Sify i way broadband -analysis

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Market analysis:
Sify technology
(Broadband in SMEs)
Submitted To: Submitted by:
Prof. R.SUNITHA PARTH SARTHI
REGD NO.-6034
MARKETING-1

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DECLARATION
I the undersigned solemnly declare that the report of the thesis work
entitled “market analysis: sify(broadband in SMEs)” is based on my own
work carried out during the course of my study under the supervision of
“Mr.K.S.Reddy”.
I assert that the statements made and conclusions drawn are an
outcome of my research work. I further declare that to the best of my
knowledge and belief the report does not contain any part of any work
which has been submitted for the award of PGDM degree certificate in this
Institute or any other Institute of India or abroad.
Parth sarthi Name of the faculty guide
Place: hyderabad
Date: 27-06-2011
SIGNATURE: _______________

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CERTIFICATE
This is to certify that the project entitled “market analysis: sify (broadband
in SMEs)” being submitted by Mr.parth sarthi for the partial fulfillment of
PGDM as a student from the “VISHWA VISHWANI INSTITUTEOF
SYSTEMSAND MANAGEMENT” is a bonafide presentation under my
guidance and supervision.
I wish her best of luck for a bright future.
K.S.Reddy
CHANNEL MANAGER
SIFY Technology

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ACKNOWLEDGEMENT
Guidance, help and encouragement are the essential requirements for
successful completion of any project. I owe my gratitude to all those who have helped
me in the preparation of this project report.
I express my deepest gratitude to my project guide K.S.Reddy (Channel
manager)for his valuable guidance and help in completion of this project.
I express my sincere thanks to Mr. Navneet, Regional manager for their
valuable inputs.
I feel obliged to all the staff of Non works 1 department for their generous
help and support.
I express my thanks to Mrs. Apparna reddy (H.R.manager regional-
south) for coordinating my project work in SIFY Technology.
I also feel obliged to all the respondents, friends and others who have
shared their valuable time and opinion, for making significant contribution directly or
indirectly in the project.

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CONTENTS
Page No.
Executive Summary ................................................................... 6
1.0 Introduction ....................................................................................... 8-10
2.0 Objective .................................................................................... 11
3.0 Methodology
3.1 Research Procedure .......................................................... 12
3.2 Method of data collection ................................................. 13
3.3 Instruments Used .................................................................... 13-14
3.4 Tools and techniques of analysis ...................................... 14
4.0 Literature Review
4.1 The Background ..................................................................... 15-16
4.2 The Promoters .................................................................. 16
4.3 The Company & its Product line ............................................ 17-22
4.4 Features of the Product ........................................................... 22-25
4.5 Marketing strategies ............................................................... 25-26
4.6 Competitors .......................................................................... 26-27
4.7 Govt Policies .......................................................................... 27-30
4.8 Taxation aspects ................................................................ 30
4.9 Major problems ................................................................ 31
4.10 Achievements ........................................................................ 31-32
4.11 Share Market position ........................................................... 33-34
4.12 National and International Image ........................................... 34-36
4.13 Future Prospects ................................................................... 36
4.14 Conclusion .......................................................................... 36
5.0 About the project taken in the organization .............................. 37-54
6.0 Surveys, Feedback and Data Analysis ........................................ 55-57
7.0 Suggestion/ Recommendation ...................................................... 57
8.0 Conclusion ...................................................................................... 58
Bibliography .................................................................................. 59
Annexure ....................................................................................... 60-61

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Introduction
Wireless Internet is based upon wireless technology. Broadband is often called
high-speed Internet, because it usually has a high rate of data transmission. In
general, any connection to the customer of 256 Kbit/s (0.256 Mbit/s) or more is
considered broadband Internet.
Wireless is preferred over wired network due to the following reasons:
 Lower installation and maintenance costs.
 Ease of replacement and upgrading.
 Reduced connector failure.
 Greater physical mobility and freedom.
 Practical deployment of micro-electromechanical systems (MEMS)
technology.
 Faster commissioning.
BROADBAND IN INDIA:
Broadband is regularly growing in Indian market. There are many players in Indian
market which are providing broadband to corporate and directly to home. To increase
broadband connectivity Indian government issues broadband policy. The broadband
policy includes the definition, the technology and other important aspect in it. In India
there are a large number of people who are using internet but the number of people
using broadband is much smaller than it. But now broadband is growing at a rapid rate
in India, the main reasons for the growth of broadband are,
 Broadband policy and other initiatives by IT and telecom ministry encourage
increased adoption.

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 A monthly broadband subscription cost as little as Rs.199(4.50 USD)
 A second factor the IT and telecom ministry to make computer available for
purchase under Rs. 10,000.
 Today broadband uses in India growing at 20% per month.
Wireless in India:-
As broadband wireless access grows, the WLAN network gear sector will exceed $ 275
million by 2012, up from the current $23.1million in India. The combined Wi-Fi market
(described as consisting of WLAN networking gear, system integration, and professional
service and including embedded devices and laptop) is expected to exceed $744 million
by 2012.
Future of wireless technology:-
 As the industrial requirements are increasing day by day there goals are also aiming the
sky, so to fulfill their goals and objectives they require reliable communication between
their departments. So future of wireless technology is bright because this is the new (in
India) and reliable technology.
 In future the wireless devices will require less power, so it will finally reduce the
implementation and maintenance cost.
 In future the reliability and the performance of the wireless devices will increase dye to
regular improvement in the technology.
 As it becomes more popular and advance it will come with more data rate support and
low maintenance and implementation cost.

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Challenges:
The challenges that confront in the wireless technology are:
 Technology
1. Interference
2. Security
3. Power
 Collaboration
1. R&D funding
2. Integration of components
 Culture
1. Workforce
2. Societal attitude
 Regulation
1. Interoperability
2. Spectrum policy
 Cost
1. Value proposition
In today’s industrial environment the main requirement is that all the departments in an
organization should perform efficiently and effectively. For this purpose there should be
a regular communication between all the departments to share important information
among them. For this purpose all the organization are willing to build a system or
network which can support the desired requirement.

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Broadband internetin SMEs:-
Broadband in SMEs is a huge requirement in India. Many SMEs in India are still using
the traditional method of wired technology. The technological advancement like wireless
broadband would be a revolution to them. SMEs like small factories and plants prefer
the broadband connection that gives them Hi-speed internet with a secured and reliable
network. By the same time they have to pay a lot for it. Hence wireless technology is a
better choice in these sectors. With the help of wireless technology, SMEs can get Hi-
speed internet with a more prolonged and reliable connection and they can use the
technology efficiently to maintain stability in the growth of their organization.
Objective of the study:
 To know the internet connectivity and its status in the small and medium enterprises
.Also it is very important to know about the service quality provided by their current ISP.
 To analyze the data collected from customers.
 To promote the SIFY wireless broadband connection in the SMEs and generate leads
for the company.
 To make a detailed analysis of the research.
 Finally, to get corporate experience by meeting the corporate heads and to take and
implement their advice and suggestion for personal benefit in future.

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COMPANY PROFILE
The Background
Sify technology limited is a major ISP company based in Chennai, India. It is a
large internet network provider in India, with a wide array of internet based services. In
January, sify technology unveiled a new corporate identity.
The new logo is a reflection of sify’s outlook and nature of business: a fresh, vibrant
and eco-friendly green signaling a new, paper free world, counterpoised by a business-
like, dependable grey. The fonts are distinctive and futuristic. In graphic terms, the dot
over the ‘I’ in the name has moved forward, and stands for the company’s promise to
keep its customers and stakeholders ahead.
For the promise of “keeping you ahead” reiterates sify’s focus on technology,
innovation and new services aimed at keeping customers in the lead by giving them
competitive edge using sify’s services.
This is probably one of the first Indian companies to take a stance on eco-friendliness.
Oddly, Xerox which unveiled their new logo also chooses a lower case text for the
name.
Sify began its commercial operation in April’98. It was registered as sify limited
and now it is sify technologies limited. Now sify has a license of category A of service
provider. That is sify is operating in whole India.

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Purpose and vision of sify:
Purpose
Sify’s purpose is to make a qualitative difference to the lives of millions of people and
organizations by harnessing the power of India and of the internet. Sify will do this by
empowering them with the potential of the internet and by leveraging the capabilities of
Indian knowledge resource.
Vision:
Sify’s vision is to be dominant and profitable India centric Internet company by:
 Building on India’s unique advantage.
 Being the leader in terms of market share, quality, revenue, growth and gross margins.
 Adding value to our stakeholders: namely investors, customers, peers and associates.
 Bing enablers and catalysts of the Internet for positive change.
The Promoters:
Foreign Promoter of Sify: -
 Infinity Capital Ventures, LPP, USA.
Total Number of shares it holds: - 17,902,860.
Total Numbers of share : - 55,720,082.
Percentage of total shares : - 32.13%
Indian Promoters: -
 Mr. Raju Vegesna (CEO, MD, Chairman Board of Directors)
 Mr. Ananda Vegesna (Executive Director)

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The company and its product line:
About sify Broadband
Sify is India’s pioneer & leader in internet, networking and e-commerce service, and the
first Indian Internet company to be listed on the Nasdaq National market in the US. It
provides integrated end-to-end solution for both corporate & consumers, with a range of
products and services delivered over a common internet backbone infrastructure.
Everything that sify has done or achieved science its beginning, commercial operations
in April 1998 stems from its purpose and vision. A key aspect is sify being an enabler
and catalyst of the internet for positive change in India- a responsibility that we continue
to carry.
Sify began by developing India’s first TCP/IP network and offering multiple service on a
common backbone infrastructure for an integrated internet, networking and e-commerce
business model. This was the first such business model in the world, and appropriate
for catalyzing the growth of the internet and networking in an infrastructure starved
market. It also enables a virtuous cycle, where each business supported the other, while
catalyzing the market to growth.
Fortune magazine, in their December 2000 issue, selected sify(then satyam infoways)
as one of the world’s ten hot technology companies to watch out for based on this
innovative business model. From the start of commercial operation in April 1998, sify
has become the market leader in most of business, winning global recognition for
expertise, performance, customer focus and standards along the way. In doing this sify
pioneered services and set standards for the industry in diverse areas.
Sify is leader in every line of business and has won national and international
recognition for both market leadership and the quality of its services. We are unmatched
in internet and network service expertise and technology, with the best tools, software
and processes in the business.

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The sify way :
The value with which every sify associate will conduct himself or herself in contributing
to sify’s business objectives in enshrined “ The sify way” .
I will put customers’ needs first
 By providing quality solutions of value to them
 By going the extra mile to solve problems
 By anticipating their needs
I will be accountable
 By committing what I can do
 By meeting my commitments
 By taking personal ownership of commitments
 By honouring commitments of team members as if they were my own.
I will treat others with dignity
 By being transparent and honest
 By respecting each other’s time
 By being fair to others
I will be action oriented
 By carrying out tasks with enthusiasm
 By working energetically to enthuse others
 By displaying infectious optimism to achieve my goals
 By pursuing excellence in what I do
 By continuously striving to raise my standard of performance everyday.
I will have the courage to confront issues

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 By voluntarily bringing up issues not in conformity with Sify’s values.
 By being open minded, sharing my views and ideas constructively.
I will always remember that I am part of the Sify team
 By celebrating each others’ successes
 By being courteous to my team members
 By being caring and concerned for my team members
I will protect Sify’s interest always
 By ensuring that departmental interests do not conflict with the overall interests.
 By being open to opportunities for Sify beyond my responsibility
 By ensuring that Sify gets the best of deals, prices, customers and sales
Code of Conduct
The Company expects associates to adhere to the rules of conduct & behaviour
while conducting Company's business. The Company's Policy on the same is as
follows:
 Carryout ones roles and responsibilities effectively and efficiently to maximize
business for the Company.
 Follow all policies, procedures and internal control systems of the Company.
 Obey the laws of the country while carrying out ones work.
 Behave with integrity and honesty.
 Accept accountability.
 Communicate openly.
 Treat people fairly and with dignity and respect.
 Handle all customer contacts with the highest standard of professionalism and
courtesy.

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 Report to work/external meetings/training as scheduled.
 Effectively utilize ones time at work and avoid spending it on personal activities
and phone calls.
 Keep superiors informed when leave of absence is required.
 Report to work in appropriate attire. (in line with the Company's dress code).
The Company will not accept and will not tolerate the following behaviour from an
associate:
 Being intoxicated on Company's premises or while conducting Company's
business.
 Consuming alcoholic beverages either on the premises of the Company or
Company business partners.
 Entering into fights either on the premises of the Company or Company business
partners.
 Using rude, abusive or obscene language with a customer, business partner or a
colleague. Disconnecting a customer's, business partner's or a colleague's call
without providing appropriate services.
 Refusing to serve a customer or carryout reasonable orders (relating to work) of
a superior.

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Management Team of Sify
Name of the Person Designation in the Organisation
Mr. Raju Vegesna CEO & Managing Director
Mr. C.V.S.Suri Chief Operating Officer
Mr. Bhaskar Sayyaparaju Chief Technology Officer
Mr. P.J.Nath Executive President – Enterprises
Solutions
Mr. M.P.Vijay Kumar Chief Financial Officer
Mr. V.Shivaramkrishnan President – Consumer Marketing
Mr. David Appasamy Chief Communication Officer
Mr.Naresh Ajwani President – Consumer infrastructure &
Operation
Mr. Arvind Mathur Chief Architect – Global Services
Mr. K.N.Ajith Head – Human Resources
Mr. Venkata Rao Mallineni Advisor – Business Strategy

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Sify’s Internet backbone in India:
This is the backbone of sify through which sify is operating in India. The whole
backbone network of sify is based on ring topology.

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Product line of sify:
Sify is basically a service provider. So the main products of sify are the services which it
provides to its customers. Sify is mainly providing three types of services. These
services are:-
 Corporate services
 Consumer services
 International services
Features of the products
Corporate services & its features
Sify is the only end-to-end esolutions provider in India. We design and develop a host of
customized ecommerce and network connectivity solution that connect your critical
business systems and offer a seamless data network directly with customers, suppliers,
vendors and staff.
By ensuring uninterrupted and timely flows of information, sify solutions help in quicker
decision making and sharpen your competitive edge by compressing time to market as
well as increase financial efficiencies that result from better supply chain management
and lower inventories.
Sify’s corporate services are:
Sify enterprise solution Sify enterprise solutions is the
corporate services arm of sify limited,
and is India’s leading provider of end-
to-end corporate network.
Sify elearning Sify elearning provides unique end-to-

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end solutions and dedicated services
for corporate and elearning
organizations
Sify hosting Sify comes with a product range that
covers the four Cs of cyberspace:
connectivity, content, commerce and
community.
Sify network services Sify enterprise solution is the first and
only service provider in India to be ISO
9001:2000 certified in network
operations.
Sify application services An array of customizable internet and
extranet web applications, ranging from
wensites to workfloe automation and
ebusiness applications.
Sify security services Sify guardian provides a
comprehensive suite of enterprise
assurance, implementation &
procurement and managed security
services.
Safescrypt – Data security service Data security solutions including
encryption technologies, strong
authentication, data protection and
privacy,digital rights management and
PKI are offered by safescrypt, a SIFY
subsidiary.
Sify infrastructure management
services
Sify’s world class service operation
centers deliver 24/7/365 availability and
scalability to your business without your
having to make high levels of
investment.

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Forum Forum TM from SIFY is a revolutionary
solution addressing the need to
establish seamless connectivity with
supply chain partners.
Search engine optimization Sify provides a complete range of
search engine marketing solution in
India and worldwide, specialized in
search engine optimization, ethical on-
page and off-page SEO strategies,
niche keywords phrase research,
manual search engine submission,
natural link development, website
ranking in major search engine like
google, yahoo! And MSN etc.
Sify’s consumer services & its feature:
Sify Broadband Sify is India’s largest provider of
broadband services to explore the true
potential of the internet.
Sify iway An extensive network of cyber cafes
spread across the metropolitan cities of
india.
Sify way 2 talk Way 2 talk is sify’s internet telephony
services to make calls across world
using PC 2 phone dialer.
Sify Sify.com is a popular consumer portal
with comprehensive information,
facilities and services and information.

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Sify imeet Video conferencing facility at the sify
iway. Why just talk when you can now
meet face to face.
Sify wizone Sify wizone offers blazing internet
speed at upto 11 mbps local
connectivity and upto 384 kbps to the
internet.
Sify gamedrome Sify has built on its growing online
games business by not only providing
contents at its iway chain & its 200
exclusive gamedrome.
International services & its features:
Sify has capabilities in remote infrastructure management. This is no ordinary claim.
over 1200 clients, including Whirlpool, GE, Gillette, depends on us to run their business
critical applications.
Today, clients use sify’s services to better align their IT operations & process to
meet business objectives. By outsourcing day-to-day infrastructure management to sify,
clients are able to unlock their in-house resourse potential for strategic work. They save
upto 50% of current operational costs while retaining complete control.
Sify leverages its deep expertise and proven transition & delivery methodologies to
provide proficient support. Our robust global service infrastructure helps in supporting
clients from offshore command centers, on a 24X7X365 basis.
Outsource with confidence. Outsource with sify.

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Data centre management
Ensure operational efficiency and process
compliance, through constant monitoring and
management of your servers, databases, storage and
applications.
Network management
Achieve network optimization through monitoring and
management of your networks and network devices,
including performance.
Security management
Help protect your information and systems, by
ensuring availability, integrity, authentication,
confidentiality, and non-repudiation.
Desktop management
Maintain your desktops & laptops from remote desktop
management and standardization.
Marketing Strategies:
Sify is an internet service provider and there are many players in the market which are
also providing Internet services so it is very important to make marketing policies and
strategies which are in favor of the organization. For this purpose Sify has its own
marketing department with a dedicated team which makes all the strategies. Since Sify
is providing services to both corporate and home users, so there are different strategies
to reach these customers.

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In corporate Sify is mainly targeting to: -
 Different SMEs in the Hyderabad and secundrabad.
 Institutes colleges and schools.
To reach these customers, the marketing executives of Sify regularly visit them and
provide them information about its services at a reasonable cost.
After creating its own image in the market Sify is also providing direct connectivity to the
home users by the mean of wireless connectivity.
Along with its own capabilities Sify has also have some partners in the field of
technologies so that Sify can acquire more growth in its market share.
Partners are: -
With the help of partners Sify is regularly improving in technology and its growth in
terms of customers and market growth.

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Competitors:-
These are the competitors of sify:-
 Bsnl
 Bharti airtel
 Tata
 Reliance
 Others (hathway, beam telecom etc.)
Comparison of Sify with its competitors in terms of market share:
Serial no. Company
name
Market
share
Revenue
growth %
revenue
1. Bsnl 43% NA NA
2. Airtel 5.73% NA Rs.2.6
billion
3. Tata NA NA NA
4. Reliance NA NA NA
5. sify 11.84% 2.6% $154.24
million
6. Others 14.46% 14.5% 7.67million
4.7 Government Policies
The following are the description of the relevant regulations and policies as
prescribed by the Government of India.
Intellectual Property

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It includes registered Intellectual Property rights, including patents and patent
applications made by company in relation to various inventive products and
processes and also including copyrights in relation to the company’s logo and
products.
Patent Production
As per Patent Act, 1970 the company is provided with the patent protection of the
inventions satisfying the requirements of novelty, utility and non-obviousness.
Trademarks
The Trademarks Act, 1999 permits the registration of Trademarks for goods and
services and Certification Trademarks and Collective marks are also registerable
under this act.
Broadband Policy
In this policy government has described the rules and regulation for a broadband
company. The policy also describes the guidelines to setup internet gateways in
country and abroad.
Some of the Guide lines are
1. The applicant must be an Indian company, registered under the Indian
Companies Act’1956.
2. The applicant company shall submit the application in duplicate in the prescribed
Application form enclosed as (Annex-I), for each Service Area separately.
3. The applicant company can apply for Licence in more than one service area
subject to fulfilment of all the conditions of entry.

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4. The applicant company shall pay a processing fee along with the application (Two
copies) of Rs. 15,000/- in the form of Demand Draft/Pay Order from a Schedule
Bank payable at New Delhi issued in the name of Pay and Accounts Officer
(HQ), DOT , Sanchar Bhawan, New Delhi and the same shall not be refunded for
any reason whatsoever.
5. SERVICE AREA :
For the purpose of licence, the country has been divided into separate
service areas in two categories as mentioned below:
Category A: This covers the territorial jurisdiction of the Union of India except
specified areas that may be notified to be excluded from time to time.
Category B: Any of the twenty three territorial service areas as per Annex-II.
6. There shall be no limit on number of Licences that can be granted in a
particular service area.
7. Foreign Direct Investment (FDI):
(i) FDI ceiling in the Licensee Company shall be 74%.
(ii) Both direct and indirect foreign investment in the licensee company shall be
counted for the purpose of FDI ceiling. Foreign Investment shall include

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investment by Foreign Institutional Investors (FIIs), Non-resident Indians (NRIs),
Foreign Currency Convertible Bonds (FCCBs), American Depository Receipts
(ADRs), Global Depository Receipts (GDRs) and convertible preference shares
held by foreign entity. Indirect foreign investment shall mean foreign investment
in the company/ companies holding shares of the licensee company and their
holding company/companies or legal entity (such as mutual funds, trusts) on
proportionate basis. Shares of the licensee company held by Indian public sector
banks and Indian public sector financial institutions will be treated as `Indian
holding’. In any case, the `Indian’ shareholding will not be less than 26 percent.
(iii) FDI up to 49 percent will continue to be on the automatic route. FDI in the
licensee company/Indian promoters/investment companies including their holding
companies shall require approval of the Foreign Investment Promotion Board
(FIPB) if it has a bearing on the overall ceiling of 74 percent. While approving the
investment proposals, FIPB shall take note that investment is not coming from
countries of concern and/or unfriendly entities.
(iv) The investment approval by FIPB shall envisage the conditionality that
Company would adhere to licence Agreement.
FDI shall be subject to laws of India and not the laws of the foreign country/countries.
There are many more guidelines which are defined by the government of India to enter
and to operate in the field of broadband.
4.8 Taxation Aspects
Taxes which Sify has to pay to the government are: -
 Service Tax
 Sales Tax

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 Income Tax
 Central Excise Duty on broadband
 Waive Entertainment tax on broadband subscription
Other expenses which also should be considered are
 Annual License Fee (6% of AGR)
 Bandwidth or spectrum Charges
Major Problems
During my training period at Sify I had recognize some problems with Sify. Some of
these problems are: -
 Connectivity related problems due to cables are occurring very frequently, it gives
chance to a customer to create an image which is not in favour of Sify.
 Less man power (in sales and marketing department) is also a major problem to resolve
different issues regarding customers.
 Some customers are also not educated about the internet, antivirus and other technical
aspects, so if problem occur because of them, they finally blame to the connectivity.
Achievements:
During the time of its starting Sify has awarded by many awards. These are: -
 Sify elearning wins 2 gold Brandon hall learning award (October 2006).
 Frost & Sullivan market leadership award: for the IP VPN market in India 2005-06.

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 Sify security service awarded for the second time the ALL INDIA – BEST PARTNER
AWARD for the year 2005 from FRONTINET inc.
 Sify awarded BS 7799 certification for information security management systems.
 Sify awarded ISO 9001: 2000certification for provisioning of corporate VPN, internet
bandwidth, VOIP and integrated security solutions.
 Sify awarded CMM level 5certification.
 Frost &Sullivan market leadership award: for the IP VPN market in India (August 2004).
 Sify enterprise solution awarded “India top reseller award” for the period July 2004 to
June 2005 by NOKIA.
 Sify bags the ISP of the year award at the internet world Asia industry awards,2001.
 Sify wins the golden web award for the year 2001 for the website
http://www.india.ford.com/
 IDC report 2001 puts sify as the clear cut leader in VPN service in India.
 Sify bags techies award 2000 for the best ISP.
 The golden mouse award for web evangelist 2000 goes to R.Ramaraj, former CEO and
managing director.
 Sify bags the company of the year 2000 award, at the silicon India annual technology
and entrepreneurship conference, san jose, California.
 Sify’s corporate site http://www.sifycorp.com/ wins the golden web award for the year
2000.
 Sify becomes first Indian company to be certified ISO9001:2000, for network services,
data center operations and customer relationship management.
Share market Position:
Sify is the only ISP which is listed in NASDAQ. Sify is listed in NASDAQ since from
2003. The table of major share holders of Sify is: -
ShareHolder Percentage of shares
All insiders and owners 53%

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Institutional and Mutual Fund Owners 21%
%age of floating held by Institutions &
Mutual Funds
36%
Ticker
Symbol:
SIFY
Last
Sale:
$ 4.39
Shares
Outstanding:
53,351,000
Market
Value:
$ 234,210,890
52 Week
High:
$ 8.54
Exchange:
NASDAQ-
GM
Issue
Type:
American
Depository
Shares, each
represented
by one Equity
Share
52 Week
Low:
$ 1.18

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P/E
Ratio:
N/A
Annual
Dividend:
N/A
Dividend
Yield:
N/A
Per Share Overview
Date 12-mos Rolling EPS Dividend P/E Ratio
03/2010 0.33 NA 5.12
03/2009 -0.41 NA N/E
03/2008 0.00 NA N/E
06/2007 0.21 NA 42.00
03/2007 0.27 NA 31.96
06/2006 -0.01 NA N/E
03/2006 -0.09 NA N/E
03/2005 -0.20 NA N/E
Key Financial Ratios and
Statistics
FYE: 03/31
Profitability 2010 Leverage 2010
Net Inc/Comm Equity 0.56 Total Liab/Total Assets 0.47
Net Inc/Total Assets 0.08 Total Liab/Inv Cap 1.97
Net Inc/Inv Cap 0.33 Total Liab/Comm Equity 3.38
Pretax Inc/Net Sales 0.29 Interest Coverage Ratio NA
Net Inc/Net Sales 0.19 Curr Debt/Equity 0.62
Cash Flow/Net Sales 0.01 LTD/Equity NA
SG&A/NetSales 0.65 Total Debt/Equity 0.62
Asset Utilization Liquidity
Net Receivables Turnover 4.66 Quick Ratio 0.79
Inventory Turnover 7.13 Current Ratio 0.79
Inventory Day Sales NA Net Rec/Curr Assets 0.37

34
Net Sales/Work Cap -4.56 Inv/Curr Assets NA
Net Sales/PP&E 22.98
Income Statement (Millions)
3/31/2010 3/31/2009 3/31/2008 3/31/2007
Total Revenues(Net Sales) 35.92 27.86 151.91 125.29
Cost of Goods Sold 2.69 2.07 85.82 66.89
Selling & Admin Exps 23.24 18.27 61.11 45.60
Operating Income 10.43 6.77 -4.91 -1.34
Interest Exp NA 3.19 1.45 0.13
Pretax Income 10.43 6.77 2.24 3.44
Other Income NA 0.70 4.06 3.28
Net Income Bef Extraordinary ... NA NA NA NA
Net Income 6.85 4.28 0.64 4.32
Balance Sheet (Millions)
Assets 3/31/2010 3/31/2009 3/31/2008 3/31/2007
Cash & Short Term Investments 3.32 3.58 38.45 70.61
Receivables - Total 11.21 4.22 55.74 34.17
Inventories - Total NA 0.75 0.95 0.66
Total Current Assets 30.34 18.25 98.92 108.55
Net Property, Plant & Equipment 1.56 1.59 54.76 37.82
Total Assets 88.52 67.72 193.54 164.75
Liabilities
Accounts Payable 8.78 6.94 37.68 26.31
Debt in Current Liabilities 29.42 24.00 4.00 18.46
Total Current Liabilities 38.21 30.94 66.43 57.19
Long-Term Debt NA 6.25 0.06 0.08
Total Liabilities 41.25 31.88 75.70 63.98
Stockholder's Equity
Minority Interest NA NA 5.02 3.90

35
Preferred Stock NA NA NA NA
Common Stock 11.56 10.23 11.07 9.84
Retained Earnings 34.84 24.77 -307.82 -284.70
Treasury Stock NA NA NA NA
Total Stockholders' Equity 47.27 35.85 117.84 100.77
Total Liabilities and Stockholders'
Equity
88.52 67.72 193.54 164.75
Cash Flow Summary (Millions)
Categories 3/31/2010 3/31/2009 3/31/2008 3/31/2007
Net Cash Provided by Operating
Activities
0.30 -2.71 -21.08 4.11
Net Cash Provided by Investing
Activities
-0.90 2.42 -18.98 -18.14
Net Cash Provided by Financing
Activities
-0.03 -1.98 -14.69 19.92
Annual Summary Data (Millions)
Year Sales Net Income EPS
03/2006 105.26 -3.36 -0.09
03/2007 125.29 4.32 0.27
03/2008 151.91 0.64 0.00
03/2009 27.86 4.28 -0.41
03/2010 35.92 6.85 0.33
Growth Rates -23.57 -- --
Stock Ownership
Type Date(Q,M) No. Owners
Shares Held
(000s)
% Own
Institutional 03/31/11 17 1,128 2.12

36
SIFY
Sify Technologies Limited NASDAQ-GM
Company Details
Total Shares Out Standing (millions): 53
Market Capitalization ($ millions): $229
Institutional Ownership: 2.1%
Price (as of 6/23/2011) 4.3
Ownership Analysis # Of Holders Shares
Total Shares Held: 17 1,128,802
New Positions: 3 117,465
Increased Positions: 7 256,431
Decreased Positions: 5 1,474,733
Holders With Activity: 12 1,731,164
Sold Out Positions: 4 937,683
Click on the column header links to resort ascending ( ) or descending ( ).
Owner Name
Select a name below for more information.
Date Shares Held
Change
(Shares)
% Change
(Shares)
Value
($1000)
CREDIT AGRICOLE S A 3/31/2011 728,558 (537,050) (42.43%) $3,133
MACQUARIE GROUP LTD 3/31/2011 102,849 102,849 New $442
DELAWARE MANAGEMENT ... 12/31/2010 102,849 0 0.00% $442
RENAISSANCE TECHNOLO... 3/31/2011 90,000 76,600 571.64% $387
DEUTSCHE BANK AG 3/31/2011 56,598 54,500 >1,000.00% $243

37
National & International Image:
Sify is an Internet Service Provider in India. It provides mainly two types of services in
India. These are corporate services and consumer services. Sify provides IPTV, VOIP,
VPN, Network Securities, and other services to the corporate consumers. Sify has a
large market in the SMEs and institutions and provide them their corporate services.
In consumer services Sify is providing wireless connectivity with value added services
like e-billing, e-education, e-ticket booking etc. Sify has a market stake of 11.83% in the
field of broadband connectivity and competing with the big telecom giant like BSNL,
AIRTEL etc.
Sify has a very good national and international image in the mind of corporate world and
the direct consumers.
"Sify was chosen because they are the one of the leaders in implementing
Last Mile wireless solutions with a fail-safe infrastructure and an extensive
presence in the country".
Mr.Jitendra Sarode
IT Infrastructure Head
Pantaloon
"We Chose Sify to conduct our Security Consulting Audit as they are our
Internet Bandwidth service provider, and we realized they could provide
world class network security services to us. Our experience with Sify for
the security audit has been very good. I believe we made the right
decision and it has been a pleasure working with their competent and
service focused team".

38
Mr.A.K.Sircar
Controller - Information Technology
Organon (India) Limited
“Partnering with Sify has given us a robust infrastructure whereby our
vehicle tracking system has been appreciated by a plethora of our
customers. High uptimes and prompt customer service has made Sify
an integral part of our product offering”.
Angshuman Roychoudhury
Customer Support Manager
Taco Mobiapps
“ERP and connectivity cannot be looked at in isolation. ERP's success
largely depended on a scalable, secure and reliable connectivity, which was
provided by Sify”.
Mr. Pradyumna Poddar
General Manager
Usha International Ltd.
Sify has a very good international image also. It is the first Indian broadband
service provider company which is listed in NASDAQ. Sify completed its successful 5
years in the list of NASDAQ. Sify has good image in international market this is because
it has a foreign promoter Infinity Capital Ventures which has approximately 32% shares
of Sify Technologies Limited.
Sify has many International Clients also, and provide them various services in
the field of internet.

39
Future Prospects:
 Sify’s main target is to provide wireless connectivity to its customers in all over India.
 Sify is now also targeting corporate to provide them the services of VPN.
 Sify’s future target is to provide a more reliable and secure network to its customers.
 Sify is going to concentrate on VOIP and IPTV technology.

41
ITES Industry in India
The Information Technology-Enabled Services (ITES) industry provides services that
are delivered over telecom or data network to a range of external business areas.
Examples of such business process outsourcing (BPO) include customer service, web-
content development, back office management and network consultancy etc.
Performance
The in India has mushroomed over the past decade. India has enjoyed its dominant
position in the global BPO segment due to its low cost but qualified workforce, Indians’
fluency in the English language, governmental support and a stable legislative and
economic framework. The 12 hour time zone difference with the primary originator of
most BPO jobs, the United States, is an added bonus, as day and night shifts can be
carried on as routine. The governmental drive to offer subsidies and tax relief benefits to
the ITES industry has been an important factor in the enhanced competitiveness of
India.
In 2010, ~1.3 million people were employed in this sector, and it generated annual
revenues of ~$11 billion (1% of GDP). The client base is primarily in the United States
(~60%) followed by the United Kingdom (~30%), with majority of the clients typically
engaged in either the IT, financial services or telecom industries.
Challenges
The significant demand for the industry has also had to deal with skyrocketing real
estate and infrastructure costs in Tier-1 cities. Due to these escalating costs, many
pundits argue that the trajectory of 30% annual growth is unsustainable going forward;
As a result, many Indian BPOs in Tier-1 cities have been looking at migrating operations
to Tier-2 and Tier-3 cities. Indian BPOs’ competitive edge is being further eroded as
wages rise by 10-15% p.a. as a result of skill shortage. In a further blow, countries like
China, Mexico and Vietnam are becoming real threats, expanding outsourcing
operations and often providing cheaper services.
Coping with Competition
In an attempt to differentiate themselves and stay ahead of the competition, the industry
has begun to focus on more lucrative knowledge intensive outsourcing services,

42
popularly known as knowledge process outsourcing (KPO). The services require high-
end skills and intellectual attributes and range from R&D, business and technical
analysis, animation and design and learning solution to market research, data analytics,
IPR and legal research. India has a first mover advantage in this area and as a result,
has captured lion’s share of this segment.
Given the strong dependence of the ITES industry players on the robustness of their’
client’s financial health, the industry was very badly affected by the global recession,
with many in the red. Most client companies, especially in the US, chose to cut budgets
across the board and generate governmental support by not promoting overseas
enterprise at the cost of already suffering local jobs. As a result, most Indian BPO
companies faced a tough 18-24 months.
Growth Potential
However, many leading players believe the worst is over, and are optimistic about the
future, “The IT sector is expected to grow at 15-20% and so is the BPO sector. With the
US economy back on the recovery path, we expect double-digit growth as against 4-7%
last fiscal. We are, hence, planning to expand our business and hire more people. We
plan to hire 7,000 personnel across the country this year," Intelenet CEO Susir Kumar
shared at a recent Press Conference.
Future Prospects
Given the optimism surrounding the prospects of the KPO segment specifically,
graduates with skills in financial analysis, equity research, treasury operations, credit
decision processes and accrual services among others are those most likely to be in
demand. Successful candidates who also display strong communication and IT skills
can further dividends in this higher pay scale category. Given the growth of MNC’s in
this industry, there may be exciting opportunities for further development and
placements over the next 3-5 years as this segment too matures.

44
LITERATURE REVIEW
Saudi incumbent, STC, has signed an agreement with SIFY Technologies that will
enable them to enhance the network coverage between India and the MEA region. Both
the companies are to leverage their respective investments in submarine and terrestrial
telecom capacities, and ICT services.
Saad Demyati, vice president of wholesale business unit at STC, said that Saudi
Telecom is the only Middle East operator that has international connectivity by way of
both multiple submarine cable systems and a terrestrial cable system via the recently
launched Jeddah-Amman-Damascus-Istanbul (JADI) link. "Our partnership with SIFY
allows us to deliver enhanced network service reach into India, alternative network path
and efficient Internet routing, and most importantly, leverage on SIFY's value-added ICT
offerings such as cloud services, SaaS as well as managed integration services to our
customers," he said.
Raju Vegesna, chairman and managing director of SIFY Technologies said that the
partnership will help them to deliver improved network footprint throughout the Middle
East, Africa and India. He stated that the partnership will enhance the company's ability
to deliver global capabilities, scalability and performance reliability to customers globally
who demand managed services and connectivity into India, the Middle East and African
region.
Vegesna also said that the deal will help SIFY to provide enhanced services to
enterprises and help its Indian, Asian and US carrier partners connect to Middle East
countries such as Saudi Arabia, Bahrain, Qatar, UAE, Oman, Yemen, Iraq, Sudan, and
East African countries such as Djibouti, Somalia, Kenya, Tanzania, Mozambique, South
Africa and Madagascar.
SIFY's EIG submarine cable capacities are ready for activation and the company's
exclusive partnership with Gulf Bridge International to land the submarine cable system
in India is scheduled to go live during the second half of 2011.

45
Sify Technologies Partners with Fortinet
Sify Technologies Limited, a major player in enterprise network and data center
services, has announced a partnership with Fortinet (News - Alert) to roll out an on-
demand security solution for cloud computing customers and its Clean Connect service.
The services are designed to guarantee secure bandwidth and clean connectivity to
their enterprise customers.
Fortinet is a premier network security provider and a worldwide leader of unified threat
management solutions.
Sify, with Fortinet’s end-to-end virtualization functionality, available on the FortiGate
integrated multi-threat security platforms, is able to provision security resources, on-
demand, from a shared appliance while providing an unmatched range of security
services quickly and easily to its customers.
Cloud computing customers, through Sify's (News - Alert) On-Demand Security solution,
are provided with the ability to deploy the security layer on an on-demand basis, thereby
providing complete end-to-end Opex-based services.
Company officials said that the solution allows customers to address data center
requirements through virtualization and integrate private and public cloud services into a
single infrastructure.
For customers subscribing to its dedicated Internet access services, Sify's Clean
Connect services offer cloud-based UTM functionalities.
Enterprise administrators can define a set of custom security policies, including firewall
and IPS policies, and Web filtering rules. These services help organizations comply with
security standards relative to the cloud.
"Sify has effectively utilized Fortinet solutions' virtualization capabilities, allowing
customization of security service offerings down to the individual customer level, which
is so essential for multi-tenant environments," said Vishak Raman, Regional Director,
SAARC & India, Fortinet, in a press release.
"We will continue to work closely with Sify to deliver best-in-class security services to
enterprises and consumers."

46
Cloud-hosting and service providers, with the help of Fortinet, are able to create secure
cloud infrastructures and deliver cloud security services. To protect the confidentiality
and integrity of their subscribers' data, and to create and deliver highly available,
innovative cloud security services, Cloud service providers rely on Fortinet technology.
At Fortinet's inaugural VIP customer forum in Hong Kong, Sify Technologies received
the 'Best Product Implementation Award'.
In related news, Sify Technologies has entered into a partnership with Deutsche
Telekom International Carrier Sales & Solutions (News - Alert), the international
wholesale arm of Deutsche Telekom.

48
Methodology:
Research procedure:
 First the company gave me a brief overview of itself and explained about the SME
project with a presentation which I would do during my STP.
 After explaining, they gave me the regions where I could do the research.
 To begin with the project, first I did the secondary research from the internet to know
about the SMEs present in those areas.
 Then I divided the whole area of survey into small subzones so that I can cover each of
them. I also prepared a weekly schedule so that a certain zone could be covered by the
allotted time mentioned in the schedule.
 Then I made a certain sample size where I should target as sample size is an important
parameter based on which the final decision is taken whether the data taken are related
with each other or not.
 Then I directly met with the customer and India research on the internet connectivity
and its status. This research helped me to know about the quality of service provided by
their respective ISPs.
 Then I did a research on the number of organization interested for the wireless
connection and based upon that I made a hypothesis whether it would be feasible for
my company to set up their product in that particular areas.
Method of data collection:
There are many method of data collection in a survey. These are basically divided in
two main types of method. These are:-
1. Primary data collection.
2. Secondary data collection.
Primary data collection:
It is the method of data collection in which the marketers collect the data very first time
or we can say that the collected data is fresh or first-hand data. We can collect primary
data by:-
1. Directly by the customer
2. By observation method
3. By telephonic interview method
4. By e-mailing the queries &etc.

49
Secondary data collection:-
It is a method of data collection in which the collected data is not fresh data, i.e. data is
collected from the report of any research, from internet or from any government offices
etc. These types of data collection methods are basically used when the sample size is
very large.
In this particular survey I have used the primary data collection method to collect the
data. In this particular method I directly went to meet the customer and collect data.
Instrument used:
Basically for this project, I took the help of following instruments:
 Survey questionnaire
 The sify information brochure
 Direct approach to customer instead of using any secondary mediums like telephones
or internet.
Survey questionnaire is a very important instrument for any researcher to collect the
requisite information. The questionnaire helps him to get a brief knowledge about a
particular subject. With the help of questionnaire, he can make further analysis and able
to make a decision and categorize each factor present in the questionnaire in a proper
manner. I used the sify wireless broadband survey questionnaire where each questions
carry equal weightage that help me to make my decision in the end.
Apart from the questionnaire, another important tool. I used was sify information
brochure. It involves all the benefits of sify and its wireless connection that was
sufficient for a customer to get a brief idea.
I used the simple form of data collection by direct approach to the customers.
Direct approach to the customers, meeting with them and get the relevant data are
always fruitful then using any secondary medium like internet and telephone. This also
shows the marketing skills of a researcher. Direct approach to the customers also
creates interest among them about the particular subject.

50
Tools and techniques of analysis:
The technique I used to analyze the data is the chi-square test. In chi-square test, I
assumed a hypothesis based upon which I was able to make a suitable decision
whether the data taken are related or not. The purpose of using the chi-square was
sample size of 100 which is greater than 30.
Based on market share and market growth of wireless broadband in relation to
the company, I have used BCG matrix, PLC, Ansoff’s analysis and SWOT to get an
overview of its current position in India.
Apart from that I have also used the software tool like Microsoft excel which was
very useful for arranging the data in tabular form. It made my work so simple that I
hardly used ant other instruments which I was using during primary data collection.

52
DATA COLLECTION, ANALYSIS AND INTERPRETATION
The basic task I was given by the company was to conduct a market survey.
The main purpose of the survey was to get a clear understanding of the market and set
up a plan based upon the data collected.
To start with the survey, I had to design a questionnaire that contains the
basic questions. The questions were simple, short and clearly understandable. I directly
approached to them, told them about Sify benefits and advantages of Sify wireless
broadband connection. And also I came to know about their current service provider
and their service. Then I got my questionnaires filled and gathered my relevant
information. The questionnaire format which I had used for my survey was given in the
Annexure.
Feedback:
The feedback was ok. I visited about 70 SMEs’ IT heads during my project.
Some were very supportive and helping me in data collection. Some were very busy
with their work that they hardly find time to meet us. But most of them, who gave us
response, are already using broadband connection. Since this was my first industrial
project, so I was uncertain about the corporate sector. So when I approached to them,
they gave me important tips and feedback how to interact with people.
And about the project, in the SMEs, the executives mostly the IT-heads
recommended some parameters which I should include in the project. Apart from that,
they also suggested what Sify should offer that would give a close competition to the
other ISPs who are providing wireless connection.
Based upon those parameters and feedback, I did further research and moved
ahead till the data analysis was done.
HYPOTHESIS TESTING PROCEDURE FOR THE SURVEY:
Hypothesis:
Null: SMEs don’t want to switch to Sify Wireless Connection.
Alternate: SMEs want to switch to Sify Wireless Connection.
Level of Significance:

53
We are assuming that Level of significance is 5%, i.e. at least 95% decisions are
acceptable.
Test: We are using Chi-Square Test for the hypothesis.
Calculation:
Observation Table
Response
SMEs
Interested Not
Interested
No Response Total(A)
Schools/Colleges 20 2 9 31=~30
Companies 2 7 30 39=~40
Total(B) 22 9 39 70
Calculation for the expected values:
Expected value (E) = (RT*CT)/Sample size, RT: - Row Total
CT: - Column Total
Expected Frequencies:
Response
SMEs
Interested Not
Interested
No Response Total(A)
Schools/Colleges 9.43 3.85 16.72 30
Companies 12.57 5.15 22.28 40
Total(B) 22 9 39 70

54
Formula for Chi-Square: -
= 28.12 (Calculated Value)
The degree of freedom is found to be (2-1)(3-1)=2.
From Chi-Square table, it was found that
For 5% (0.05) = +5.99 (Table Value)
RESULT: The calculated value of is greater than the table value. So, the null
hypothesis is rejected and the alternate hypothesis is accepted. Hence the final result
is SMEs want to switch to Sify Wireless Connection.

55
About the “Sify Wireless Connection”:
SIFY - Advantage
Opportunity:
• Association with SIFY.
• Most superior technology
• Real Time Broadband
• High Speed ( from 256kbps to 1 Mbps… )
• 24x7 Help Desk Technical Support.
• Effective need based products to suit different profile of SME customers.
• Easy Scalability.
• 1st.Voice as additional Value Add.
ProductDeliverables:
 Always ON Internet.
 Shared Broadband with QoS.
 Mail Applications.
 VoiP for International Calls.
 CuG for Inter Office.
 Video conference.
 Server Hosting.
 Security.
Sify Advantage:
 Dedicated wireless last mile via R.F. – For best possible throughput with virtually no
possibility of physical damage, cable cut and with highest service levels.
 Broadband router: To facilitate single/admin login for all users, giving a feel of enterprise
class service.
 Static IP- To facilitate triple play- Voice, Video Data & better/instant connectivity.
 24x7 Help Desk Support.
 Partnership with India’s best in Class IP services Provider.
Sify Solution-Advantage:
Strengths:

56
• Wireless based Product solution.
• 100% Uptime as compared to Wireless Network.
• Cellular Broadband Technology Advantage.
• Presence in over 200 cities. (Ideal for SME presence).
• Established Corporate and Retail leadership experience.
• Complete Scalable Solution.
• Provision of VAS.

58
Analysis with SWOT, BCG matrix in relation to the
company:
Analysis with SWOT:
Strengths
 Last mile wireless solutions with a fail-safe infrastructure
 Extensive presence in India
 World class network securities
 Scalable, Secure and reliable connectivity
 International MPLS services for VPNs
 Value added services to the customers
1. Free anti-virus to all customers
2. Technical support in case of some issues
3. E-travelling (Trains, Airline bookings)
4. E-billing (Electricity, telephone bills)
5. Customer education on internet
6. Easy recharge of account
 Dedicated Management team headed by Mr. Raju Vegesna (CEO, MD)
 24x7 customer care services
 Very good Investors - company relations
 International internet gateways for global connectivity
 An array of customizable Intranet and extranet web applications, ranging from websites
to workflow automation and e-Business applications. Easy to deploy, cost-effective
solutions that can quickly web enable your enterprise.
Weakness
 In many areas networks are on leased fibres.
 No direct customer reach.
 More of the network is based on wired technology so more connectivity related issues
occur due to cable.
Opportunities
 Very low broadband penetration India, so Sify has an opportunity to grow with the
customers.

59
 World class wireless solutions are provided by Sify, so there is a great business
opportunity for Sify in wireless technology.
 Business opportunities in the field of VOIP and IPTV.
 Opportunity in rural broadband.
Threats
 Competition with telecom giants like Reliance, Airtel, BSNL which are providing data
cards for internet access due to which customers have mobility in terms of connectivity.
Analysis with BCG Matrix:
The BCG matrix method used to determine what priorities should be given in the
product portfolio of a business unit. To ensure long-term value creation, a company
should have a portfolio of products that contains both high-growth products in need of
cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions:
market share and market growth. The basic idea behind it is that the bigger the market
share a product has or the faster the product's market grows, the better it is for the
company.
The BCG has identified four following categories of SBU‟s and suggested the
appropriate strategy for each one

60
1. Star
2. Cash cow
3. Question mark
4. Dog
1). Star
Characteristics:
 Market Leaders
 Fast growing
 Substantial Profits
 Require large finance growth
Strategies:
 Protect existing share
 Reinvest earnings in form of price reductions, providing better market coverage, product
improvements, increase production efficiency, etc.
 Obtain large share of the new user.
2) Cash Cows
Characteristics
 Profitable Product
 Generate more cash than needed to maintain market share.
Strategies
 Maintain market dominance.
 Invest in process improvements and technological leadership.
 Maintain price leadership.
 Use excess cash to support research and growth elsewhere in the company.
3).Question mark:
Characteristics:
 Rapid growth
 Poor profit Margins
 Enormous demand for cash strategies.

61
Strategies
 Invest heavily to get a disproportionate share of new sales.
 Buy existing market shares by acquiring competitors.
 Divestments ( see Dogs )
 Harvesting ( see Dogs )
 Abandonment ( see Dogs )
 Focus on a definable niche where dominance can be achieved.
4) Dogs
Characteristics
 Greatest number of product falls in this category.
 Operate at a cost disadvantage.
 Few opportunities for at a reasonable cost.
 Markets are not growing: therefore, little new business.
Strategies
 Focus on a specialized segment of market that can be dominated and protected from
competitive inroads.
 Harvesting – Cut back all support cost to minimum level: support each over the product
remaining life
 Divestment- Sale of a growing concern.
 Abandonment- Deletion from the product line.
If we see Broad band’s market growth and Sify’s market share over the years, we find
that Broadband internet market is a rapid growing market segment. The Broadband has
continued with its growth trajectory till the previous year and this year as well, to record
a growth of around 7.4%. This shows that Market Growth is quite high.
Analysis with Ansoff’s matrix:
Ansoff’s matrix is mainly used to determine the growth opportunities of the
business of the company. This involves planning new businesses, downsizing or
terminating older businesses. The company plans for existing businesses allow it to
project total sales and profits. If there is a gap between future desired sales and
projected sales, corporate management will have to develop or acquire new businesses
to fill it.
Corporate management’s first course of action should be a review of opportunities
for improving existing businesses. Ansoff proposed a useful framework for detecting
new intensive growth opportunities called a “Product-Market expansion grid”

62
Ansoff’s Product/Market Expansion Grid:
Ansoff's matrix provides four different growth strategies:
 Market Penetration - the firm seeks to achieve growth with existing products in
their current market segments, aiming to increase its market share.
 Market Development - the firm seeks growth by targeting its existing products to
new market segments.
 Product Development - the firms develops new products targeted to its existing
market segments.
 Diversification - the firm grows by diversifying into new businesses by
developing new products for new markets.
Selecting a Product-Market Growth Strategy
The market penetration strategy is the least risky since it leverages many of the firm's
existing resources and capabilities. In a growing market, simply maintaining market
share will result in growth, and there may exist opportunities to increase market share if
competitors reach capacity limits. However, market penetration has limits, and once the
market approaches saturation another strategy must be pursued if the firm is to
continue to grow.
Market development options include the pursuit of additional market segments or
geographical regions. The development of new markets for the product may be a good
strategy if the firm's core competencies are related more to the specific product than to
its experience with a specific market segment. Because the firm is expanding into a new

63
market, a market development strategy typically has more risk than a market
penetration strategy.
A product development strategy may be appropriate if the firm's strengths are related
to its specific customers rather than to the specific product itself. In this situation, it can
leverage its strengths by developing a new product targeted to its existing customers.
Similar to the case of new market development, new product development carries more
risk than simply attempting to increase market share.
Diversification is the most risky of the four growth strategies since it requires both
product and market development and may be outside the core competencies of the firm.
In fact, this quadrant of the matrix has been referred to by some as the "suicide cell".
However, diversification may be a reasonable choice if the high risk is compensated by
the chance of a high rate of return. Other advantages of diversification include the
potential to gain a foothold in an attractive industry and the reduction of overall business
portfolio risk.
In case of Sify, when it first launched its products and services by entering into the world
of broadband internet, there came a revolution as by that time no one was providing
such services. This became Sify’s Market Penetration strategy.
After establishing its corporate office at Chennai, its main aim was to target the thickly
populated Areas mainly metro cities like Bangalore, Kolkata, Delhi, Hyderabad, Mumbai
and applied the same successful formula that had worked wonders for Sify. This
became Sify’s Market Development strategy.
Once the company established itself as a presence in many cities nationally, Sify sought
to increase the number of purchases by existing customers with a Product Development
strategy with new facilities like.
Sify : Business 2 Business
 Electronic Data Interface
 Virtual Private Networks
 Security Services
 Network Management Services
 E-Solutions
 Internet Consulting
 Solutions Architectures
 Design and Development of Solutions
 Hosting and Management Services
 E-Commerce products
Sify : Business 2 Customers

64
Sify is India's largest provider of Broadband Services to explore the
true potential of the Internet.
Learnatsatyam.com uses the Internet to educate a global
classroom of learners.
India's most preferred private Internet Service Provider with tens of
thousands of subscribers accessing Net.
Sify.com is a popular consumer portal with comprehensive
information, facilities and services and information.
An extensive network of cyber cafes spread across the
metropolitan cities of India.
Way2Talk is Sify's Internet Telephony service to make calls across
the world using a PC 2 Phone Dialer.
On the year May 2008, Sify Technologies has announced the launch of its Roam
Connect International service in India. The Roam Connect International service,
powered by leading enterprise mobility provider iPass (NASDAQ: IPAS), will enable Sify
customers to access a global high-speed, reliable and secure wireless Broadband
service when on the move. With Roam Connect International, customers will now be
able to access their data from more than 100,000 broadband locations globally,
including key business-centric venues such as airports, hotels, conference centers and
retail venues.
Till date, Sify has been developing as a leading firm in the field of Internet over the
years. As of now its services are limited to internet only. It has not entered into any
other sector. Hence the company’s Diversification strategy has not yet come.
Analysis with PLC:
Product life cycle concept provides basic structure that allows a company to see where
the company is, and what lies ahead. Help a manager to conclude where the company
phase, understand the marketing implication of each phase and responsible to re-build
the most effective strategy in order to survive in competition thus generate revenue.
All products have a life-cycle. It starts with preparations for the product's launch
Stages in the cycle are: -

65
1. Introduction
2. Growth
3. Maturity
4. Decline
Product Life Cycle (PLC)
Stage 1: Market Introduction
 Sales are low as the new idea is first introduced to the market.
 Customers may not be aware of the product’s benefits and features and may not
be aware of the product itself.
 Most companies experience losses during the market introduction stage.
 A lot of money is spent on promotion and product development to build product
awareness.
 Promotion is aimed at innovators and early adopters.
 Pricing
 Low penetration pricing
 High skim pricing
Stage 2: Market Growth
 Rapid growth in sales and profits
 More product awareness
 Competitors see the opportunity and enter the market.
 Some competitors will copy the product or may try to make it better or more
appealing to other target markets.
 The new entries result in more product variety.
 Promotion is aimed at a broader audience.

66
 More distribution channels are established.
Stage 3: Market Maturity
 Most common stage in the cycle.
 Sales begin to level off.
 The competition gets tougher as more competitors have entered the market.
 Increased competition creates a downward movement in prices.
 Industry profits are largest, but it is also when industry profits begin to decline.
 Promotion is targeted to create brand differentiation.
Stage 4: Sales Decline
 Sales continue to decline.
 Shrinking market
 New products replace the old.
 Firms will often try to use extension strategies.
 Companies may be able to keep some sales by appealing to their most
loyal customers.
 When in the decline stage, a firm may:
 Maintain: enhance the product by finding new uses or by adding new
features.
 Harvest: reduce costs and continue to offer the product to a targeted
niche.
 Discontinue: sell the product to another firm, or liquidate inventory.
Sify Technologies lies in Growth stage in PLC because of following points:-

67
PLC of sify
 Sify has managed to garner revenue of Rs 420 crore in the last four quarters
from dial-up, leased lines and other Internet services during FY '06-07, thereby
asserting a growth of 13% over last year's revenue of Rs 371 crore. This is
despite showing a dip of 8% in the overall subscriber base.
 Sify's dial-up subscriber base dropped 40% from 1, 36,331 to 81,670 by the end
of the fiscal. The public access through iWay chain of cyber outlets has dropped
by 9.2%, falling from 572,724 at the beginning of the year to 519,466 by end of
the fiscal.
 Sify is now owned by Mr.Raju Vegesna, the entrepreneur who has made several
billion dollars with his other company Server works. Under the leadership of Mr.
Raju, his company has earned a maiden profit after 10 years of its existence. It
also earned a Net profit for the year was $ 2.3 million compared to a net loss of
$3.50 million for the previous fiscal.
With the above analysis, it can be said that Sify Technologies Ltd. is in growth
stage.
Summary of market research:
 This research was done to find out the response of SMEs about their willingness
to the Sify wireless connection.
 The research includes questionnaire filling by the customers.
 The sample size I have taken is 70.
 The main areas for my research are Ameerpet ,somajiguda ,punjagutta in
Hyderabad and secundrabad.
 Some SMEs are satisfied with their service provider and some want to switch
over to another who can provide them mainly with broadband speed with minimal
charges.
 During research I also found that most of the SMEs mainly in the companies, IT-
heads were very busy with their working schedule. So I find it quite a difficult task
to conduct a cold calling meeting.

68
 Among those to whom I was able to meet, about 70% of them were interested for
taking wireless connection or want to switch over to another service provider who
would give them better service with minimum rates as compared to their current
connection.
In most SMEs, mainly in the colleges, the number of users are more than any
other sectors. Hence they want the wireless connection that gives a speed of minimum
2 MBPS.
Descriptive analysis of each question:
Q1. Is this your Head Office?
Out of 140 respondents 85 respondents said that that particular branch is their head
office. and rest 65 said that their head office is somewhere else.
INTERPRETATION:
Majority of the company situated in Hyderabad is a branch office and head office is
somewhere else so they are not supposed to take decision by their own. these
companies are centrally ruled.
Q 2. How many branchesdo you have?
Out of 146 respondents 55 has 0 branch, 10 has 1 branch, 16 has 2 branch, 10 has 3 branch, 5
has 4 branch, 4 has 5 branch,6 has 6 branch,1 has 7 branch,2 has 8 branch,14 has branches
between 10-20, 6 has branches between 20-30,8 has branches between 30-50,5has branches
between 50-100,4 has branches more than 100.
respondents
yes
no

69
INTERPRETATION:
Most of the company I visited is having 0branch, and most of them may be potential
customer for SIFY if we will be in touch with them.
Q3. What are the applications you use? (ERP - SAP, Oracle, other/ Financial Packages
etc)
Ans-out of 140 respondents 69 is using any kind of application and rest are not using
any application.
0
10
20
30
40
50
60
Series 1
Series 1
Application
yes
no

70
INTERPRETATION:
50% of the company (including institutes) is not using any application even if they are
having branches they simply inform to other branches through mails. so if we explain
about benefits of using such software 2-3 times they will definitely turn.
Q4. Do you use any VPNs?
Ans- out of 140 respondents only 24 is using VPN services rest are not using VPN
services.
INTERPRETATION:
Only 18 % of company is using VPN services in Hyderabad,so we should focus more in
this area.
vpn
yes
no

71
Q5. Who is your Internet service provider?
Ans- out of 140 respondents 23 is using tata’s internet services,24 is using BSNL
services, 14 is using reliance services, 52 is using airtel’s services,and rest are using
other services(Beam telecom ,tikona etc.).
INTERPRETATION:
At present Airtel is dominated the internet market in Hyderabad.
Q6. How much bandwidth do you currently use?
Ans- out of 140 respondents 8 is using bandwidth below 1mbps,42 is using bandwidth
of 1mbps,53 is using bandwidth of 2mbps,11 is using bandwidth of 4mbps, 26 is using
bandwidth of 5mbps and above 5mbps.
ISP
Airtel
tata
reliance
BSNL
other's

72
INTERPRETATION:
Combinely more than 90% of the company is using bandwidth of 2mbps or less.
Q7. Do you have any applications which help you collect data from your branches and
send to the Head Office?
Ans – out of 140 respondents 108 respondents doesn’t have any such application to
collect data from branches and send to the head office and rest 32 is having such
application.
Bandwidth
below 1mbps
1mbps
2mbps
4mbps
above 5 mbps
Q 7
having application
not having application

73
INTERPRETATION:
90% of the company is not using data centre services.
Q8. Where are your servers located?
Ans –out of 140 respondents 94 respondents server is located in Hyderabad, 7
respondents server is in Mumbai, 2 in kolkatta,4 in gurgaon,5 in Delhi, 7 chennai and 2
in bangaluru.
INTERPRETATION:
Around 70% of the company’s server is located in Hyderabad.
Q9. Are you hosting your applications at your Head Office?
Ans-out of 140 respondents 101 is hosting their application to head office and rest 39 is
not hosting their application.
Server
Hyderabad
Delhi
Chennai
Bangaluru
Gurgaon
Kolkatta
Mumbai

74
INTERPRETATION:
72% of company is not hosting their application to their head office.
Q10. Do you have any plans to collocate your servers in a Data Centre?
Ans-out of 140 respondents 123 don’t use data centre services.
Hosting
yes
no

75
INTERPRETATION:
88% of the company is not using Data centre service.
Q11. Do you have any sudden or urgent computing requirements at specific times (like
month-ends, quarter-ends, peak-times etc) or for meeting your customer requirements?
Ans-out of 149 respondents 136 don’t have sudden requirement.
Data centre
Yes
No
Sudden requirement
Yes
No

76
INTERPRETATION:
91% of the company don’t have urgent computing requirement. This is because of
various reasons one of the reason I observed is company in Hyderabad is giving long
term contract to their internet service provider.
Q12. Do you have any overseas customers? Do you need to have voice communication
with them?
Ans-out of 140 respondents 89 don’t have international customer.
INTERPRETATION:
71% of the company is not having international customers.
international customer
yes
no

77
Q13. How do you do international calling?
Ans-out of 140 respondents 87 not having international customer, and rest is calling
their customer through SKYPE.
INTERPRETATION:
29% of the customer call their international customer through SKYPE or phone. and
these companies are not using any voice services.
Q14. Do you have a PBX capable of handling IP?
Ans-out of 140 respondents 32 is having PBX capable IP and rest 108 is not having
PBX capable IP.
international calling
yes
no

78
INTERPRETATION:
77% of the customer is not having PBX capable of handling IP, only 23% of the
customer is using these services.
PBX
yes
no

80
Suggestions & Recommendation:
 Company should maintain very strong corporate relations especially with SMEs
to make new clients and to maintain relations with existing clients.
 All the technical support teams should report their respective head on the daily
basis to report him about the complaints and their resolutions.
 During my training, the company wouldn’t provide me the complete Sify wireless
Plans list. I was told to only speak about Sify benefits to the SMEs. So the
customers get only a part of information from me; not the whole. So I would
recommend Sify to provide the summer trainees with the complete set of
information about their products and services so that customers can get full
information at the same time.
 Sify’s wireless broadband speed is limited to 1MBPS only. But the SMEs like
colleges want a minimum speed of 2-4MBPS. So I would recommend Sify to
upgrade its Wireless plans to compete with other telecom giants.
 The technical team should be more polite.
 Many of the existing customer of sify is unsatisfied with the services provided by
the sify some have problem in the voice services some have problem in some
other services.
 The one and only main problem is that when there is a power cut, then all of a
sudden the broadband connection is down. This is something which happens on
a regular basis in India, and for those who provide the internet, need to have a
backup for their users, so that the service is sufficient and the best.

81
Conclusion:
“Wireless in SMEs” is a project which definitely shows the accessibility and
requirement of wireless internet in the remote areas. The main problem the SMEs are
facing is the complex and expensive wired technology which they are bound to use over
the years until the wireless technology comes. With the wireless technology, they can
be relieved from the problems like failure of connectivity, cable cut, security problems
etc.
By this type of connectivity, Sify can be in directly contact with the customers and
can handle them according to their policy of customer handling.
I have also analysed the Sify’s current market position in relation to its wireless
broadband technology with PLC, SWOT, BCG matrix analysis and Ansoff’s matrix.
The project also helps me to learn and experience the corporate life style. During
the project, I met different corporate people who gave me valuable tips and advice
which I should follow during my training and in the future also. So this has been a good
learning experience for me.
Finally I can conclude that Sify has come a long way in the business of internet and
is growing still further. It has brought a revolution by bringing the wireless technology to
the SMEs with a cheaper rate so that they can easily afford it and enjoy more reliable
and secure network than they have ever used.

82
Bibliography
Internet
 http://en.wikipedia.org/wiki/Broadband_Internet_access
 www.Fcc.gov
 http://en.wikipedia.org/wiki/Wireless_internet_service_provider
 www.dot.gov.in
 www.broadbandindia.com
 www.google.com
 www.sifycorp.com
 www.sify.com
 www.sifybroadband.com
 www.coai.com
 www.ispai.com
 www.trai.gov.in
 www.moc.gov.in
 www.reuters.com
 www.proxim.com
 www.houstontechnologies.com
 www.auspi.org
 www.way2wealth.com

83
ANNEXURE
 Survey questionnaire.
 Chi-Square Table.
 Database of SMEs.

84
Survey questionnaire
Name of the Organization
Address
Name of the contact person
Designation
Phone
Name of the contact person
Designation
Phone
# Query Yes/No Remarks
1 Is thisyourHead Office?
2 How manybranchesdo youhave?
3
What are the applicationsyouuse?(ERP - SAP,
Oracle,other/Financial Packagesetc)
4 Do youuse anyVPNs?
5 Who isyour Internetservice provider?
6 How muchbandwidthdoyoucurrentlyuse?
7
Do youhave any applicationswhichhelpyou
collectdatafrom yourbranchesand
sendto the HeadOffice?
8 Where are yourserverslocated?
9
Are you hostingyourapplicationsatyourHead
Office?
10
Do youhave any plansto collocate your
serversina Data Centre?
11
Do youhave any suddenor urgentcomputing
requirementsatspecifictimes(like month-
ends,quarter-ends,peak-timesetc) orfor
meetingyourcustomerrequirements?
12
Do youhave any overseascustomers?Doyou
needtohave voice communicationwith
them?
13 How doyou do internationalcalling?
14 Do youhave a PBXcapable of handlingIP?

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