Enhancesys Delivers Lower TCO Solution with Red Hat

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October 10, 2013

Startup Enhancesys Innovations aims to develop innovative products for telecommunication service providers. Using Red Hat® solutions, it developed and delivered a reliable product for a leading telecommunications company in India that lowered the company’s total cost of ownership (TCO).

Customer: Enhancesys Innovations

“If we had used proprietary, licensed products from Red Hat competitors, we would have to shell out up to five times the current subscription costs towards one-time licensing in every deployment.” - Vinay Anand, Chief Operating Officer, Enhancesys Innovations

Geography: APAC
Country: India


Benefits:

Startup Enhancesys Innovations aims to develop innovative products for telecommunication service providers. Using Red Hat® solutions, it developed and delivered a reliable product for a leading telecommunications company in India that lowered the company’s total cost of ownership (TCO).

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Background:

Enhancesys is at the forefront of innovating solutions for telecommunication service providers. Their offerings are centered on improving key business features and functions such as interactive, intuitive product catalogs and integrated call centers. In these competitive times, Enhancesys Innovations’ solutions enable organizations to maximize revenues and ensure speedy customer acquisition, while at the same time taking advantage of existing IT investments.

Business Challenge:

Startup focused on telecommunications

Founded in 2011, Enhancesys Innovations develops products for telecommunication service providers. Based in Bangalore, India, its team of more than 100 employees has vast experience in the information technology industry.

Despite its brief history, the company snagged its first major contract with one of the world’s largest telecommunications company, headquartered in India. Enhancesys developed its sales and distribution product, S-NOC [Sales Network Operations Center], on Red Hat® software. S-NOC manages channels, end-to-end inventory, and stock distribution and replenishments, as well as performance and incentives for all entities across hierarchies, both internal and external.

Keeping costs low for customers

Having very good prior experience with Red Hat Enterprise Linux® prompted Enhancesys to develop its products on the Red Hat platform from its inception.

“We needed a platform that is based on open source, yet provides us with reliable support. From a business perspective, we wanted to keep the total cost of ownership (TCO) low for our customers,” said Vinay Anand, chief operating officer, Enhancesys.

The key criteria for choosing an open source software provider were cost, support, and reliability, and Red Hat scored top marks on all counts.

The only other reliable options were expensive, license-based products that would have made the finished product more costly for the company’s clients to deploy.

“In the face of tough competition, telcos are moving to open source to moderate cost. Instead of looking for license-based proprietary tools like they used to, they are now looking for lower TCO over the next three to five years. We find Red Hat’s subscription model much more cost-friendly compared to licenses,” said Anand.

Enhancesys started out development on the community projects of Red Hat Enterprise Linux and Red Hat JBoss® Middleware and moved on to the enterprise editions when its first customer deployment came in 2012.

“The motivation for the move was to ensure that we get reliable support for the products that we were deploying for our customers. We have no hassle or headaches with Red Hat and are pleased with our experience,” said Anand.

Solution:

Robust and scalable solution to manage extensive distribution network

Enhancesys’ first customer deployment was for the leading global telecommunications company, based in India. The customer was facing the challenge of not having centralized visibility of the channel beyond the primary sales level, from warehouse to distributors. The company has one of the most extensive and complex distribution channels in the world, with more than 50,000 distributors and over 1.6 million retailers, so information comes from many places and in different formats.

To overcome this challenge, Enhancesys proposed the Red Hat software-based sales and distribution solution (S-NOC) which would allow the customer to plan, control, and manage its entire distribution channel, through which it distributes products such as recharge vouchers, SIM cards, and Internet dongles.

The solution provides unmatched visibility of channel activities from primary, secondary — distributor to retailer — and tertiary — retailer to end customer — levels. The company can plan its distribution network more efficiently and ensure that the right amount of stock is available to fulfill demands.

The solution also manages the complex hierarchy of sales people, distributors, and retailers who are users of this system. Additionally, it handles performance management, which looks at managing the relevant incentives for the various entities in the channel.

Benefits:

Subscription model leads to 5x lower cost

Enhancesys believes that Red Hat’s subscription model has contributed significantly to the lower TCO in the customer deployment.

“If we had used proprietary, licensed products from Red Hat competitors, we would have to shell out up to five times the current subscription costs towards one-time licensing in every deployment,” said Anand.

Confidence with community approach

Red Hat’s community approach is another major advantage for Enhancesys.

“It fosters creativity and innovation. We feel confident to be able to develop something knowing that it can be easily commercialized, without having to worry about any sudden rise in cost when customer deployments have to be done,” said Anand.

Pleased with the success of its first deployment, Enhancesys is working on developing other products using Red Hat solutions.

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