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Monday, September 25, 2006

More Choices To Tech Buyers

Just read that Accenture’s market capital is now less than Infosys and Tata Consultancy Services. Both Infy and TCS have market caps exceeding Rs 100,000 crore or around $22bn. That’s around 30% more than Accenture. The growth rate and the related P/E ratio makes the difference. Look at this - corporations outsourcing critical work would begin to feel lot more comfortable in evaluating vendors that are growing and stable and offer comparable services at more economical levels- gives them more choices.

Vinnie points to the new refurbished Ingres. Terry Garnett, Chairman of re-born, repositioned Ingres is happier with much lower margins than what Oracle is used to – buying 80% stake at 35 million US$ where sales is at 50 million US$. While Larry believes that Ingres for a long time has suffered form underinvestment, Terry has hired ex-Oracle alumni and the COO Roger, comes from Wall street background. Potentially at stake - 59% of oracle’s nearly 8 +plus billion database sale. Users - particularly those looking for database solutions for high value transactions now have a choice to look at industry strength database infrastructure that can be bought at lower prices.

Dynamism in the tech sector actually helps users - thats real. Gone are the days of uncontested sales and more choices abound.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"