Financial Daily from THE HINDU group of publications
Saturday, Jun 19, 2004
Marketing - Strategy
Zenith takes on global giants with new management tools
Mumbai , June 18
TAKING competition head-on with international majors such as CA, IBM and HP, Zenith Infotech Ltd has set its sights on capturing the IT infrastructure management market.
The company has already implemented 100 installations of its SAAZ-Systems and Applications Administration product and raked in revenues of Rs 2 crore in the first year of launch. Targeting the mid-tier segment of 100 to 4,000 desktops, Zenith expects the US and European region to be the primary markets for this product.
Building on the SAAZ platform, Zenith recently launched MSP@SAAZ, a remote infrastructure management tool. "We estimate this product to give Rs 7 crore to Rs 9 crore of business the coming year with a potential to register a six-fold growth. While revenues from the banking business will continue on a steady path, the productisation efforts of Zenith that drives our business growth. The coming fiscal will probably have Zenith register a 25 per cent growth in revenues," Mr Akash Saraf, Chief Executive Officer, Zenith, told Business Line.
Industry estimates peg the global remote infrastructure management market at $1 billion to $4 billion that is likely to touch $50 billion over the next four years.
Infrastructure management is estimated at $126 billion and it is these markets that Zenith plans to foray into with its competitive pricing.
On an average an enterprise with 500 desktops and 30 servers, planning to implement a remote infrastructure tools would have to fork out Rs 60 lakh and upwards.
Moreover, the capital expenditure involved in building a remote infrastructure platform and its subsequent deployment would work out in the $2 million to $5 million range, explained Mr Saraf.
According to him, the MSP@SAAZ product could be installed at a cost of Rs 10 lakh. The primary target for the remote infrastructure software is managed service providers or software firms planning to offer MSP services to their clients.
"An upfront investment of up to 80 per cent can be saved with the remote infrastructure tool offered by Zenith. MSPs could also look at using the data centre in the US to offer NOC services. Even though the US MSP market has matured given the cheaper and widely available bandwidth, in India bandwidth constraints have not been overcome yet," he said.
Zenith has already bagged a substantial order to provide the remote infrastructure management software from one of the top three Indian software firms.
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