Chennai, October 30, 2008
The Economic Times (Bangalore edition)
Bangalore-based New Lease Software, a 51-49 joint venture between Australian company New Lease Software Pty and the nascent Indian company New Lease Software, has been appointed as a SPLA (service provider license agreement) reseller for Microsoft’s SaaS (software as a service) products in India. This comes two-years after Chennai-based Kryptos was appointed for the same purpose.
“We are not exclusive resellers for these products; but we have our own sales targets in terms of reaching out to the top service providers in the IT and ITeS segment,” said New Lease COO Rohini Chandrakumar. The firm has approached Sify, Cognizant, Sutherland and a few other companies. Following the deal with Microsoft clinched by the JV recently users in the IT and ITeS sectors can avail relevant SaaS based Microsoft products through a SPLA issued by New Lease. This agreement involves payment for the software on a monthly basis as per number of users.
SaaS was touted as a major step in the software products market in 2005, when the Indian SaaS market saw revenues rise by 53% to $7 million. It was also expected that these revenues would touch $48 million by 2008. However, this model has been most attractive mainly to SMBs, which cannot afford a large capex.
“Apart from eliminating the need to invest heavily on software upfront, it gives these companies the flexibility to adjust their number of licenses according to their number of users, that is, employees. These licenses typically include all software updates within the licensing period,” Rohini said.
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