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customers on a pay-per-use basis. It’s a model that works for everyone: Vendors get their software to new markets without having to build and manage hundreds of relationships, and service providers get to use software on a payper-use basis, creating better cash flow and less dead inventory. “In our service provider program, the license ownership is never transferred from the principals or OEMs. Only the ‘right to use’ is shared. The advantage for service providers is that they pay only for how much they can sell. With a traditional model, irrespective of whether service providers make money or not, they are required to invest in the software. With service provider program, providers install the license and start paying a vendor only when they add customers. Only a service provider’s success will bring me revenue,” explains Prasanna.

BEYOND BASIC DISTRIBUTION Kryptos does more than just act like a bridge between vendors and an archipelago of service providers. Unlike a traditional distributor whose primary aim is to act as an intermediary, Kryptos brings a lot of value to the table. Prasanna believes that unless licenses are built into services, they will have no value. Hence, Kryptos works closely with its service provider partners to help build their subscription-based business. “We work with them on different business cases, and help them package services to end customers. We also help them in architecting a solution, and even with implementation if they do not have the required skills. If the hosters also want us to manage the solution, we do that for them, on a

WHY IT WORKS v The services provider

license agreement model allows service providers to rent software as they need, ensuring that they aren’t investing in software unnecessarily. As a bridge between vendors and service providers, Kryptos benefits from the marketing activity of both groups.

v It keeps vendors happy

because partnering with Kryptos increases its reach. And it keeps service providers happy because Kryptos helps them turn software into service offerings that sell.

v As more enterprise

customers demand subscription-based models, more service providers will offer them that model. That’s more money for Kryptos.

and applications. So it’s no surprise that 40 of Kryptos’ 60 employees form its technical team. There’s a market for the model Kryptos pushes if its revenues are any indication. In just two years, Kryptos has almost tripled its revenue and has also grown the number of service provider partnerships it has. Today, it’s partner list includes all the major datacenter hosting companies, telcos, and cloud service providers in India. Some of these partners include key names like Net4,

grators and help them connect with its service provider partners to jointly offer cloud-based solutions to end users. While the service provider community contributes the major share of its business (it drives 90 percent of the company’s revenues), it also sees an opportunity in partnering with ISVs and lately with a few major SIs as well. Kryptos connects ISVs with its service provider partners to build various applications for end customers. The two partners then jointly take the cloud solutions to the market. This ensures more feet on the street for Kryptos, and also access to newer markets that are typically not addressed by huge cloud hosting companies. Besides, the ISV partnerships make the application story quite compelling for the end users. On the SI side, the story is more exciting. While the service provider business is expected to flourish further, Kryptos is bullish about its new SI partnerships. Most vendors, says Prasanna, do see an opportunity in reaching out to new markets through the SIs. Currently, Kryptos has partnered with about 20 SIs and the aim is to reach out to at least 100 SIs within the next six months. What makes these partnerships exciting is that Kryptos provides its SI partners with an option to white label these services and sell it to their customers under their own brand. Apart from the major virtualization vendors, Kryptos has strong associations with brands like VMUnify, Veeam, CloudByte and StopTheHacker. com. And while software is the major focus for Kryptos currently, it has plans to venture into a similar model for hardware in the near future.

There’s a market for the model Kryptos pushes if its revenues are any indicator. In just two years, Kryptos has almost tripled its revenue and has also grown the number of service providers it partners with. pay-as-you-go model. We charge them based on the number of customers they acquire,” says Prasanna. All of this means that Kryptos is expected to have tremendous technical know-how across various layers of the infrastructure, including hardware

Sify, Ramco Systems, and Netmagic Solutions, HCL, TCL, CtrlS among others.

BRANCHING 0UT Kryptos also extended this model to include systems integrator as well. Kryptos partners with systems inte-

As the industry moves towards subscription-based models, more and more players in the ecosystem of service providers, SIs and vendors, will benefit. That’s money for Kryptos. If Prasanna is a fruitcake, then cut us a slice n




Channelworld Magazine November 2012 Issue  

Channelworld Magazine November 2012 Issue

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