Tally Solutions has kick-started a large-scale match-making and demand creation project for the IT channel community in India. The mass ERP vendor has introduced Tally Integrators Program (TIP) targeted at the independent software vendors (ISVs).

Through this initiative, Tally intends to create business opportunities for the ISVs as well as its traditional reseller channels across the country. As another initiative, the company has introduced a new sales model for ERP.

"Ever since we launched our ERP product, Tally ERP 9, 1.80 lakh customers have either purchased it or have migrated to it from the older versions. Nevertheless, we found that there still are thousands of users who felt a need to integrate some niche applications with our product," says Bharat Goenka, CMD, Tally Solutions, explaining why TIP is required.


Scope of TIP

TIP will target 25,000 ISVs in the country. Many of these software companies are regional players who sell and service to as few as 20 to 30 customers from specific industry verticals. They understand their customers' businesses and needs better than anyone else. Under the program, the interested ISVs will be registered as Tally Integrator Partners (TIPs). The TIPs will be given access to code and complete training on the product wherever required.

The TIPs will be given a choice. They will be allowed to port their existing applications on Tally platform or to even develop Tally's ERP further to suit the specific needs of their customers. This may entail replacing a module within Tally with the niche, ISV-application that the customer may be more comfortable with. Tally thus plans to co-work with the ISVs community instead of competing with it.

The TIPs, Goenka assures, will continue to do business with their existing set of loyal customers. "The fact that customers will get the best of both worlds, TIP will offer a great opportunity for the ISVs to grow their business. It will give them a sustainable value for the next several years," he comments. Match-making exchange Tally's program will be executed and popularized in the market by its team of 300-people and the teams of 120 Master Reseller Partners (MTPs). Subject to its response, the vendor intends to expand its partner network by roping in several new companies. Tally has 12,000 software resellers under MTPs. Many of them are interested in moving up to the status of MTPs. Over the next two years, the vendor expects the MTPs to grow to 600.

Through the implementation of TIP, Tally intends to combine its two partner networks--distribution channels and ISVs--to a unified, country-wide partner eco-system. Goenka says that many of Tally's existing resellers who want to scale up will also be benefited by the new initiative.

"The market is pulling us in both directions. Our distribution channels are required to deliver higher valueadds through new solutions. Since their customers are asking for more, they [i.e. partners] want us to give them new solutions, more customization, and more functionality. Similarly, the ISVs that were earlier happy with a small set of customers, are feeling a need to increase their customer-base," Goenka observes.

Given the expansive nature of the project, Tally intends to establish a partner exchange portal to facilitate communication within the eco-system.

The exchange will allow new ISVs to register, post their specific requirements, and finally make their products available for evaluation.


New sales models

At another level, the company is looking at further popularizing the use of ERP by introducing a new sales model. It has started selling ERP on subscription basis. The subscription fees are fixed at as low as Rs 50 per user per month. For multiple users, customers can pay Rs 1,350 per month.

In addition, the company is tying up with computer OEMs for the subscription option. Dell has already introduced a PC with preloaded Tally ERP. Through the rental model the vendor plans to simplify the buying experience of the users and hopes to reach to lakhs of SOHO customers who otherwise would not have purchased an ERP application.

Tally's revenue in the last financial year was more than Rs 100 crore and it expects to cross Rs 150 crore mark this year.



– Nagesh M Joshi




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