Hitachi Systems Micro Clinic had a seventy percent revenue growth last fiscal.
The pan-India IT services company clocked revenue of Rs 601 crore in FY 16 (ending March 2017), as compared to Rs 352 crore in the previous fiscal (2015-2016).
“The robust growth rate means the company is all set to register Rs 1,000 crore in FY 2017-18 and we have well-etched business plans for that four digit number," said Tarun Seth, Managing Director, Hitachi Systems Micro Clinic in an exclusive interaction with CIO India on the company’s outlook for FY 17.
Delhi-headquartered Micro Clinic was acquired by Japan-based Hitachi Systems in February 2014 and has witnessed a compound anual growth rate of 44 percent over the past three fiscals.
Also Read: Entrepreneur Tarun Seth Powers Micro Clinic to Macro Deal
We are a bottom line driven company, said Seth. “As an organization, our belief is that if we chase our bottom line target, top line is bound to happen. While bottom line focus is important, we always have an eye on the top line business,” he added.
Talent acquisition worked to a great extent for the company’s growth in 2016. “We hired many key resources at various levels, which helped us to drive management and execution capabilities. The focus on government business and BFSI added to the topline business and visibility in the India market,” he elaborated. "And of course, deeper alignment with OEM vendors got us lots of insights into large value deals."
The security business and server storage business witnessed rapid growth in FY 16. "Security contributed almost 30 percent and server storage was almost one-fourth of the total revenue. This fiscal, the focus is to grow the networking business," said Seth.
The company also witnessed an evenly spread revenue in FY 16 with end user computing, SSN and security divisions contributing around 27 percent each. Security business doubled in this fiscal over the previous one which was a significant highlight. Security saw growth in NGFW and ATP Solutions, DLP and gateway solutions.
"In Storage we have seen private cloud solution, hyper converged and flash storage as the major contributors. Also, services contributed 18 percent of total revenue hereby ensuring bottom lines," said Seth.
The company’s diversified business as a pan-India player was a key highlight in the last fiscal, with North and East parts of India registering strong growth in government and PSU BFSI segments. “The western region saw good traction in manufacturing, IT, ITES and BFSI sector. One-fifth of the revenue from government sector across India was a big growth factor,” he said.
Hitachi Systems Micro Clinic aligned with cloud vendors like AWS, Microsoft to provide solutions in the last fiscal. The company joined hands with leading hyper converged solution providers wherein they saw some great success. Hitachi Systems Micro Clinic has also collaborated with various security OEMs in FY 16 which will create more traction in the times ahead, added Seth.
"Aligning with the right set of OEMs and their growth stories helped us propel our business in FY 16. We ensured that our business strategy and GTM were in tune with the roadmap and vision of our key vendors," he said.
Into the future
What puts Hitachi Systems Micro Clinic ahead of channel folks including tier 1 technology providers? Tarun responded, “Even though the market is very competitive, we stand out due to a higher number of touch points because of our pan-India presence. We are a complete system integrator, be it end user computing, storage server networks, IT security, cloud solutions or managed services through NOC 24x7."
Must Read : Hitachi Systems Micro Clinic gets aggressive on cloud
"Hitachi Systems Micro Clinic provides cable to cloud solutions, and Indian CIOs work with us because of our agility and technical capabilities. The size (presence across India and capability for big IT projects) and brand (under Hitachi Systems) plays to our advantage," he added.
"The acquisition by Hitachi Systems helped us edge past the competition in India. Investing more in technical capabilities, marketing, people, finance options and global reach made the difference," explained Seth.
The company constantly invests in manpower and its present strength is over 1,500 pan-India. “We firmly believe that investing in the right people will help us achieve the target of Rs 1,000 crore. We are relatively strong in the north and west parts of India. Hence, we recently inducted over 120 people in south as we wanted to strengthen our presence in that region too,” he elaborated.
The key priorities for FY 17 include enhancing security by shifting from anti-virus to SIEM; focusing on cloud solution portfolio through AWS and Azure and also establishing NOC and SOC for 24x7 support. "We are upbeat on hyper converged infra, flash storage and software defined solutions (SDN)," he said.
With the advent of digital transformation, IT has become more dynamic and technology trends change rapidly. We asked Tarun Seth to predict the top technology trends in 2017, he replied, “IT will witness a major paradigm shift in cloud solutions. Another trend impacting the managed services outlook would be integration of NOC capabilities with managed services. Other trends to look out for in IT security include growth of SIEM-as-a-service.”
"We firmly believe the next growth driver will be our cloud business unit with more revenues from software defined solutions around network, datacentre and storage," said Tarun Seth at Hitachi Systems Micro Clinic.