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May 24, 2011, 04.21 PM IST
Rajsekhar Roy, CEO, Four-Soft is elated over the new deal that the company has bagged from Chile. Norbert, an existing customer of theirs, is looking to change over to a new operating environment that Four Soft provides through SaaS contract.
Below is the verbatim transcript. Also watch the accompanying video.
Q: Can you just tell me about this order from Chile which you currently bagged – how much is it worth and will it actually start showing in terms of numbers for you?
A: The first implementation of the order from Chile is going to be in Chile itself. It is for our forwarding system, but the total contract value is probably going to be slightly more than USD 100,000. The present deal that we have got is probably going to be in the range of USD 50,000. This is going to be invoiced immediately. The more important thing is that it is a SaaS contract, which is a new line of business that we have opened up. We are getting a lot of enquiries and have sold four of these contracts in the recent times.
With this particular company, Norbert, they are an existing customer of ours, and they want to convert to this new system that we have. We are talking about getting this done over the next couple of years or so. The current contract we should be able to invoice it by the second quarter. We are talking about probably an implementation in July or so.
Q: Just a clarification – is it USD 100,000 or is it USD 500,000 for this particular contract and any more such contracts you will be signing in for SaaS?
A: Yes. The total Norbert deal that we are talking about, our estimate is that it will probably be in the range of not 500,000 (five hundred thousand) but it will probably be in the range of USD 200,000 to USD 250,000. We normally take the revenues as three-year revenue because basically what happens is, it is more like rental. So every month you get revenue depending on the number of users. If you take that extended thing, this particular one is to the tune of USD 100,000. The other contracts that we are talking about are actually the same contracts, but the customer would essentially be adding different countries. Therefore, we are talking about Chile right now and then we are also talking about places like Hong Kong and US and all that in the next 2-3 months.
Q: Totally from SaaS how much are you expecting by way of a revenue in FY12 totally?
A: In FY12 totally, out of the 250,000 that I mentioned, we are talking about nearly 100 to 200-250 of that in this financial year.
Q: In terms of a geographic break-up, how much does South America contribute to your total revenues and what sort of scale up are we seeing geographically in terms of an order book for you?
A: South America is not a market where we are physically present. We don’t really have an office there right now but many of our customers are using our products in South America. However, in terms of a single order, especially on the new products, this is the first order that we have got there. We are talking with a few partners there with whom we want to tie-up. We are also looking at South America, especially Brazil where we have got quite a good prospect, which we are currently handling from our US office. We do have plans of probably putting something, either in terms of a partnership or in terms of an office, sometime in FY12. We do expect maybe around 5% to 7% of our revenues to come from South America this year, and hopefully that will increase over the next few years.
Tags: Four-Soft, new deal, Chile, Norbert, SaaS contract, forwarding system, contract value, partnership, financial year
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