X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Software: Emerging opportunities - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 30, 2002

    Software: Emerging opportunities

    At a time when most segments of the software industry witnessed a downturn some segments have bucked the trend. The data storage management function has grown significantly as a segment, presenting itself as an opportunity for the domestic software companies. Before we delve deeper we would like to elaborate upon the concept.

    As companies increasingly adapt to information technology, they generate more and more data. The amount of data stored has increased considerably compared to just a few years ago. And therefore, data storage and management becomes crucial to day-to-day operations. What further adds criticality to data storage is the fact that industries like banking, software, telecom and insurance rely heavily on gathered data. Loss of data could bring the operations to a grinding halt. September 11th incident has also highlighted the need for disaster recovery systems (basically remote back up systems), which inherently entail a great deal of data storage.

    The above stated factors have led to a need for efficient storage and management of data. This is where data storage management software comes in. Data storage management software enables the organisation to efficiently store data and to enable data to flow seamlessly through the organisation. Traditionally the data storage management (DSM) software requirements were serviced by the hardware vendors. This was acceptable as long as the customer sourced all is storage hardware from a single vendor.

    As data storage needs multiplied on a regular basis there was a push towards limiting costs on this front. DSM software gives the customer a choice to source hardware needs from various vendors to reduce storage costs, as most of these software are hardware independent. According to market research firm IDC, the overall data storage management software market is expected to generate revenues of Rs.509 bn ($10.4 bn) by the year 2004. IDC Indiaís latest report on the storage market in 2002 says that, there has been a 74 percent increase in the storage management market in the country, from Rs. 416 m($8.5 m) in 2000 to Rs. 725 m($14.8 m) in 2001.

    In the Indian scenario the opening up of the telecom and insurance sectors has been a boon for the data storage sector, both for the hardware as well as the software sectors. The wider acceptability of India as a base for disaster recovery operations has been a shot in the arm for the sector. Currently sectors like banking, finance, telecommunications, manufacturing, IT-enabled services and data centers are driving growth for the industry. With wider acceptability of CRM and ERP packages among Indian companies the need for data storage has increased manifold.

    Indian companies currently act as storage integrators for data storage solution providers like Veritas, Cisco, Sun, EMC and Compaq. Storage integrators are the people who actually set up the storage hardware and software on the client side. Indian companies like Wipro, Infosys, Apara Infotech, CMC and Tata Infotech perform the function of storage integrators.

    In spite of all these positive developments this segment is still at a nascent stage in India. Lack of awareness has also led to poor understanding of the need for efficient data storage and the benefits that could be realised by way of DSM software. The Indian software companies have an advantage as they can leverage advantages in other segments of the industry to capture as much of this market as possible in the near future.

     

     

    Equitymaster requests your view! Post a comment on "Software: Emerging opportunities". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Ankit Shah's First Five Insider Recommendations (The 5 Minute Wrapup)

    Aug 5, 2017

    How to get exclusive insider recommendations from Ankit Shah.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE IT


    Aug 22, 2017 01:06 PM

    COMPARE COMPANY

    MARKET STATS