Insight

Proquest markets utility mantra to SMBs

Pune-based Proquest Solutions offers Netsuite, an integrated ERP, CRM and e-commerce suite that it offers on an ASP model, says Srikanth R P

When application service providers (ASPs) first came on the horizon, they failed to live up to their own hype and faced huge problems with respect to service levels and scalability. Hard lessons have been learned and some have survived to tell the tale. Salesforce.com, SalesNet and NetSuite are the successful flagbearers of the new ASP brigade. While the high end of the market continues to be dominated by the likes of HP and IBM with their respective flavours of utility computing, it is the SME segment that interests ASPs.

The ASP Strategy

The ASP model is a refreshing change from the traditional mode of software licensing where you purchase enterprise software for a huge amount and keep on paying for upgrades. Earlier the ASP dream collapsed as most ASPs failed to deliver. Short-term players shut shop but a few stuck around and tried to match enterprise application players on the basic features. This new breed is trying to change the image of ASPs from being seen as a failed experiment to a practical concept.

Says Biswas Nair, managing director, Proquest Solutions, "Opinions on the ASP model have ranged widely from being seen as the future of software to being considered an outdated concept in the last couple of years. The truth lies somewhere in between.” Initially, ASPs despite the promise could not deliver on functionality. Now the current batch of ASPs such as NetSuite have the functionality. “We are moving towards functional equality with applications from Siebel, Peoplesoft and SAP. First and foremost, we evaluate whether the application performs the way it is required to. Then we study how it is delivered. Once these factors are considered, we crush them on cost,” adds Nair.

Integrated approach

ASPs are moving towards functional equality with applications from enterprise software biggies. Biswas Nair Managing Director Proquest Solutions

Looking at the maturity of ASP products, Proquest has NetSuite, an integrated e-commerce, ERP and CRM product delivered via the ASP model. Unlike other companies which are trying to compete on cost alone, Proquest is trying to bring in the integrated model of ERP, CRM and e-commerce.

The company is actively targeting customers who are struggling with fragmented systems and want to consolidate and share data. Explains Nair, "Netsuite was founded to address the pain of running a business created by data here, there and everywhere. We solve that problem with a central repository of data. If you have multiple customer records - sales, accounting, shipping - you would never be able to get the 360 degree view of the customer. We believe that one customer record should be enough."

In terms of ERP positioning, the company is looking at making headway in companies that have home-grown ERP systems in place. Proquest is also aiming to capture a huge chunk of the SMB market through its integrated product positioning. The ASP approach helps SMEs as they can experiment with the application and discard it if the need arises.

Often CRM systems fail to deliver on their promise simply because the quality of data entered or picked up from different systems is not in a format where it can be analysed. In an integrated system, this issue is solved.

Explains Nair, "Most CRM solutions available in the market today are nothing more than prospect management systems or pipeline management systems. The fallout from this disconnect quickly spreads from sales where it is more apparent. For example, if an organisation wants to know, say, what is the cost per conversion - an important element of measuring a marketing campaign's ROI - you have to know what you have sold, and which lead drove that sale. This data is not native to the CRM system. Similarly, in customer service, how can you answer a customer's question if you don't have the details about his order in front of you?" This positioning has seen Proquest win three clients in a span of 45 days since Netsuite was launched in India. Currently the company has three clients namely RS Software, Finar Chemicals and Microintelligence. The integrated approach is a boon for SMEs as they do not have to spend a fortune on buying different systems and then spend a bomb integrating them.

Says Amit Maheshwari, director, Finar Chemicals, "We tried to integrate our accounting, customer management and other home grown systems and the result was less than satisfactory. The three systems never functioned well together no matter what we did to link them. With NetSuite, we have saved costs not only in infrastructure but also in integration. This integrated approach has helped us better track our clients and product orders." Similarly, another Indian firm Microintelligence chose NetSuite as it provided the company the flexibility of customising the product.

Says Rajakasim Mohammad, managing director, Microintelligence & Systems, "We saw a clear advantage in the ability to not only have a hosted model but also have the freedom and flexibility of customising the product."

CRM positioning

While the company is targeting SMEs with its integrated suite, in the CRM space Proquest is targeting big enterprises with NetCRM. The advantage, Nair says, is the level of customisation that allows the product to be integrated even with legacy systems. In the CRM product, there is an option of an offline model available wherein the sales person can enter all the details into the application and later sync up with the server when an Internet connection is available. To get Indian customers hooked on to the ASP model, Proquest is even allowing the software to be used for a short period on a trial basis.

This strategy is aimed at creating a huge reference base of customers and letting them champion the cause of the ASP model. Additionally, Proquest is also aggressively pricing the product. For instance, the monthly charges range from Rs 3,000-Rs 5,000 per user. For addressing client concerns over security, Proquest has ensured that all access requests are protected by 128-bit encryption.

Looking at the demand from prospective customers, Proquest is gunning for a client base of around 50 customers by year end. With large players such as Siebel and Peoplesoft offering a hosted solution globally, the traditional model of offering enterprise applications is overdue for reform. With a large chunk of Indian companies falling in the SME category, players such as Proquest can help change the way enterprise applications are deployed and implemented.

srikanth@expresscomputeronline.com