Magical Brands

It is a minefield out there. The IT

industry, by the sheer number of technology proliferation, is a slugfest of brand names.

Some will survive, and some won't. While it is always a danger to stick your neck out,

there are some brands which we think will prevail. A sampling:

SAP R/3



The ERP tongues in the country have been wagging more vigorously for quite some time now.
The big and medium-size corporates, having been shaken up by the onslaught of best

business practices across the globe, are now giving a hard look to their existing, in many

cases antediluvian, processes. And when they hear paeans of how they can plan a sprawling

enterprise, they cannot but lap it up! The song with the best musical appeal thus far-and

for some foreseeable future-is SAP R/3. In the Rs 75-crore package ERP software market in

India, SAP leads with about 30 percent marketshare (IDC India figures for 1996-97).

Furthermore, SAP's revenue increased by 130 percent and it bagged major clients like the

Tata Group and Mahindra & Mahindra. The other main players are QAD, SSA, Baan, and

Ramco. However, SAP enjoys the highest mindshare. Last year, SAP released a

country-specific version of the R/3 package.

The emergence of technologies like VSAT and

ATM in the country has also led to the increased usage pattern of ERP packages. This is

because these technologies are meant to enhance the data interchange and decision-support

capabilities of corporates spread across different geographical locations-and coupled with

ERP can do wonders to the resource-sharing capabilities of companies. A strong indicator

to continuing good health of SAP R/3 is the recent partnership between global consultant

Price Waterhouse Associates and computer maintenance giant CMC Ltd. This is expected to

tremendously increase R/3 usage among PSUs.

Windows NT



Behind the mounting success of this multi-user operating system is the Microsoft might. NT
stands for New Technology. Does it? For, the OS is already eating into the marketshare of

Unix (though it's still far from sounding the death knell for good old Unix). An amazing

thing about NT is that Microsoft has put the likes of Compaq, IBM, Digital, and Wipro in

the frontline to push it rather than directly do it (remember Win95 hoopla?). It goes

without saying that the Redmond giant has shelled out enough money even before shipping

this product to make that kind of spiralling success happen. The prevailing version, NT

4.0, has the look and feel of Win95 and, on top of that, runs most of the applications run

by the latter. This not only carries forward the brand equity of 'Windows' name but also

saves a lot of teething troubles for the OS, given the substantially large base of Win95

users. Another thing that is going in favor of NT is its popularity as a platform among

application developers. Microsoft is apparently building into the OS capability for

languages other than English. Also, by allowing for relatively easier migration from

NetWare the company is gaining an edge. Yes, one big hitch for onward, rather

enterprise-wide, the march of NT is its alleged lack for running large networks. Well,

version 5.0 is over the horizon (it is currently in beta)-and the trumpets can already be

heard.

Pentium II



If there's one company, one brand, or one product that has prevailed upon others in the IT
industry, it is undoubtedly Intel. The beauty of the Intel Inside brand is that it sticks

out as a consolidated entity despite its sundry amorphic existences-Pentium, Pentium Pro,

Pentium MMX, and now Pentium II. The latest monster of a chip Pentium II (P II in short)

is crying wolf for attention. The ubiquitous Intel bunnies that one saw somersaulting

around the chip factory are now flitting in and out of a huge 'II'. The company must be

praised for spewing out a new processor while making arrangements for the slow or

simultaneous death of the existing ones. And the birth of Pentium II has been heralded

more loudly than any other-in fact, the way this 'baby' is already taking on 'adults' is

no child's play. The company is betting on taking 'commodity advertising' to new

dimensions, with lots of promos like 'the visual connected PC'. Apart from the much-touted

features like Dual Independent Bus architecture and never-before Java capability, Pentium

II has the backing of virtually everybody who has got do with making, assembling, or

distributing PCs and computer systems. The Genuine Intel Dealer (GID) success saga clearly

points to the thrust which Intel chips (Pentium II being the latest entrant) will get in

India for times to come. To a company whose chips are gobbled by more than 90 percent of

the world's products, serving P II on a silver platter is only second nature. In India

especially, as it has the potential to pull together an entire industry, the 'couch

potatoes' here are sure going to devour this delicious chip.

IBM ThinkPad



The Indian notebook/laptop market stood at about Rs 190 crore in 1996-97, up 54 percent
from the previous year's figures. Tata-IBM stole the show with as much as 37 percent

marketshare-way above 8 percent scored by its nearest competitor, Wipro. The notebook

market being one of the most high-end ones is the least price-sensitive, and the past year

has seen a multitude of these slim machines throng the marketplace. However, it is IBM's

brainchild ThinkPad-that enjoys the top-of-the-mind presence-with the credit going to Big

Blue brand name more than anything else. Notebooks are, if anything, still largely being

considered as a 'must-have' by the CEO community. Besides, there has also been some

penetration in the senior and middle-level management. A point to note in the context of

notebook proliferation is that it has traditionally been the last to incorporate the

latest in technological innovation (as compared to workstations or desktops, for

instance). But all that is changing fast, with larger screens, active matrix displays, and

easy-to-use touchpads. Even in the high-end segment there's further segmentation in the

notebook market, and ThinkPad more or less figures in the 'premium' or 'power user' slot.

The eponymous suggestion of 'power thinking' is another strength that makes ThinkPad the

name to reckon with.

Zenith One-Up



Through a slew of advertising blitz and smart cost-cutting measures, Zenith Computers has
made a name for itself in the PC market in the country. Apart from PCL and HCL, Zenith has

been able to turn the heat on the PC market in the country with attractive configuration

for the mass market and an even more attractive price advantage. The Indian PC market is

dominated by the unorganized sector-taking the gray market and the GIDs together-but that

has lately been changing. The ad refrain that the company is using for One-Up PCs-MNC

Quality, Indian Prices-is working pretty well. Another factor contributing to the growing

popularity of the One-Up PC is the rising share of the SOHO segment. This segment is both

price-sensitive and quality- and authenticity-conscious. And a brand like One-Up offers

the



Indian users all they can possibly look for.

HP DeskJet



Laser is laser and dot matrix is dot matrix, and the two shall never meet. Well, that
could have been the scenario until some time back. Along came the printer supremo HP and

changed the way computer users look at these peripheral machines. Its DeskJet range of

inkjet printers have appreciably bridged the gap between laser and dot matrix printers

and, in fact, created a niche market in itself. With many others following, to get a share

of the enlarged market pie. In the year 1996-97, about 50 percent of the printer market

consisted of lasers and inkjets-the share of inkjets gradually increasing. While DMPs have

the largest installed base, the overall market continues to decline. Compared to this

scenario, the market for inkjets in 1996-97 grew by more than 53 percent over the previous

year (IDC figures). In 1996-97, HP held a marketshare of as much as about 72 percent,

though competition from Epson and Wipro is hotting up. Nevertheless, it will be HP that

will continue to rule the roost for at least another couple of years.

NetWare



Other than Unix, India has taken to Novell NetWare in a big way over the years. The
networking mantra, alongwith the intranet/Internet paradigm, has been doing the corporate

rounds (the literal chanting, at times, 'outnoising' the implementation!). And with the

ISP fever catching on, more and more companies will be looking at getting their acts

together. Since NetWare already occupies the lion's share in the Indian marketplace (83

percent), the logical extrapolation is to accord a majority, if not the lion's stake in

the intranet/Internet networking pie. This especially seems to be the case, going by the

installed base as well as the general 'red and white' brand awareness of the company's

products. Last year, Novell splashed a lot of ads on its IntranetWare, telling corporates

how easy it is to migrate to the new software and upgrading the powers of their 'existing

intranets'. This year, NetWare 5.0 will take the place of IntranetWare, and is touted to

be the Novell's first 'pure' IP (Internet Protocol) network offering (which may go down

well with the users once the version starts shipping, expectedly, in June). Another

benefit of the version is that it supports both Java and CORBA-based solutions.

Java



Techno-minds the worldover have been grappling to figure out if 'the network is the
computer' for about 14 years; and that may go on for still some more time. Does that mean

the network too is a kind of development platform? Well, if coffee addicts are to be

believed (and there are quite a few of them), the answer is Yes. Just when Java was being

dismissed as a not-so-sippable brew of a not-so-successful attempt of engineers to get

different electronic devices talking to each other, the Web came to its rescue and the

browser became its Jehovah. And once the conversion from bitter brew to Holy Grail took

place, it has never looked back. Arguably the most 'open' of all platforms, Java, has come

here to stay. People all across the globe, on a large scale lately in India too, have

adopted the language for its unique ability to enable the building and deploying of

applications that run across any network, on any operating system. In the next few years,

this uptrend is certain to percolate more than ever before.

Oracle



Oracle, more synonymous with RDBMS than its competitors, is also associated with the more
sophisticated aspects of enterprise data management-ERP and datawarehousing. Not only does

Oracle lead in the worldwide individual RDBMS sales, but it also is the preferred database

for ERP-being compulsorily bundled with its own ERP, as well as with a considerable

percentage of SAP and Baan installations. The Oracle brand commands equity just second to

Windows in the software market. Oracle's problem could, however, come from the

applications market. Unlike the traditional RDBMS market, where it has few and

not-so-strong competitors, the ERP scene is peppered with players who have proved to be

stronger than Oracle. As a consequence, while Oracle RDBMS continues to be the database

engine of choice in many an ERP brand, Oracle's own products such as Oracle Financials and

Oracle Manufacturing continue to lag. Here the leadership is taken by SAP, Baan,

PeopleSoft, QAD etc. Another danger to the Oracle brand is the company's pre-occupation

with the Universal Server, which in the past could not capture the imagination of the

corporate users, the company's mainstay. While the brand continues to command a leadership

in terms of mindshare, Oracle will have to ensure that it consolidates its share in the

RDBMS market while maintaining its focus on the apps market.

Lotus Notes



IBM's $ 3.3 billion cash spending on Notes, hopefully has been made to retain its
leadership in the groupware market. The only problem is-Microsoft knows that. Notes is

also proving to be the key middleware solution for the enterprise market and is pushing

and consolidating Big Blue in markets where IBM had lost to other younger players. Notes

is at least a generation ahead of its nearest competitor-MS Exchange. Actually, Notes'

biggest threat is GroupWise, which is hamstrung more by Novell's marketing problems than

anything else. Lotus and Notes have better kept themselves floating by innovating, and

also seducing other hardware vendors to OEM deals, thus retaining IBM's interest level.

Microsoft may just find a tough fight on its hands.

HCL



HCL is probably one of those few brands in the worldwide IT industry, which is involved in
nearly all aspects of IT. From software exports to VSATs to hardware in product portfolio,

and from manufacturing to distribution and outsourcing services. And in the process, the

group has gained considerable respect both inside as well as outside the country. So much

so that the various surveys conducted by independent agencies show that the brand equity

of HCL is unsurpassed by any other in the IT industry. Presently, HCL Corp. is a Rs

1,705-crore Group (1996-97). Chairman Shiv Nadar expects the entire gamut of the

outsourcing activities, for which he has a plethora of alliances, to pay off in dollars to

reach the announced target of Rs 10,000 crore by the year 2000. And for that HCL is not

just banking on the US and Europe for contracts. The company has gone ahead and set up a

subsidiary in Singapore to address the near virgin Japanese market and the other East

Asian markets. Nadar's strategy is to recruit people with entrepreneurial skills, and

providing them with the freedom to take initiatives. This has kept the enterprising spirit

of the Group which presently boasts of 10 companies and scores of subsidiaries in its

fold.

Compaq Presario



Probably the most recognized brand in the home computer market today, the Compaq Presario
juggernaut is making high inroads into the Indian market too. With aggressive selling

tactics, the company is challenging all other brands in the market with its focus on

retail sales. The machine is a hot favorite through the retail market. Compaq has set up

stores in not only the metropolitan cities in India, but is also pushing the product in B

category cities like Jaipur and Lucknow. A well-engineered product, it is also bundled

with popular home application software, games, and encyclopedia. Commanding a solid brand

equity, the well-packaged Presario home PC, is presently giving even the domestic home

market vendors a run for their money. But there is one interesting thing about the

product. Presario is priced a little higher than other brands in the home market. Till

recently, it has worked as an ego boaster for the upper middle and upper class buyers. But

with the market broadening, price may become a deterrent for buyers, especially in light

of the GIDs emerging as an alternative in terms of providing a good package for a

broadbased price-sensitive market.

Internet Explorer 4.0



The latest version of the product from the Microsoft stable, is probably not at all
incurring any marketing spend for the company. The US Justice Department is doing it for

them free of cost. But anyway, it is not considered as a product by Bill Gates himself, so

why there be a promotion at all. Gates terms the browser as the feature of the OS. And

when one installs IE4, his desktop interface becomes a browser instead and the various

directories and files become web sites and web pages. Moreover, IE the fourth is a

collection of functions and services, that not only helps the users but also aids

programmers to incorporate it into various applications to Internet-enable them. Even

Lotus Notes uses a customized version of IE 4, the look and feel of which is more Notesy

than Windowy. Other software which include multimedia applications are also on their way

to incorporate the IE technology or they will be included in the IE 4 browser. No doubt IE

4 is a great product in terms of innovation of various functions and updates, but the

judgment in the case against Microsoft will decide whether it retains itself as a product

or becomes a feature of the Windows OS.

Computers@ Home



The latest magazine from the stable of Cyber Media India Ltd, publishers of DATAQUEST, PC
Quest, and Voice & Data, has created a whole new market in the IT publishing arena.

With a circulation of 35,000 and a readership of more than one lakh within one and half

years of existence, the magazine is the leading home computing magazine in India. Indeed,

the first of its kind in the country, it contains all the ingredients-reviews of home

software, educational articles, and further aims to capture the imagination of the home

users-children, housewives, executives taking work home etc. Not only has it created a

niche for itself in the publishing market, it is also acting as a catalyst in the market

for home computers and software. With the market for home IT products on a roll in the

current year, Computers@Home will play a significant role as not only an information

source, but also as a guide for the home users.

Unicenter TNG



Computer Associates' one of the leading products, Unicenter TNG is making huge inroads
into the Indian market as well. Introduced in January 1997, the product is claimed to be

the most important in the company's 20-year history. TNG stands for The Next Generation.

And according to the company's annual report, 'the next generation is shipping today'. In

fact, CA's sales were up 22 percent in Q297 ending September 30, mainly due to the

Unicenter TNG sales momentum. The software has a 3D virtual reality interface, and

innovative Business Process Views. The enterprise network management software has already

got two major orders for implementation by Mastek and Infosys, in that order. The Rs 2

crore package is a high-end package to run and manage the enterprise network over LANs and

WANs spread over a huge geographical area. Unicenter TNG manages networks, systems,

databases, and applications for the user company.