Monthly Archives: May 2013

Big Data Opportunity in India

big data opportunity in india

Big Data with its 3Vs; Volume, Variety, Velocity and now Veracity ; is now touted as the next growth industry globally

Big Data opportunity in India versus Big Data opportunity in USA. All American corporates are hailing Big Data as their savior. The next batch of billionaires and billion dollars are predicted to come from this industry. Companies will better understand correlation between customer’s online social and buying behavior. This will help them to offer better targeted products/ solutions for even better profits. The days of human search for causality are over. Large, in fact gigantic super computers will find hidden gems among huge mass of unstructured and structured data and monetize the same. As all things from USA go, even India has caught the Big Data fever.

I did a Google trends dive into where “Big Data” searches were coming from. And this is what I found. India tops the list followed by USA, Australia and the rest of the developed countries pack. This seems to prove my point that there should be a big Big Data opportunity in India. 100 means the country where maximum search terms for “Big Data” has originated.

But a closer look shows the very different nature of the opportunity existing in both markets. USA is the “Adopter” land. Companies are embracing Big Data or are creating the Big Data solutions. Venture Capitalists are funding these start ups. Money is been poured into this sector for a hopefully brighter tomorrow. India on the other hand in trying to cash in on this wave. Not by providing solutions. Neither by adopting Big Data as a way of doing business. But by selling it professional maintenance services. India sees the opportunity to do the back end management of this vertical too which has been the corner stone of its IT industry. That is the nature of Big Data opportunity in India. So in India, the searches are sky rocketing as companies and their employees read up on what is Big Data and search for opportunities in the other markets for deals.

So what does this imply for the Indian behemoths who are at the forefront of the Indian Big Data wave.

Big Data opportunity in India

Low skill set, low wages engineers will be the basis of the Big Data opportunity in India

1. Low Cost model: The whole managed services industry is built upon low cost model. Each of the Indian companies will have to offer maintenance services at ever lower margin levels with Forex rates, wage inflation playing havoc. The American companies will not see any incremental value differentiation in these maintenance deals versus existing.So they will pay more or less the current existing rates for maintenance.

2. Lesser skill job creation: Big Data is all about super computers. Number crunching giants. The core technology code will reside with the companies creating the solutions abroad. Mostly the Indian IT companies will get Big Data deals which will be viewed as additional projects from existing client relationships.

3. Opportunity lost once again: The last internet wave saw giants emerge in USA. Google, FB, Amazon, Oracle, IBM.. the list is endless. India completely missed the wave as it played the low cost out sourcing model card. It was appropriate then. Now there is a technology startup culture developing in the IT hubs across India. However the way the IT behemoths are approaching this opportunity will mean that we are sure to miss the boat again. Instead of developing a world class Big Data solution which they can sell easily continuously with only a focused sales and development team, they are again going in for the world of endless negotiations and nominal profits

So there is a Big Data opportunity in India, but the current approach is a suboptimal one. Start ups and IT behemoths alike need to rethink, realign and ride the crest of the Big Data wave.

To Tumblr or not to Tumblr India?

Tumblr India

The online world is abuzz with Yahoo’s acquisition of Tumblr

Are you from planet Tumblr India ? Look around you. Do you know anyone who knows about Tumblr ( a few will now thanks to Yahoo), but hardly a handful will be using Tumblr in India. You connect to friends/ acquaintances / colleagues/ via Facebook or LinkedIn. You follow top celebrities via twitter. No matter what their geography or income level or organization you can get in touch with any of them on these social networks in India. Your best blogs are on Google Blogger or WordPress.
It’s not that India does not have cool teenagers. This demographic is the largest in India and all brands target them. They swarm Facebook, search on Google or watch videos on YouTube. All brands advertise to this segment and try to be cool. Yet the coolest blog property Tumblr India avoids it.

There are I believe 2 key reasons why Tumblr has not gone viral in India, a land of creative people with 60% of the population below 30 years of age.

Tumblr India

iOS, Android, WP8 combined are just 5% of the handset market in India

1. Smart Phone penetration: In US of A, Europe smartphones are sold by the carriers at a subsidized price. This is because they are sold on contracts (what we call postpaid in India). The prices of smartphones are very prohibitive for most of the teenagers in India. The power of a visual social blog site like Tumblr comes alive only on smartphones. At 5% penetration most of the Indian teenagers are not on bandwagon Tumblr India. Most are on Facebook as they are handset agnostic. Also initiatives like 0.facebook.com, m.facebook.com ensures that ever more feature phone users join those communities. Do remember that unlike the developed countries the first taste of internet for majority of Indian teenagers it’s the mobile phone. Also Facebook, Twitter, Google clients are embedded by all OEMs across smart and feature phones alike. Hence for Tumblr India adoption remains low.

Tumblr India

The high of peer approval

2. The Urge of Sharing: If you are blogging from India only a handful of your peers will see your posts. Only one (if you are an optimist) or none (if you are a realist) will comment or Like or reshare your post. When there is no peer involvement on your blogs / pics/ quotes then the urge to keep sharing content quickly goes away. Forget the finicky teenagers. Tumblr’s hi res image lead blog style should have been the favourite of Indian brands and celebrities. But they to avoid it as it has no Indian fans. There is no entity to kick-start the adoption cycle of Tumblr India.

So whether Yahoo interferes in Tumblr or not, whether it introduces advertising in Tumblr or not, India’s social network scene will not be affected due to its unique demographics and dynamics.