CONFIDENTIAL

Penetration of Open Source in US

Enterprise software market
– An Overview
Zinnov Study

June, 2006

This report is solely for the use of Zinnov client and Zinnov personnel.
No part of it may be circulated, quoted, or reproduced for distribution
outside the client organization without prior written approval from Zinnov
LLC.
AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

1
Open Source revolution began in Early 90’s with the landmark release of
Linux

2000 and
1960’s 1970’s 1980’s 1990’s
Beyond

• MIT, AT&T Bell Labs, • AT&T announces • Free Software • Linus Torvalds • Linus Torvalds
and GE worked on plans to Foundation was produced a free releases the highly
an experimental commercialize established at MIT operating system anticipated 2.4 Linux
operating system Unix • FST established the kernel called Linux. kernel.
called Multics • Decision to re-write idea of "copyleft" and • Netscape announces • Red Hat officially
• ARPANET founded. Unix in the C the General Public plans to make the announces its entry
The precursor to the programming License (GPL) source code for into the enterprise with
Internet, it allows language. • Minix, a version of Communicator free on the "Enterprise-Ready
researchers to share Unix with Source code the Internet Linux“
code and was released • Term "Open Source" • Sun Microsystems
information. • Industry group called is coined in Palo Alto, also released an open
• Bell Labs, writes the X/Open was formed to CA. source version of
first version of Unix standardize Unix • Eight core contributors Solaris, called
systems. formed the foundation “OpenSolaris”
• First company to of the original Apache
provide custom Group
engineering and • PHP which was
support services for originally designed as
free software i.e. a small set of Perl
Cygnus scripts, followed by a
rewritten set of CGI
binaries written in C.
Source: Webopedia, Literature search 2
Open source is moving up the stack, and much more quickly than many
could have predicted
Phase IV

Adapting to Market
organized approach
Going Forward - Open
Phase III • Open source companies will
source won't be about the soon get the chance to
software at all--it will be prove just how mainstream
about the packaging & Products & Support their software have become.
services services • Companies will soon target
the top of the application
Phase II • Companies explore stack, CRM and ERP.
service based revenue • Industrial-grade applications
Development & model in areas of ERP, CRM are
• Open source companies now emerging E.g.
Commercialization considered an ecosystem Compiere
• Term "Open Source" is coined by Venture capitalists. • Complete end to end, cost
Phase I in Palo Alto, CA. • Enterprise ready products effective IT solutions based
• Red Hat distributes Linux backed by strong support on Open source products
Research & Community • Eight core contributors formed • Services companies to • SME’s and Governments
Initiatives the foundation of the original test and certify open will adopt open source to
• Free Software Foundation Apache Group in 1995 source stacks lower TCO
was established at MIT • PHP which was originally • Suite of ready to use • More services organizations
• Linus Torvalds produced a designed as a small set of Perl Enterprise products to providing mainstream open
free operating system kernel scripts, followed by a rewritten compete with proprietary source Products, support &
called Linux. set of CGI binaries written in software i.e. SugarCRM consulting will be
C. encouraged.

Source: Zinnov Analysis, Literature search 3

AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

4
Market Overview
Open Source software market is growing fast with leading market share in application servers. In operating
server domain OSS have secured a good second position and is growing to exceed $35 billion by 2008.

Highlights: Open Source Software Market

•Open Source accounts for close to 10% of market share in RDBMS.

Together MySQL and Firebrand has a market share of 80%, with almost
equal share. Moreover It is estimated that open source database market
will grow from present USD 300 million to USD 1billion by the end of 2008.
Open source software
demands only an
•Linux based operating servers boast of 30% market share, second only investment in human
to Windows. Within, Linux Red Hat is the clear leader with close to 50% capital, a cost that
market share. According to IDC forecasts Linux is supposed to be the can be controlled by
fastest growing operating server. the organization itself
rather than a third
•At 67% market share Apache is the numero-uno in web server domain party.
with second being Microsoft at distant 20%

•Absence of license fees in open source makes it multiple times cheaper

then proprietary counterparts. A good example is open source application
servers, which are 2.5 times cheaper than their proprietary counterparts.

Source: Evans Data survey, Literature survey 5

The biggest surprise in open source database market is that Firebird has
nearly tied with MySQL in number of installations
Market Share of RDBMS in 2005 Open Source RDBMS Market Share
Percentage Percentage
Other
4.3
0.9 SAP DB
2.5
3.6 GNU SQL
Microsoft, Berkeley DB
13.4 11
PostgresSQL
IBM, 30.6 Sybase, 3.1

NCR, 3.1 Firebird

38.7 The open-source
Open
Source &
database market
Others, 8.5 alone was $300
million last year
and is expected to
reach $1 billion by
39 2008
MySQL - Forrester
Oracle, 41.3

Market share

Source: Evans Data survey, Literature survey 6

Linux is forecasted to be the fastest growing server operating system
environment
Percentage Market share of Operating Systems Percentage Market share of Linux Operating Systems
Windows
, 51.5 RedHat,
49.7

Linux,
29.6

Cobalt,
20.3 Debian,
Solaris, 15.9 SuSE,
7.2 BSD, 6.3 Other Non unix, 11.8
Unix, 2.5 2.9 MandrakGentoo,
e , 1.3 1

Percentage Market share of Web Server in 2005

Apache, Comments
67.11
• IDC predicts the overall market revenue for desktops,
servers, and packaged software running on Linux will
exceed $35 billion by 2008.
• Linux is forecasted to be the fastest growing server
operating system environment, and the overall Linux
Microsoft
solution stack is growing at a commensurate rate.
, 20.61 • Apache now powers more than 50 million sites and
continues to maintain a large lead in both active sites
Zeus, and hostnames.
Sun, 2.5 0.75

Source: Netcraft Survey 7

Total Cost of Ownership (TCO) is 2.5 times lesser than proprietary
software for application servers
Illustrative

TCO for J‘Boss Application Server TCO for alternate Proprietary Software
800000
800000

700000 104100 675700

700000

600000 600000 176150

500000 500000

99200
400000 400000

296250
300000 49100 277700 300000
111150

200000 200000
41200
76250
100000 100000

0 0
Intial First Second Third Total Intial First Second Third Total

Software Licenses Hardware Support Development Professional Services

Training Testing Operations Staffing Maintenance Contracts

Source Literature search, Zinnov Analysis, J‘Boss TCO Calculator 8

AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

9
Angel investors and VC firms have increasingly shown interest in open
source companies
Total Investment in Million Dollars
Open Source – Investors Ecosystem
145
7% • Venture capitalists have pumped nearly $400 million
10
GR into 50 open-source companies.
CA
• Funding has been in all software offerings i.e. broad
70 business applications like business intelligence
programs to very specialized applications, like running
a hospital's computer systems.
24 • Three open source start-up companies were selected
as "Ones to Watch“ by OSBC* i.e. Splunk,
Project.Net, rPath.
2003 2004 2005 • The leading venture capital companies showing
interest in open source are North Bridge Venture
Number of companies Funded Partners, Accel Partners, Matrix Partners, Mayfield,
18 Kleiner Perkins Caufield & Byers.
0%
GR5
CA
12
"As young companies, they are
already gaining tremendous market
6 momentum – setting new precedents
and capturing customer attention with
their innovations. We look forward to
watching them grow and mature over
the coming year."
2003 2004 2005 - Bryce Roberts, OSBC
* Open source Business conference
Source: Zinnov Analysis, Literature search 10
Banks are increasingly exploring opportunities to use Open Source
software
Background and Business Description Future Plans

• Company • Fidelity Investments • Fidelity has more than a dozen

• Head Quarters • Boston, MA open source packages in
• FTE’s • 36500 production and is willing to
• Revenues • $10,470 MM evaluate open source options in
• Other Information • Fidelity Investments Institutional Services Company almost any application.
(FIIS) distributes products and programs through • Created a policy and governance
banks, insurance companies, securities brokers, structure that gives open source
financial planners, and other financial services and proprietary products equal
providers. consideration in buying decisions
• Total Internet development spend is $350 million • Looking at open-source database
management systems and
assessing what applications
Open source Software used might make sense

• Operating System – Linux

• Web server – Apache Comments
• Scripting tool – Perl
• Development Tool – Eclipse Foundation's development environment • "We're heavy users of proprietary
• Application framework - Struts Web application framework software, and that won't change,
• Others but there are times you need a
– Deployed an open source tool, the tcl scripting language back in 1995 motor scooter, not a truck" -
– Apache and a host of Apache-related tools to run the Fidelity.com Websites, Charlie Brenner, SVP, Fidelity
which generate about 30 million daily page views. Center for Applied Technology

Source: Zinnov Analysis, Company website, Literature Search, general web search 11
Government across the world are choosing open source route as it is to
be used for public

Risk
Risk
Factor
Factor Summary
Summary
United
United States
States The
The Federal
Federal government
government plans
plans to
to establish
establish an an open
open source
source depot
depot of
of software
software to
to be
be used
used across
across agencies
agencies to
to develop,
develop, deploy
deploy and
and
maintain
maintain applications
applications across
across the
the life
life cycle.
cycle. The
The agency
agency intends
intends toto provide
provide an
an OSERA
OSERA (Open
(Open Source
Source eGov
eGov Reference
Reference Architecture)
Architecture)
that
that will
will be
be based
based onon foundational
foundational technologies
technologies such such as
as MDA
MDA (Model
(Model Driven
Driven Architecture),
Architecture), an
an ESB
ESB (enterprise
(enterprise service
service bus),
bus), an
an SOA
SOA
or
or the
the Semantic
Semantic Web.
Web.
Brazilian
Brazilian In
In 2005,
2005, Government
Government of of Brazil
Brazil said
said itit will
will switch
switch 300,000
300,000 government
government computers
computers from
from Microsoft's
Microsoft's Windows
Windows operating
operating system
system to
to open
open
source
source software
software like
like Linux.
Linux. The
The government
government is is dropping
dropping all
all proprietary
proprietary software.
software.

China
China Chinese
Chinese government
government is is trying
trying to
to reduce
reduce software
software piracy
piracy by
by purchasing
purchasing open
open source
source software.
software. According
According to
to China’s
China’s Ministry
Ministry of
of
Information
Information Industry
Industry (MII),
(MII), almost
almost 7070 percent
percent of
of all
all software
software purchases
purchases last
last year
year were
were of
of open
open source
source based
based products.
products. Linux
Linux was
was
adopted
adopted on
on about
about 45
45 000
000 systems
systems in in provincial
provincial government
government institutions.
institutions.
Thailand
Thailand There
There are
are around
around 700,000
700,000 desktops
desktops and
and 300,000
300,000 laptops
laptops running
running aa Thai
Thai language
language edition
edition of
of Linux
Linux and
and the
the open
open source
source productivity
productivity
suite StarOffice
suite StarOffice

Switzerland
Switzerland The
The Federal
Federal Administration
Administration plans
plans to
to adopt
adopt the
the open
open source
source software
software based
based operating
operating system
system Suse
Suse Linux
Linux Enterprise
Enterprise Server
Server on
on more
more
than 3000 servers
than 3000 servers

Peru
Peru In
In 2002
2002 Peruvian
Peruvian government
government passedpassed aa bill
bill that
that defended
defended the
the mandatory
mandatory use
use of
of open
open source
source software
software by
by the
the state
state as
as essential
essential in
in
fulfilling
fulfilling its
its obligations
obligations to
to its
its citizens.
citizens.

South
South Africa
Africa Currently
Currently Smart
Smart Cape
Cape Access
Access project
project has
has about
about 540
540 open
open source
source software
software based
based desktop
desktop workplaces.
workplaces. The
The intends
intends to
to adopt
adopt open
open
source
source software
software on
on the
the 500-600
500-600 library
library management
management computers.
computers. The
The city
city expects
expects to
to run
run open
open source
source software
software applications
applications on
on about
about
1.500
1.500 desktop
desktop workplaces
workplaces inin the
the following
following months.
months.
Philippines
Philippines Philippine
Philippine Department
Department of
of Budget
Budget and
and Management
Management has
has procured
procured aa total
total of
of 10,000
10,000 computers
computers with
with open
open source
source operating
operating system
system and
and
open
open source
source based
based office
office applications
applications

Source: Zinnov Analysis, Company website, Literature Search, general web search 12
AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

13
OSS due to its inherent advantages fosters competition amongst vendors
and propels growth
Cost Advantages
• Lower TCO for the customers.
• Most open source software is
copyright, but released under licences
which allow free re-distribution.
Illustrative
“Open source software is creating
new market opportunities and new
companies are springing up to take
advantage of these opportunities”
- Kim Polese, CEO, SpikeSource

Reliability and Security Open Source Education

• Test results have proved that Open • Efforts to educate more user
Source Software has the potential to communities globally on the
be more secure than its closed products, technology etc.
source counterparts. Greater • Community workshops to improve
• Open source services companies adoption & support, maintenance and up
testing and certifying the code to gradation.
make it enterprise ready. migration to
OSS
Simple Legal\IP Laws Anti lock-in

• More service companies providing
compliance and license management
services around open source
software.
• Evolving economic principles are
proving that legal fear is largely
unfounded.
• Open source licences are not anti-
commercial, they are anti lock-in.
By 2008, 95 percent of Global • At no stage do open source licences
2000 organizations will have
preclude the commercial exploitation of
formal open-source
the software.
acquisition and management
strategies.* - Robert Igou,
Gartner

Source: Zinnov Analysis, Literature Search 14

AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

15
OSS has wide range of products to alternate to almost all commercial
software products.
Illustrative

Proprietary Software Open Source Software

• SAP • Compiere • Life

• Oracle Applications • Fisterra • Facturalux
ERP • Baan • Value • Linux Kontor
• JD Edwards • OpenMFG • GNU Enterprise
• Peoplesoft • Open for Business (GNUe)
• E/AS: Enterprise • SQL Ledger
Automation • Tudo
Software • ERP5

• IBM • JBoss Enterprise Middleware System (JEMS)

Middleware • TIBCO • XmlBlaster
• webMethods • Zope
• Vitria Technology

• Microsoft Dynamics CRM • Compiere

• Siebel CRM • GNU Enterprise
CRM • Salesforce.com • Sugar CRM
• SAP • Nola
• SunGard • Facturalux
• Oracle • Value
• Dolibarr
• ERP5

Source: Source 16
OSS has wide range of Products & has become a major interest both for
the software industry and for economic theory
Illustrative

Proprietary Software Open Source Software

• Oracle • Berkeley DB
• IBM • Cloudscape/Derby
Database • NCR • Ingres
• Sybase • MySQL
• Microsoft • PostgreSQL
• Firebird
• Innobase
• SQLBase
• MaxDB

• SAS • BI one
Business • Cognos • Pentaho
Intelligence • Business Objects
• Informatica

Business • Oracle • jBPM

• Tibco • Agila
Process • Action Technologies • OpenWFE
Management • Bonita
• EnhydraShark

Source: Source 17
AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

18
SpikeSource is one-stop destination for business ready open source
infrastructure
Background and Business Description Clientele
• Establishment • 2004 • Dresdner Kleinwort Wasserstein
• Facilities • Redwood City, CA
• Other Information • SpikeSource offers three pre-built stacks i.e. LAMP
Stack, Servlet Stack & J2EE stack
• Spike Stacks include more than fifty open source Partners
components in six programming languages
• Service Partner - Cognizant
• Offers wide range of services and clearly geared
Technology Solutions
towards giving assistance to the community
• Technology partner – Intel, JBoss,
SugarCRM
• Community Partner - O'Reilly
Service Features Media
• Enterprise Starter Kit
• Spike Stacks Comments
• Spike Net • SpikeSource leads its closest
• Spike Support competitor in market awareness
• SAM (SpikeSource Asset Manager), an open-source, cross-platform and partner relationships.
framework for identifying and reporting locally installed open-source • The annual fee starts at under
components. $1,000 and increases to some
$25,000 for Gold support.
• Three under lying principles
– Supporting open source
Stack Testing Support Maintenance Upgrade
development and use;
– Vendor neutrality; and
9 9 9 9 9 – Profitability.

Source: Zinnov Analysis, Company website, Literature Search, general web search 19
Red Hat to launch certification and support services for leading open-
source LAMP and Java stacks
Background and Business Description Partners
• IBM
• Establishment • 1993 • Dell
• Facilities • Raleigh, NC • HP
• FTEs • 1150 • Oracle
• Other Information • RedHat pure-play open source company pioneered the • Sun
support model • Fujitsu
• Stack’s will be certified and supported on Red Hat • Intel
Enterprise Linux and delivered in a subscription model. • NEC
Pricing will start at $599 per server. • Hitachi
• BEA
Service Features
• Web Application Stack - for simple web sites and applications, and includes Comments
the key LAMP components Apache HTTP Server, MySQL database and the
PHP scripting language on top of Red Hat Enterprise Linux • To launch certification and
• Java Web Application Stack - for more dynamic web applications and support services for leading open-
supports all the components of the Web Application Stack - in other words source LAMP and Java stacks
LAMP plus PostgreSQL - as well as the Apache Tomcat servlet and JSP beginning in the first quarter of
Container. 2006.
• Red Hat Enterprise Java Stack - will have all the components of the Java
Web Application Stack plus support for a full Java application server

Stack Testing Support Maintenance Upgrade

9 9 9 9 9
Source: Zinnov Analysis, Company website, Literature Search, general web search 20
Marketplace for Open Source Software support is heating up in the last 2
years
Opensource Product Im plem entation Support
Category Specialization Test Product Technical Upgradation
Product Stack Configuration Integration Maintainance
Tool Selection support services
SpikeSource Open source IT infrastructure(LAMP) X X X X X X X

SourceLabs SASH Stack X X X X X X X

Advisory Services, Sourcing
Optaros X X X X X
strategies, Integration and support
ActiveGrid LAMP Stack X X X X X
Apache, Tomcat, Jeronimo and Axis
Covalent X X X X X x X X
support
Portal, Database and an application
Gluecode(IBM) X X X X X X
server
Corporate Web portal and a content
ObjectWeb X X X X X X
management application

“Most companies don't Covalent currently

have supermen in supports more than
house. They don't "In the LAMP stack, 50% of Fortune 500
have the ability to do the evolutionary and 70% of Fortune
this on their own” powers make sure that 100 companies.
- Anne Thomas only best-of
Manes, VP Burton components survive."
Group -Marten Mickos, CEO,
MySQL

Source: Zinnov Analysis, Literature search, Company website 21

Established professional services firms are raising the stakes and are
expanding their services offerings for open-source components.
Illustrative

Professional Services companies

HP • HP plans to certify, support and jointly sell two of the best-known open-source projects on its
hardware, the MySQL database and JBoss application server
• HP issued Linux Reference Architecture software stack, which is based on open-source
technologies

IBM • IBM has committed to evolve the Gluecode Standard Edition platform* & particularly contribute
to Apache Geronimo, the open-source Java application server.
• IBM WebSphere Application Server Community Edition is a free lightweight J2EE application
server built on Apache Geronimo

IBM is asserting its support for

open-source initiatives by
releasing some
low-level patents and underscored
its position as a major IT
influence.

* Gluecode Standard Edition Platform - represents a fully integrated open-source solution stack, from app server
to middleware to management to database
Source : Literature search, Zinnov Analysis 22
AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

23
Going Forward
Illustrative

Open source will play a major role in

Developing • Developing countries has the opportunity to escape from technological dependence on
developed countries, but also a challenge to build up local expertise.
Countries • The biggest markets in developing countries are particularly China, East Asia, India and
South America.

Banks • Micro financing companies can leverage the advantages of IT by implementing cost effective
open source software

Web Services • As ASP model for web services become more popular, companies would require numerous
servers and economical software to support their applications. Open source servers and
software would be an ideal answer to address these issues

Source : Literature search, Zinnov Analysis 24

Going Forward
Open source comprising 11% of the
software market in 2010, up from 3%
today. With the overall market
continuing to grow, that translates to
700% growth in open source
revenues during that time.
By 2008, 95 percent of Global 2000
organizations will have formal open-
source acquisition and management
strategies.
Illustrative
Survey of 140 of the largest U.S.
companies by Forrester Research
found that 56 percent of them use
Linux or open-source software in
some part of their operations.
Another 19 percent plan to use it
soon.
Global 2000 IT organizations will use
open-source products in 80% of their
infrastructure-focused software
investments and 25% of business
software investments by 2010
25
AGENDA
Focus of Discussion

• Evolution of Open Source Software (OSS)

• OSS Market Analysis

• OSS Penetration in Enterprise Market (sample)

• Key Drivers for OSS

• Open Source Enterprise product catalogue

• Major players in enterprise OSS integration (sample)

• Going forward - Open source revolution

• Zinnov Research

26
Zinnov – About us

Company Overview Market Research Knowledge Services

• We are a knowledge • Research services • Dedicated Knowledge

services and consulting ¾ Customized market studies
company with offices both ¾ Competitive Benchmarking
in US and in India. ¾ Data Analytics
• We help our clients reduce ¾ Market Intelligence
the time, money and risks
involved in organizational • Go-To-Market Services:
initiatives using
¾ Help companies enter the India
combination of consulting market by helping them scope
and knowledge solutions and segment the market,
delivered by global teams. provide on-ground sales and
marketing support to tap into the
local market.
Centers (DKCs):
¾ We provide dedicated teams that
help our customers in the areas of
market research, competitor
analysis, business research, data
analytics and pre-sales support.
DKCs act as an augmentation to
our customer teams and provide
cost effective and high value
services.
¾ We have provided our research
and consulting solutions to more
than two dozen customers. Today,
our client roster included reputed
NASDAQ listed companies, small
to medium sized independent
software vendors, strategy
consulting firms and other large
enterprises in domains such as
BFSI, IT services and
Infrastructure management.
27
Zinnov research team can help clients with market intelligence, competitor
analysis and go-to-market strategy

• Market News & Information tracking

Market • Pricing analysis
Intelligence • Factors driving and restraining the market
• Market trends/ Technology trends/Regulatory trends
• Market sizing (revenues)
• Forecasting (revenue forecasting, others)
• Other Information/Research on demand
• Case studies – spanning various domains

• Competitor information (processes, clients etc.)

Competitor • Competitive analysis (company profiles, market shares,
Zinnov Analysis product comparisons, benchmarking)
• Pricing analysis
• Customer/competitor financials

• Regulatory & legal information on the market

Go-to-market • Market summary & Market analysis (competitive scenario)
strategy • Market sizing
• Untapped or under-tapped potential customers profiling
• Target customer evaluation and analysis

28
A. Market Research: Zinnov has a very strong Market Research Capability
with expertise across the value chain, specifically in the high end space
Illustrative

Go- to- Market

Analytics
Strategy
Zinnov’s Differentiators
Competitive Competitive
Customized Benchmarking Intelligence • Rich experience with
Market Studies High end market
Industry Growth research enabling
Zinnov Experience and Expertise

Dynamics Forecast strategic decisions

such as go-to-market
Customized Market Studies strategy

• Excellent primary and

secondary research
capability

Customized Customized • Excellent pool of

Market Studies Market Studies resources with strong
capability to create
customized reports for
clients in any sector

Level of Complexity

29
B. Financial Analysis: Zinnov has a strong Financial Analysis Capability
which complements both market and business research
Illustrative
Profitability ratios Turnover ratios
• Returns - Return on • Total Asset turnover
Financial equity; Return on • Fixed asset turnover
Statements Assets, etc.
• Working capital
• Margins - Gross turnover Business
• Balance Sheet Margin; Net Margin
• Inventory turnover Research –
• Income Ratio Company
Statement Analysis Liquidity ratios Solvency ratios Performance
Evaluation
• Cash Flow • Current ratio • Debt to equity
• Quick ratio • Debt to total capital
Statement
• Cash ratio • Interest Coverage
• Total Coverage

Market Market
Valuation Trading Multiples Research –
Competitive
• Share Price Bench-
Multiple marking and
• Market Value Analysis Intelligence
of Equity
• Enterprise Transaction Multiples
Value

30
C. Technical Research: Owing to its rich and diverse experience with
multiple IT R&D companies, Zinnov also has a strong Technical Research
capability Illustrative

Zinnov’s Differentiators
Research on
Technology • Rich experience with Technology R&D
sectors companies

• Rich experience with recruitment

outsourcing for technical (IT)
requirement for some of its clients gives
Zinnov a very good exposure to
researching technical questions
Researching
technical Rich
questions Expertise
Zinnov’s Capabilities

• Zinnov has the requisite research

expertise to do IP research

• Zinnov has also written a whitepaper on

Patent IP protection environment in India
Searches

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D. Business Research: Zinnov has a strong Business Research Capability
as well, covering various facets of business
Illustrative
Financial
Analysis

SWOT Business
Analysis Strategy/ Plans

Strong
M&A Executive capability
Analysis Business Movement
to do
Research Business
Research

Era Analysis Projections

Best Practice
Analysis

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E. Market Mapping – Competitive Mapping and Benchmarking
Illustrative

Financial Strength and Soundness Capability Analysis

Margins - Gross Management Team Expertise

Margins - Operating Technological Capability

Competitive
Margins - Net Products/ Services Benchmarking

Returns on Equity Quality Processes

Returns on Assets Market Share

Returns on Capital Employed R&D Investment/ Initiatives

Solvency ratios - Debt to equity Marketing Strategies

Solvency ratios - Debt to total capital Geographical Presence

Solvency ratios- Interest Coverage Years of existence

Liquidity ratios - Current Ratio Personnel Best

Past successes and failures Practices
Liquidity ratios – Quick Ratio
Liquidity ratios - Cash Ratio Future strategies/ plans

Top line - Compounded annual growth rate Clientele

(CAGR) Alliances/ Partnerships/ M&A
Trading Multiples Enterprise Business Solutions

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Our clients are benefited by cost and time effective research that Zinnov
offers

Customized Market
Intelligence

Go-to- Competitor
market analysis -
strategy to customized
enter new
Increased focus on
research &
markets core-competencies for
analysis
Client

Higher Client Impact

at lesser cost
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Zinnov is proud to maintain 100% client references. Our clients include
reputed consulting firms and industry organizations

Your comprehensive report on our
competitors enabled us to make informed
and objective decisions on penetrating
global markets
-SVP, Marketing
Incentive Management Software
Thanks for the quick turnaround of the survey
analysis. We look forward to your help in
producing similar reports for all our industry
surveys
- Executive Director
Industry Organization

You help us compete with McKinsey in India

- Principal, Management Consulting Firm

The level of details you capture and analyze is The quantitative analyzer is one of the most
great. flexible model I have ever seen. We used it
for analyzing ‘what if’ scenarios in our
- VP, Operations meeting with the client and they loved it!
Employment Screening Company - Principal
Management Consulting Firm

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 Thank You !

Zinnov Contact
www.zinnov.com info@zinnov.com

29/4, 3Rd Floor H M Strafford 575 N. Pastoria Ave 138, South Queenscliff Cir
7th cross, Vasanth Nagar Sunnyvale The Woodlands
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India
Phone: +91-80- 51127925/6 Phone: 408-716-8432 Phone: 832-326-3854

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implied, with respect to such information including but not limited to warranties of merchantability, fitness for a particular purpose, title, non-infringement and implied warranties arising
from course of dealing or course of performance. Zinnov will not be liable for any damages of any kind arising from the use of this information including but not limited to direct, indirect,
incidental punitive and consequential damages, Zinnov does not represent or warrant that the information provided is accurate, complete or current.
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