Microsoft Azure India Market Entry

1. Contents
1. Case facts. .......................................................................................................................... 2
2. Key Questions .................................................................................................................... 4


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2. Case facts.

Microsoft offered licensed products
Azure pay per use model
Challenges with indian market
o Diverse , low awareness about IT trends
o Low penetration of it in SMB market
o Under developed infrastructure
Microsoft Commissioned Zinnov
o Zinov estimated world wide cloud computing revenue by 70$ billion
o indian market to be 1 billion
o Key drivers for cloud
o Capex to opex
Different forms of cloud
o IaaS,SaaS,PaaS
o Microsoft Azure was an example of PaaS
o PaaS provided Physical Infrastrucre and platforms where Apps could be built
o Risks of cloud Computing
No control of data and privacy
o Govt regulations( data should not go out of the country )
Major Cloud Computing providers in India
o Google email , App Engine (PaaS ),Apps9SaaS
o Yahoo (SaaS)
o Microsoft (SaaS)
o salesforce(SaaS)
o Amazon (IaaS )
Microsoft India
started 1990, in 2008 - 16 offices in india 5000 employees
o Presence of all business divisions, including Server and tools( Cloud
Computing division )
o Traditionally sold licenses
Microsoft Cloud Strategy
All products both modes(Cloud and non cloud )
Hybrid operation support
Device independence

Product offering
SaaS - Microsoft Online (Sharepoint, office ,live)
Competitor Google apps ->$50 per user
IaaS+PaaS -> Microsoft Azure
Infrastrucre ++ category
Differentiated from bare bone category
Amazon EC2, bare bones, driving prices down, provided by
web hosting compainies
Azure much more, give microsoft software and
docuemntation .Microsoft would manage rest
For software writer no need to manage the machine
use SQL server and APP Fabric
Potential market segements in india
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5th larget economy by PPP,service industry 55% of GDP,Business services fastest
growing sector
Domestic it market to grow to $45 billion by 2015 @CAGR 15
Firms were using it to keep costs down ( All segments )
3 potential segments
Government
Several plan NeGP,state wan, increase IT spending, relationship with governemnt
Large Enterprises
>1000 employees, IT spending $3Million ,.75% of total revenues to the segement
with growth potential
Banking and financial sector was the largest spendor
Microsoft had good relation with this sector and have already a license based market ,
sector in inflexible
Already capital invested by the business
SMB
Small business, no inhouse IT capability, serviced by ISV
~4 million small business with less than 100 employees
35000 medium business
do it for me attitude
Challenges and risk
o Piracy,
o insecurity and data rik of business
o inexpensive labour force in india , will govenement encourage automation ?
o broadband and connectivity reliabiltiy
Microsoft advantage
no industry specilization
o Provided apps and products for all verticals/industries
o Microsoft capable of providing hybrid model
o Issues of targeting SME is becuase of fragemntation and initial fixed costs in
education and awareness of IT
o Microsoft can leverage its partners
o in partership with 1300 ISVs
o Ecosystem , 1300 ISVs,1.4 million developers, 11,000 System integrators
Complication
o Balancing between Cloud new and traditional reveneue )
o Competiton from open source, add supported services
o what should be microsoft's strategy to enter to indian market for azure












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3. Key Questions

1. Microsoft already has a relationship with many large enterprises. Should it introduce Azure,
focusing on large enterprises alone? What should the product strategy for this segment look
like?
2. Should Microsoft build partnerships with ISVs and SMBs?
3. Should Microsoft follow a different strategy to target different industries?
4. If introduced, how should Azure be priced in India? Should it adopt a different pricing
strategy for India from the rest of the world?
4. In short what should be the go to market strategy of Microsoft azure in India?
The specific case is about market entry of Microsoft azure for india .

What will be the benefit in targeting a particular segment