Issuu on Google+


contents

August 15, 2011 l Volume 5 Issue 08

View from the

top

Cover Story HP’s top brass discuss channel issues and lay out the agenda for the company and its partner ecosystem

21 NEWS Analyses

Special Focus

Avaya bets on the S in SMB

8

VMware shows the light

8

Dell’s new 3-tier partner program 10 Canon ups the ante on A3 MFDs

10

Lenovo ‘attacks’ SMBs in India

12

NEC signs up partners for BC solutions

12

READ More Opinion

16

Feedback

16

Channel Buzz

46

New Products

50

Shadow Ram

54

Get Personal

54

Computer Reseller News

15/08/2011 www.crn.in

18 Market Focus The PC-TV Combo As convergence becomes a buzzword, a new wave of PCTV devices is slowly but surely sweeping across India. Will the combo work?

37 Role Model Simple living, high thinking Dinesh Sharma, CMD, and VA Krishnan, Director, OST Electronics, take a trip down memory lane

39

Editorial 14

6

So what’s happening in servers? Virtualization has altered overall server numbers. Micro servers are popular in smaller cities. Racks and blades are replacing towers. Here are some of the most visible trends

Tech Focus The ‘cloud’ over security The economics of the cloud is encouraging CIOs to come up with their own solutions and handle security concerns

42


starting line MUST

Read

VMware shows the light Under its Lighthouse Partner Program, VMware is developing competencies around server virtualization, cloud computing and desktop virtualization to tap emerging market opportunities. For starters, the company has introduced the Virtualization of Business Critical Applications competency to tier-2 partners. The competency allows partners to implement business-critical applications for business continuity. VMware would provide the partners with a toolkit that has the IPs of the templates around services. Trained and certified Lighthouse partners can download and monetize these templates for recurring revenue. 12 partners have signed up for the competency so far. “Lighthouse is an early start. We’re developing more competencies around Zimbra, SpringSource and management tools,” said Ganesan Arumugam, Director, Channels, VMware India. As part of the Lighthouse program, the company is Ganesan Arumugam providing sales and technical training in VMware technologies and helping partners architect end-to-end solutions. Among the partners who have signed up for the Lighthouse program are Sunfire Technologies, Veeras Infotek, Pentagon, Wysetek, Netmagic and Sify. VMware is also keen to promote its cloud services through partners. “We are seeing traction in the cloud, and some tier-2 partners have implemented messaging and mailing solutions on Zimbra. More partners now want to do business around VMware cloud offerings,” said Arumugam. To capitalize on the fast-growing desktop virtualization market, the company has announced changes to its software platform, vSphere. Explained Arumugam: “VMware’s cloud infrastructure is architected to be deployed as the foundation for public cloud services. This model creates a hybrid cloud environment, and is aimed at enterprises, public cloud service providers and SMBs.” n — Sonal Desai

8

Computer Reseller News

15/08/2011 www.crn.in

Avaya bets on the S in SMB n Sonal Desai

A

vaya India is betting on the ‘S’ part of the SMB segment for its IP Office solutions. The company defines a small business or an ‘S’ as any company with 2-249 employees, while it defines a medium business as one with 250-999 employees. Worldwide, the company has sold 1,60,000 IP Office boxes and currently has a market share of 19 percent. “In India too our market share is in the double digits, and we want to increase it and level it with our global market share. The target is achievable since there’s a huge addressable market of $75 million in India,” said Adil Doctor, Director, SMB Sales, India & Saarc, Avaya. IP Office is basically a hybrid PBX with a server that supports analog, digital, IP and SIP capabilities in one box. It can scale up to 32 locations and support 1,000 users. Doctor said that there are preconfigured bundles available for partners, with an entry-level 32user bundle starting at `85,000. There are two more bundles for 54 and 100 users. Redington and Beetel would drive the business through resellers. “As of today we have 400 resellers, of which only 20 are certified for the Avaya Connect Partners Club. There are another 80 partners who consistently sell 5-10 bundles per quarter. We want to increase this base,” said Doctor. The company recently concluded a 9-city roadshow to acquire new partners and educate the existing ones. “We spoke about the SMB opportunities. There were live demos of the IP Office and onthe-spot registrations. We are looking at partners who have a strong PBX- and voice-based

“In India our market share is in the double digits, and we want to level it with our global market share of 19 percent” Adil Doctor

Director, SMB Sales, India & Saarc, Avaya

business,” he said. In a market with several established players such as Siemens, Panasonic and NEC, Avaya said that its integrated approach would be the main differentiator. Avaya says it gives partners 25 percent margin on every bundle sold. “Plus there are opportunities to up-sell and cross-sell unified communication and contact center solutions,” said Doctor. Avaya is also developing vertical solutions and has already released IP Office for the hospitality segment. “Our partners integrate IP Office with the Property Management System and other middleware acquired from various industry-specific SIs (for instance, from Telesoft and FCS for the hospitality industry). The solutions are tested at our DevConnect Lab in Bengaluru and then released in the market for reselling,” Doctor said. The company has created IP bundles that partners can sell for 50-, 100- and 150-room hotels. The company is also targeting small BPOs. “We are developing solutions for smaller, domestic BPOs (10-50 seats). We also want to explore the trend wherein enterprises want in-house contact centers,” said Doctor. n


starting line MUST

Dell revamps the PartnerDirect program

Canon ups the ante on A3 MFDs

n RAMDAS S

Read

Canon is planning to drive A3 MFDs aggressively in India in order to consolidate its market leadership in the segment. The A3 MFD market is growing at a fast pace and many large enterprises are replacing A4 printers with A3 MFDs because of the latter’s lower overall TCO and heavy-duty printing ability. In 2010, the A3 MFD market was valued at `1,026 crore, with sales of 84,000 units, and it is growing at 30 percent annually. At 24 percent, Canon’s share was valued at `225.6 crore. “Our objective this year is to grow faster than the market and consolidate our share,” said Bhaskar Joshi, Manager, Marketing, Office Imaging Solutions Division, Canon India. According to Canon, the printing cost of A3 MFDs is almost 65-70 percent lower than A4 printers. “A4 MFDs are cartridge-based, with a high cost of `1.2 per page, while A3 MFDs are based Bhaskar Joshi on the drum-andtoner technology, which offers a lower cost at `0.35 per page. Canon’s Office Imaging Division (A3 MFDs) has observed a unit-wise growth of 35 percent in Q12011 as against the industry growth of 18-19 percent,” said Joshi. As per market trends, unlike the earlier preference for entry-level A3 MFDs, with 16-18 PPM (pages per minute) output, SMB and SOHO customers are now opting for value MFDs with higher than 20 PPM output. The share of value MFDs is increasing, and the shift to color MFDs is accelerating. “Earlier, for Canon, value MFDs (output of 20 PPM or more) contributed only 8 percent against the 92 percent from volume machines (16-18 PPM). Now they contribute almost 50 percent,” said Joshi. Color MFDs are also catching on in B- and C-class cities. Canon is doing roadshows for its partners in these cities. n — Amit Singh

10

Computer Reseller News

15/08/2011 www.crn.in

D

ell has revamped its PartnerDirect Program, and announced a 3-tier program to recognize partner contributions. The vendor has also strengthened its newly-created Global Commercial Channels (GCC) group by beefing up team strength and appointing channel account managers across all major territories. The new PartnerDirect program will now be divided into Registered, Preferred and Premier Partners, with added benefits to partners based on the commitment they demonstrate in each tier. “This is part of our global revamp as we want to reiterate that we are very serious about our channel business,” said Suresh Reddy, Director, GCC, Dell India. At the bottom of the tier is the registered partner program, which does not demand any commitment from either Dell or the partner. The partner benefits include registration of up to 10 deals simultaneously, regular discounts, and rebates if they do a certain amount of business. Dell will provide pre-sales support and conduct regular training. Registered partners can also undergo technology and sales certification. According to Reddy, Dell presently has close to 2,200 registered partners of whom 800 engage actively. Benefits to the preferred partner include a 120-day lockin period for deal registrations; these partners can simultaneously register up to 50 deals. Dell will offer certification training at a discounted price, and the partner will be listed on the Dell website under the ‘Find a Partner’ link. A preferred partner will be eligible for demo units and POC material at discounted rates, and will have an account manager.

“We’ll introduce a price configurator which will allow partners to get a price quote without divulging any details about the customer” Suresh Reddy Director, GCC, Dell India

The topmost premier partner level gets all benefits of the lower tiers; in addition, these partners get unlimited deal registration, a 180-day lock-in period for registered deals, and a dedicated account manager. “We have kept zero barriers for signing up as a registered partner so that resellers can work with us without any target commitments, and based on their experience they can move up the partnership ladder,” explained Reddy. Dell has also paid heed to partner complaints about the lack of a partner price-list. Informed Reddy: “Although we have a quick-response team to provide pricing for deals registered, many partners have been demanding that pricing be provided before they register a deal. To address this issue we will soon introduce a price configurator which will allow partners to go to the website and get the price quote immediately without having to divulge any details about the customer or register the deal.” Along with the revitalized PartnerDirect, Dell has ramped up the strength of its partner account managers and pre-sales staff, and over the past six months the GCC team has been increased to around 80 people. n


starting line MUST

Lenovo attacks the SMB segment

NEC signs up partners for BC solutions

n CRN Network

Read

NEC India, a late entrant in the Indian IT market, is taking a different approach to gain a foothold in the server and storage segment. The company is promoting its business continuity (BC) solutions aimed at mid-market and large enterprise customers, especially in the BFSI, hospitality and telecom sectors. “With increasing security threats, BC strategies are assuming greater importance. Indian organizations from various sectors, including BFSI, hospitality and telecom, see BC as a high priority area for future investment. Similar awareness levels are yet to be seen among SMB customers; however, mid-size businesses are expected to drive growth by their IT investments,” said Abhilesh Guleria, Country Head, IT Platform & Display Solutions Business, NEC India. Talking about NEC’s BC portfolio he said, “Our Abhilesh Guleria Expresscluster X 3.0 series of products are specifically designed for IT-driven BC. These support non-disruptive failover for virtual machines through reinforced linking functions with virtualization software. They significantly reduce the time required to initially synchronize data between active and standby servers.” The company is scouting for enterprise VARs in the top eight cities and has already roped in 10 partners. Some of the onboarded partners are ComnetVision, eMicro, Data Secure Solutions, Fourth Dimension Technologies, Ahana Systems & Solutions, Crescent Technologies and Targus Technologies. The company is encouraging partners to set up POC centers and is providing sales and technical support for the same. “Our Expresscluster program enables partners in terms of sales and technical expertise through a series of webinars followed by a hands-on sales enablement program for the sales team and a certification program for system engineers and the pre-sales team.” he added. n — Amit Singh

12

Computer Reseller News

15/08/2011 www.crn.in

L

enovo has outlined an aggressive strategy to double its market share in the highpotential SMB segment. At present, Lenovo has a meager 4 percent share of PC shipments to SMBs in India. “The SMB strategy is part of our global strategy, ‘Protect & Attack,’ which entails protecting our market share in the stronghold enterprise segment and attacking the consumer and SMB segments, where Lenovo is weak due to the IBM legacy,” said Amar Babu, Managing Director, Lenovo India. According to Babu, Lenovo India has upped its overall PC market share from 7.2 to 10 percent in the past one year as a result of its focus on the consumer and enterprise segments. “We are now putting SMBs at the core of our attack strategy and aim to play a leading role in the space,” said Babu. Lenovo intends to adopt a holistic approach to tap the SMB market. This would encompass a retail push, deeper channel penetration and engagement, and the introduction of an exclusive product range. The company is devising specific tactics to tackle the three sub-segments within SMBs—medium businesses, small businesses and SOHOs. “The SMB is not a homogeneous market. While at one end the SOHO operates more like a retail customer, at the other end the medium business exhibits many characteristics of a large enterprise. We aim to focus on the SMB market with this understanding and cater to specific needs of the three broad sub-segments with a customized approach and solutions for each,” said Rajiv Rao, Director, SMB, Lenovo India.

“We are now putting SMBs at the core of our attack strategy and aim to play a leading role in the space” Amar Babu

Managing Director, Lenovo India

The company plans to increase its touch-points to more than 1,000 by the end of this financial year by adding over 300 retail outlets and close to 200 resellers and VARs. Lenovo currently has 540 retail outlets. “With the targeted 1,000 retail touch-points, we are aiming at more than one million potential SMB customers in the country. With the addition of the 500 new outlets, we intend to expand our partner base in tier-3 and -4 cities. Apart from our 130 service centers and 300 service points through a hub-and-spoke model, we are also setting up a tele-sales service specifically focused on SMBs,” said Rao. Lenovo has also launched its Edge range of laptops, desktops and all-in-ones focused on the computing needs of SMBs. “We are offering PCs that can withstand the vagaries of an SMB’s growth journey by offering performance blended with design and affordable pricing. The Edge range is designed to optimize user experience with style coupled with the ThinkPad quality experience,” said Rao. The new products range from the B570 available for `22,700 onward to the X220 for `71,920 onward. n


The New Wave of UP Server Solutions

• Low TCO Next Generation UP Mainstream Servers • Highly Serviceable and Easy to Manage • Extensive Safety, Testing and Compliance on Our UP Servers • Backed by Full Service and Support Plan • 4x UDIMM ECC Unbuffered DDR3-1333/1066, up to 32GB • 2.5” / 3.5” SATA2/SATA3 Drive Bays • 1x PCI Express 2.0 x8 Expansion Slots • 2x Gigabit Ethernet, IPMI 2.0 • High-Efficiency Gold Level Power Supplies, Redundant Option Available • Intel® Xeon® Processor E3 Family-Based Platform

SYS-1017C-TF

Purpose Built for Flexibility 4 Hot-Swap 2.5” Drive Bays Gold Level Power Supply

SYS-5017C-LF

Power-Efficient, Compact 1 Int 3.5” or 2 Int 2.5” Drive Bays PCI Express 2.0 x8 Expansion Slot

SYS-5017C-TF

Cost-Effective Appliance 2 Hot-Swap 3.5” SATA3 Drive Bays Gold Level Power Supply

SYS-5017C-MTRF

Mission-Critical Server 4 Hot-Swap 3.5” Drive Bays Redundant 400W Gold Level Power Supply

SYS-5017C-MTF

All-Around Workhorse Server 4 Hot-Swap 3.5” Drive Bays 80Plus Gold Level Power Supply

SYS-5017C-MF

Space Optimized Appliance 1 Int 3.5” or 2 Int 2.5” Drive Bays PCI Express 2.0 x8 Expansion Slot

Tel: +91 22 395 37425 Email: sales@bostonindia.in

www.bostonindia.in ©Super Micro Computer, Inc. Specifications subject to change without notice. Intel, the Intel logo, Xeon, and Xeon inside, are trademarks or registered trademarks of Intel Corporation in the US and other countries. All other brands and names are the property of their respective owners.

www.supermicro.com


edit opinion Volume 5, Issue 08

HP: View from the top dhaval valia

H

P is undoubtedly the IT company with the most channel influence. Its sheer product portfolio in printing and imaging, client devices, servers, storage, services and now software, makes it the company with the widest connect with channels and customers. So after several of HP’s loyal partners raised various issues over the past several months, we at CRN decided to speak to HP’s top management to get their perspective on the issues raised and how the company is working toward evolving and transforming its vast partner ecosystem around the three future themes of mobility, cloud and services. I met Neelam Dhawan at the HP India HQ in Gurgaon. It was the first such meeting I have had for years; she seemed composed in sharing HP’s future focus. On partner issues I didn’t see any denial from her. She took most questions onboard, answered them with clarity, and didn’t try to play safe. It was the same with Rajiv Srivastava. I raised several issues with regard to the consumer and commercial strategy. While he seemed less clued in with the consumer strategy—probably because I met him just a fortnight after he took charge—on the commercial front he seemed well aware of the issues and clearer about how to address them. He admitted that the company needs to onboard and align with partners on strategic issues, and that the company hadn’t been doing this well for some time. I believe his assessment that HP partners need to feel wanted by HP is the crux of the disillusionment that exists among the company’s partners. He also admitted that HP had lost many of its loyal partners due to the changes in the consumer PC model over the past couple of years. With Neeraj Sharma, unfortunately, I was unable to match schedules and as a result the entire interview was conducted over email interactions. The channel feedback for Som Satsangi has been that he is more of an enterprise and direct-sales person with little understanding of channels. However he surprised me, and spoke with more clarity on channel matters than I had expected. He seemed prepared and had many details about the various channel initiatives HP ESSN has been driving or plans to roll out soon. After speaking to the people who matter the most at HP, I was convinced that there’s a realization within HP that they could have managed the channel better than what they have in the past two years. Each leader seemed aware that the channel’s role has been and will be core to the company’s success. On our part, we have always tried our best to convey partner feedback to HP. And in the current edition of CRN, tried to communicate HP’s message to its partner community. n E-mail CRN Executive Editor Dhaval Valia at dhaval.valia@ubm.com 14

Computer Reseller News

15/08/2011 www.crn.in

Managing Director Printer & Publisher Director Associate Publisher & Executive Editor Group Commercial Director Contributing Editor Assistant Editor Principal Correspondent Senior Correspondent

: : : : : : : : :

Sanjeev Khaira Sajid Yusuf Desai Kailash Shirodkar Dhaval Valia Salil Warior Ramdas S Sonal Desai Abhijeet Mukherjee (Mumbai) Amit Singh (Delhi)

Design Art Director Senior Visualiser Senior Designer Designer

: Deepjyoti Bhowmik : Yogesh Naik : Shailesh Vaidya : Jinal Cheda Marketing Senior Executive : Sejal Acharya Advertising Co-ordinator : Jagruti Kudalkar online Manager—Product Dev. & Mktg. : Viraj Mehta Deputy Manager—Online : Nilesh Mungekar Web Designer : Nitin Lahare Operations Head—Finance : Yogesh Mudras Director—Operations & Administration : Satyendra Mehra Sales bangalore Manager—Sales : Satish Kutty satish.krishnankutty@ubm.com (M) +91 98452 07810 Delhi Manager—Sales : Sanjay Khandelwal sanjay.khandelwal@ubm.com (M) +91 98117 64515 production Deputy Manager : Prakash (Sanjay) Adsul Logistics Assistant Manager : Bajrang Shinde Subscriptions & Database Manager : Manoj Ambardekar manoj.ambardekar@ubm.com Senior Executive : Deepanjali Chaurasia deepa.chaurasia@ubm.com

Head Office UBM India Pvt Ltd, 1st floor, 119, Sagar Tech Plaza - A, Andheri-Kurla Road, Saki Naka Junction, Andheri (E), Mumbai 400072, India Tel: 022 6769 2400; Fax: 022 6769 2426 Printed and Published by Sajid Yusuf Desai on behalf of UBM India Pvt Ltd, 6th floor, 615-617 Sagar Tech Plaza - A, Andheri-Kurla Road, Saki Naka Junction, Andheri (E), Mumbai 400072, India. Executive Editor: Dhaval Valia Printed at Indigo Press (India) Pvt Ltd, Plot No 1c/716, Off Dadaji Konddeo Cross Road, Byculla (E), Mumbai 400027

Associate Office - Pune Jagdish Khaladkar, Sahayog Apartment 508 Narayan Peth, Patrya Maruti Chowk, Pune 411 030 Tel: 91 (020) 2445 1574 (M) 98230 38315 email: jagdishk@vsnl.com

USA Huson International Media (West) Tiffany DeBie Tiffany.debie@husonmedia.com Tel +1 408 879 6666 Fax +1 408 879 6669 Huson International Media (East) Dan Manioci dan.manioci@husonmedia.com Tel +1 212 268 3344 Fax +1 212 268 3355

Japan Pacific Business (PBI) Shigenori Nagatomo nagatomo-pbi@gol.com Tel: +81 3366 16138 Fax: +81 3366 16139

South Korea Young Media Young Baek ymedia@chol.com Tel: +82 2227 34819 Fax: +82 2227 34866

EMEA Huson International Media Gerry Rhoades Brown, gerry. rhoadesbrown@husonmedia. com Tel: +44 19325 64999 Fax: + 44 19325 64998

Important Every effort has been taken to avoid errors or omissions in this magazine. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice immediately. It is notified that neither the publisher, the editor or the seller will be responsible in respect of anything and the consequence of anything done or omitted to be done by any person in reliance upon the content herein. This disclaimer applies to all, whether subscriber to the magazine or not. For binding mistakes, misprints, missing pages, etc, the publisher’s liability is limited to replacement within one month of purchase. © All rights are reserved. No part of this magazine may be reproduced or copied in any form or by any means without the prior written permission of the publisher. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only. While care is taken prior to acceptance of advertising copy, it is not possible to verify its contents. UBM India Pvt Ltd. cannot be held responsible for such contents, nor for any loss or damages incurred as a result of transactions with companies, associations or individuals advertising in its newspapers or publications. We therefore recommend that readers make necessary inquiries before sending any monies or entering into any agreements with advertisers or otherwise acting on an advertisement in any manner whatsoever.


edit opinion The channel’s best bet Robert Faletra

I

’ve been following, participating in, researching and generally involved with the IT sales channel for nearly 30 years. My first interaction with the channel came as a business reporter when I did a story on a bookstore owner in a Boston shopping mall who was changing his business to selling PCs in the 1980s. It’s different today, and many of the best minds in the channel whom I know well and admire have been discussing that with me for months now. I have been, over the past several months, meeting a group of elite solution providers and vendor channel chiefs to attack the agenda for the successful channel ecosystem of the future. Most of these solution providers and vendor chiefs believe we are in a period of unprecedented business model changes. We’ve heard and probably said that before, but the difference is that this time you can’t do what you have done in the past to get through it. Traditionally, solution provider organizations with good technical expertise, a customer base and sales skills could power through a business model change like open sourcing or a technical leap like the one brought on by the Internet browser. I’m convinced that that just isn’t going to be enough this time. Desktop virtualization and the desire to have any information we need on any device at any time are unparalleled technical challenges being enabled by the cloud. No business or individual (other than a gadget freak) buys technology just for the sake of it. They buy technology because it solves a problem or advances an opportunity. More importantly, most of us don’t really want to own the technology—we just want access to the computing power that meets our needs. I believe we are going to see vendors facing survival challenges as a result of this. By the way, large numbers of solution providers, many of them coming off difficult times due to an anemic economic rebound, are also facing the same stress. While many vendors have the resources to duke it out for years, solution providers don’t have that liberty. If the business model changes and they are not prepared for it, they will face serious challenges. It is going to be important for solution providers to sooner than later take a serious view of how the customer mindset is going to trend, and which new concepts and technologies will work in the future—and then build a business model around it. The time to do so is now, as further delays will make changing business organizations that much more difficult. n Email Robert Faletra at robert.faletra@ec.ubm.com 16

Computer Reseller News

15/08/2011 www.crn.in

HP: We’ll Fire Technology Services Reps That Poach Partner Deals

not only build channel trust toward a brand but also result in channel loyalty.

A very good move by HP. I hope they implement this policy even in India. The company has become very aggressive and is releasing new products frequently. Now with this new announcement, it has leveled the field for the channel community. It is common knowledge that fierce competition and the need for numbers is forcing business managers to snatch and register deals won by partners as their own. Opaque deal registration systems are the main culprit. However, it remains to be seen how HP actually executes the diktat and that too in a fair manner. Many large MNCs should start similar hard-hitting schemes. Such schemes

Abhay Shah Mumbai

Juniper Networks: Marketing Makeover, New Partner Events On Tap Fantastic and long overdue. Juniper has so far worked only with the tier-1 SIs and telecom SPs. The programs and the events announced in this article give tier-2 partners like us scope to involve Juniper in competing projects. It now remains to be seen how soon the company implements these strategies for its Indian partners. R Iyer Chennai

Send your feedback at editor@ubmindia.com or post your views on www.crn.in

Advertiser Index Company name

SmartLink Sony Samsung Compuage Rashi D-Link Boston Dell IBM Eaton Veiwsonic Tyco K7 Computing Infortrend Cantonfair HID Global NEC Neoteric-Umax Leviton Fujitsu Netgear Biz Secure Mega Networks Mach Data Cisco Iomega

Page No Web site

1-2 www.digilite.co.in 4 www.sony.co.in/vaio 5 www.samsung.com 7 www.compuageindia.com 9 www.rptechindia.com 11 www.dlink.co.in 13 www.bostonindia.in 15 www.dell.co.in 17 www.ibm.com 19 powerquality.eaton.in/India. 23 www.in.viewsonic.com 25 www.te.com 27 www.k7computing.com 29 www.infortrend.on 31 www.cantonfair.org.cn 33 www.hidcorp.com 35 www.nec.com/express 41 www.neoteric.co.in 43 www.leviton.com 45 www.in.fujitsu.com 51 www.netgear.com 52 www.indiaantivirus.com 52 www.meganet1.com 53 www.machsdata.com 55 www.cisco.com 56 www.iomega.com

Sales Contact

helpdesk@digilite.co.in b2bindia@ap.sony.com support.india@samsung.com info@compuageindia.com scandisk@rptechindia.com sales@bostonindia.in dell_enquiries@dell.com EatonPowerQualityIndia@eaton.com service@in.viewsonic.com

sales.in@infortrend.com hidindia@hidcorp.com enquiries@necindia.in smbsolutions@neoteric.co.in lev_india@leviton.com marketing-india@ts.fujitsu.com sales.india@netgear.com sales@indiaantivirus.com raj@machsdata.com in_assistant@cisco.com malaia@iomega.com


special focus So what’s happening in servers? Virtualization has altered overall server numbers. Micro servers are popular in smaller cities. Racks and blades are replacing towers. Here are some of the most visible trends in the Indian server market n Amit Singh & Ramdas S

I

DC India pegs the overall India server market at over $800 million in FY2011, of which the non-x86 Unix server market is expected to contribute over $250 million. In terms of absolute revenue growth, the market is said to have to grown by 9.1 percent during 2010, and is projected to grow at 10 percent during the current fiscal. “The slowdown in 2008 and 2009 saw the server market revenue dip by as much as 28 percent during 2009. In 2008-09 the server market didn’t do well and declined by $100 million, so the performance in 2010 has brought the market to the 2008 level. 2011 will see normal growth but not as much as in 2010,” says Leo Joseph, Vice President, Systems-x, STG, IBM India/SA. Numbers apart, several trends have emerged over the past two years in the Indian server market. Here are some of them.

Virtualization Almost everyone agrees that virtualization has been the key driver of growth in the server market. “Server virtualization has become one of the biggest trends this year. Enterprises see the benefits of virtualization: increased utilization of resources; reduced space, power and cooling; reduced TCO; increased ROI for servers; improved IT agility; and reduced provisioning time,” explains Mehul Doshi, Head, Enterprise Server Business, Fujitsu India. However, since the primary reason for enterprises to opt for virtualization has been that they will need to invest in fewer servers, vendors confirm that it’s affecting absolute numbers though it has increased the sales of high-end servers. Joseph explains the paradox: “Virtualization does affect the unit-wise sales of servers, but from a revenue perspective it helps in the sales of higher-configuration, higher-capability servers, so the effect gets squared off. Thus, instead of selling a large number of smallcapacity servers, we end up selling high-end servers.” This has prompted IDC to forecast revenue growth from high-end (priced in

18

Computer Reseller News

15/08/2011 www.crn.in

excess of $5,000) blade and rack servers to be around 60 percent for the year. “With the advent of server consolidation, customers have started opting for high-end servers. Over the past year Dell has seen blade server revenue double. We have seen similar growth rates in high-end rack servers,” says Bobby Mon, Head, Enterprise Business, SMB, Dell India. Desktop virtualization is also driving growth for servers. Since desktop virtualization requires that all data and applications which traditionally reside on desktops be moved to a centralized environment, customers are forced to buy high-end servers.

Micro servers Last year HP launched the micro server category with pre-bundled Microsoft Windows Small Business Server. Priced at around `25,000 on the street, the server ships with an AMD Athlon II processor. At the time of launch HP had said that the idea of launching the server range was to expand the market in the SMB segment and in B- and C-class cities. “Today, small networks use desktops as servers, and the fundamental reason has been price. We have created a value proposition with the micro server,” says Rajesh Dhar, Director, Industry Standard Servers, HP India. While other vendors did not publicly launch servers in this category, in cases where customers require such servers they were willing to make special offers. But partners, especially in tier-1 cities, are not too excited about micro servers. “Micro server sales are not picking up because they are considered desktops. People are much inclined toward rack and blade servers,” says Apoorva Shah, CEO, Innova Systems. By contrast, partners in smaller cities do see value. “The HP Micro Servers are server class. Though the Athlon processor is entry level, the server has features such as ECC memory support and hot pluggable drives. HP is


Grow your Business... “Virtualization does affect the unit-wise sales of servers, but from a revenue perspective it helps in the sales of higher-configuration, higher-capability servers, so the effect gets squared off” Leo Joseph

Vice President, Systems-x, STG, IBM India/SA

selling the server without OS at less than `15,000 which makes it very appropriate when we set up a less-than-10 PC network,” says Vel Mugran KV, CEO of the Maduraibased Techno Systems.

Racks and blades According to vendors and partners, customers are increasingly interested in buying racks and blades, and are replacing towers with these horizontal form-factors. “Earlier, large enterprises were going in for servers and SMBs were talking about mini and micro servers. But now the SMBs, in their effort to provide better services to their customers, are looking for high-capacity servers. Even a travel agent with 10 seats is going in for rack servers and storage, which means even the smaller SMBs are going in for better and more reliable computing,” observes Doshi. Partners agree. “Rack servers with the x86 platform are selling the most. We’re seeing demand for two-way rack models more than uniprocessor models,” says VS Varadarajan, Director, Mukesh Infoserve, Chennai. Apart from savings in terms of space, cost factors are also favoring rack models. “Earlier, vendors used to price their rack models at a premium over towers. Today, they are pricing similar configurations of racks and towers at similar rates. In fact, HP offered one or two rack models at prices which were lower than those for tower models with similar configurations.” With the data center market booming, blade server shipments have also shot up. “Many benefits that blades offer, such as reduced cabling, rapid hardware provisioning and management automation, are also applicable to SMBs and branch offices,” says Rajesh Rege, Senior Vice President, Data Center, Cisco India.

White box servers Over the past six months, Intel and AMD have tried to

“Enterprises see the benefits of server virtualization: increased utilization of resources; reduced space, power and cooling; reduced TCO; increased ROI; and reduced provisioning time” Mehul Doshi

Head, Enterprise Server Business, Fujitsu India

Grow your business through award-winning power quality and Uninterruptible Power Supply solutions from Eaton.

As a PowerAdvantage Partner you can enjoy a wide range of benefits including: Greater margins and benefits Eaton online partner portal access Training programme Sales and marketing support Register now and feel the power of a winning team: powerquality.eaton.in/India.

Email : EatonPowerQualityIndia@eaton.com Sales Hotline : +91 11 4223 2329

POWER Partner Programme


special focus “Today, small networks use desktops as servers, and the fundamental reason has been price. We have created a value proposition with the micro server”

“Because of their deployment and configuration flexibility, S1200BT products enable resellers to offer customized solutions for their small business customers at aggressive price-points”

Rajesh Dhar

R Ravichandran

Director, Industry Standard Servers, HP India

Director, Sales, Intel South Asia

reinvigorate the white box server market by introducing several models and new schemes. AMD, along with Asus, has been offering single- and dual-processor motherboard bundles through Rashi. Intel has introduced new models around the Intel Xeon 1200 series specifically targeted at SMB customers. The company has also launched its next generation Xeon platforms—E3 and E7. The E3 platform allows white box server manufacturers to configure an entry-level tower model for less than `30,000. “The Intel server board S1200BT takes advantage of the architecture capabilities of Sandy Bridge. Because of their deployment and configuration flexibility, S1200BT products enable resellers to offer customized solutions for their small business customers at aggressive price-points,” explains R Ravichandran, Director, Sales, Intel South Asia.

virtualization, and they continue buying more servers.”

Cores

Cisco and Oracle

Except for micro server models, the standard entry-level models are all being shipped with quad-cores. “Today, 85 percent of the servers we sell are quad-core, the rest are above-quad-core,” informs Varadarajan. AMD had launched 12-core processors last year, and is expecting to launch 16 cores in September this year. Intel has announced 10 cores, and is lagging behind in the race for cores at the moment. Partners note that AMD has gained significant ground over the past year or so. “Though we sell only Intel-based models, we believe AMD has made gains in low-end (through micro servers) and high-end models,” says Shah. Partners also see more traction for 4-way and 8-way models largely because of server consolidation and virtualization projects.

Cisco is the latest server vendor to enter the Indian market, and it is expected to be a game changer in the coming days. The company is clearly focused on the enterprise and data center market, and does not offer products which are based on pedestal and tower models. “According to Gartner’s x86 blade server summary, Cisco (at 9.6 percent) has moved past a close competitor into the No 3 position in worldwide x86 blade servers for Q1CY11 based on shipments. Gartner estimates Cisco’s x86 YOY growth at 433 percent,” says Rege. In India so far Cisco has focused on the larger national systems integrators, with around three partners gaining certification to competently sell the Cisco UCS platform. Though Sun lost many partners during the turbulent three quarters following its acquisition by Oracle, the news in the market is that Oracle has started talking again to the former partners.

Applications Many organizations are passing through technology refresh phases as new business models are evolving. SMB customers have started implementing ERP solutions, while larger organizations are deploying the next generation of ERP software. “There are applications for automation in the SMB space which are specific to micro verticals such as hospital management. In order to stay ahead of the competition, companies are adopting these new applications and buying servers to run them,” says Mon. Adds Chetan Patel, Director Technical, Ocean Inc, “We see customers with more than 60 users deploying servers for specific applications such as mail and ERP. They have not yet experimented with the cloud or

20

Computer Reseller News

15/08/2011 www.crn.in

RISC for SMBs HP and IBM have been pushing their own RISC-based architecture for the SMB market. HP, which has been cornered with Oracle discontinuing support for Itanium, has been extra-aggressive with Itanium-based SKUs, forging a strong alliance with Microsoft for the SMB market. Partners have reported special price clearances at less than `4 lakh, which corresponds to the price of a high-end x86 server. IBM has introduced models that start at `5 lakh on its new Power 7 microprocessor platform. Says Joseph, “We are seeing customers with less than 100 users buying Power 7 because of the performance and scalability which we offer, and the robustness of the AIX platform.”

Conclusion The server landscape in India is going through major changes. While the absolute numbers may not be growing much with server consolidation and the cloud being the top considerations of enterprises, revenue growth is positive because customers are betting on high-end servers. With massive technology adoption by SMB customers, there’s growth coming in from this segment. Customers are also seeing the benefits of buying blade and rack models over tower and pedestal models. Overall, there are plenty of opportunities for the server reseller. n


cover story “My key priorities are to be closer to the customer and align HP toward our partners” Neelam Dhawan MD, HP INDIA

“The most crucial feedback is that partners want HP to make them feel desired again” Rajiv Srivastava

COO & VP, PSG, HP INDIA

“We are working to sustain double-digit growth for the IPG business”

n dhaval valia & amit singh

Neeraj Sharma

VICE PRESIDENT, IPG, HP INDIA

“We have recorded 2X growth for HP ESSN and 5X for HP Networking” Som Satsangi

DIRECTOR, ESSN, HP INDIA

Computer Reseller News

15/08/2011

www.crn.in

21


cover story You have been at the helm for the last three years. How do you rate HP’s performance during this time and what are your key priorities as the leader? In the last three years we have seen significant business transformation. Despite the ups and downs, our business has grown. We had some downs but we also had some very good quarters. Overall, we have recorded good growth over the three years. For HP, the foremost priority is to create an organization that is closer to the customer. We have done well and aligned our sales, support and technology toward the customer. The second priority is aligning HP toward our partners. If you look at our go-to-market, our reach is highly dependent on partners and hence making the partners believe in HP’s strategy and execution is critical. The third priority is to align HP India to the strategy of the global corporation, which is to create seamless, secure, context-aware

first screen a person uses. So, for any corporate, bank or telco, if they have to grow and reach out to a wider customer base, mobile technology will be the preferred platform. There is also substantial innovation happening in content consumed in the homes through TV, DTH and feature-rich set-top boxes. And then you have the PC. So we are heading toward a three-screen strategy and this is leading to transformation in a big way. This means that applications, security layers and platforms need to change.

What is your outlook for the Indian market? Is there a slowdown in IT investments? Also, aren’t CIOs still ambiguous about how much to invest in clouds?

Neelam Dhawan, MD, HP INDIA

“My key priorities are to be closer to the customer and align HP toward our partners” experiences for a connected world.

The IT industry is transforming. What are the key factors driving this transformation? India has a peculiar demographic advantage, with 55 percent of the population below the age of 35. Per capita income in the last three years has risen. India is considered high on the technology curve. This means we have a very young population with high disposable income that is not shy of using technology. The government on its part is focused on social and financial inclusion with ambitious schemes such as NREGA and UID. Looking at these aspects, the first transformation will be in terms of greater participation of rural India in the digital economy. Another fact is that in India more mobiles are sold in a month than PCs in a year. It’s logical to assume that the mobile will be the

22

Computer Reseller News

15/08/2011 www.crn.in

The GPD growth rate has been revised downward by most analysts to 6.5-8 percent. The lower forecast is bound to impact the industrial growth rate and this impacts business decisions to invest in IT. I don’t think that there is any constraint on budgets but there is a caution on what end-users need to spend on. Some organizations are unable to withhold their spending after their hold-back during the last recession. They have reached the stage where they need to make investments to stay competitive. I agree that while there’s a lot of discussion around the cloud, an average CIO is still unclear about the strategy his company should adopt. But there is no denying that the cloud is the future as it provides scalability, optimization and cost savings.

What is your outlook for HP India? HP has been growing faster than the

industry growth rate in India. India is a very strategic market for us and that is the reason why the HP Global CEO Leo Apothekar visited India within three months of taking charge. The global IPG head, Vyomesh Joshi, has also been appointed as an executive sponsor for India. He is going to work with us to focus on how the India opportunity can be leveraged further. Our first priority is cloud computing, because it brings HP’s complete portfolio together. We have the foundation layer—servers, storage and network—for creating the data center for the cloud environment. Once the cloud infrastructure is built then you need to manage it. This is where HP has an entire software portfolio. The third key element is security. HP has a complete security portfolio from several of our recent acquisitions—TippingPoint for Continued on page 24 ä


cover story ä Continued from page 22

network intrusion and detection; ArcSight for securing the overall IT environment; WebInspect for intrusion detection and prevention; and Vertica to analyze data for unusual transactions behavior. Then comes access to the cloud, where PSG comes into play with its PCs, WebOS devices and other vertical-specific access devices. Here again, we are innovating on building application-based client devices. For IPG we are betting big on Webenabled devices and cloud printing, which multiplies the opportunities. The last thing that ties all these elements together is HP services. Thus the cloud actually brings together our entire product and services portfolio.

Tells us about the leadership changes in HP. Isn’t the new IPG head a rank outsider who comes from a very different IBM and Lenovo culture where he was managing the PC business? At IPG, we had a consistent leadership under Ravi Aggarwal for many years. When he retired we felt that this was the time to look at things differently. That’s why the first thought was to look at someone from outside. And why not Neeraj? He understands the business well, has strong leadership experience, knows the channel community and is also excited about learning new things.

Many wonder why was Rajiv not brought in earlier to head PSG? In hindsight, yes, we could have onboarded Rajiv to head PSG earlier. However, at that stage, our priority was to take the consumer business to the next level. It required different talent and leadership. That’s why we got someone like Sunil Dutt who had understanding of the consumer market and the mobile handset channels.

Many would say that earlier you had little control over IPG and PSG as their heads were senior to you and there were also ego issues. With two new heads of your choice, you now have a holistic control over HP India. 24

Computer Reseller News

15/08/2011 www.crn.in

I tend to disagree with that observation because when you look at leading an organization as big as HP, it’s never a question of who is senior and who is junior. Both Ravi Aggarwal and Ravi Swaminathan were strong and competent leaders with great understanding of their group businesses. For a country leadership position, it’s important to get the bigger picture and drive the strategy around all the groups. It is to develop the ecosystem in which all businesses can grow. Hence, having complete control or no control has limited meaning in our environment. It’s about teamwork.

What about partner profitability? Partners need to realize that hardware always devalues with time. Customers will not pay the price they paid for the same PC box a year back and thus partners can’t make the same margins year-on-year selling the same piece of hardware. If partners have to improve on profitability, they have to look at solution areas. They have to look at either HP IT which could be software or the WebOS base or look at applications or solutions which they can then sell to their customers. No customer wants to buy hardware alone; he is looking for a solution.

Oracle has pulled the plug on Itanium and this, according to many HP partners, has impacted their Itanium sales. What is HP doing to address this issue? We have a strong 10-year roadmap for Itanium and we continue to honor that roadmap. Oracle’s decision to stop supporting Itanium is for version 12 and onward. Honestly, this is something that doesn’t concern our customers for the next five years. Today, most Itanium customers are using Oracle 9 or 10. Very few have migrated to version 11. When you speak to major ISVs about when they plan to port their software on Oracle 12 they will tell you that they have no such plans for another five years.

Any plans to reinstate the Solutions Partner Organization? When we had the SPO, partners

Channel Issues Over the past couple of years there has been discontent among HP partners. Prior to this meeting I spoke to 12 HP partners and they listed out many issues that require attention: depletion in quality of partner management; lack of competitive pricing on PSG and IPG products; and cumbersome processes where partners spend more time dealing with HP than with their customers. These are very good points of feedback. I really appreciate your giving this feedback as it will help us improve. When you say that the talent is not up to the mark it means there is a gap. I am unable to comment on specifics because when we hire, we recruit the best talent and we also retain the best. The issue of HP having cumbersome processes is perhaps true. But certain processes like end-user verification have been created for the benefit of the large partner ecosystem to ensure that there are genuine transactions happening in the market. But having said that, I take the feedback on board that we need to simplify and streamline our processes. On pricing, it’s the market that determines it and we can’t afford to charge a price that makes us uncompetitive. Sometimes I think the pricing issue is misplaced as there isn’t always a proper standardsbased comparison. Partners and even customers often ignore the fact that there are some products which have more features than others. Also, there is an element of TCO that needs to be considered. Many times customers don’t see that and just look at the bare box and compare it with HP. Like any company, we want our partners to win all possible deals. Whenever they highlight a genuine pricing issue we work with them on making the deal competitive and going to the customer to demonstrate the value of our offerings, to explain to them why they should pay more for an HP product. n

said it wasn’t required as it was too generic and lacked focus. So we broke it up. Now they want it back. We’ll look into it and evaluate what’s in the best interest of our partners. n


cover story HP PSG has gone through many changes in business models and leadership in the past two years. This has created certain disillusionment within your consumer and commercial partner community. Keeping this in mind what do you think are your key priorities going forward? There are four things we need to absolutely focus on. The first is bringing business efficiency—the entire operating model needs to become more efficient than what it is today. The key elements of efficiency are a very strong external orientation and responsiveness to customers, consumers and partners; and optimization of the entire supply chain that will enable us to introduce cutting-edge technology products faster, and ahead of the competition. So streamlining inventory is critical as that can limit this functionality. The second pillar of the strategy is around expansion and this is multi-dimensional. One is to create

is the killer application that has led to such high penetration. But PC penetration in India has remained at 4-6 percent. That’s probably due to lack of broadband penetration. With new policies, the broadband penetration is set to increase from nine million homes to more than 100 million over the next three years. There will be a tremendous explosion of smart devices and the PC will be just one of them. The government’s initiatives for social and financial inclusion will also drive penetration of computing devices. UID and NREGA are only two of them; micro banking, virtual education and state governmentled initiatives—all these schemes would require devices that have specific use. If somebody is innovative

Rajiv Srivastava, COO & VP, PSG, HP INDIA

“The most crucial feedback is that partners want HP to make them feel desired again” products and solutions to drive new market opportunities—to create offerings that lend themselves easily to vertical segments like education and healthcare. The second dimension is, of course, geographical expansion. The third critical factor is innovation—of products, business models, supply chain, marketing and sales engagement. The fourth element is creating a sense of inspiration—in our own people and partners—so they can deliver an elevated and differentiated experience to customers. Everyone should feel great about dealing with HP.

How do you see the PC business shaping in the future? This is a very good time to be in the IT industry as there are a lot of opportunities. In India we have 65-70 percent mobile phone penetration. And voice

26

Computer Reseller News

15/08/2011 www.crn.in

enough to bring such a variety of computing devices for specific uses, the growth can be unlimited over 3-5 years. This is where HP is leveraging its technology leadership to invent devices that make social inclusion possible.

Could you give us examples of HP’s innovations in device technologies? HP India Labs is currently working on many such projects. For instance,

My marquee statement to partners is that they will see us get very supportive in working with them to win back lost business

we are working with the Ministry of Education on an offering called Lab-in-a-box. It is a container with 15-odd terminals with broadband connectivity and inbuilt UPS. This allows schools in remote areas to set up a virtual learning center in no time and the NCERT curriculum is delivered over the cloud. Another unique product is an intelligent TV set-top box that can act as a digital media controller in a home connecting smart phones, PCs and other digital devices to the TV.

Could you share specifics of what new programs HP has or will launch? Since market expansion is such a key priority, over the past few months we have strengthened our field teams in terms of both customer account and partner managers. The other program Continued on page 28 ä


cover story ä Continued from page 26

we have invested substantially in is SMB Exchange, an outbound call center with the sole purpose of finding white space opportunities in the SMB sector and aligning business partners to these opportunities.

Many HP partners in Gujarat are unhappy with the fact that while IBM is investing a lot more in the region, HP has weakened its presence and thus lost out in a big way in the fastest-growing state. Over the past few years Gujarat has clearly emerged as a very strong industrial belt and attracted huge investments. I agree that HP has to get a lot more alive to the potential of Gujarat, not only on the commercial front but also in the consumer segment. Because once industrial activity goes up you obviously have a lot more consumer activity happening.

What is HP’s gameplan for the consumer segment, which is witnessing a paradigm transformation? Since Sunil Dutt left, there have been several changes in tier-1 partners. Are you gradually moving back to the national distribution model? The objective of our business model is to expand reach and coverage and to develop more partners who can support our growth ambitions. The policies introduced by Sunil have brought tremendous discipline in the channel community in terms of MOP, margins, forecasting and sell-out. We continue to work with many of the telecom ZDs. The value telecom partners bring is the velocity of trade, getting material quickly and disposing it off very quickly; more streamlined supply chain and money management processes; and a very wide reach and deep market penetration—critical elements to our strategy to optimize the supply chain.

With nearly eight out of the 12 telecom ZDs exiting HP distribution and you going back to IT distributors, will there be any 28

Computer Reseller News

15/08/2011 www.crn.in

impact on your market coverage and channel engagement in remote areas? For every zonal distributor we have a very strong expansion and manpower matrix, so I don’t think the transition of ZDs will have any impact. For instance, Ingram Micro is now managing the Haryana region, and based on our matrix we have asked them to expand their stocking capacity and also deploy on-field staff in cities like Hissar, Rohtak and Bhiwani.

Several of the long-time volume partners were sidelined due to changes in the distribution model last year that demanded brand exclusivity. Unwittingly, as a result, they had to move to other brands. Are you planning to get them back by dropping the exclusivity clause? We need our partners. They understand HP, our products and processes, and are therefore crucial to our success. Hopefully, you will soon see us together again. For retailers, HP World by itself is an exclusive franchise, but it doesn’t stop the partner from having stores of other brands in a different capacity. Our focus this year is to increase the footprint of HP Worlds and we are completely revamping the stores to make them trendier and youthoriented.

The gap between Dell and HP, especially in the consumer notebook space, has widened by 8-9 percent. Most HP retail partners complain that HP’s marketing and advertising is much lower than Dell’s, and that it’s impacting business. I agree that Dell has gained more visibility. We have to make sure that we have the right balance between the push and the pull strategy. On the push side we have been doing well in market expansion and signing up more exclusive and multi-brand retailers. But at the same time we will have to work equally strongly on the pull factor. Rather than invest more, we will focus on smarter and more effective marketing programs for demand creation. n

Channel issues From the moment you took over the PSG mantle you have met with several commercial partners. What is the critical feedback from them? Yes, since I took charge on July 1, I have met more than 200 partners at various forums, of which 50 I met one-on-one. I have taken two key messages home from these interactions. The most crucial feedback is that partners want HP to make them feel desired again. They want us to engage qualitatively with them, and take their views and feedback onboard when we make our go-to-market strategy. They want us to make sure that they and HP are completely aligned. The second important feedback is with regard to operational issues of the supply chain, price clearances, claim settlements, etc. Your long-time partners are upset and feel that HP has lost focus on the commercial business. What changes can they expect now? I don’t have to emphasize how pivotal partners are to HP. Based on their feedback we are working on the best engagement framework and you will hear several announcements regarding this in the coming months. My marquee statement to partners is that they will see us get very supportive in working with them to win back lost business, to expand our reach and coverage, and to lend more focus on the business where they are already doing a great job. The other dimension of our partnership will be skills augmentation— the thing that gets marginal attention but is so critical to success in strengthening management capabilities. Often, partners haven’t grown beyond a point due to inadequate focus on building organizational depth. You will see HP coming up with programs that help elevate partners from a purely transactional business to a more strategy- and value-driven model. Prior to this interview, I had a long meeting with my key managers on streamlining and resolving transactional issues of claims, price clearances, etc. For partners to think more strategically, we have to take the transactional pains out of their way. n


Manage Data Growth More Efficiently 3TB Drive Support on Infortrend Storage Systems

The amount of data processed by SMBs and enterprises continues to grow. To store and protect these data assets, SMBs and enterprises rely on external disk storage arrays. The capacity these arrays are capable of delivering depends on the type of disk drives they support. To help SMBs and enterprises manage their data growth more efficiently, Infortrend supports 3TB disk drives on storage arrays in the EonStor DS and EonNAS product families. As one of the first storage vendors to offer this support, Infortrend enables customers to store more data in the same storage space and meet today's data challenges. The EonStor DS family offers entry-level SAN and DAS storage solutions featuring comprehensive data protection at affordable price points. Key EonStor DS features include: • Host interfaces: Fibre Channel, iSCSI or SAS • Wide array of supported disk drives • Form factors: 1U, 2U, 3U and 4U • Data services: snapshot, volume copy/mirror, remote replication, thin provisioning etc. The EonNAS family features unified storage solutions that serve both file-based and block-based applications. EonNAS systems provide enterprise-level scalability, strong data protection and optimized resource utilization. For more information about support for 3TB disk drives on EonStor DS and EonNAS storage systems, please visit http://www.infortrend.in

or contact Infortrend sales representatives via sales.in@infortrend.com

Infortrend Technology, Inc.

www.infortrend.in sales.in@infortrend.com


cover story What’s the growth agenda for HP IPG over the next 12 months? India represents a 120 billion-page opportunity over the next three years. Content in India is growing at twice the global rate, and there’s a definite movement from analog to digital printing. India is also the fastest-growing managed print services (MPS) market in the Asia Pacific. To leverage this opportunity we recently announced a threeyear growth strategy. We are strengthening our geo-expansion programs to optimize young consumer opportunities in nonmetro and upcountry markets. The other growth driver is the education sector, where we will invest substantially to create partnerships with content providers who drive the need for printing.

What are the challenges you foresee for HP IPG? We are working to sustain doubledigit growth for the IPG business and

MPS was estimated at $530 million in 2010 and is expected to reach $990 million by 2014. India is the fastestgrowing market in the region. Our MPS strategy is 3-pronged—optimizing customer infrastructure, managing their print environment, and improving the workflow. MPS can be a gateway for channel partners looking to expand into the enterprise market, and we are conducting a series of training and marketing initiatives for partners.

You have joined HP IPG from IBM/ Lenovo. As a nonHP person are there any fresh ideas you plan to implement? I am absolutely

Neeraj Sharma, VICE PRESIDENT, IPG, HP INDIA

“We are working to sustain double-digit growth for the IPG business” aim to gain market share in each of the categories we are present in. The universe of printing is increasing with more people finding new content to print from new sources, including social media. The Web is changing the way how both consumers and businesses access and consume content. We have already taken printing to the cloud with ePrint technology. ePrint-enabled printers have a unique email ID and allow users to print content from any device from anywhere just by sending an email to the printer. Thus, our aim is to drive both the home and business printer categories by re-architecting printing for the cloud to meet customer needs.

What are the plans for your channel partners on the MPS and document management front? According to IDC, the APEJ market for

30

Computer Reseller News

15/08/2011 www.crn.in

delighted to have the opportunity to lead and drive the next phase of innovation-led growth at IPG. I see great opportunities in areas such as education, SMBs and graphic solutions, and also in reaching out to new markets through geo-expansion.

HP is betting big on ePrinting and mobile printing. What are the plans to make this concept more pervasive in India? HP ePrint enables all types of users

We are strengthening our geo-expansion programs to optimize young consumer opportunities in non-metro and upcountry markets

to manage content, and print quickly and securely by simply emailing their desired files. This is an industry-first innovation and makes our product offering unique. We offer nine models of Web-connected printers at various price points starting at `7,000. We expect 20 million Web-connected printers to be shipped worldwide this year.

Many partners complain that HP is pricing itself out. Your products are priced at least 20-25 percent higher than the competition. We have over twice the market share of our next competitor. We also have a portfolio that’s nearly three times larger than that of our next competitor. Factors such as TCO have helped HP maintain its undisputed leadership. This wouldn’t have happened had the Continued on page 32 ä


cover story ä Continued from page 30

customer not seen the value in buying HP products.

Profitability is another issue. Partners complain that they are working on wafer-thin margins. For all consumer products, HP does not dictate the final end-user price. It’s left to the partner to negotiate with the customer. There’s a healthy margin between the MRP and the tier-1 transfer price. You also need to factor in the recent inflationary trends which have compounded the margin pressure on the trade. Having said that, we are cognizant of this fact and are evaluating options which can help improve the value retention for partners.

What new tech innovations are we likely to see from IPG over the next 12 months? We are focused on developing Webconnected, cloud-aware printers. We recently demonstrated an app that allows a user to retrieve the confirmation status of his IRCTC

32

Computer Reseller News

15/08/2011 www.crn.in

railway ticket by simply scanning the ticket on an HP AIO. The AIO does intelligent processing of the document on the cloud, extracts the PNR, and automatically retrieves the status from the IRCTC website. Such innovations are happening out of our India R&D center.

Give us an overview of your commercial digital printing business. How big is the addressable market? HP’s commercial printing solutions address all domains including retail photography for photolabs. There’s Web Press for the publishing industry; Reprographics is targeted at design professionals from architecture, manufacturing and civil engineering workgroups; and Signage solutions is for printing on a wide range of materials. We foresee a $4.5 billion publishing market in India. Before the advent of digital printing, nearly 65 percent of all print was thrown away unused. Nearly 25 percent of printed collateral is discarded before use. 30 percent of book stock

Channel issues What is HP doing to address the supply shortage? There has been a persistent issue of partners getting products billed to them by volume partners at above MRP, which is illegal. As of now we do not foresee any major supply shortages for any of our printers. Short-term imbalances do happen, which normally reflect higher demand against our field forecasts. We have not seen or received any evidence of partners being billed at aboveMRP prices. This practice is unlawful, and the partners have a right to take legal action in such cases. HP has no role to play in such transactions and we do not encourage such illegal practices. n

remains unsold and is eventually re-pulped. Digital printing cuts this wastage with lower print runs. HP’s graphic solutions business has a 90 percent share in the Designjet market space, and is a leader in the signage market. n


Easy does it ® with iCLASS Installation - Same as HID Prox® Infrastructure - Same as HID Prox® Cost - Same as HID Prox® Security & Applications – a big step ahead

HID iCLASS® - easy to install, plug and play implementation, transformational access control.

Upgrading to HID iCLASS® technology is one of the smartest moves you can make. Easy to install, this cost effective, out of the box solution integrates with virtually any legacy system. It provides enhanced security through mutual authentication and encryption and opens the door to multiple applications today or in the future. HID iCLASS® is the easy and affordable route to higher security, more convenience and a future proof technology. Look for Genuine HID products for guaranteed quality every time. Find out why now is the perfect time to upgrade to smart technology. Visit hidglobal.com/migration-CRN Contact: hidindia@hidglobal.com | +91 98867 10117

HID_Installer_CRN.indd 1

8/2/11 3:36 PM


cover story How has the ESSN business performed over the past 12 months? The last two quarters have been incredible for ESSN. In fact Q22011 has been the best quarter for us in years since the entire business grew 2x. While in the last two months we saw some delay in IT decisionmaking among end-users, we are confident of achieving Q3 and Q4 numbers. The HP Networking (HPN) business has been the fastestgrowing, and in Q2 we saw a 5x jump in business globally. Overall, we have made significant gains in market share. From two percent share 18 months

training and certification, creating a large team to drive business through channels, and creating various incentive programs specific to HPN. The mandate now is to roll out the programs and benefits to enable the next 200 partners across the country. Over the next quarter, you will see HPN launch the most ambitious networking certification program along the lines of Cisco’s professional certification program.

You recently launched the ServiceOne program under which HP will be sharing the IP of its products Som

Satsangi, DIRECTOR, ESSN, HP INDIA

“We have recorded 2X growth for HP ESSN” back we are consistently winning 10-12 percent share quarter-onquarter worldwide. In many customer accounts we have replaced Cisco endto-end and this demonstrates that the industry has begun to consider HPN as a serious alternative to Cisco. In switching, the gains have been even more impressive: we have recorded 24 percent market share as per industry reports. What is helping us here is the life-time warranty offered on a range of ProCurve products. The HP Blade System Matrix solution, part of our converged infrastructure portfolio, has been the fastest-growing among all unified architecture offerings in the marketplace. So far we have 60-plus deployments in the country, and many more are in the pipeline.

While you talk about fantastic growth for HPN, many tier-2 partners I spoke to haven’t really been enabled well to sell networking. So were the deals you talk about largely driven by large SI partners? Nearly 65-70 percent of our networking business comes through tier-2 business partners. However, so far we have been largely working in a focused manner with the top 60 business partners. We have invested substantially in enabling these 60 partners in terms of

34

Computer Reseller News

15/08/2011 www.crn.in

with partners to enable them to provision services to customers. It’s a big step for HP. We are not just sharing the IP of our products but also sharing the optimized systems and processes that HP uses to deliver services to our customers. The ServiceOne framework will enable partners to offer HP branded end-to-end infrastructure management services. At a time when margins on hardware are declining, providing services is key to profitable partner business as it guarantees higher margins and also ensures predictable revenue streams. In a slowdown, customers may postpone buying hardware but services are something they cannot discontinue.

Many tier-2 partners suggest that ESSN lacks a strong customer story. Another feedback is the decline in the quality of your channel management team.

In many customer accounts we have replaced Cisco endto-end and this demonstrates that the industry has begun to consider HPN as a serious alternative to Cisco

I am surprised at the feedback. In fact HP ESSN has significantly widened its portfolio in networking, software and services over the past one year, and this is creating more opportunities for partners. Even the second feedback is surprising. If you ask me where I have spent the maximum time in the past one year I would say in building a team that is channel-focused and speaks one language to the channel and the customer while presenting the entire ESSN value proposition.

Another allegation is about the frequent changes to the PFR program. Many partners say that they earn almost 40 percent lower incentives for the same business they do now, then in the past. This again comes as a surprise. When I look at my PFR outgo quarter-onquarter I see a significant increase. Again, it depends on who you speak to. Most business partners have told us that the new PFR framework creates more opportunities to increase both topline and bottomline as it incentivizes value-creating partners who are leveraging the entire HP portfolio. Partners who sell only one component of our portfolio might not see much benefit, but those selling server, storage, networking, software and services have seen significant increase in their incentive payouts. n


Size of the domestic IT Industry `78,700 crore

Present

Aug 18-20, 2011, LeoniA ResoRt HydeRAbAd

11% 2010 *As per industry estimates for CY

Turnover of 100 partners present at the

CRN Leadership Summit 2010 To be held between August 18-20, 2011 at Marriott Hyderabad, CRN Leadership Summit 2011 will offer the best platform to IT companies to network and connect with the finest solutions providers and systems integrators.

A Summit no channel-focused IT company can miss! Contact: North: Sanjay Khandelwal +91 9811 764515 | South: Satish Kutty +91 9845 207810 | West: Salil Warior +91 9987 580188 Platinum Partners

Knowledge Partners

Networking Partners

Gold Partners

Solution Pavilion Partners

Visit www.crn.in/lsummit

Cloud Partner

Technology Track Partners

Organised by


market focus

The PC-TV Combo

As convergence becomes a buzzword, a new wave of PC-TV devices is slowly but surely sweeping across India. Will the combo work? n Abhijeet Mukherjee & Amit Singh

I

n today’s fast-paced environment, consumers are looking for multipurpose devices that can fulfill all their infotainment and computing needs. This, combined with the higher disposable incomes of Indian families—which can increasingly afford a second TV—is making PC vendors as well as consumer electronics (CE) manufacturers come up with a variety of smart TV and PC-TV devices. “School kids aged 9-17 years, who are also the prime users of desktop PCs, are an important target segment for these products. At times kids demand a separate TV; at other times they also want a PC. The PC-TV is the best option in such cases. We are also targeting youth who already have notebooks,” says Rajesh Thadani, Director, Consumer Segment, Lenovo India. Agrees Pramod Dere, MD, Cyber Peripherals, an Aurangabad-based partner of Lenovo, “Major buyers are expected from the school-going group as well as the tech-savvy youth. Customers planning to buy mobile PCs for home use are also expected to switch to these products.” Apart from children and youth, professionals such as stock brokers may also adopt the converged devices in significant numbers. Says Jasmin Kamdar, MD, Binary Systems, another Lenovo partner, “Besides home buyers, we are seeing a big demand from stock brokers who need to do transactions on the PC as well as update themselves about the news on TV.” “Executives who need to update themselves on the latest news and who also want to work on the PC are expected to opt for these products,” adds Ajaya Kumar, MD, Park Network, a channel partner in New Delhi.

TV getting smarter Although the Indian market is in a nascent stage for such products, CE companies have started launching smart or Internet TVs.

Samsung and LG have introduced Smart TV, Sony has its Internet TV, and Panasonic is aggressively marketing its converged Viera Connect platform. Sony has come out with 16 new Internet models that can stream a variety of Internet content, including YouTube video clips and content from sites such as DailyMotion, Blip.TV, MenStyle, Wired, GolfLink, eHow, and Livestrong. Internet widgets on the Sony Bravia range allow users to access Skype, Twitter and Facebook. And the starting price for the Sony Internet TV is only `20,900. The Samsung Smart TV allows users to search TV shows and movies, chat with friends, get updates from Twitter or Facebook, and browse the Internet. Samsung also offers various apps including Netflix, Blockbusters, YouTube and Hulu Plus that can be downloaded on the Smart TV. Samsung’s Smart TV range is available at a starting price of `58,000 which goes up to `250,000. The LG Smart TV allows you to access online content, movies and various applications through the convenience of a remote control that operates like a mouse. It also allows wireless access to content stored on digital devices including digital cameras, mobile phones, tablets and PCs. The LG Smart TV is available in 14 SKUs from 32-inch to 55-inch with a price range of `43,000`1.7 lakh. The Panasonic Viera Connect is an open IPTV platform that has a collection of applications including expanded video streaming, two-way interactive features from gaming to social networking, and fitness programs. Panasonic has also launched 23 new flat-panel Viera TV models (19 to 65 inches) compatible with the Viera Connect platform. “We are looking at a huge segment of young professionals who are not only tech-inclined and styleconscious but also have the required purchasing power,” says Tadato Kimura, GM, Marketing, Sony India.

Computer Reseller News

15/08/2011

www.crn.in

37


market focus “School-going kids aged 9-17 years, who are also the prime users of desktop PCs, are an important target segment for PC-TV products”

“We are looking at a huge segment of young professionals who are not only tech-inclined and style-conscious but also have the required purchasing power”

Rajesh Thadani

Tadato Kimura

Director, Consumer Segment, Lenovo India

PC getting versatile While TV makers move to smarter tubes, PC vendors are moving to integrate more TV features into their products. HP recently launched the AIO desktop series Omni 200-5310I that comes with an inbuilt TV tuner card and offers features like media center for TV viewing, show scheduling and live TV recording. The HP range is available from `27,030 to `36,570. “We introduced a desktop that is appropriate for comfortable TV viewing as well as high performance computing. HP believes that the patterns of home use of digital devices and consumption of content is getting more integrated. Customers want one central device where they can link up all their digital devices and content,” says Vinay Awasthi, Senior Director, Product & Marketing, PSG, HP India. Lenovo too has launched an AIO range that has one-key TV viewing. The AIO comes with an integrated TV chip which reduces the switch time from PC to TV compared to a TV tuner card. It also offers the picture-in-picture feature through which one can work on the PC and view TV simultaneously. The product is available at a price of `39,990. The company also has plans to introduce a more affordable version of the product at `29,990.

Need for combo devices With a sizable number of Indians watching TV for an average of two hours a day and using the PC for about six hours a day, the potential for combo devices is growing. “AIO TVs are an emerging market and with this convergence happening we expect to sell 25,000 units in this financial year. Once this category picks up, it will grow 100 percent quarteron-quarter,” forecasts Thadani. According to Dere of Cyber Peripherals, which is expecting a 10-15 percent growth in revenue attributed to PC-TV devices, sales will increase along with awareness among consumers as the converged devices have been launched very recently. “The coming festival season is going to boost the sales of these products,” he predicts. Consumers have just started to hear about the products in various media and will take some time to understand their value addition. “In north India, there are abundant rich buyers who are ready to try new gadgets. They are expected to be the first buyers of these

38

Computer Reseller News

15/08/2011 www.crn.in

General Manager, Marketing, Sony India

products. Also, as numbers increase prices will decrease, leading to wider adoption,” says Kumar.

Channel play With the growing acceptance of converged devices, convergence among partners has also begun. For example, Toshiba is merging its PC and TV partners. In July this year the company unified its TV and PC business operations into a single organization, combining resources and creating a wider network of customer touch-points and service centers. “With the integration of our TV and PC business, we are able to offer IT products through our home appliance partners and vice versa. Besides increasing our strength to 6,000 stores in 2012, we are also increasing the number of service centers from the current 140 to 200,” says Wu Tengguo, Director, Digital Products, Home Appliances & Services Division, Toshiba India. Even companies such as Lenovo that currently distribute their products through traditional channel partners do not deny that soon there would be a convergence in the channel as well. “Currently, retailers/ resellers offering consumer electronics apprehend that these products will hamper sales of LCD/LED TVs. The future is, of course, bright for these products, and both the IT and consumer appliance resellers/retailers will start offering these,” says Thadani. Channel partners too do not feel that the converged devices will be any threat to the growth of standalone TVs and PCs. Says Kumar of Park Network, “We believe that the market for standalone PCs as well as TVs will not be affected much, and that the converged products will attract new buyers.” “We expect that these PC-TV combination products will also be offered by consumer durables partners leading to a revolutionary penetration,” adds Dere.

Too early to call Given the nascent nature of the market for PC-TV devices, low awareness among consumers, and challenges such as lack of reliable and abundant Internet bandwidth, the jury on how converged devices will eventually shape the overall market is still a long way out. n


Role model simple living high thinking From wanting to do something in software to reaching a turnover of `55 crore, Dinesh Sharma, CMD, and VA Krishnan, Director, OST Electronics, take a trip down memory lane nsonal desai

VA Krishnan and Dinesh Sharma

D

istribution has taken on many hues over the past years in India. Adding to this diversity is the new breed of value added distributors (VADs) who have gone from strength to strength, and from one geography to another. The rise of OST Electronics, a Chandigarh-based VAD, is almost lyrical. From a turnover of `75 lakh in 1998 the regional distributor is now a `55 crore company with 100 employees in six cities across India. Says VA Krishnan, Director, OST, “The credit goes to Dinesh, who had the vision and the right strategies. The results are there for all to see. We have 430 active resellers and the number will only grow.”

The beginning OST started as a small company with four employees in 1994. Then named Simplex Solutions & Infotech Services, the sole ambition of the founders was to do something in software. The founders, Dinesh Sharma, Chairman and Managing Director, and Chaand Kackria, NonExecutive Director, worked with the Punjab government as IT professionals. Krishnan, who worked with the Punjab State Electronics Corporation, joined the company in 1997. Back then Simplex dealt with all types of customized software requirements. “From Cobol to RDBMS packages, we have worked on everything. Our past experience of working with the Punjab state government helped us break the ice, and we started making headway. Our first major customers were the Punjab State Industrial & Export Corporation,

“We have had only one pre-condition with all vendors—that we would be the exclusive distributors for our region”

IndSpinx Precision, and the Competent Group,” Krishnan recalls. The company won contracts from various organizations in the private sector such as Kandhari Beverages, Horological Components and Surya Pharmaceuticals. Simplex’s approach toward projects and people won it word-of-mouth appreciation and also opportunities in competitive environments. However, the major turning point came when the company decided to diversify and launch its own brand of PCs and servers.” Under a new name, Optimum Solution Technologies and Electronics, which later became OST Electronics, it started manufacturing PCs and servers at Parwanoo in Himachal Pradesh in 1998 and created its own channel network to sell the products. The PCs and servers were sold under the brand name of Progeny and Skipper respectively. With steady growth, and a combination of software and hardware products, OST’s turnover touched `4.5 crore in 1999. Sharma and Krishnan say that once the company’s PC brand stabilized, they decided to venture into the distribution business. “We have had only one precondition with all vendors— that we would be the exclusive distributors for our region. We already had a strong channel selling our branded PCs and servers, and hence we decided to leverage this channel to distribute complementary products from other brands. This also meant our partners had more opportunities to sell a larger portfolio,” comments Sharma. The first vendor OST signed up was D-Link, followed by Canon, AOC, Cyberoam, WeP and e-Scan. OST is particularly proud of what they have achieved with the Canon brand in their region. “When we signed up with Canon, HP had around 70 percent of the imaging business in the region, and most partners

Computer Reseller News

15/08/2011

www.crn.in

39


role model 1994

Started Simplex Solutions to provide software solutions

1997

Forayed into PC and server manufacturing; renamed company as OST Electronics Moved into sub-distribution of peripherals with tie-ups with D-Link and Canon

2010

Current business

MILESTONES

1999

didn’t want to sell any other brand. With better support from Canon in pricing, consumables and RMA, and with our approach toward the partners, we won the confidence of many HP partners and managed to convert them into Canon resellers,” says Krishnan. Last year OST billed `14.5 crore for Canon in the upcountry north. “This year the target is `20 crore and we believe that in our region we have more market share than HP,” Sharma informs.

Signed up with Neopost as

believe it doesn’t because these models are largely sold as part of a bundled offer.” Besides, OST aims to increase the share of its networking and security solutions business in its total revenue. During the current financial, OST is already executing projects such as the Deenbahndhu Chhotu Ram University of Science and Technology (DCRUST), Murthal project valued at `1.26 crore; the GMCH, Chandigarh Hospital project valued at `2.39 crore, and the Haryana Civil Secretariat project worth `2.97 crore.

2011

national distributor for its In FY2010-11 the company recorded a turnover of `55 crore Future business digital franking machines compared to `42.45 crore in the The company aims to cross the previous fiscal. In the current fiscal `100 crore mark within the next Clocked `55 crore in revenue OST aims to cross `65 crore. Of its two years and expects its Neopost 2010-11 revenue, nearly 80 percent partnership to be a significant came from sub-distribution and contributor. “With Neopost, the regional distribution, while 20 percent opportunities are abundant. The postal came from the network integration department itself represents a few business. Canon, D-Link and AOC thousand crore opportunity for contributed nearly 80 percent DFMs. With other transactionto its overall revenue from based verticals too there is distribution. strong movement from analog Last year the company machines to digital,” remarks entered the office automation Sharma. segment by signing up as To drive the Neopost a national distributor with business the company Neopost for its entire range recently appointed Preetinder of digital franking machines Singh Ameja, VP, Operations. (DFMs). Since then it has “He has years of experience opened offices across India in working with MNCs such as Chennai, Mumbai, Kolkata and Canon and Infra Methodex, and New Delhi. “We believe Neopost is qualified to take our relationship is a high-growth partnership for us with Neopost to the next level,” says and we are looking at expanding our Krishnan. channels across the nation to sell Neopost “We want to increase our network DFMs. In addition, Neopost would give us the integration business. We are also focusing on leeway to distribute IT products nationally. So far we the security surveillance business as we see huge have sold 250 DFMs,” informs Krishnan. opportunities,” he adds. “Our HR processes are in place. OST is also trying out different channel models. Our technical team is trained and has certifications from For instance, it recently signed up with Star CJi, the Extreme Networks, Cisco and D-Link.” tele-shopping channel. “With Star CJi we have been promoting the MP287, 258 and PIXMA 277 Canon On a personal note printers, and have sold 7,500 units worth `2.5 crore,” Krishnan and Sharma have a similar outlook toward Krishnan reveals. Doesn’t such an alliance pose a threat life: simple living. “I like simplicity in all things. No to OST’s traditional channels? Replies Krishnan: “We matter how well one does or what one achieves, at the end of the day it’s the family and home that matter the most,” states Krishnan. Sharma believes in moderation in everything. His “We are now present across India with leadership philosophy? “I strongly believe that in an organization ownership is not about individuals. offices in Chennai, Mumbai, Kolkata Everyone has to have a genuine stake to contribute. and New Delhi. After we signed up with As a leader my job is to create that ownership and Neopost we have sold 250 DFMs” motivation among my team members.” n 40

Computer Reseller News

15/08/2011 www.crn.in


tech focus The ‘cloud’ over security

The economics of the cloud is encouraging CIOs to come up with their own solutions to handle security concerns about the cloud

W

hen the first waves of cloud computing started hitting Indian shores, Indian CIOs were naturally wary. There were few reference cases, and most enterprises had concerns about data security, accountability, identification, authentication, compliance and SLAs. Cut back to the scenario now. Almost every analyst says that cloud computing is a top priority for CIOs in India. What has changed? Has the cloud suddenly become more secure? The truth, as always, lies somewhere in between. While the cloud still raises concerns related to compliance and audit trails, the economics of the cloud coupled with efforts made by vendors to educate users about cloud security seem to be working. As a result, some of the ambiguities related to the cloud have now been replaced by greater clarity. Security issues, which were the main concerns for the early cloud adopters, are now well defined, and CIOs know what to look for before they hop on to the cloud.

Building confidence in the cloud Contrary to popular belief, most cloud providers can provide much better security than an in-house IT team can achieve. Consider a cloud service provider such as Amazon Web Services (AWS). The firm has multiple security certifications and accreditations such as ISO 27001, PCI DSS Level 1 and SAS 70 Type II. The service provider also enables customers to encrypt their data within the AWS cloud. The efforts taken by the various cloud service providers have been extremely useful in assuring CIOs that their data will be secure in the public cloud. A case in point is Evalueserve, a leading KPO firm. The company has been using Salesforce.com’s public cloud CRM solution for the past three to four years. Expressing confidence in the public cloud, Sachin Jain, CIO, Evalueserve, says that his company never faced any security breach on the public cloud. He did his due diligence before signing contracts with Salesforce and Amazon. Jain says that his firm has signed confidentiality agreements. Only authorized teams can see the data, and there is a monetary penalty in case of security breaches. Explaining the factors that his team looks at before deploying an application on the cloud or consuming a cloud-based application, he says, “We look for

42

Computer Reseller News

15/08/2011 www.crn.in

technological, physical and logical controls deployed by the vendor to protect the data. Encryption, multifactor authentication and VPN are some of the important technological controls we have to implement on the basis of project requirements. Physical security of the location where the cloud infrastructure is hosted has also to be reviewed and verified before taking a decision on the cloud. Understanding the kind of physical and logical access that the cloud provider will have to our data is also important.” On similar lines, another company, Lanco Infratech, is also planning to wet its feet by using public cloud services for servers and storage. The firm’s Group CIO, Ajay Dhir, says, “We believe in having stringent and clear SLAs. Security is of paramount importance when your data resides offsite. But security providers do take adequate care of security.” Explaining his firm’s preparation for the public cloud he says, “In our case we had a look at the applications which could be put on the public cloud. We use Symantec software for our internal safety. We also use security backups, which are very important for onsite and offsite clouds. We are planning to use storage-as-aservice.” In the end, as with any technology, it all boils down to how CIOs can leverage an excellent technology despite the constraints. “There is a lot of noise about security issues associated with the public cloud. I believe that security needs to be handled rather than feared. Stringent SLAs should be framed in order to have seamless security services from service providers. Penetration testing must be done in advance so that even internal people cannot hack it,” opines Neena Pahuja CIO, Max Healthcare. The gradual increase in the number of users using the public cloud is acting as a key catalyst to inspire other enterprises to adopt the cloud. “The cloud is all about trust. Typically, people have important data on the cloud which could reside in Gmail, Picasa, Facebook, etc. The cloud was first used by individuals and not by business. The public cloud is safe. The only thing is to approach it in the right way. We at CA are utilizing Salesforce’s CRM solution that is on the cloud and we are not facing any security problems,” says Rajendra Dhavale, Director, Technical Sales, CA. “Used strategically, the cloud has the potential to transform businesses.” He cites the example of delivering IIT lectures on YouTube, a practice which could change the paradigm of delivering education. For vendors, the cloud is a new business model, and


tech focus “We believe in having stringent and clear SLAs. Security is of paramount importance when your data resides offsite. But security providers do take adequate care of security”

“Security is a principal concern while entrusting an organization’s critical information to a cloud service provider which is not under the direct control of that organization”

Ajay Dhir

Ravinder Jain

Group CIO, Lanco Infratech

it is imperative that they take the necessary measures to enable business confidence. “Data is more protected in a specialized environment. Having said that, security is the benchmark for every vendor and hence each and every vendor needs to ensure security,” states Raman Srinivasan, Software Operations Manager, HP India. To address security issues, Logan McLeod, Director, Cloud Program, Dell, suggests that there has to be better education around security on the cloud. “Security is not an issue as it was in the past. If you have hosted a Web application on your traditional infrastructure which is inherently not secured, the service provider has no ability to help you in that. But the service provider can scrutinize the technology architecture and application architecture in advance, and could then help CIOs secure the application operating in an onpremise or shared cloud environment.” In line with the public cloud adoption, service providers have also matured in terms of addressing security issues and defining them well in SLAs. Vendors are also open to answering difficult questions posed by CIOs. One common question asked by CIOs is what happens if some other company intrudes into data in the shared model. Explaining the vendor’s perspective, Peter Coffee, Director for Platform Research, Salesforce.com, says, “We have a process in which we allow the allocated person to read or write or edit or delete data. These privileges are different for different individuals. In the traditional model, the administrator had the power to have access to the data, but in our model we individually assign privileges in the data system. In fact the key to the data is with the privileged individual, and nobody from our company or any other company can see the data.” As security is the foundation on which the cloud can grow, vendors are focusing their attention on proving the secure nature of the cloud. “The key to the data lies with the client and hence there is no chance of intrusion unless the company leaks the key password to an external person,” says Amit Nath, Country Manager, Trend Micro.

Some dark spots on the cloud Despite the huge progress made by service providers and some early successes by enterprises, the road to a secure cloud is still a long way. “I believe that transparency in SLAs is the major concern for CIOs in adopting cloud computing. Today, some vendors are not able to handle that effectively,” says Murli Nambiar, Senior Vice

44

Computer Reseller News

15/08/2011 www.crn.in

CIO, Aircel

President and Group CISO, Reliance Capital. For sectors such as banking, developments in the public cloud are still being viewed with cautionary eyes. “A major concern about the public cloud is the location of the data. The idea of a large organization using a public cloud for critical information involves a significant amount of risk,” remarks Vishal Salvi, CISO, HDFC Bank. Despite these concerns, the confidence for deploying cloud-based applications is gradually growing. This can be seen from the fact that some telecom service providers (which hold crucial customer-related information) are now comfortable using the public cloud. A case in point is Aircel, one of India’s relatively new telecom entrants. The company is planning to use a public cloud for some of its customer and enterprise applications. “Security is a principal concern while entrusting an organization’s critical information to a cloud service provider which is not under the direct control of that organization. But security is not a big issue if tackled with appropriate processes. We believe that service providers are doing enough,” notes Ravinder Jain, CIO, Aircel.

Ensuring a secure future on the cloud Understanding that concerns about the cloud could have the potential to act as significant roadblocks for the adoption of this technology, organizations such as the Data Security Council of India and Cloud Security Alliance have been working to create cloud security awareness, accountability frameworks and the required ecosystems around best practices. These organizations are also playing an active role in helping the government to not only understand the cloud model but also frame policies around cloud security. The government is making headway in the cloud computing space by conducting various awareness programs for its IT departments. Undoubtedly, security is a crucial component in ensuring the success of various e-governance initiatives. The UID is the perfect example of how a cloud-based authentication system could be used to solve identity, authentication and payment issues. In summary, while some of the concerns around the cloud are still to be addressed, the small but gradual progress made by the entire ecosystem is giving hope to the industry that it is just a matter of time before security concerns about the cloud fade away. n Courtesy: www.informationweek.in


channel buzz MMD launches Philips monitors, new technologies

n The MMD senior management team with (L) Gautam Ghosh, Country Director, MMD India, and (R) Hawk Chang, Product Marketing Manager, MMD Singapore, at the launch of Philips monitors

M n Benjamin Wong, Managing Director, MMD Singapore, addresses the media during the global launch of MMD monitors in Bangkok

n Mayank Christian, Director, Global Product Management, Philips Monitors, MMD Taiwan, explains the features of the new products

n Ray Zhuo, General Manager, MMD Singapore, talks about the formation of the TPV-Philips agreement to form MMD

n A model poses with the new Philips C-Line monitor during the launch

ultimedia Displays (MMD) recently launched a series of Philips monitors in Bangkok. These include the C-Line, E-Line and V-Line series of products to name a few. MMD is a whollyowned company of TPV established in 2009 through a brand license agreement with Philips. The company also announced its entry into the gaming monitor market with the G-Line series. In addition, MMD introduced its T-Line monitors (monitors with TV tuner cards) which are currently being sold only in Europe, China and a few other countries in the APAC region. Among the portfolio, the E-Line monitors are aimed at the retail volume segment. Explaining its features, Mayank Christian, Director, Global Product Management, Philips Monitors, MMD Taiwan, said, “The monitor detects if the user is in front of the monitor or not and accordingly enables the switch-off functionality, thus reducing power consumption and heat.” MMD also introduced its 27inch monitors with 3D shutter-glass technology. “These monitors require a normal desktop with any good graphic card for playing games, thus saving on money spent on high-end hardware,” said Christian. The company also launched the ErgoSensor technology from Philips which is touted as the first of its

kind in the world. It uses advanced detection technology whereby the monitor is able to measure a user’s inter-pupillary distance to determine if he is sitting within the optimal ergonomic zone or if his head is in an inclined position. The monitor then gives intelligent corrective advice to the user to adjust his posture. Other MMD senior managers who addressed the APAC media during the launch included Benjamin Wong, Managing Director, MMD Singapore; Ray Zhuo, General Manager, MMD Singapore; Hawk Chang, Product Marketing Manager, MMD Singapore; and Gautam Ghosh, Country Director, MMD India. Speaking about the company’s future roadmap in India, Ghosh said, “Though it is too early to speak about numbers, we would be happy if we can sell 200,000 units in this calendar year. We also want to bring Philips back where it used to be earlier—among the top three brands. Philips recently organized programs to revitalize the channel as well as consumers. Since November 2010 we have kept ourselves busy setting up the entire ecosystem and positioning our brands and products, and we are now in line with the plans we had earlier envisaged.” n ­—By Abhijeet Mukherjee He was hosted by MMD for the event in Bangkok.

To feature your company’s events in CRN, send write-ups with photographs to editor@ubmindia.com 46

Computer Reseller News

15/08/2011 www.crn.in


RECOGNIZING THE

SUPER ACHIEVERS The benchmark for business leadership in Indian IT channels, the CRN Xcellence Awards will recognize companies that have achieved business performance par excellence in FY2010-11, through a combination of innovations and smart strategies

Winners of CRN Xcellence Awards 2010 Presenting Partner

Associate Partner

The awards ceremony would be held alongside CRN Leadership Summit 2011, August 18-20, Marriott, Hyderabad Visit www.crn.in/awards

Organised by


channel buzz Mumbai 2011

A brief preview The world’s leading global business technology event is living up to its name by attracting a huge list of business technology leaders and exhibitors

I

n its third avatar in India, INTEROP is demonstrating why it is the leading global business technology event. This year, INTEROP Mumbai 2011, to be held from 28-30 September, will have over 50 speakers from all over the world spread across 30-plus sessions, six keynotes, over three plenary panel discussions, and several workshops and special sessions in parallel tracks. The exhibition-cum-conference will have a mix of subject experts, experienced practitioners, distinguished analysts, technology gurus and promising young enterprise-IT professionals from India. The added bonus is the large exhibit floor adjoining the conference halls where delegates and visitors can see the latest technologies being showcased and demonstrated by leading technology vendors, all in one place. These vendors include Cisco, HP, Wipro, RSA and EMC. Among the keynote speakers are John McCool, SVP & GM, Data Center, Switching & Services Group, Cisco, and Anand Sankaran, Senior Vice President and Business Head, India, Middle East & Africa, Wipro. For the attendees, INTEROP has an interesting mix of panel discussions. We have a panel discussion on Lessons from India’s Toughest and Largest Projects. This panel discussion will share insights from experienced CIOs on what it takes to prepare, plan and execute some of India’s toughest projects. We also have an extremely interesting session by Dr Pawan Agrawal, CEO, Mumbai Dabbawala Association. This interactive session, Lessons for CIOs from the Mumbai Dabbawala, explains how the dabbawalas of Mumbai deliver more than two lakh lunch boxes everyday with almost no error. There are many lessons to be learnt from a community that uses no sophisticated technology but still manages a supply chain that is the envy of global organizations. We have a speaker of international repute who has kindly consented to deliver a session on a crucial topic. Ellen Daley, VP & Practice Leader, Forrester Research, will share best practices and experiences in an interactive session titled How CIOs can Successfully

Navigate the Vendor Landscape. We also have an extremely interesting session on social computing that is extremely relevant today. One of the most experienced and respected CIOs in the industry, Umesh Jain, CIO, Yes Bank, will share his perspective on how social media can be used by the banking industry.

A huge focus on the cloud If your company is a prominent player in the emerging world of clouds, you cannot afford to miss the sessions dedicated to the cloud at INTEROP Mumbai 2011. From setting up a cloud to deploying, architecting and measuring ROI, we have almost every possible topic covered with respect to the cloud. We have Ramprasad Kan, Chief Technologist, Wipro Technologies, presenting a session called Managing a Private Cloud. Another key speaker in the world of clouds, Janakiram MSV, Technology Evangelist, Amazon Web Services, shares his expertise and best practices in a session titled, Architecting for the Cloud. Another session delivered by Vijay Kumar, Principal Technology Architect, Infosys, will focus on Testing of the Cloud. If you are thinking about how you are going to present your business case for moving to the cloud, attend an insightful session, How to Calculate ROI for Moving Enterprise Applications to the Cloud, by Shreekanth Joshi, Associate Vice President, Cloud Services, Persistent Systems. While on the subject of the cloud, can we forget the security aspect? To understand how we can use the cloud securely, we have an insightful session from Faraz Ahmed, CISO, Reliance Life Insurance, who tells us how the cloud can be used in the enterprise context while complying with regulatory standards. We also have interesting sessions related to the consumerization of IT, social media, emerging technologies and enterprise security. n

For more details on the list of exhibitors and the detailed conference program, please visit www.interop.in

To feature your company’s events in CRN, send write-ups with photographs to editor@ubmindia.com 48

Computer Reseller News

15/08/2011 www.crn.in


MUMBAI September 28 – 30 // Bombay Exhibition Center

CIO Sessions

Cloud Computing

Mobility

See the Future of IT Enterprise Security

Social Media

The Leading Business Technology Event See all the latest IT solutions from 100+ Top Technology companies THIS COMPREHENSIVE BUSINESS TECHNOLOGY EXPO COVERS FULL RANGE OF SOLUTIONS & FOCUSES ON THE MOST CRITICAL IT AREAS:

Platinum

Cloud Computing | Data Center | Enterprise 2.0 | Information Security | IT Management | Networking | Service Delivery | Storage | Virtualization | Unified Communications | Wireless and Mobility

KEYNOTES: John McCool, SVP and GM, Data Center, Switching and Services Group, Cisco

Mike Nielsen, Director of Vertical and Solution Marketing, HP Networking

Anand Sankaran, Senior Vice President and Business Head - India, Middle East & Africa business of Wipro. Ram Appalaraju, VP - Technology & Product Marketing, Enterasys Networks

Gold

WORKSHOPS: Attend workshops which focus on educating you in real-world scenarios. n “Lessons for CIOs from the Mumbai Dabbawalas” Pawan Agrawal, CEO, Mumbai Dabbawalas Association n

“Deep dive into SQL injection” Slavik Markovich, VP, CTO, Database Security, McAfee Silver

REGISTER NOW & SAVE UPTO 40% ON GROUP REGISTRATIONS! CONFERENCE REGISTRATION: Register in 3 easy ways: Online, Email & Fax.

Bronze

Special Discounts: Group Discounts upto 40% are available.* (Valid till 3rd Sept 2011) For more information, call Sanket Karode on +91-22-67692411 or email on sanket.karode@ubm.com To register, visit: http://interop.in/register_for_conference.asp

EXPO REGISTRATION: On the adjoining exhibit floor, you will see a huge number of leading IT vendors showcase & demonstrate the latest in enterprise-IT technology..

Secure Your

FREE EXPO

To register for FREE Exhibits Pass, register online at http://interop.in/visitor_registration.asp

Lanyard Sponsor

Organised by

For sponsorship and exhibiting opportunities, please contact: Pankaj Jain | pankaj.jain@ubm.com | +91 98101 72077

www.interop.in


New Products WD AV-GP SATA hard drives

W

HP TouchSmart 610

H

P unveiled its TouchSmart 610 AIO. It features a 23-inch diagonal HD display which can recline up to 30 degrees. Consumers can rotate, arc, flick, press, and drag items on their desktop with multi-touch gestures. The wide-angle, LED backlit LCD screen provides optimal viewing angles, even when reclined, while advanced multi-touch technology allows for an accurate response. The TouchSmart PCs’ one-cord setup and slim design save space. The product is available for `74,150 from HP authorized distributors, and comes with a 3-year warranty.

Asus X101

A

sus launched the world’s thinnest and lightest netbook—Asus X101. The netbook runs on Intel’s MeeGo OS and is powered by the Intel Atom processor N455 CPU. It weighs less than 1 kg and is 17.6 mm thick. It has a 10.1-inch LEDbacklit monitor, is Bluetooth 3.0 and Wi-Fi 802.11 enabled, and has a Chiclet keyboard. It has a Super Hybrid Engine to optimize system performance and battery life. The product is available at an MRP of `12,499 with Asus authorized distributors and comes with a 2-year warranty.

estern Digital has launched the 2.5TB and 3TB SATA 3.5-inch hard drives targeted at the audio-video (AV) market. The new hard drives offer low power consumption and is feasible for storage-intensive AV applications such as digital video recorders, video surveillance and single-drive media servers. The WD AV-GP family of drives is field tested to have a 1.0 M hour MTBF rating. The 2.5TB and 3TB hard drives are available at select distributors for `7,999 and `8,999 + taxes respectively, and come with a 3-year warranty.

LG IPS series monitors

L

G Electronics has launched its professional In Plane Switching (IPS) monitors in India. The new range of monitors are targeted at medical professionals, graphics artists, photographers and gamers. The display offers a resolution of 1920 x 1080, has a slim and glossy design, 180 degrees viewing angle, and 5,000,000:1 contrast ratio. The monitors consume 10 percent less power without image loss. The monitors will be available at retail stores, are priced at `10,700, and come with a 2-year warranty.

The products featured here have not undergone any benchmarking or testing. The trailers contain information provided by vendors and distributors. To feature your company’s products in CRN, send write-ups with photos to editor@ubmindia.com

50

Computer Reseller News

15/08/2011 www.crn.in


shadow ram High Court pulls up Supreme Peripherals

T

he Delhi High Court in a recent verdict held Delhibased Supreme Peripherals guilty of distributing pirated Microsoft software. The order, pronounced by Justice VK Jain on August 2, 2011, ordered Supreme to pay a penalty to Microsoft as punitive damages for distributing their software to its customers without a license. In a warning of sorts to other firms dealing in pirated software, the judge reportedly noted that in cases where not just individuals but shops were involved in this illegal business, a more stringent view was required. “The defendant (Supreme) has been found using the pirated software of the plaintiff company for making gains in its business. There is a strong likelihood of it persisting with the sales of computer systems having hard disks loaded with pirated software unless adequate punitive damages are awarded against it. In fact, the use of pirated software by a commercial entity needs to be dealt with more strictly than use of software by an individual for his personal purposes,” Justice Jain noted in the verdict. n

GET

Personal

“I would make education compulsory for all” Rajesh Maurya, Country Manager, Fortinet, India, has 17 years of experience in sales, marketing, business development and channel management. He has also worked with Sify, Microland and N&N Systems & Software

Rajesh Maurya

If not in the IT industry: I would have been in the Indian Air Force, or would have taken up portfolio management.

Biggest passion: Winning—I love to come out a winner in every task I do. Behind the wheels: Mahindra Logan. Hope to own a Mercedes Benz soon. Gadgets I can’t live without: None in particular, but I like to carry a mosquito repellent machine and a computer. Weekends are for: Family. Favorite holiday destination: Sydney in Australia. Hate the most: Show-offs. Favorite movie: In Pursuit of Happiness. Favorite stars: Aamir Khan, Tom Hanks.

Recession fears loom large

S

ince the day the stock markets crashed in the US, and crude prices started tumbling, the fear of a larger recession has been on. Worse news has started emerging from the OEM supply hubs in China and Taiwan. Almost all manufacturers including Compal, MSI, ECS and Quanta have announced weak numbers in July and a drop in revenue. Memory Exchange has announced the lowest-ever DRAM contract prices in August’s first week, and the prices may remain low till at least 2012 since there are no new orders from large OEMs. Some of the partners have reported that their vendors have told them that they are worried about a potential slowdown again. It’s perhaps too early to panic, but it’s better to be cautious than otherwise. n

54

Computer Reseller News

15/08/2011 www.crn.in

Role model: Gautam Buddha. Ultimate ambition: To be a role model and be remembered after death. Wildest thing I have ever done: Cannot remember anything. Thing I most want to do in life: Safeguard and plan for my family for the future. If I became the PM: I would make education compulsory for all, and develop infrastructure and agriculture. Celebrity I would like to spend a day with: None. One person I would like to meet and why: My mother as I could not meet her before she passed away. Deepest and darkest fear: Not meeting any commitment made in my personal or professional life. n — CRN Network


RNI NO. MAH ENG/1999/635 Postal Reg. No. MH/MR/NORTH EAST/193/2010-2012 Posted at Patrika Channel Sorting Office, Mumbai Due Date 2nd, 3rd & 16th, 17th Of Every Fortnight


CRN India- August 15, 2011