“IMS can benefit enterprises amidst economic uncertainty”

by Ashwani Mishra    Jan 19, 2012

PadmanabhamD Padmanabhan, MD and CEO of Appnomic Systems, a global provider of software and Software-as-a-Service solutions for predictive, application-centric and autonomic IT infrastructure management speaks on the company’s growth opportunities and business plans. Appnomic is backed by Promod Haque’s Norwest Venture Partners.

Q] With the global economy, especially Eurozone and US, going through a rough patch, how is Appnomic positioned to withstand the crisis that has surfaced in every company’s agenda?
In the 2008 downturn, majority of the Indian IT service providers offered application, development and maintenance services. This was more of a discretionary spending.

Today, the market is growing leaps and bounds in the infrastructure managed services (IMS), which is non-discretionary spending. IMS can be used as a tool to benefit amidst this global economic turmoil. It will help enterprises reduce their operational cost on IT infrastructure by 25-50 percent.

Overall, the growth for IT companies may be a little flat, but I don’t find reasons to see substantial drop in the business. There can be issues around some customers not paying on time, which might hit a company like ours in terms of cash flows, but the big guys will not be affected by this approach.

Q] Given your kind of business model and the services that you offer, do you see more business opportunities now?
Yes. We see more organizations consolidating their operations now. Also, the optimization services that we have for the enterprises cut down costs, and help them improve performance management of IT infrastructure and applications. Performance management and optimization of resources is what we are best suited to execute, whether on-premise or in the cloud, keeping the compliance factor in mind.

Our solutions are in line with market expectations and are applicable across verticals. However, we have made solutions packs for specific verticals like BFSI, e-commerce portals etc. that provides them ease of use.

Q] Last year you partnered with Mahindra Satyam as their technology partner for introducing automation capabilities for their unified service management platform. Are you open to more such tie-ups with tier-1 IT companies in India?
The partnership that we had or plan to create is with ISVs and not with those who are in the same line of business as ours. It is not possible for us to enter every market. Partnering with Mahindra Satyam gave us market access, and also helped us to win some deals. It works as force multiplier. We may partner with some tier-1 IT service providers in the future.

I want to mention that we do not sell our solutions to enterprises and walk away. We discuss their pain points, take ownership of the process, automate it and then leave.

Q] What are your business plans in terms of expansion and revenue generation?
For the reason of consuming cash, we decided to stick with the Indian market initially. Also, the market access is much easier in the country than abroad. Last year we opened out on the US front, which we will look at expanding. We also plan to tie up with partners who can take utilize our tools and services there.

As of now, 50 percent of our revenues are generated from India, while the rest is from other markets. In the next two years, we expect to double our India revenues and increase our customer base, and also have access to other regions that will contribute more to our business.