industry Trade
Forum Australia Industry Board
17
How does it work ?
Research into Business Best Practices in
ICT (EDRI)
Delivery of Business Best Practice Content (IIM -
Blr)
Marketing and Course Promotion (Microsoft and
NASSCOM)
Creation of Business Best Practice Content (EDRI)
18
Launching
19
Summary

• Good opportunity for software companies building
  IP in India.
• Need for leveraging the latest in technology.
• Increase focus on standards, quality and
  certification.
• Leverage our Partner programs where it suits you
  best.
• You can visit our ISV clinic in the adjacent hall
  to know more about our programs..

20
helping ISVs realize their Business Potential