MONEY BANGALORE INC Bangalore, Wednesday, November 4, 2009

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short bytes A PEEK INTO THE WORLD OF GADGETS, TECHNOLOGY AND BUSINESS THAT WILL KEEP YOU HOOKED!
Sony eyes 20% of
netbook mkt >> L&T Power bags
Rs 6,897-cr deal >> BSNL, Sistema
in tower deal >> RsSubex to raise
460 crore >> Sybase, Wipro
extend ties
C onsumer electronics
company Sony India L &T Power order book
stands at Rs 14,000
crore after the company
S tate-owned Bharat
Sanchar Nigam (BSNL)
entered into an agreement
T elecom software prod-
uct company Subex
said its board has approved
S ybase Software (India)
and mobile software
and Wipro Infotech on
targets 20% of country's
consumer notebook mar- won an order worth Rs with private mobile opera- issuing bonds worth around Tuesday extended their
ket by the end of fiscal 6,897 crore from tor Sistema Shyam (SSTL) Rs 464 crore with a coupon partnership towards
2010. It launched three Maharashtra State Power to share its passive infra- rate of 5%. The committee promoting Sybase
new laptop models - ultra Generation, managing structure, including towers of the board has approved Technologies for Business
slim VAIO X, VAIO CW and director and CEO Ravi and bandwidth, a state- the issuance of convertible Continuity and Enterprise
a new netbook VAIO W. Uppal, said. ment said. unsecured bonds. Mobility Solutions.

‘Planning a
Chennai startup bursts into the cloud
Firm breaks into the top echelons of the global software platform players with its platform as a service (PaaS) offering
career move
C Chitti Pantulu. Bangalore

For a company that counts the likes of

Unilever, AstraZeneca, CitiBank and
Fuller among its 40-odd customers,
it comes as a surprise to many that
Chennai-based
OrangeScape
Technologies is
just a six-year-
old startup and
employs around
50 people.
More impor-
tantly, it is the
Suresh Sambandam only Indian com-
pany to make it
to the tech research firm Gartner’s list of
the world’s top-10 cloud-based platform as
a service (PaaS) providers and counted in
the same breath as giants Google, Mi-
crosoft, Salesforce.com, and Intuit. The
global PaaS opportunity is estimated at $9
billion per annum and growing at a stu-
pendous CAGR of 160%.
OrangeScape is one among the new
breed of tech startups that have dared to
swim against the tide on the sheer strength
of an idea, devoid of any venture capital or
big bucks behind them. But they have still
managed to catch the imagination of the
market and funds alike.
Founded by Suresh Sambandam, its
CEO and an entrepreneur with a back-
ground in Hewlett Packard, the company
delivers services built on its cloud-based
platform for various verticals including
government and business process out-
sourcing (BPO) units.
While talk of cloud-based software as a
service (SaaS), has been around for some
time now, Platform as a Service (PaaS), is
TECH BIGGIES BEGIN TO SHARPEN THEIR WEAPONS AS WAR CLOUDS GATHER PACE IN THE WEB SPHERE
somewhat new and OrangeScape is one
among few companies in the world provid-
ing it promising fast delivery of applica-
tions either on a pay-per-use model or long
term contracts.
Depending upon who you are speaking
to, PaaS could mean different things. But
most commonly, it refers to the delivery of
a computing platform and the required
programming capability as a service
to users without the cost and complexity
of buying and managing the necessary
hardware and software for it. It also lever-
ages the internet to hire or use these re-
sources for a fee.
There are two kinds of offerings that
OrangeScape provides — the Or-
angeScape Enterprise ,which is delivered
for use on-premise, and OrangeScape
Cloud, a public cloud version for use of
the internet on a pay-per-use model,
which is currentlyin the beta stage testing
and slated for commercial release in two
weeks, Sambandam explained.
But how did he hit up on the idea of get-
ting into the cloud? It all happened after
Selectica, a contract lifecycle management
software company, where Sambandam
headed the group that built the health in-
surance application suite, sold off the divi-
sion to consulting major Accenture. Rather
than taking up the offer, he branched off on
his own along with a few friends.
“Ours is a completely bootstrapped com-
pany,” said Sambandam. Of course, the fact
that Accenture needed someone to main-
tain the eInsurance suite that it had
bought from Selectica, meant some initial
revenues to keep the company going in the
initial days, he told DNA Money. Now
one last time’
After splitting with Baring
there are quite a few venture firms want- Private Equity Partners In-
ing to invest in the company given dia (BPEP), an investment
OrangeScape’s success and the buzz firm he co-founded and was
around the cloud, he added. associated with for 12 years,
But then, when it started off, Or- Subbu Subramaniam N is
angeScape was not on the cloud. “In fact busy chalking out his next
the cloud is a phenomena of just the last 18 big move. DNA Money’s
months,” he explained. Ashish K Tiwari caught up
The company’s software is intended for with the private equity veter-
use by non-developers, who wish to create an for a chat on his specific
simple applications, for use either on their career plans and the invest-
desktops or on the Internet. OrangeScape’s ment scenario at large.
USP is that it built a rule engine based on Excerpts: Which of the three op-
which even people with minimal knowl- tions are you more likely
edge of programming language can write It must have been tough to take?
applications. “We realised that business breaking away from The first and second option
people understand spreadsheets well and the firm you co-founded? require me to do a lot of re-
suddenly almost anyone is a programme Emotionally, yes it was. But search to understand the
now,” Sambandam said. the whole idea is to learn psyche, strategy and DNA of
“What we foresee is that there will be a from such situations. We the partner/sponsor, but in
flurry of micro-ISVs (Independent Soft- profess to promoters of the the third option, I will have
ware Vendors) in the market, typically of portfolio companies that to apply my mind and plan
4-5 people, who need no hardware or a they have to make them- out various steps in build-
marketing set up but can still hit the selves dispensable. You ing the firm. For a joint ven-
ground running to kick off their business- should have enough profes- ture, I am pitching by put-
es,” Sambandam added. For instance, an sionals, processes, systems ting together a presentation
individual or SMB customer can use the and a wide customer base about my experience, com-
platform at just $15 per user per month so that even without you petence, team building and
though developer accounts are currently around, the company will ability to bring value etc.
free of cost, he explained. continue to grow. Do you connect with how
However, if one is to go by the client list these investors perceive
of the company it is not just other startups Your status on a the Indian market?
or small and medium businesses that are business network- As global allocators
finding value from OrangeScapes platform
services, but it is also the large enterprises
that are finding a use for it. “Every day, we
ing site reads,
‘Planning a career
move for one last
q&a of capital, many in-
ternational in-
vestors evaluate dif-
are getting at least 2-3 enquiries,” he added. time’. Could you ferent markets from
p_chitti@dnaindia.net elaborate? that perspective. Thus, what
I’m evaluating all the op- they are saying is partly
tions and will be in a posi- true. Promoters the world
tion to take a call by Janu- over tend to use the benefit
ary 1, 2010. The options be- of valuations in the market.

Cisco, EMC, VMware MS cuts e-mail price

ing looked at include taking My take is that index is not
up a senior position in a a true reflection of all the
fund that’s coming into In- opportunities in Indian pri-
dia or is already in the coun- vate equity arena.

gang up for the cloud to keep out Google

Rochelle Garner
Cisco Systems and EMC formed a
joint venture, Acadia to build, sell
and support products for corpo-
rate data centres, intensifying
rivalry with Hewlett-Packard.
and International Business
Machines (IBM).
The new Vblock products,
based on VMware platform, will
combine Cisco’s Unified Comput-
ing System and other networking
equipment with EMC’s storage
computers and security software.
The products will also use
so-called virtualisation software
from VMware and chips from
Intel. Those two companies are
also investing in the venture.
Vblock is aimed at data centers
—the vast rooms of computers that
store company files, transmit in-
formation and run vital business
applications. The venture marks
Cisco’s second foray into the mar-
ket, after the company introduced
its first server computer this year.
“What we do is focus on market
transitions, and the most impor-
tant right now is pervasive virtual-
isation,” Cisco CEO John
Chambers said, “You will see us
focus on transitions with other
companies that can come together
with an ability to acquire compa-
nies, and to partner.”
With VMware’s Vsphere soft-
ware, data centre customers can
control many devices as a single
machine over the Internet. That
means companies can shift appli-
cations to underused servers or
back up information to any device.
Vblock will initially be available in
three configurations, the three
companies said.
In addition to the Acadia ven-
ture, Cisco and EMC formed what
they call the Virtual Computing
Environment coalition, which will
jointly develop and sell products,
train consultants and provide
product support. The coalition
will focus on products that help
customers offer so-called cloud
computing, or deliver
programs and computing power
via the Internet.
“When you think of the cloud,
it’s liquid pools of technology and
software on demand,” EMC CEO
Joe Tucci said. “That’s what
we’re enabling.” Bloomberg
try as number one or some-
thing; bring one of the big Any plan for making an-
brand names looking to en- gel investments?
ter the Indian market I may do angel investing or I
Dina Bass Microsoft to become a bit more through a joint venture; the may find a professional
aggressive,” Baldassari said. third option is to be 100% fund manager if I take up a
Microsoft is cutting its price for run- “Microsoft has been very aggres- owned by the team itself, led less demanding role. But, I
ning corporate e-mail systems as sive in terms of price.” by me — which is a very pri- don’t think I will do it (angel
clients say the world’s largest Microsoft’s suite lets customers vate affair at one level. All investment) myself because
software maker has been offering use e-mail, hold teleconferences three options are open. to give my best to ‘a job’, it
discounts to keep them from switch- and create internal Web sites for will be a distraction.
ing to Google. blogs and document But there are talks about
Microsoft will now
charge $10 a month per
Snip act sharing.
An e-mail-only prod-
you raising a $250-500
million fund already…
Is IPO exit good for the
PE industry?
user for its Business Microsoft will uct based on Mi- That’s jumping to a conclu- It is, but investors want to
Productivity Online crosoft’s Exchange soft- sion I’d say. For the record, see all forms of exit. When
Suite, down from $15, now charge $10 a ware now will cost $5 let me state that I have not we sit down and negotiate
VP, Ron Markezich said. month per user per user per month, in- decided what I am going to the exit clauses with is-
The company also has stead of $10. do. I have not decided suers of capital, the least
signed up new cus- for its Business Rexel, the world’s on who my joint venture preferred is a buy-back op-
tomers such as McDon- Productivity largest distributor of partner, if at all, will be. I tion. The most preferred is
ald’s and AON. electrical equipment, don’t know the appetite of a trade sale deal, while
and Online Suite,
Tech bytes Microsoft
Google are seeking
has 42 different e-mail
and messaging systems
the joint venture partner
for one investment
IPO and merger and acqui-
sitions fall somewhere in
„ The new coalition customers that want to
down from $15 worldwide. It wanted to strategy or another. between.
intensifies Cisco’s outsource the manage- save money and stream- What I’d said earlier to a
rivalry with IBM & HP ment of e-mail systems. The compe- line its operations by replacing fund-raising query was What is your outlook on
tition has helped buyers negotiate in-house software with an outsourc- that broadly I would have the M&A scene in India?
„ Cisco & EMC have lower rates from Microsoft. Even be- ing contract, Baldassari said. to raise capital as part of We can’t predict anything in
also formed the fore the price cut, Rexel SA got Mi- Microsoft’s customer service, along my job irrespective of that space at all. What is
Virtual Computing crosoft to slash about 30% off its with the fact that about 75% of what form (JV, employ- happening or triggering
Environment cost to roughly match Google’s offer, Rexel’s existing e-mail systems al- ment, self-employment) I M&As varies from time to
Coalition that will said Olivier Baldassari, Rexel’s ready used Microsoft software, made decide to engage in and time. M&A will be driven by
focus on developing chief information officer. the move easier, he said. Baldassari that I think $250 million is different things wherein
cloud products “Google somehow, in the process, expects the switch to lower the the kind of range I’ll raise consolidation and shedding
disrupted the landscape and forced company’s e-mail costs by 30%. if I am not doing infra- of one’s non-core business-
structure. es is just one of the criteria.

VIDEO ANALYTICS LOADED WITH ADVANCED ALGORITHMS MONITORS REAL-TIME FEEDS & VIDEO CONTENT
Firms unaware
of data breaches Axis, Bosch bet on video analytics to scale up
Infrastructure, retail Axis Communications. Video ana- pects the security market in India
Sobia Khan/ Vinaya Gopaal. All major security ven- lytics loaded with advanced to touch Rs 50,000 crore by 2011.
Bangalore dors like Symantec, and transportation algorithms help in monitoring Roving eye Axis has cornered 60% share in

Despite increasing focus

on the issue by regulatory
bodies and governments,
data loss in business net-
works is on the rise.
According to tech research
firm IDC only 15% of the
respondents in a survey
had adopted some form of
'data loss prevention solu-
tions.’ Even those who use
that software have imple-
mented it only in specific
groups or departments.
Only 16% have deployed it
across the organisation.
Data Loss Prevention
(DLP) solutions allow en-
terprises to identify, moni-
tor and protect their criti-
cal data and are generally
deployed in the network
and the endpoint of use.
Websense,
Microand McAfee offer
Trend
DLP solutions in India.
Although DLP has been
implemented in the
IT/ITeS, banking, finan-
cial services, insurance,
manufacturing and phar-
maceuticals, it is yet to
penetrate deeper into the
market. This is primarily
due to the low awareness.
According to Vishal
Dhupar, MD of Symantec
India, blocking access to
the internet does not solve
the problem as it addresses
only a part the menace.
Data loss problems have
been accentuated by the
growth in mobile work-
force, smart phones and
laptop usage in Indian
companies.
will spur IP camera
footprint in India
Shilpa Phadnis. Bangalore
Tables have turned on video sur-
veillance players. CCTV (closed-
circuit television) makers are los-
ing sleep over their digital peers
swarming the market with securi-
ty gear that deploys souped-up
cameras and systems which use
real-time video analytics.
Swedish security systems giant
Axis Communications is one such
company that is betting big on
intelligent digital cameras and in-
ternet-based systems as the next
growth driver for the company.
“Video surveillance in India is un-
dertapped and by 2014, IP-based
network business will be 50% of
the surveillance market,” said Ray
Mauritsson, president and CEO,
real-time feeds and analyse video
content to detect intrusion.
Security and communications
products giant, Bosch Security
Systems, is another such company
that is bundling analytics into IP-
based CCTVs. “IP video allows
easy implementation of ‘intelli-
gent’ functionality in cameras, be-
ginning with motion detection,
and extending towards Intelligent
Video Analysis (IVA) for detecting
suspicious behavior that might
otherwise pass unnoticed by the
security guard,” said Dhiraj Wali,
vice-president, Bosch Security
Systems, India.
IP-based surveillance gives an
edge over analog systems by low-
ering the installation costs and
leveraging on existing infrastruc-
ture with remote accessiblity. Un-
like CCTVs, which use multiple
coaxial cables, it uses a single ca-
ble (power of Ethernet) to connect
the camera and the network con-
nection. The changing security
scenario in the country has put
companies like Bosch and Axis in
good stead with scalable network
solutions. “Due to recent terror at-
tacks in the country, there is a sud-
den surge in the awareness and de-
„ Industry body Assocham
expects the security
market in India to touch
Rs 50,000 crore by 2011
„ Axis Communications
has cornered 60%
market share in network
surveillance in India
„ Video surveillance
players are finding it
difficult to crack the
B2C space
mand for electronic security. Also,
the country is hosting one of the
biggest world sporting events– the
Common Wealth Games, 2010. Due
to this, the whole infrastructure
needs to be beefed up to meet the
security standards,” added Wali.
Industry body Assocham ex-
the network surveillance market
in India and has deployed 20,000
IP cameras in the country since
2007, said Axis’s country manager
for India, Prakash Prabhu, adding
it was currently involved in a city
surveillance project in kolkata.
Infrastructure, retail and trans-
portation are the targets to grow
IP camera footprint in India for
Axis, whose customers include
Reliance ADAG, Wipro, NTPC,
ITC Group, Nokia, Yahoo! etc.
It enjoys 32% share in network
cameras globally, according to
IMS Research.
However, video surveillance
players are finding it difficult to
crack the B2C (business to con-
sumer space). “Technology has
not reached to a price point that is
affordable to the end user,” said
Akhilesh Kukreja, COO, IT
advisory at KPMG.
shilpa_p@dnaindia.net