To penetrate the MSME sector, Channel selects BLACKbox for better margins and enhanced value addition

With a mission to provide and manage simple, cost effective and innovative, Data Preservation and Information Security solutions, as Hardware, on Cloud  and Software as a Service, Synersoft Technologies is deploying disruptive technology for SMEs. Now branded as BLACKbox, Synersoft believes in process driven operations supported by comprehensive Enterprise Resource Planning software. In a chat with VARINDIA, Vishal Shah, Co-founder and CEO, Synersoft Technologies Private Limited delves deep into the challenges faced by the SIs and resellers, the current situation, the growth driver for them, as well as how BLACKbox is recognized by channel etc. -  

Challenges faced by SIs and Resellers

Elaborating on the challenges started from the Covid times, Vishal feels, “The challenges started long before the covid times. The majority of the System Integrators and Resellers witnessed fierce competition and diminishing margins in hardware and software products. The rise of e-commerce companies resorting to deep discounts left the maximum impact. They also encountered direct involvement of OEMs in small ticket size opportunities leaving narrow room for any value addition. Pandemic did worsen the situation. Last two years of covid times, the domestic IT industry has seen a dip in investment in hardware and software across the sectors. As we leave the pandemic behind, I notice specific developments that could change the scenario. The release of Windows 11 will be the game-changer in the hardware space. The prerequisite to using Windows 11 will require the upgradation of old generation hardware. Decreasing the cost of bandwidth is making connectivity more affordable. It will encourage enterprises to go online. It will lead to a rise in demand for networking and data security solutions. I am optimistic about the recovery and the better times ahead.”

The growth driver for SIs and Resellers
Vishal points out, “In the last five years, the Government has been the biggest spender in IT, and it will continue to be one of the growth drivers. The next five years will be the MSME era. With Post-Covid Anti-China Sentiment and Atma Nirbhar Bharat initiatives, MSMEs can expect enormous opportunities. It will subject them to global standards of competition. Adoption of IT will not be a choice but will be a compulsion. Imagine millions of MSMEs adopting IT to compete on international standards. It will give rise to the demand for IT infrastructure and solutions. With the enforcement of the Data Localization Policy and Personal Data Protection Bill, compliance obligations for MSMEs will be at a different level. They will have to invest in IT Standardization, Data Loss, and Leakage Prevention solutions. Specific MSME verticals will be subject to stringent compliance with Data Confidentiality Adherence. MSMEs in Healthcare, Pharmaceuticals, Diagnostic Labs, Stock Brokers, Chartered Accountant Firms, Auto Ancillary Manufacturers, Hospitality, Biotech, Clinical Research, Engineering, Defense Supply, Design verticals are the ones to count on.”

BLACKbox- a Single Software-Single Hardware IT in a Box
Talking about BLACKbox, Vishal says, “We started as an MSME with a vision of a product for MSMEs. Since we started, our sincere endeavor has been towards bridging the gap. This gap is about the design approach of IT Product Companies. They design products for talented IT Professionals who integrate, deploy and maintain multiple products to achieve specific objectives. MSMEs need the IT Talent on their side to use these products. Here is the gap. Talented IT Professionals neither aspire to work for MSMEs nor can MSMEs afford to engage IT talent. In our pursuit to bridge this gap, we developed a BLACKbox that is a Single Software-Single Hardware IT in a Box solution. BLACKbox did not fit in a single traditional product category like File Server, Storage, Firewall, Mail Server, EndPoint Security, DLP Solution, Device Hardening, Application Virtualization. It is something of everything that strikes the cord. It makes it simple, integrated, and affordable.”

“Channel would not have picked up BLACKbox without market acceptance and a proven track record. We planned to sell the product directly, acquire a sizable number of MSME customers, and then present it as a business opportunity to the channel. With nine thousand plus deployments, ninety-seven percent subscription renewals, and numerous customer success stories, we have charted our category of IT in a Box Product for MSMEs. Today with diminishing margins and narrow scope for value addition, the channel is open for new products. BLACKbox offers better margins and enhanced value addition. Channel can penetrate the MSME sector with BLACKbox that addresses their requirements. The existing customer base of BLACKbox makes it easier for the channel to sell the product with more credibility,” continues Vishal.

BLACKbox is available in three forms of deployment. 1) On-Premise, 2) On Cloud and 3) Hybrid. "Our prime target segment is MSMEs, which is in an early stage of adopting Cloud Computing. They still prefer on-premise solutions. That is the reason why people know BLACKbox as an on-premise solution," explains Vishal.

To Conclude
While interacting with Vishal, many System Integrators and Resellers revealed that the majority of their revenue is from Corporates and Large Enterprises who have three hundred plus computer users. “Revenue from organizations that have more than ten computer users and less than hundred computer users is far less than that from Corporates and Large Enterprises. One cannot sell the same product to MSMEs that one sells to Corporates and Large Enterprises. It is time to penetrate the MSME sector with a set of right products meant for MSMEs. Millions of Indian MSMEs compelled to invest in IT Standardization, Data Protection, Work from Home Provisions, translates to a 15000 CR market with a high YoY growth. IT in a Box solution on-premise or on-cloud is the key to enter this exceptionally lucrative MSME Sector,” concludes Vishal.