Subba’s Serendipitous moments

October 3, 2009

Salesforce.com into financial applications

Unit 4 Agresso has now teamed up Salesforce.com — the poster boy of SaaS to create FinancialForce.com that will produce SaaS based accounting, and financial management applications.

Well SaaS has been growing, but CFOs are mostly conservative and would not want to the data to be in the cloud. Hence the success of Financialforce.com will be keenly watched.

Now there are several interesting issues that come about with this joint venture.

For a start, it seems that Salesforce.com is a minority investor. Salesforce.com’s presence will undoubtedly create higher visibility for SaaS based financial applications. Hence other vendors will follow suit giving the SaaS proposition a greater momentum. Enterrpise software vendors who offer products in the mid market space like Oracle, Microsoft and SAP will have to respond quickly to this trend.

But with this association, Salesforce.com also seem to be sending mixed signals to its App Exchange partners who use the Salesforce.com’s Force.com platform to build new applications. Well, they could build an application only to realize that Salesforce.com might one day compete with them. Recent acquisitions by Salesforce.com in many of the App Exchange parnters’ businesses have not made Salesforce.com popular with many of the partners. Yet, there’s no compelling SaaS platform currently.

It looks like Salesforce.com needs to clearly clarify its positioning, strategic goals and its partnering model.

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August 2, 2009

Who is Google’s rival — Is it AT&T or Apple?

By now everyone is aware of how Apple managed to yank out Google Voice applications from the App Store. iPhone users will not have access to this application. This has caused an uproar in the blog world with some reputed bloggers mincing no words. The mainstream media has been quiet, proving once again that the blogging community is increasingly taking the lead in breaking news.

Unfortunately everyone who is involved — Google, Apple and AT&T have maintained a conspicuous silence.

Google Voice is clearly a major disruption. Through Google Voice, people can have one number for all of their phones, free long distance calling, and free text messaging. Two of these would obviously cut into AT&T’s bottom line, since users would no longer have to pay AT&T’s exorbitant service charges for messaging and cellular long distance.

It also is apparently easier to use than the dialer application from Apple itself.

So, in this case has AT&T been firing from Apple’s shoulder? I would believe so but for the fact that the Google Voice software works on Blackberry and so are other VoIP applications. I am not sure though whether the VoIP applications are allowed to run on AT&T’s networks though I am sure many other devices will be able to run Google Voice applications once Android phones are released in the market, which should be soon.

So, I am not entirely sure that it is AT&T which is exerting the influence to reject the Google Voice application from Apple’s Appstore.

Can it be Apple then? The only plausible claim that Apple can make is that it is a duplication of functionality as far as the dialer is concerned and that it could leave the customers “confused”. Clearly the AppStore is owned by Apple, and what it allows on the Appstore is their prerogative, but yet such a poor defence dents into Apple’s credibility. It cannot use a near monopoly position to thwart fair competition.

So, who is it that wants to block Google Voice? For those who do not know Google’s CEO — Eric Schmidt sits on the Apple board.

I think the players owe an explanation. Does it not become a fit case for the regulator (in this case the FCC) to investigate?

April 15, 2009

Satyam clearly overvalued

Subsequent to my earlier post where I mentioned that Tech Mahindra seems to have over paid for Satyam, got an email from an ex-Satyam employee(who prefers to remain anonymous) He mentions that Satyam’s annual revenues are more likely to be between $1.3 – $1.5 billion.

If that be the case, then Tech Mahindra has valued Satyam at a revenue multiple of 1X revenues which is quite high by industry standards in the current environment. Even Accenture a blue chip with impeccable credentials is only quoted at 0.7X revenues.

So, it indeed looks that Tech Mahindra has over valued Satyam.

It is also intriguing that since the beginning there were no serious contenders for this business — be it from US or Europe multinationals or even from Indian IT service providers. L&T which was considered the favorite to win was only trying to reduce their average buying price since they had acquired 12% of Satyam for a high price in the past.