Know- Current IT market, Role of IT Associations & Vendor Partner relations during Lockdown

Candid interaction with DQ Channels and Amarnath Shetty, MD, LDS Infotech and Chairman, ISODA (an association of companies engaged in the business of reselling of Packaged Software Products in PAN India). He shared his views on the current IT market scenario during lockdown due to the COVID-19 pandemic.

How is the IT Market performing during the Country Lockdown?

This is a testing time for the entire world. As you are all aware, the menace virus COVID-19 has crippled the entire world and country by country is going for complete lockdown. This was never heard or experienced by this generation of ours. Prime Minister has declared a countrywide lockdown effective from 25th March 2020 for the next 21 days.  With this lockdown entire country is witnessing a standstill status with absolutely no movement of people and bare minimum movement of Essential goods and services.

The entire world is witnessing the impact of this unprecedented development on its economy, growth, unemployment and Mass Layoffs. Many industries like tourism, airlines, hospitality have been completely out of gear and others with a steep decline in sales are reeling under severe business challenges.

We, the IT Partners are not immune from this & are equally impacted… dismal to nil new sales, dried up the collection, no sales from new customers…

However as we have a reasonable chunk of our business as subscriptions and renewals, we are focusing on that and customers also want to renew their subscriptions. Hence renewal business is ON. Customers are also looking at cloud solutions, Cybersecurity solutions, VDI solutions, collaboration tools in these challenging times.

How SIs are working these days for their customers to fulfill demand and services?

The hardware business is almost like Nill as deliveries are not happening from vendors/distributor's side and even the partners like us not able to deliver anything at customers' place. Hence SIs too are focusing more on software and cloud solutions, Remote infra solutions, etc.

Role of an IT Association (ISODA) in the current senerios. 

At ISODA we are focusing on member’s skill development, certifications and requesting OEMs to do learn from home webinars on various technologies

As ISODA, we have written to various Vendors like Microsoft, Oracle, Adobe, Autodesk, VMware, Redhat, Sophos, Fortinet, and distributors like Ingram, Redington, Compuage, tech data, inflow, etc requesting the following demands:

1. In view of the current COVID- 19 crisis, customers have started requests for canceling firm orders after the material is supplied to them.  Request you to introduce a “no questions asked” return policy along with distributors with full refunds to us.  ISODA members will definitely do the due diligence of customers cancellation request before sending it to distributors. As our members have been working hard for decades to help promote your products and solutions, we sincerely feel that it is now your opportunity to help us survive this crisis.

The licensed software business may reduce in the next few days/months as Partners may have apprehensions in taking orders from customers fearing cancellations and bad /delayed payments if there Is no clear cut cancellation policy. Collective responsibility of OEMs, Distis and partners might help the software product industry to sail through these tough times.

2. Advise distributors to defer the present due payments of March 15 to April 15, by another month and review as the situation progresses.
3. Provide extended credit period for all orders placed from March 15th to April 15th so that we carry on normal business practices and review this when the situation improves.
4. Provide additional rebates on orders processed this financial year in India as a matter of financial support to help us pass through this crisis.
5. Many customers are sending PO confirmations by Mail as they are working from Home. However, ISODA members will do the proper due diligence before sending PO to you. Request you to consider mail confirmations from customers as proper PO as well.
6. Renewals of existing licenses / live subscriptions which if allowed to lapse can have a severe impact on the existing infra of the end-user who has already invested in. Request you to grant a grace extension to active subscriptions for a defined period ( for example June 30) while we as partners would continue to pursue the renewals but the systems will at least continue to function.

License/subscription when renewed before the 30th of June would commence on the actual date of expiry so in principle the OEM is not losing any revenue,  just facilitating business continuity to those who have entrusted their faith in their solutions

We have also written Finance minister on to consider the following points:

• Solution for Large dues stuck with the government
• Exemption from tender fees and Earnest Money Deposit (EMD)
• Introduce regulation to mandate buying from MSMEs
• GEM platform being manipulated and misused
• Due payments to MSMEs be fast-tracked and released
• Fiscal and tax sops to MSMEs including an extension in  tax and GST payments
• Concessional / bridge loans for working capital purpose

How vendors are performing business practices during the lockdown?

Vendors are also sensitive to our requests and assured to positively consider our demands. Vendors do a lot of marketing activities with customers in terms of positioning their niche technologies. Vendors conduct a series of technology webinars to partners to improve the employees’ skill sets. Renewal orders and subscriptions are done on top priority. Overall they are in regular touch with Partners and are sensitive to our challenge as well.