11. SONATA SOFTWARE: Emerging Stronger

START-UP YEAR: 1986

BRANCHES: 11

AGENCY OPERATIONS: Acutate, Borland, Caldera, Crystal Decision, Datadirect Networks, IBM, Interact, Iona, Linear, Microsoft, Oracle, Sun, Verisign and Veritas

ADDRESS: #193, RV Road, Basavangudi, Bangalore - 560

004.

TEL: 080-26567492/6560360; FAX: 080-26567487

WEB SITE: www.sonata-software.com 

AGENCY REVENUE (RS Cr)
MEASURES THAT MATTERED
	Targeted tier-two partners
	Started phase-II of ERP implementation

Sonata emerged stronger with a growth of 27% against a 8% growth in 2001-02. It astutely focused on tier-two companies, noting the saturation in tier-one organizations

The consolidated software agency business of Sonata Software grew by 27% with revenue touching Rs 157 crore in 2002-03. Sonata attributes this growth to its decision to address the needs of tier-two Indian companies since there was saturation amongst the tier-one Indian companies. 

Sonata acquired three new clients in India and will add three new companies to this list this fiscal. Currently, the company has a client base of over 90 clients. Of these, 55 are customers for its solutions and implementation business, while the rest seek its consultancy services. 

Looking at the region-wise segmentation, Sonata has the advantage of an evenly spread client base in the country. Currently, the company has clients spread across the western, northern and the southern region with the scales being slightly tilted in favor of the southern region. This could be because of the company's headquarters in
Bangalore.

Sonata has business alliances with most top-of-the-breed software companies like Microsoft, Oracle and Computer Associates. According to Sonata, most Indian companies are looking at scaling into the second phase of ERP implementation, which is typically going online. Sonata identified this need and the company decided to remain close to its distribution network. 

This initiative helped Sonata to aggressively move into the country's interiors as well as increase visibility amongst its client base. The company says that the high-spending verticals are manufacturing, telecom, services and financial institutions. 

Sonata also feels that there is immense potential in the SME segment. It identifies this segment as closely held companies run by second generation of entrepreneurs, operating in a niche business. 

The second sets of target clients, which Sonata will focus, are subsidiaries of conglomerates, companies, which would be typically, tech-savvy and capable of identifying their internal technology needs. 

Both these sets of companies would have a definitive growth plan and will look at technology to have control over the processes so that there is more predictability and standardization in their internal processes.