Old is no longer gold, Teaches the ruthless recession

November 21, 2016
Hitting the “reserve mode”, feels like dying…
November 21, 2016

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 likeBLACKbox 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 thatBLACKbox 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

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