Sonata Software stares at revenue dent as Microsoft eyes direct licence sales
Sonata software, which entered the 1 billion dollar Income Club last year, is expected to receive less jobs selling Microsoft licenses, compared to at least three people.
According to experts, IT services company Microsoft receives more than $ 500 million from selling product licenses, which makes it one of the only major IT outsourcing to sell such licenses. This turns into almost half of the $ 1.2 billion income.
“Microsoft is going directly to a few big customers, Mic said Samir Dhir, General Manager and General Manager of Sonata Software. Mint On June 26th.
Bengaluru -based company said that he saw this possible movement as a threat.
“Is this a threat we see, yes. Does it give us sleepless nights? Maybe not. Maybe not. Something we watch carefully. Here and there may be one or two quarters of a quarter of a quarter.”
Analysts said Microsoft’s movement aims to reduce costs.
“Microsoft says they will go directly for direct billing for large customers who need more than 10,000 languages because they do not want to reduce costs and possibly IT external resumers to keep the extra deduction from selling these licenses.” He said.
“This will be a gradual decision, but Sonata focuses on selling more licenses of other partners, C Chandra said.
Microsoft did not answer Mint Queries.
Microsoft’s move comes behind the technology company by providing less technology service to Indian outsuted outdoor resources, including LtimindTree LTD due to its own AI capabilities. Mint Report 4 May.
In a rare case, the DHIR called on April 16th than one of its best customers on the April 16th Stock Exchange. Mint The report turned out to be Microsoft.
He added that Microsoft did not try to deal directly with customers for the first time.
“They’ve tried this model in the past. Okay, it didn’t work. So they’re trying again. This time it may work, this time may not go, Dh Dhir said.
Sonata Software receives approximately 30% of its business from selling the rear -end CT infrastructure for international businesses and the remaining 70% of the software product licenses to companies. Microsoft’s license re -selling is most of this business, Google, Oracle and other licenses.
According to the company management, Sonata has about 7,000 employees. This turns into the bringing of approximately $ 171,428 for each employee for the company, which is the highest of the country’s largest IT external users. Indeed, if there is a hit in Microsoft’s undergraduate business, it will exceed Sonata’s income per employee, as it is due to selling software licenses that need less than three quarters of the company’s job.
A second analyst attributed the transport of Microsoft to his client sensitivity.
“Microsoft is directly interested in large customers because they want to protect their own private sales and support personnel for such accounts,” said a Mumbai -based analyst in Mumbai -based anonymity.
For now, Sonata is not uncomfortable and wants to expand the customer base.
“We guessed this. We are working on risking the business in multiple ways,” Dhir said. “So we are not the seller of the top 10 Indian companies. We probably say the seller of approximately 400 to 500 companies in India. We also expanded the pyramid (licenses) we sell,” he said.
He added that the company also sells software licenses of other companies, including AWS, Oracle and Google.
Sonata has counted Microsoft as a customer for more than 30 years, and according to the FY24 report, it is among the first 1% of Microsoft’s partners.
Following the July-June financial year, Microsoft ended its previous financial year with a revenue of 245 billion dollars. In other words, Microsoft, the world’s largest IT services company, Accenture PLC.
Lower than Microsoft is now a call to wake up for Sonata, who is now expected to lose business from IT outsourcing unit to the undergraduate selling unit.
HomeGrown IT services companies work in two ways with Microsoft.
First, as system integrator for Microsoft’s software products. If a Burger chain wants to use Microsoft’s software to manage the sales and billing infrastructure, it can buy the software from outsourcing such as Sonata Software. Sonata will not only access the Burger chain software to Microsoft’s software, but will also fit the software into its computers and earn extra money.
Secondly, IT service providers send engineers to Microsoft to manage software products. These engineers provide functioning and rear end requirements of Microsoft’s software sold to companies such as ice cream chain.
For Sonata, both businesses from Microsoft are under pressure.
