Elementary usage

Barring a few exceptions, the use of IT resources by medium enterprises is need-based. Software forms the foundation of IT infrastructure in these companies, says Sushma Naik

Mid-sized companies have the budget to spend on software, but barring a few exceptions, their use of IT resources is need-based. Software forms the foundation of IT infrastructure among mid-sized organisations. Currently, enterprise-packaged software accounts for 13 percent of the total IT spend. Most companies in this segment have a large installed base of servers, relational database management systems (RDBMS), network operating systems and office suites.

Windows rules

In the small businesses space, Windows is the preferred server platform followed by Linux. This is primarily because most medium businesses feel that Windows Server is a dependable platform. According to M D Dhodapkar, Deputy GM, The United Western Bank, “Application compatibility and reliability is a major reason why we have opted for Windows 2003.” 66 percent of the IMRB respondents use Windows 2000 as their server platform. L G Balakrishnan and Bros, an auto component manufacturer, uses Windows 2003 as its server platform since the company has always been comfortable using Microsoft products. The company wants to go for Windows-based servers in the future as well; it believes integration hassles will be fewer on this platform. MTR Foods runs its mail server on Windows 2000.

Compatibility is a huge issue and most organisations prefer Windows, as the number of applications available on Windows Server is considerable. Says Shirish Shahpurkar, Administrator, Dicitex Décor Exports, “We use Windows 2000 as our server platform because it is compatible with most applications.”

Most organisations believe that the Windows Server platform is secure. Ravi Subramanian, MIS Head, Rane Brake Linings, comments, “We believe that the Windows server platform is secure and scalable.” Currently, the company is running its ERP system on Windows NT.

Elder Pharmaceuticals has a mix of servers running Windows 2003, Windows 2000 and Novell NetWare. The company uses Windows 2003 as a database server while Windows 2000 is used for running homegrown applications.

Most mid-sized businesses that initially started using servers for messaging, and file and print services are now beginning to deploy other applications. Companies looking to migrate from Windows NT prefer to do so to Windows 2000. Blue Star Infotech migrated from Windows NT to Windows 2000 after Microsoft discontinued support for NT. Being an MNC subsidiary can also influence the IT policy of these organisations. In line with the policy of the global parent, Cummins Diesel Sales and Service (India) has a predominant Windows Server infrastructure in place.

Mail servers—in the penguin’s grip

Awareness of Linux on the server side is high with 31 percent of the respondents having deployed Linux as a part of their existing server infrastructure, where it is predominantly used to run mail servers. Companies using Linux to host mail servers include Zandu Pharmaceuticals, Blue Star Infotech, DTDC Courier and Cargo, and United Western Bank.

On the mail server front, cost is an attractive draw. For example, Zandu Pharmaceuticals is using Linux servers for mail and proxy primarily due to its cost benefits. For software development companies wanting to build low-cost solutions, Linux offers an excellent value proposition.

Explains Shashank Hiwerkar, Project Manager, Software Development, Education, Dishnet Wireless, “We can lower the cost of developing software by building solutions on Linux.” Hiwerkar says that the company has managed to build low-cost educational packages by testing the software it has developed on Linux. These educational packages will be targeted at local institutions for which cost is an issue. For software companies that have developers skilled in developing applications on Linux, cost becomes a compelling option. Opines Sandeep Agarwal, Manager Systems, Neilsoft, “Linux’ lack of a licence cost is a definite advantage over proprietary systems.”

Linux is preferred also because companies believe it to be more secure than other platforms. Says Mitul Shah, Deputy Manager, Systems, Blue Star Infotech, “We use Linux for mail servers as it is secure and less prone to virus attacks.” Elder has also opted for Linux as the mail server for the same reasons.

The value proposition of Linux is becoming stronger, and it will help increase the overall penetration of computers in the country’s flourishing SMB market Javed Tapia Director Red Hat India

Despite this, it is still an uphill road for the penguin as most businesses in this category have a perception about its lack of user- friendliness. Most businesses also do not have the skill sets on Linux, which makes them hedge their bets. “We had Linux, but we are not pro Linux as our team does not have the requisite skill sets. So we have deferred from Linux usage,” affirms Ronnie, IT Manager, Linc Software Services.

Awareness is building, albeit slowly. Take the case of DTDC Courier and Cargo that uses Windows NT server to run its ERP application. The company is evaluating using Linux to run its database server. Web hosting is another area where Linux is catching on like wildfire. According to Navayuga Infotech, a software company that also does domain hosting, Linux is the preferred platform for Web hosting. Comments Naresh, the company’s Network Analyst, “As security is crucial for our clients, domain hosting is typically done on Linux servers. Linux is more reliable as it is less prone to attacks.”

Among preferred Linux server vendors, Red Hat is the hot favourite with 92 percent of the respondents favouring it. The efforts of Red Hat in being the first to market Linux in India have paid off handsomely. Javed Tapia, Director, Red Hat India, comments, “The value proposition of Linux is becoming stronger, and it will help increase the overall penetration of computers in the country’s flourishing SMB market. Linux has already established itself as the most cost-effective platform for enterprise-wide deployment.”

With Open Enterprise Server, we believe that mid-sized organisations have the freedom to reduce their dependence on proprietary software Harish Mehta Managing Director Onward Novell Software

Red Hat is positioning its Red Hat Enterprise Linux ES (Enterprise Server) as a solution that can cater to the needs of small and mid-sized businesses. That said, there is still a huge gap between other Linux vendors and Red Hat. Linux server vendors have to educate the market to create greater awareness about their products. Novell, through its acquisition of SUSE, is in a position to do so if it manages to convince its existing base of NetWare users to migrate to Linux. It is trying to position Linux as an ecosystem where its legendary services (file, print and directory) will be the differentiators. For example, Novell has announced the launch of Novell Nterprise Linux services. These services allow organisations looking at embracing Linux to take advantage of traditional NetWare services. Novell also plans to leverage ‘Mono’, an open-source alternative to Microsoft’s .NET. Using Mono, developers can create applications to run on Linux or Unix. This development should be of interest to many Indian developers.

The company has also announced Novell Open Enterprise server which includes services such as directory, identity management, file, print and provisioning. Customers can use the Novell Cluster Services as a foundation for business continuity services. They can also create a clustered mix of NetWare and Linux servers with complete interoperability and service failover between these platforms. “With Open Enterprise Server, we believe that mid-sized organisations have the freedom to reduce their dependence on proprietary software,” says Harish Mehta, Managing Director, Onward Novell Software.

Microsoft Office dominates

Most mid-sized organisations (73 percent) have invested in office suites, and Microsoft Office is the preferred option. According to Pankaj Parikh, Corporate

IT Manager, Zandu Pharmaceuticals, “We have been using MS Office, as our employees are comfortable using the software.” However, looking at the cost benefits, some organisations are also experimenting with other alternatives. For example, DTDC Courier and Cargo is using a combination of MS Office and StarOffice. The company has given general users StarOffice, while employees who interact with external organisations are using MS Office. It is now looking at driving costs further down by opting for the OpenOffice.org suite.

No-frills databases preferred

For Oracle, this has been the year of the SMB. We launched several offerings for them and over 30 percent of our growth came from this sector Arunava Dutta Director, Technology Oracle India

75 percent of the surveyed companies have invested in RDBMS. This segment is being wooed with customised product offerings by RDBMS vendors. IBM, for instance, has launched DB2 Express that offers easy installation and administration for SMBs. Big Blue is also teaming up with Indian ISVs to bundle this product with ISV applications. Similarly, Microsoft has established partnerships with 102 Indian ISVs in the BFSI space. Using the reach of its partners, the company is selling its database product, SQL Server, to the BFSI segment and it has succeeded, at least in the rural co-operative banking space, through this strategy.

Oracle has launched Oracle database Standard Edition One for SMBs. Opines Arunava Dutta, Director, Technology, Oracle India, “For Oracle, this has been the year of the SMB. We launched several offerings for them and over 30 percent of our growth came from this sector.” Database vendors such as Oracle have also tried to use the Linux angle to lower the total cost of ownership. The company has also gone a step further by providing support for both the underlying OS (Linux) and the Oracle database. This has helped Oracle win some significant deals in tandem with Zenith Infotech in the co-operative banking space.

While databases are adding features such as business intelligence, these are not considered factors of importance for a mid-sized business. Much talked about technology concepts such as grid computing also find limited uptake.

Says B G Shenoy, Head of Finance, MTR Foods, “We use Oracle as our database. However, we have no use for features such as grid computing.” Most organisations use databases as primary data stores.

“We do use Oracle but as a primary store. There are hardly 100 records on it. We use our client’s database, hence the usage is low on our own,” adds Siachen Banerjee, IT Head, UshaComm India.

Unix for mission-critical applications

While a small base of the respondents use Unix, the platform is seen as the default choice for running high-end or transaction-oriented applications. Companies such as Blue Star Infotech, MTR Foods, UshaComm India, Kalyani Brakes and Cummins use Unix.

“We are running our SAP system on Sun Solaris, as it is a heavy transaction-oriented application,” adds Shenoy. The scalability of Unix has made companies such as Kalyani Brakes to move their existing ERP system based on Windows to Unix.

Unix is also a big draw among software development firms. Blue Star Infotech uses Sun Solaris servers to develop high-end software which is compatible only with that platform.

Similarly, UshaComm’s Banerjee uses a Sun Solaris server to develop and test telecom billing software.

While Windows is the preferred server platform, medium businesses are evaluating options for deploying other applications. For example, the Bank of Maharashtra has chosen a mix of server platforms including Windows, Unix and Linux to run different applications. The bank uses Unix servers to run branch automation applications. Windows-based servers are used at the headquarters, while Linux boxes are used to run applications that submit MIS reports to the RBI.

As most mid-sized businesses have ambitions of becoming bigger players, the role of technology will be crucial as they try to scale up while reducing costs. While vendors are rapidly introducing new technologies, they need to educate the businesses in the mid-sized market about the use of such technologies. There is also a need among mid-sized businesses to align their business needs with the aid of technology.

sushma@expresscomputeronline.com