Hitachi Systems Micro Clinic has well-entrenched plans to dominate the government sector in India. The IT solutions and services company renewed its Go-to-market strategy last year to emerge as a potential partner for IT projects across central and state government departments.
“SMAC will drive business across government organizations in 2017 as the technologies play a pivotal role in supporting the government’s Digital India initiative,” says Sanjay Sharma, Associate Vice President and Head - Government, Hitachi Systems Micro Clinic in an exclusive interaction with ChannelWorld India. Sharma came on board last October to shape the market development and transformation strategies in enhancing the company’s mind share among customers in the government of India.
What was the rationale to renew focus on government practice at Hitachi Systems Micro Clinic in India? What big opportunities do you foresee?
The government of India is increasingly focusing on initiatives like Digital India to transform India to a connected knowledge economy and induct transparency through e-governance. This led us to renew our Go-to-Market strategy for the government sector. Also, since the Japan Government is funding many projects, we, as part of the Hitachi group, want to focus on larger government projects. We renewed the Government focused business a year back to identify potential areas where we have to work, and understand the kind of projects that we need to pickup to add value to our society.
The big opportunities exist around Digital India and Smart Cities. We offer solutions that cater to the ‘Digital India’ theme through a robust infrastructure and great skill repository for different hardware and emergent technologies. Aligning ourselves to Hitachi’s social innovation theme, we can cater to transportation, power and energy (water, wind et al) requirements of Government of India.
What will keep Hitachi Systems Micro Clinic ahead in the government space?
We have a separate business unit to address both central and state governments. We have setup a regional hub in Rajasthan and a big setup in the east region (states like Bihar to North East). With the separate practice for government, we can undertake a lot of skill development projects. Currently, we are working on the projects for the police forces and education sector. We will soon cater to urban development sector to support Smart Cities initiative.
From an internal department standpoint, we have created different business units for End User Computing (EUC), Server, Storage and Network (SSN), Security and Cloud practices.
Our key solutions and services include Infrastructure Management services including Device as a Service, Compute as a Service, Storage, servers etc. Our foray into NOC, for instance, creates an asset management environment and network deployments will be of great advantage to us.
Are the government IT decision makers ready to move on premise infra to the cloud model?
Yes, we strongly feel that as a strategic direction, it is important for us to move our business to cloud. Hitachi’s thought process around service - based delivery model will be of great help in this approach. As Hitachi Systems Micro Clinic, we are investing and we have signed up some MOUs in the education and other sectors. In these sectors, we are building our own data centres to provide customers with a SaaS model to support their applications.
Any roadblocks you foresee with the government departments more willing to invest in SMAC?
There is a direction from the government to support the migration to a SMAC based infrastructure. The latest move on demonetization is a great example. However, the IT Decision makers should start feeling more confident about investing in these technologies and not worry about the possible security issues. We, as a partner, can relieve them of all their security worries. Secondly, I feel that the adoption rate towards digitization requires more improvement. I believe, we will see acceleration within next two years for government departments to become digital.
SMAC will drive business across government organizations in 2017 as these technologies play a pivotal role to support the Government’s Digital India initiative.
35% - 40% of the total revenues for Hitachi Systems Micro Clinic by the end of 2017 will emerge from government business.
How does Hitachi Systems Micro Clinic intend to establish its dominance in next gen solutions like big data and converged infra?
Our organization has built good relationships with partners like Amazon Web Services, Microsoft and Oracle to setup a cloud practice. We are investing to create our own cloud story for the education sector with Hitachi‘s technologies and solutions.
On the converged side, there are lot of skills available on cloud infra at our end. We picked good wins including a couple of state data centers (big computerization and complete data center revamp projects). We offered them good returns and reduced their TCO thereby facilitating them to take faster decisions. We are building our practice around Big Data including building our skillsets on Pentaho, a BI firm recently acquired by Hitachi.
What key business or technology initiatives will help you dominate the government vertical in future?
We need to improve our services installed base through continued significant investment into the segment. To ensure a healthy business in the government vertical, we have to meet stringent SLAs. We have end-to-end skills available from end user computing to software on various platforms including infrastructure, operating systems and open Source.
A mix of various technology segments makes us an end-to-end SI to address all IT needs of our customers. Hitachi will solve both IT and social needs with our railway transportation systems, water management systems and power and energy management solutions.
Currently, the government vertical contributes around 27% of the company’s total revenues. But, from mid-term perspective, we expect the figure to reach around 35% to 40%.