“We sell through a limited channel base as we did not want partner infighting and cannibalization”

Rajendra Shah knows he is way ahead of his time, simply because he has
been propagating the concept of IPTV for the past several years, when people
were not even aware of its existence. But now that several Internet SPs,
including MTNL, are talking about offering IPTV services, he feels vindicated

Can you give a brief background about Virtual Netcomm Pvt Ltd (VNPL)?

We are a value-added distributor offering solutions around security,
especially for enterprise. We have vendor alliances with Blue Coat, SAN Rad and
Optibase. Blue Coat offers device-based caching solutions while SAN Rad offers
switching products for SAN. Optibase has middleware products for the IPTV
environment.

VNPL identifies and delivers key technology solutions for the niche
networking and security needs of service providers, large enterprises and ITeS/BPO
customers in APAC. We do not offer run-of-the-mill products and would rather
stick to handling a smaller number of technology-oriented vendors.

Rajendra Shah CEO, Virtual Netcomm

You are focusing on IPTV. Don't you think that this technology has yet to
take off in India?

I agree that IPTV is still in its infancy in India. But you can see a
growing awareness for it. This is evident from the fact the ISPs like Mahanagar
Telephone Nigam Ltd is offering this service.

Here our caching products can come in very handy. Rather than beaming the TV
programs at all its stations in the country, an ISP can install a proxy
appliance and then beam the programs locally. We have already partnered with
some ISPs for this concept and expect more and more companies to join forces
with us.

Which other technologies are you currently working on?

We are very excited about video over WAN. This is an extension of the proxy
caching solution we offer through Blue Coat's appliances. Today video
downloading and transfer has increased. We see a lot of companies, for instance,
having webinars and video casts.

Now imagine if the CEO of a company wants to have a chat with his employees.
If all the offices view the conversation in real time, then the bandwidth will
get choked with the video transfer. Our proxy appliances can store the data and
then instead of multiple streams of video transmissions, only one stream will be
activated and this will free the bandwidth for other applications.

What is your channel network?

We sell entirely through the channel but have a very limited base. We have taken
this decision consciously as we did not want partner infighting and
cannibalization. Currently there are around 12 partners. Most of these are
tier-one solution providers like Apara Enterprises, Wipro Infotech, Datacraft,
Ramco, etc. We also have a tier-two network of around five to six solution
providers, who are more regional in nature. These include Silicon Integrix and
Gemini Infotech. Now we are looking at adding some more solution providers to
our fold.

Since you are selling core technology products, what kind of handholding
do you offer to your channel?

VNPL develops key accounts especially with enterprise customers and ISPs. We
then work with our channel to offer the right solutions to our clients, as we
have the technical expertise, which our partners might lack.

We also offer them the backend support and have a 24x7 call center that gives
them guidance on pre and post-sales support. Besides this, we have a lab in New
Delhi, which has a simulated environment where partners can bring in their
customers and give them a real life experience about how the solution will
benefit them.

We also use these labs to conduct trainings for our partners. Their
representatives are also encouraged to come and learn here, free of cost.

What about certification?

Every quarter we conduct trainings for our partners. This is imperative
since we are a

core technology company and not a routing and switching distributor. These
trainings have hands-on training sessions as well as talks about resolving
post-sales issues. All this is offered free of cost. We know this is vital
because the technology is changing and also because our partners witness a churn
of technical employees.

Additionally, our principals offer online certifications for the channel.
This is between the channel partner and the vendor and is a paid program.

Why has VNPL maintained a low profile despite being in the business since
1998?

We are a team of 22 people and have four offices in the country. Last year
we clocked close to Rs 30 crore. In 2007-08, we hope to cross the Rs 50 crore
threshold.

VNPL is a technology incubator and we prefer our solutions to be known to the
customer rather than our company per se. Also, since we offer niche solutions,
it does not make sense to go on a branding spree. We prefer going to our
customers with our channel and educating them on an individual basis rather than
en masse.

However, now we are trying to make inroads into the networking space and will
need to make our brand presence felt. We will be shortly launching

10 products from a networking company.

Don't you also have an office in Singapore? Why have you ventured overseas
before establishing yourself firmly in the local market? Yes, we do have a
subsidiary office in Singapore. One reason we did this was because we saw good
prospects in countries like Brunei, Vietnam, Indonesia etc and it is easier
catering to these markets from Singapore.

Also, some of our Indian customers, like multinationals and software
technology parks, get tax exemption and therefore they need customs-free
supplies. We can offer goods exempted from customs through Singapore rather than
stocking it in India.

Besides we have a team of people working with the channel here to make our
products more popular. It is not that we are not established in the country, our
products work on the backend and therefore it is the IT team of a client who
knows us better than the front customers.

What trends do you foresee in the IP and networking space?

Slowly, all applications are becoming web-based. This is why the LAN, WAN
and SAN networks are becoming increasingly important and vulnerable. I see the
gap between security and networking narrowing and soon the two will start
merging.

VINITA BHATIA