Business Daily from THE HINDU group of publications
Thursday, Aug 10, 2006
Business Daily from THE HINDU group of publications Thursday, Aug 10, 2006 |
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Info-Tech
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E-Commerce & E-Business Online sale of software on the rise Preethi J.
Bangalore , Aug. 9 Online sale of software is rising as the Software as a Service (SaaS) wave rolls out in the country. SaaS involves the distribution of software over the Internet, especially those applications that can be hosted by a vendor or service provider and made available to customers as a service, rather than as a product. Globally, companies such as DB4O and Crystal Graphics have begun to sell their software solutions online. Closer home, Talisma and Tally Solutions are using the online medium selling their software through their Websites. This dependence on the online medium for cradle-to-grave delivery of products is a trend catching up with the IT industry, said Mr Vinod Nambiar, Director Global Delivery, Position2 Marketing India.
Revenues rising
Revenues from online sales are steadily rising in these firms, when compared to enterprise sales. This fact remains, even as the prices of software sold online is lower than that of packaged software, said Mr Nambiar. Talisma has been selling software online for three years now. Online sales contribute to 20 per cent of the company's revenue. We spend over a million dollars per annum on online advertising to perk up online sales, said Mr Girish Krishnamurthy, Managing Director, APAC, Talisma Corporation. "It's the customers' perception of e-commerce, and not their geographic location that remains a primary factor in choosing to buy the software online," he added. The company invests in maintaining uptight security, ensuring zero downtime and has evolved an instant-response support portal. These best practices, said Mr Krishnamurthy, have helped Talisma's customers prefer online transactions. With new sales models in sight - such as profit sharing and revenue sharing, it might be a better proposition for customers to buy enterprise software online. The hosted model hence offers a dual advantage — leaving a win-win situation for customer and seller alike. According to analyst firm IDC, SaaS will make up 30 per cent of the software market by 2007 and will be worth $10.7 billion by 2009 globally.
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