Archives for February 2016

Old is no longer Gold, teaches the RUTHLESS Recession

Dear SME Friends,

This February is giving us all unwholesome news all over. “Exposed” Indian Banking System,“Discharged” Chinese Economy, “Outburst” over JNU students, and “Speculations” on Budget.

Modi ji, must be feeling like a superhero in public, who in fact, has lost all his powers, and nobody knows about it.

This is the journey to touch the nearby bottom. This will correct the markets to realistic values. This will ruthlessly punish the “Overpriced Products” and overwhelmingly welcome“Value for Money” innovations (disruptions). Well, I see awesome opportunity in this chaos.

Human race, adopts the change only and only when they have to. We are naturally un-proactive. Such chaos actually help innovations (read disruptions) to spread like fire, for the sheer value they give.

Let me share an interesting data with you. Capital spending on Information Technology by SMEs peaked in year 2011. This was the time when SMEs whole-heartedly invested in Servers, Firewalls, ERPs, Microsoft Licensing Storage, and Information Security Solutions. Investment was whole hearted, but return on investment realized was half or quarter-hearted. It always happens during prosperity. We over-invest and create life time burden in terms of liability to maintain those lavish assets.

Let me make a statement. If you think that you are investing in IT, you are mistaken. You are not investing in IT, you are expending on IT. Reason being, IT assets are mostdepreciable assets.

Fast forwarding to today,

Its been 5 years, those assets are exhausted, worn, torn and need replacement.Microsoft licenses bought in those times, are irrelevant now as new hardware will not support those old phased out software like windows XP and server licenses.

Look at our SMEs, they are surrounded by difficulties, poor markets, extended payment cycles, unreasonably high tax rates, and fierce competition. Well, these all intensify when you near the bottom. One of the very important point is, whatever are the circumstances, over last 5 years, they have created unavoidable dependence on IT. No matter, how bad are they doing in business, they can’t escape this round of IT investments (read expenses), just, just, and just to be able to run the show.

Here, I see tremendous scope for innovations (read disruptions) to spread like fire. Cloud solutions to minimize capex, remote infrastructure management services, compact multipurpose hardware like BLACKbox are going to be unicorns in SME-IT. They will ruthlessly substitute traditional IT solutions in times to come. It has already started.

Our innovation BLACKbox avoids over-investments (read expenses) on 7 difference systems, File Server, Firewall, Mail Server, Storage, Backup System, Domain Controller (Server Licenses) and Information Security Solutions.

Expense on BLACKbox is less than one third of expenses on these traditional systems, that too without compromising on features. We are ruthlessly disrupting IT industry. Some say, we are shrinking IT industry as we are selling full-featured solution at one third the cost. We say, we are growing IT industry by making these solutions more affordable which will make more SMEs standardize their IT, who avoided till date due to lack of afford-ability.

Synersoft is going big way, If you are on verge of deciding whether to buy BLACKbox, let me share that BLACKbox will be more expensive post 31 March 2016. Those who are tracking us, know, we always welcome new year with price hike in our indigenous innovation, that too ruthlessly with growth in volumes.

Best Regards,

Vishal Shah
Founder and CEO,
Synersoft Technologies Pvt Ltd
www.synersoft.in

Hitting the “Reserve Mode”, feels like dying…

Dear SME friends,

Remember that system of reserve fuel in our good old Bajaj Scooters? It literally stopped to tell you that it is in reserve mode and you need to refuel. Then you turn that valve in reserve mode as a token of acceptance of emergency and it starts again. And you head towards nearest fuel station.

And what if you don’t see fuel station till the horizon?

I believe, it has been quite a long since my SME friends have turned the valve in reserve mode.

How long have you been surviving in reserve mode? How far may you go in reserve mode?

In these challenging times, most of SMEs, are fighting price wars to keep operating at least on positive contribution margin to manage fix overhead costs, to minimize the burn or say bleed for survival or existence.

Most of the SMEs have no idea, how long this burn / bleed last?

It is high time for restructuring. I see great difficulty in accessing SME funding from banks and institutions, despite genuine efforts by MSME board. Why?

I see a circle of brokers / gate keepers around the actual lenders who maintain this difficulty.

There are 3 challenges

1. In difficult times, SME owner’s focus is on getting business to keep the show going, he can’t focus on financial matters.

2. He gets too occupied in managing financial uncertainties arising out of extended payment cycle and can’t focus on getting business.

3. When he wins business, his finances are not adequate to materialize the orders.

They becomes desperate and take refuge of one of the gate keeper / broker and is obliged by funds at high cost and brokerage.

Synersoft, being an SME focused technology company, has nothing to do with finance business.

But we owe a lot to SMEs. SMEs are the ones who adopted our disruptive technology BLACKbox, they are the ones who promotedBLACKbox in their fraternity, they are the ones who have crowned us as a technology leader in SME segment.

They have elevated us far beyond the status of a vendor to SMEs. Even banks are now financing BLACKbox procurement. No words can express our gratitude to these entrepreneurs who never give up, however the times are tough.

A friend in need is a friend indeed. It is our turn now.

We have invested in technology for SMEs to apply for unsecured SME finance on which they can directly upload their documents visible to group of lenders. They can access SME funding without any broker or gate keeper with utmost transparency. For SME’s assistance our backoffice will coordinate at no cost.

This is our way to value relationship.

Don’t worry if you are running in reserve mode. Use our Knowledge Center Services for the assistance.