IT Strategy for System Integrators

Challenges faced by System Integrators and Resellers in current times

The challenges started long before the covid times. The majority of the System Integrators and Resellers witnessed fierce competition and diminishing margins in hardware and software products. The rise of e-commerce companies resorting to deep discounts left the maximum impact. They also encountered direct involvement of OEMs in small ticket size opportunities leaving narrow room for any value addition. Pandemic did worsen the situation. Last two years of covid times, the domestic IT industry has seen a dip in investment in hardware and software across the sectors. As we leave the pandemic behind, I notice specific developments that could change the scenario. In order to understand them we need to take a strategic perspective of IT Industry in India mainly divided in Hardware, Network Infrastructure, Software, Cloud Infrastructure, and Software as a Service. We need to evaluate it with a five years horizon.

The growth driver for System Integrators and Resellers

In the last five years, the Government and Corporate India have been the biggest spender in IT, and it will continue to be one of the growth drivers. These are the segments where the SIs and Resellers face fierce competition. There needs to be shift in strategic focus of target segment to do better in next five years. We strongly believe that the next five years will be the MSME era.

With Post-Covid Anti-China Sentiment and Atma Nirbhar Bharat initiatives, MSMEs can expect enormous opportunities. It will subject them to global standards of competition. Adoption of IT will not be a choice but will be a compulsion. Imagine millions of MSMEs adopting IT to compete on international standards. It will give rise to the demand for IT infrastructure and solutions. With the enforcement of the Data Localization Policy and Personal Data Protection Bill, compliance obligations for MSMEs will be at a different level.

They will have to invest in IT Standardization, Data Loss, and Leakage Prevention solutions. Specific MSME verticals will be subject to stringent compliance with Data Confidentiality Adherence. MSMEs in Healthcare, Pharmaceuticals, Diagnostic Labs, Stock Brokers, Chartered Accountant Firms, Auto Ancillary Manufacturers, Hospitality, Biotech, Clinical Research, Engineering, Defense Supply, Design verticals are the ones to count on.”

The biggest growth driver of IT business in India will be the IT investment by millions of MSMEs.

Adoption of Strategic Changes by System Integrators and Resellers

There are two striking differences in the strategies that work with Government or Corporate India and the strategies that work with MSMEs. It is about clarity of requirements and decision makers. When System Integrators and Resellers do business with Government or Corporate India, they deal with professionally qualified IT team that is clear on what they want. They publish RFPs (Request for Proposal) which mentions all the details of the requirement. When MSMEs are the target segment, they are neither clear on their requirements nor do they have IT team on their side. The decisions are taken by owners without any IT background. The need a consultative approach explaining what they need. They are entrepreneurs and understand the qualitative or quantitative return on investment very well. One needs to focus on RoI instead of technical points. This is a major shift in strategic focus. Another major shift is in terms of what you want to sell to MSMEs. If one tries to sell the same solutions that are sold to large enterprises, failure is final. The solutions sold to large enterprises are complex and expensive. MSMEs cannot manage 8-10 IT components like file server, firewall, end point controls, domain controller, backup system, storage system, mail server, DLP solutions, etc. in the network for 25 computer users. They need simple and affordable solution. As a strategic shift on MSME sector, System Integrators and Resellers will have to add IT in a Box products in their portfolio and pitch to MSMEs. IT in a Box products are simple and affordable.

BLACKbox- a Single Software-Single Hardware IT in a Box

With a mission to provide and manage simple, cost effective and innovative, Data Preservation and Information Security solutions, as Hardware, on Cloud  and Software as a Service, Synersoft Technologies is deploying disruptive technology for SMEs. Now branded as BLACKbox, Synersoft believes in process driven operations supported by comprehensive Enterprise Resource Planning software.

BLACKbox is designed with a vision of a product for MSMEs. It is a sincere endeavor towards bridging the gap. This gap is about the design approach of IT Product Companies. They design products for talented IT Professionals who integrate, deploy and maintain multiple products to achieve specific objectives. MSMEs need the IT Talent on their side to use these products. Here is the gap. Talented IT Professionals neither aspire to work for MSMEs nor can MSMEs afford to engage IT talent. In our pursuit to bridge this gap, we developed a BLACKbox that is a Single Software-Single Hardware IT in a Box solution. BLACKbox did not fit in a single traditional product category like File Server, Storage, Firewall, Mail Server, EndPoint Security, DLP Solution, Device Hardening, Application Virtualization. It is something of everything that strikes the cord. It makes it simple, integrated, and affordable.”

We were sure that “Channel would not have picked up BLACKbox without market acceptance and a proven track record. We planned to sell the product directly, acquire a sizable number of MSME customers, and then present it as a business opportunity to the channel. With ten thousand plus deployments, ninety-seven percent subscription renewals, and numerous customer success stories, we have charted our category of IT in a Box Product for MSMEs. Today with diminishing margins and narrow scope for value addition, the channel is open for new products. BLACKbox offers better margins and enhanced value addition. Channel can penetrate the MSME sector with BLACKbox that addresses their requirements. The existing customer base of BLACKbox makes it easier for the channel to sell the product with more credibility.

BLACKbox is available in three forms of deployment. 1) On-Premise, 2) On Cloud and 3) Hybrid. Many System Integrators and Resellers revealed that the majority of their revenue is from Corporates and Large Enterprises who have three hundred plus computer users. “Revenue from organizations that have more than ten computer users and less than hundred computer users is far less than that from Corporates and Large Enterprises. One cannot sell the same product to MSMEs that one sells to Corporates and Large Enterprises. It is time to penetrate the MSME sector with a set of right products meant for MSMEs. Millions of Indian MSMEs compelled to invest in IT Standardization, Data Protection, Work from Home Provisions, translates to a 15000 CR market with a high YoY growth. IT in a Box solution on-premise or on-cloud is the key to enter this exceptionally lucrative MSME Sector.