Building Software Products for India - NASSCOM Friday’s 2.0 48th session (Mr. Kumud Goyal, KLG Systel)

Posted by Paritosh Sharma

at June 13, 2009

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LIVE Blogging the NASSCOM Friday’s 2.0 48th session, and well we are going to make it interactive says the session lead Mr. Kumud Goel from KLG Systel who is also one of the founding members of NASSCOM.

Mr. Kumud Goel a technology veteran for over 25 years, is leading the session. We have Ankur Lal, CEO, Infozech Software introducing to the audience and well as usual we have the participants introducing themselves to the entire audience.

Incidentally its a great day, coz the NASSCOM EMERGE Community turns one today, I must congratulate Avinash (NASSCOM) for the same and now we have the session underway

I am a case study of failures - shares Mr. Kumud and though this was said at the end, I would want to start my blog with it.

Kumud is interestingly sharing an incident from his life and my respects to the man as for young entrepreneurs like me, its surely highly invigorating and a great learning to interact with learned people like Kumud. And well, let me not keep it a secret anymore. Kumud is sharing the story of NASSCOM.

When we went to COMDEX years back, nobody used to talk to an Indian

That is when this desire of fighting these people came in me and I had a lot of experience in programming and I started my company which had only emotions behind it and no business plan.

On my first wedding anniversary my father told me that you have no money in the back and hence I gave away my dream of creating software for the rural India. At that time most Indian company did the right thing by making things for the foreign market but we were again at the step when we were looking at a product for the Indian market.

After 25 years of my experience I today feel taht what is more important out of a business model and a feeling is feeling, coz I believe that the business model shall follow

Once you have made an emotional decision of making a product for India, there were two drawbacks…I was at the Silicon Valley two weeks back and I met this guy who is regarded as one of the best deal makers in the tech space, and he told me that Kumud what you are doing is worth 500 million dollars and since you are sitting in India it is worth 20 million dollars. I had to go to the IBM’s of the world and get a recommendation that my technology is good.

All the great companies in the US have come about and have based out of the fact that the government has helped them. The SME’s in India who innovate do not have their path as easy.

The tendering system in Government of India is such that an SME cannot ever go up.

Today US is making money out of innovation and not selling someone else’s goods. Kumud now shares a highly interesting insight into the Chinese government way of working and wow I am amazed. Well, I think this is an applausible moment and I am saying this for the first time in a NASSCOM Friday’s 2.0 session, Kumud has broken the wall and is now talking about what NASSCOM should really be doing for the SME’s.

Start-ups and small companies have to get reservation in the government and NASSCOM should take care of that

There Is NO CORRUPTION in INDIA

Do what they want you to, don’t fight them…its your dream, coz you are giving them a poison which will kill them automatically. Corruption is not a hinderance, it is a way to survive. And for the first time I am supporting Kumud on this coz he shows the audience the bigger picture.

Your cash flow has to be positive, your spirit should not go negative, you have to live through those initial years. for sometime you need to live like a rat if you want to survive.

And now Kumud shares a story on a book he read “the saga of Dharampuri”, which he is relateing to the Indian IT industry. We have so gotten accustomed to the white man that we cannot think of anything out of it.

This life for ME is so shameful that after being 25 years into the industry, I still don’t have a world class product

The govt. of India will spend 5000 crores dollars to the MS’s of the world and lets say there are 5000 SME’s from India, now if I divide 5000 what do you get? But how many companies are standing today for it?

Psychologically we need to start thinking of ourselves as better people than the foreign lands. We need to just break out of this trap, coz we actually are better than anybody. If you need to create the best OS from India, you need to have that feeling into you and only then it would happen.

The Indian out there is GOD shares one of the participants from the audience.

You have a dream, great! But you anyhow need money to make sure that you survive and take your dream further. You need to somehow find a way by hook or by crook, to reach that 50-100 crore level, otherwise your so called innovation would die.

I made 3 websites when I had 15 crores in the bank and I wen t overboard, we advertised like hell and people came to us. But because we believed into our stuff so much, we never realised the internet bust, and I went bankrupt. So now we had no money, but we had a dream!

Audacity, Audacity, Audacity and Arrogance

We raised money for about 11 million dollars and that came to us only because we had audacity.

The next I thought what is the next problem in India. And I chanced upon power. You need to be like the James Bond, who would take it the way as if the world wont be no more if my software wont be there. I went and borrowed 137 crores and I developed cleantech technology. And I bet my life on this.

And I bought myself a BMW, because I was going to change the world.

Personally I was broke, my stock is pledged, house with a bank, my wife and kids were the only tangible assets I had. And then I happened.

Innovation is like a black Hole, after a certain time you are dead. But once you are dead what can you do - STOP WORRYING!

You have created the aura of being the biggest player in the power industry and since you have already invested into it, you can demonstrate what you have already implemented. For 25 years you have been waiting to say it and when the big companies of the world come for you, to partner, what do you say…Go to !@#!

If you want to be an Innovator, You have to be a great Gambler as well

Anybody who does not listen to you has to become irrelevant!

The last lesson would be - your dream has to be bigger than the world, you will create the biggest product, all you need to do is to make sure that you get some cash in..

Kumud ends the session with some NASSCOM bashing, which he started the session with on a lighter note. I am certainly with Kumud, as this would surely be great for the entire SME community in India.

Small companies should file for patents and should do them religiously. This shall make sure of a winning road for you.

Now we have the participants sharing their thoughts on the entire topic and I can see the thoughts coming in together in the similar direction.

And now we have the session in the Q&A mode.

Thanks Kumud for an amazing session, I have been blogging the NASSCOM friday’s 2.0 for long, and certainly find you one of the best speakers, sharing from the heart.