In consumer software, there are one or two big vendors that steal all the limelight and it often seems they own the entire market. But smaller developers are not sleeping. They are re-inventing certain software categories and creating new markets for themselves.
IMSI is a case in point. The company is successfully selling computer-aided design (CAD) software, previously reserved for high-end, professional users, to the man in the street. In another innovative move, IMSI is going to offer its image libraries to the corporate market.
ITWeb recently spoke to John Rundle, GM of IMSI South Africa, to find out what is driving the firm's increased activity, which is marked by a series of acquisitions and product announcements.
ITWeb: Over the last year, IMSI's focus has moved from pure retail to the corporate market. Why?
Rundle: The retail market has been through a tremendous growth phase worldwide. Even in SA, one has noticed that retail has got to its maximum capacity. On the other hand, the corporate market here contributes to about 70% of the computer industry and that's why IMSI has gone that route. However, as much as we are corporate-focused, we are not forgetting retail.
ITWeb: What market share do you have?
Rundle: We've got good market share worldwide. In all the countries around the world where we are presented we are most certainly among the top five vendors when it comes to retail. On the corporate side, we are focusing very much on productivity software built around Microsoft Office suite. However, we have two specialised markets: CAD and project management. They are obviously quite specialised, but they give us access to a broader engineering market, where they use both CAD and project management.
ITWeb: Where is your project management offering targeted? The power user?
Rundle: Project management is becoming a tool for managers in general. It's not just for big projects; everyone can use it today. We have created a product that is easy to use - you don't have to be a project manager to utilise our product.
ITWeb: Which other IMSI products are addressing the corporate market?
Rundle: One of our big successes in retail has been MasterClips. As from next month we'll position our MasterClips image server to address the corporate market. Again it is a pack that one will be able to load on a server and we will sell licenses to companies for their communications departments, secretaries or whoever uses images off the server.
ITWeb: IMSI recently made a number of acquisitions in the graphics content sector. What was the objective?
Rundle: The company has been looking at the growth in the world market today, where the buzzword is the Internet. We looked at the opportunities we have with the Internet and those graphic content companies we purchased have made us the largest visual content company in the world today. We will be selling annual subscriptions over the Internet for people to get access to this enormous database of images.
ITWeb: What is your channel strategy in SA?
Rundle: In SA we started in direct retail. However, in order to enter the corporate market, we need channel partners. Datatec is one, and negotiations with Siltek are under way. But we will also be creating the demand at the end-user or corporate-user level, and then working back through the channel. At this point, we are going to retain the direct sales through the Connection Group and Mass Stores.
ITWeb: Which product is the biggest contributor to your revenue?
Rundle: MasterClips and Floorplan, which is the biggest seller worldwide. Also TurboCAD, which contributes a lot in the CAD arena.
ITWeb: How does TurboCAD compare with Autodesk's Autocad?
Rundle: It can do 90% to 95% of what Autocad can do, at about a tenth of the price. It's become an affordable package for the man in the street - we have started to create a new market of CAD users. Autocad is a very high-end professional package and that market is very limited. Our high-end TurboCAD Professional retails at about R2 500.
ITWeb: What is your goal for this year?
Rundle: To increase corporate sales. To capitalise on the interest from the government for TurboCAD, TurboProject and Form Tool products. To grow export through Datatec and Siltek, and to capture a slice of the educational market through the Individual Software agency that we hold for SA.
ITWeb: What will be your biggest challenge?
Rundle: To get to the corporate users and change the mindset of our consumers.
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