Have you ever thought about expanding your hosting business into the Indian market? According to insiders, there are many opportunities to be found for hosters in India, as the market is still rather untapped. However, what is the best strategy? What obstacles will you encounter? Also, what is the key factor for your success? WorldCloudNews asked an Indian hosting industry insider, Syed K Sirajuddin, Managing Director of Systron Micronix Pvt. Ltd., about his opinion.
We are wondering if the Indian market is really so different from other markets. So, what are the current hot topics in the Indian hosting market? First of all you have to understand the basic principle of the Indian market: it develops technology first, but deploys late. Hence, the current hot topic in the hosting industry is up-scaling from traditional shared hosting to VPS and dedicated servers. The global cloud buzz has not had much influence on the Indian economy so far, although the metro market is slowly preparing for cloud hosting. IT managers prefer going for the same old options, because it takes much time to convince their management of innovations. The management likes to have calculated risks and to play for safety. Therefore, new technology penetration in India goes very slowly as compared to the US and EU markets.
Well, that is really interesting to know. And what is your prognosis for the future? How will the market develop?
I think that in addition to the current trend towards dedicated servers, there is also a big chance for cloud players. The lower cost for cloud-based solutions could be a huge argument in the Indian market. But as already mentioned before, it will take some time before the managements are willing to put their trust in cloud-based services.
So, what’s your recommendation for foreign companies such as hardware or software suppliers who’d like to enter the Indian market?
One thing you have to remember is that the first and foremost factor for the Indian market is the cost. Any good offerings at most reasonable rates succeed in India. So you have to keep an eye on all cost-related factors and try to offer good value for the money despite exchange rates etc.
Is there any hint you’d like to give to companies exhibiting at industry fairs in India such asWHD.india? Is there anything specific one has to consider?
In India, sales work well with personal rapport. IT managers don’t like to deal with people they don’t know. That’s why reseller channels are the perfect way for conducting business in India. If you are a reseller with personal relations to IT managers, you are able to sell easily and fast. It’s really better than any direct sales from overseas. By the way, in India the corporate billing is still done post invoice by cheque rather than by credit card, though NEFT payments are also getting recognition now.
Talking about reselling, what is your own experience with reseller programs such asReseller.PlusServer? Do you think it’s a good way for anyone to start one’s own hosting business?
Yes, reseller programs work very well here in India if the vendor maintains anonymity through white-labeling. This has to do with personal relationships as mentioned before. The reseller’s relationship with IT managers helps selling straight. In addition concentrating on sales and avoiding investments on hosting infrastructure absolutely makes sense in this highly competitive market.
Thanks, Syed, for sharing your thoughts with us!
Syed Sirajuddin is Managing Director at Systron Micronix Pvt. Ltd., a global website design and development solution company and an offshore web services provider. The company has a vast clientele for website design and development services from the USA, UK, Australia and European countries that have successfully used its services since its inception.
Source : http://www.worldcloudnews.com/en/news/the-indian-hosting-market-gold-mine-or-snake-pit/