31st December 2001



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Spectrum Software bullish on software configuration market

Srikanth R P/Mumbai

Indian software companies have relentlessly pursued the goal of reaching the highest standards in quality. Not surprisingly, as of October 2001, India had 32 companies at SEI CMM Level 5 assessment, when there are only about 58 organisations across the world which have acquired this assessment. The focus on quality on the part of Indian majors has in turn attracted many global vendors like Rational and Spectrum Software, who have started looking at the Indian market in a big way.

Says Sarathi Srinivasan, president, Spectrum Software, “We undoubtedly have a big market potential waiting to be tapped in India. One of the primary reasons is the fact that India has the most number of CMM-level 4 and CMM-level 5 certified IT organisations, all of whom are very process oriented. The worldwide configuration management industry according to OVUM is currently pegged at $2.5 billion and projected at $6.5 billion by 2005. According to OVUM, the worldwide sales distribution was 66 percent in the US, 26 percent in Europe, while the rest of the world contributes about 8 percent. So if we assume that even if one percent contribution will come from the Indian market space with its vast number of IT organisations, it converts to a mammoth $65 million opportunity. This potential is bound to grow as the IT industry continues to flourish.”

Though Rational has a major presence in the Indian market, Spectrum believes it can capture a significant pie of marketshare because of its entry-level pricing. This could give Spectrum a foothold in sectors like small and medium companies that don’t buy Software Configuration Management (SCM) tools since they are very expensive. Adds Srinivasan, “If we consider all IT organisations in India and take about 20 percent of the software engineers amongst these organisations, we can easily target 15,000 to 25,000 licenses. Our first year goals are 1,000 licenses and the second year target is 10,000 licenses. The third and fourth year goals are 1,00,000 and 1 million user licenses. This translates to $0.6 million, $6.5 million, $65 million, and $582 million for years 1 to 4 respectively for SpectrumSCM.”

Industry analysts believe that Spectrum could score over its competitors since it is a 100 percent Java-based product, which makes it platform independent. The product offers Source Configuration Management, which is not confined to just software configuration or even source control, but a whole product life-cycle tracking of product source, whether it is documents, images, Web pages or standard software source code. Every source is tracked from the day it is introduced under SpectrumSCM, thereby effectively controlling all product builds or releases.

Though the slowdown in the economy has affected the market for such tools, Spectrum is banking on the constant quality focus of Indian software companies. Explains Srinivasan, “Fundamentally, though organisations are watching their budgets, many organisations in India today are trying to improve productivity by improving their processes using SCM tools.”

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