Microsoft Azure Go To Market Strategy in

India

Group 5
13P012

Arjun Murthy

13P079

J Abhishek

13P071

Deepak Murali

13P058

Sudheer Y N

13P052

Tejaswi Kalisipudi

Case Background
Increased spending on IT in India
Microsoft exhibited high growth
Microsoft traditionally offered licensed products
Azure is a pay per use model
Challenges faced by Microsoft:
Low awareness about new IT trends
Low penetration of IT in SMB sector
Underdeveloped infrastructure (internet reach & bandwidth)

Commissioned a study by Zinnov Consulting to explore

opportunities
There are 31.8 million SMBs across various
verticals
IT spend in 2007 was $6.2billion 30% of total IT
spend in India

Cloud services
Information, storage and processing capacity would be
offered as demand on services
Customer pays only if consumed
Forms: IaaS, SaaS and PaaS.
Microsoft Azure was an example of PaaS-Provides Physical
infrastructure and platforms where applications can be built
Indian market estimated to be $1 billion in 2009
Drivers

Challenges

Companies could avoid large capital

investments in IT
Improved resource utilization
Better infrastructure management

Advantage to be able to scale up

and down as per market conditions

Data privacy:
confidential information
outside their premises
Govt Regulations
Vendor-lock-in
Legal issues

Potential Target Segments

Government

NeGP (National e-Governance Plan)

Heterogenous platforms and technologies spread across diverse

geographical locations

For easy accessibility in applying for passport, PAN, ITR, etc.

Large Enterprises

Average IT spend - $3 Million in 2009-10 BFSI being largest

SMBs (Untapped and unknown, but high potential)

IT services largely un-penetrated

Low IT investment potential with a Do it for me attitude

Crunch in Capital investments

Target Customers
Large Enterprises
Strong relationship with large enterprises
Concerns over data security for large enterprises
Small and Medium Businesses (SMBs)
Huge potential to upscale
SMBs are in need of
Applications and services that do not require high capital
investments
Reliable and secure services
Government policies to encourage increasing adopting of IT
Tax rebates provided for small service industry
Outsourcing non core components
Streamlining operations
Reducing Risk
Government
Existing business relationships can help speed the project
implementation
Lower concerns of data security
Low risk projects and high government investments means

Services and Solutions

Hybrid solutions for Government organizations
Cloud services with its existing licensed based products
For SMBs
Can capitalize on growing opportunities in SMBs through
1300 ISVs
Microsoft online services(SaaS)-Subscription based
Saves small enterprises from
Huge capital costs
Hardware maintenance
Staff
Infrastructure ++
Manages the software
Cloud applications built on Azure and using SQL and
application services like AppFabric

Challenges
Fragmented SMB market-Front loaded costs
Lack of awareness
Rampant piracy
-SMB do not pay for the software as they used the pirated
Perception of lower data integrity and security
Investment in IT
--Availability of manpower
Broadband penetration in India
Lack of affordable reliable broadband connections

Business Development
efforts
Educating SMBs on the advantages of switching to cloud
based services
Identifying the pain areas and addressing them

Initial investments
Scaling up
Data security
End-To-End solutions
Outsourcing of the non core activities
Effective utilization of resources

Demonstration of successful use cases

Tie ups with ISVs
Devise a pricing strategy to cater to the price-sensitive Indian
customers