Covid-19 is Driving Demand for Cloud, Low-Code Apps
Enterprises are increasingly using low-code development platforms for greater scalability and agility. This low code market is rapidly growing and is expected to proliferate fast in enterprises in the coming 2-3 years, with research firm Gartner estimating, by 2023, over 50% of medium to large enterprises will have adopted an low-code as one of their strategic application platforms.
Delhi-based Newgen Software sees a definite shift towards digital transformation, using low code development and cloud platforms. In a recent interaction with CXOToday, Diwakar Nigam, Managing Director, Newgen Software discusses how Covid-19 is accelerating digital transformation, the importance of cloud and low-code platforms during such challenging times and the company’s plans for the coming quarters.
According to Nigam, people are realizing the importance of digital to weather the COVID storm and are opting for a unified platform to streamline their processes and meet business requirements.
“This has led to an increase in traction for our low code digital automation platform. We expect anacceleration in demand and adoption of digital solutions across all industries globally in the medium and long terms,” he said.
Growth amid pandemic
With organizations prioritizing their IT investments and are focused on providing a secure remote working environment, Newgen saw a silver lining amid pandemic.
Nigam believes that banks and insurance companies have always been early adopters of technology, and the trend will continue. Now, with COVID-19 increasing the urgency for digital, even other industries especially government organizations have accelerated their digital transformation initiatives.
“The low code and cloud capabilities of our digital automation platform are helping organizations in quickly responding to the evolving business needs, efficiently automating their broken processes, and enabling anytime, anywhere operations. The demand for digital is witnessing a significant surge. We look forward to helping our existing and potential customers with our innovative products and industry-specific applications,” he said.
“We continue to get business from our existing customers, ensuring full support to their mission-critical operations. Furthermore, we added 22 new customers in the last quarter, and expects a similar growth momentum in the coming quarters,” he informed.
Talking about the company’s key growth markets, Nigam said that the US has always been a key market for Newgen, contributing to 28% of the company’s total revenue in the previous financial year. “This year too, we have received a tremendous response, especially for our new SBA Paycheck Protection Program (PPP) and forgiveness solutions. In the last quarter, we acquired 15 new logos from the banking and credit union space in the US,” he said.
“Our revenues in the region witnessed a growth of 36% YoY during Q1 FY’21. Enterprises in the US prefer cloud-based deployments to facilitate quick implementations remotely. We expect cloud to be critical in helping us penetrate deeper into the US market,” stressed Nigam.
Riding the cloud wave
Newgen seems to be extremely bullish about cloud, more so as the pandemic has brought in a new kind of uncertainty to the business environment. As Nigam said, “Cloud is no longer the exception, but it has become the norm. We continue to see the rapid adoption of cloud across verticals and geographies. Cloud has been an enabler in these critical times, allowing for faster and agile implementations.”
Newgen has launched a new partner relationship management portal to enable and support its global channel of partners. The portal has been redesigned to make it easier for partners to register leads and get quick access to marketing and sales repository and information about the company’s platform and products.
He added, “Our cloud revenues continue to grow at a rate of 30% YoYduring Q1 FY’21. Majority of the projects in Q1 were deployed on cloud, and we expect the trend to continue in the coming quarters.”
The company has also been positioned as a niche player in the Gartner Magic Quadrant for enterprise low-code application platforms. With continued focus on profitable growth, Nigam said, Newgen has undertaken substantial efforts towards optimization of costs across all spheres of the organization.
“We are conducting online demos and successfully implementing our products and solutions remotely, thereby saving travel costs. There have been other optimizations as well in terms of operational and infrastructure costsand sales and marketing expenses. Furthermore, we are not planning for any large manpower additions at this point in time,” he said.
On the company’s plans over the next one year, Nigam said, “We are maintaining our strategy of making continuous investments for future, organic growth, and deploying capital for the right opportunities. We believe this would help us in maintaining our profitability, strengthening the organization and making it more resilient.”