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SOFTCELL TECHNOLOGIES: Banking on Microsoft
 
After becoming a Large Account Reseller for Microsoft, Softcell Technologies jumpstarted its revenues by almost 30% for 2004-05.
 

 
Thursday, September 22, 2005

 


MD: Ujwal Andhari

BRANDS: Citrix, IBM, Microsoft, Oracle, Adobe, Macromedia, SSH, Veritas, Software Spectrum 
EMPLOYEES: 185
BRANCHES: 7
ADDRESS: 301, Prabhadevi Industrial Estate, 408,Veer Savarkar Marg, Prabhadevi 
Mumbai 400025
TEL: 022-56606969
SILVER CLUB RANK (2003-04): 13

STRENGTHS
l Benefited from Symantec-Veritas and Adobe-Macromedia mergers, as it was a partner for all these brands
l Became a Large Account Reseller for Microsoft
CHALLLENGES
l Focused only on fulfillment and post-sales support, rather than pre-sales activities
l Did not specialize in any particular verticals

Mumbai-based Softcell Technologies joined the select ranks of Microsoft Large Account Resellers (LARs), which includes Wipro Infotech, Tata Consultancy Services, Sonata Software and CMC. One of the biggest benefits of becoming a LAR is that Softcell can now lock in a customer for three years, once a contract is signed, for post-sales support as well.

After becoming a LAR in January 2005, Softcell was able to rapidly grow its business in just one quarter, which resulted in a 30% growth over the previous fiscal. The company clocked a turnover of Rs 107 crore, with JFM being the strongest business quarter.

The company was also able to execute several large Microsoft deals directly with the vendor, rather than interface with distributors. This helped it project itself as Microsoft's preferred partner to customers. It also gained with good price points and bargaining power with the software major.

Surprisingly, Softcell did not add any new vendors to its portfolio, preferring to focus on those that it was already partnering with. But at the same time, it has a good mix of brands from the software space, and therefore did not miss out on much.

The one software business that Softcell has not yet forayed into is niche applications. The company justifies this decision, stating that it is more into packaged software business, than into customization.

Services contributed 20% of its overall revenues, with its offerings ranging from development, security, infrastructure management, support, hosting and consultancy. The top four vendors for the company are Microsoft, IBM, Symtanec and Veritas. The first two contribute 65% and 10% to the turnover, while the last two provide a consolidated business of 7%. The other two strong principals for Softcell are Adobe with Macromedia and Oracle.

The merger of Veritas and Symantec, as well as Adobe and Macromedia, bode well for the solution provider, as it was a partner for all these companies' pre-acquisitions. These mergers only helped it go to the market with a single suite of security and backup solutions, in the case of Veritas-Symantec and publishing with image and online management with Adobe-Macromedia.

The company appointed 20 more employees last fiscal, taking its total employee strength to 185 people. It did not focus on any particular vertical. Instead if worked with customers in banking, finance, manufacturing, enterprises and ITES segments.

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