Atanu Dey On India's Development

Challenge to Indian Entrepreneurs

SaaS: How About a Middle Ground?
Guest post by Sramana Mitra

Last Fall, I wrote a widely read piece called Venture Capital in India, in which I pegged the Indian venture boom to be largely in Real Estate, Retail, and to an extent in Consumer Internet, not much in actual technology.

Last week, Sujai Karampuri made a well researched case for technology product companies in India.

In the recently concluded Philippe Courtot interview series, we discussed at length the various ways in which India and China could undercut US companies, and Philippe acknowledged that in his business (Qualys is an outsourced managed security service provider, a SaaS play), it is quite possible that an Indian company could come up with a vastly lower cost structure, and customers would switch immediately, if they are convinced about the reliability of the service.

Just to set the economics in perspective, Qualys has invested $65 Million to build an infrastructure that “is at the scale of the planet” to monitor, audit and report network security problems.

Let me throw a challenge in the direction of the Indian entrepreneurs: Go figure out how to build this same business for $30 Million, and I can tell you, you will have an absolute winner in your hands.

ps. You can read the Courtot interview here:

[Part 1] [Part 2] [Part 3] [Part 4] [Part 5] [Part 6] [Part 7] [Part 8] [Part 9] [Part 10] [Part 11]

  • madhur dhawan

    Dear Sramana,
    The way in which you hae written about Indian Entrepreneural values is incredible,

    I am an engineer by profession and into marketing and sales of telecom equipment. & an admireer of “opening up new ventures” i was workin on making a business plan. Please tell ime if i can submit this plan directly to some ventue captilaist or who will be the rigt person to contact if i want to raise capital for this plan.

    mail me on dhawanmadhur@yahoo.com

  • http://techbiz.blog.com ptc

    Cosidering the fact that around 70% of population in India is not yet “connected” through Internet, it looks better chances of commercial success for Web 2.0 ventures is in future. Though exuberant startup ventures are happening in this space these days, they have to sustain long for reap out real fruits.