Software firms striving to sell grey matter, not labor

10:08, 25/08/2011

The Vietnamese software industry has been changing vigorously when many software firms have shifted from selling labor products to selling knowledge products.

The Vietnamese software industry has been changing vigorously when many software firms have shifted from selling labor products to selling knowledge products.

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Making big leaps…


Nguyen Thi Thu Giang, Deputy Secretary General of the Vietnam Software Association (Vinasa), the organizer of Sao Khue prize reserved for excellent software products, said she can see a considerable improvement in the number and quality of the software products joining the competition for the Sao Khue prize, which shows the rapid development of Vietnam’s software in the last 10 years

The noteworthy thing is that the firms which joined the competition for Sao Khue prize this year have all sent the certificates of copyright associated with the products. According to Giang, this shows that the awareness of the copyright has been improved significantly.

Meanwhile, the way of doing business has also changed: instead of doing the outsourcing for foreign partners, domestic software firms now tend to design products of their own and sell products under their brands. A lot of firms have begun providing cloud computing services together with package services. The new business tendency shows that software firms now sell their grey matter, not simply sell the labor as they did in the past.

According to Vinasa, despite the big difficulties in 2008-2010, software firms still could obtain high growth rate in revenue and labor force, while the fixed turnover from software outsourcing have been satisfactory.

Unlike previous years, when software products joining the competition for Sao Khue prize mostly were the ones in accountancy, corporate finance, customers management, or labor force management, in 2011, the products cover a lot of different fields, form healthcare, transport, to telecommunication or entertainment.

AV Music Morpher Gold 5.0 by AVSoft has been selected for the 5-star Sao Khue title. The software piece utilizes an advanced audio processing technology which allows users to harmonize pieces of music in different styles. The software piece has also been sold on foreign markets.

Misa, a Vietnamese software firm well known for the products used in accountancy, has been trying to provide software as a service. The firm has been not only making products to orders, or providing existing products, but also has been providing services on the basis of cloud computing technologies. With the services, users now pay money for software leasing fees instead of paying money for the software products’ copyright.

According to Nguyen Xuan Hoang, General Director of Misa, said that to date, more than 1000 clients have leased the firm’s accountancy software pieces. Though the service of leasing software just can bring 10 percent of the total revenue, the new way of doing business has helped Misa find new clients (about 70 percent of clients using hired software are new clients).

Meanwhile, Viettel is providing technology solutions designed to the orders of the natural resource management agency. The Ministry of Agriculture and Rural Development (MARD), has been successfully running the system of collecting information and the software of managing water reservoirs build up by Viettel in Hung Yen province.

It is expected that similar systems would be installed at 10 more lakes in Ha Tinh, Thua Thien-Hue and Gia Lai. This is a part of the program on installing automatic monitoring systems at all water reservoirs.

Difficulties existing in short term

Le Van Hoang, Director of AVSoft, said that the audio software piece of the firm is being sold at nearly 100 dollars, while customers come mostly from the US and Japan. More than 10 million downloads for trial uses have been reported, with the customers mostly coming from Europe and Brazil.

Hoang said that the main clients of AVSoft are from foreign markets, and that in the firm once met big difficulties in selling products online. As foreign users are still unfamiliar when using the portals with IP addresses from Vietnam, AVSoft has to use an IP address registered in a foreign country, where it has representatives.

Meanwhile, BKAV, which has been well known for anti-virus software pieces, thinks that the biggest challenges of it are to build up brands and create confidence among users in the new markets. Nguyen Minh Duc from BKAV said that though the firm kicked off the plan to sell the anti-virus products last year, but the software just went abroad last August.

(Source: TBKTSG)