Mohan: Mr Mittal, in the e-millennium, what will be more important, superior product or superior marketing?

Som Mittal: Mohan, to be successful we will have to excel in all areas. Just superior products and marketing would not do. There would have to be all round excellence. The main driver would be speed.

Shankar: Som, should Indian companies look at taking the marketing fight to the MNC turf?

Som Mittal: Shankar, with everything becoming global, the turf is all open. Over the next five years, tariff barriers would go away as well. We are already seeing Indian companies competing with MNCs. The valuation of Indian companies are already matching them.

Mohan: Mr Mittal, But speed is something that the Indian companies will find difficult to match that of MNCs.

Som Mittal: Mohan, Speed comes through attitude and also management's decision making. The downside that we have in India is our physical infrastructure. Indian companies would have the challenge of competing globally and still overcoming our shortages. We have a big challenge and little choice.

Mano: What are the limitations of e-business against the traditional business models?

Som Mittal: Mano, We must not forget that B2B and B2C require actual products and services. Somebody has to manufacture them. Brick and mortar would not go away, only some disintermediation would happen. We would also see some reintermediation. So while e-business would make it efficient, traditional activities repeat activities would not go away.

Shankar: Som, aren't the share prices of Indian software companies very unrealistic? When will the bubble burst?

Som Mittal: Shankar, the share prices are in line with what is happening internationally. The current valuations are based on what the future holds. I can only say there is froth and there are small bubbles, which will burst. The froth will remain.

Kanudave: Mr Som Mittal, what will be the banking scenario after 25 years? Will the branches survive?

Som Mittal: Kanudave, 25 years is too far to see. The survival of Indian banking is more around efficiency, customer orientation, competitiveness and preventing non-performing assets. In fact, there would be consolidation of banks. We have already seen discussions of a few mergers in the last few days. While e-business would improve efficiencies, branches would have limited function to perform.

Taru: Mr Mittal, can you comment on Digital's plans related to some tie-up with BFL Software ?

Som Mittal: Taru, Compaq has several outsourcing partners in India with Digital as the most significant one. We have several partners in India. We do not have any specific plans with BFL.

Sunil Gupta: Mr Mittal, will the Internet Portal will loose its charm in the coming years?

Som Mittal: Sunil, Internet portal is a reality and not hype. It adds commercial value to its consumers and as long as portals add value, they will remain.

Annie: Mr Som, how does Digital plan to stay competitive in the e-millennium?

Som Mittal: Annie, E-man, Digital has recognised the immense potential of the Internet and is becoming a net-centric organisation. We are giving top priority to provide e-business solutions and services. Our vision is to be the end to end e-biz solutions provider. · We have the potential of becoming one of India's leading Internet-based software services providers. We will be able to achieve this in a shorter time-span given that we are the only software company to enjoy the unique advantage of having Compaq - the world's second largest IT company - as a major investor, customer and supporter. · In this era of convergence sparked by the phenomenal growth of Internet, Digital India has geared up to serve its customers need of providing a single point solution for voice and data needs.

E-guru: Hi... Mr Mittal... what do you feel of the valuations in the portal business... any comments on valuation of Amazon or IndiaWorld....

Som Mittal: E-guru, conventional valuations do not apply in the current era. The impact that these portals and internet companies have is very significant. The investors are putting in money, they sure know better. Most valuations are based on present value of future streams.

Vishu: When is Compaq planning to launch iPaq in India?

Som Mittal: Vishu, as you may be aware, Compaq has two subsidiaries in India. Compaq India which addresses the domestic market and Digital India, which focuses on software services. I am sure Compaq India has plans to introduce all these products.

E-nerd: Do you think that Internet connections over cellular or mobile will cause an e-commerce revolution?

Som Mittal: E-nerd, it surely would. We are seeing a lot of development happening around appliances. We would see anything which is wearable watch, cellular, pagers offering communication services. I see them coming in the next few years. These appliances would be user-friendly, they would be no `re-boot' requirements.

Anshu: Mr Mittal, I did some research on Radio in early part of this century, it seems very similar to the Internet wave right now.

Shankar: Som, don't you think the Digital share price is far below its potential? I am an investor.

Som Mittal: Shankar, thanks for your confidence in Digital India. We are working hard to ensure that we build a strong organisation. We will leave it for the market to position our share price.

Rain God: Mittal, why are we talking of the millennium when it is so far away?

Som Mittal: Rain God, I completely agree with you. Millennium is a 1000 years. The rate of change is very rapid. It is the immediate future that we need to focus. We would see more change in the next few years than in the last five. However, the change of the millennium is a good reference point to review the past and calibrate for the future.

Sunil Gupta: Som, do you have to say something on ASP (application service provider) business?

Som Mittal: Sunil, the fundamentals of ASP are indisputable. Logically it makes sense. However, I would say 'work-in-progress'. In India, particularly, we would need better telecom infrastructure

Anshu: No one seems to talk of the infrastructure and logistics needed to pull off e-commerce?

Som Mittal: Anshu, various discussions that are happening with State/Central Governments are around infrastructure bottlenecks. Govt. is committed to improving this. India has a large potential and the government realises this. We, however, cannot wait for all of it to happen at the same time.

Anshu: That does not seem to be the case, they have made a mess of telecom, there are no proper roads, forget anything else. I have tremendous day-to-day problems shipping my goods.

Som Mittal: Anshu, we all face the problem. We would have to fight our way through. The world will not wait for India. They will just pass us by. The industry is making sure that government realises this.

E-nerd: Mr Mittal, what do you feel that the Indian IT sector will contribute to the development of e-commerce globally?

Som Mittal: E-nerd, with the e-commerce catching on there is a worldwide shortage of resources. At the same time, speed required is high. India has proven its capability to provide high quality software services. Even today, India is playing a major role. We know of many portals, services that are being supported out of India.

Mano: What will be the role of medium-sized companies if it is the large companies that are going to dominate?

Som Mittal: Mano, the beauty of e-commerce is that size does not matter. We have already seen small sized companies threatening giants. You can be global company operating from just one location. This is the biggest impact.

Mano: What are the security issues that are expected to dominate the businesses in the future connected world?

Som Mittal: Mano, security is a concern. Technology is rapidly ensuring this. Also, new authorisation technologies are emerging like PKI. Also encryption is getting better. Statistics show that there are more commercial crimes than on the Net.

Sunil Gupta: Som, I think we as software development companies are completing a cycle, We started first as services (onsite), then offshore, then made products and again going to sell software in service form. What do you think is the next stage?

Som Mittal: Sunil, we will have to follow world needs. Project cycles are becoming shorter, change too rapid. Last few years have established India well and we are now clearly getting higher value add projects.

Sunil Gupta: Som, I appreciate and endorse your views on Project cycles.

E-nerd: Mr Mittal, do you think that the IT sector will become a commodity sector 10 years from now... like railways in early nineties, etc.?

Som Mittal: E-nerd, IT and its usage will become more like a utility. If not like Railways, surely like telephone and lighting. You will pay for what you use. Consumers will not own, specialists companies will provide the service.

E-nerd: Mr Mittal, then do u think that the valuations in e-commerce will be like that of lighting and telecom in years to come... are we talking of a major valuation correction setting in?

Som Mittal: E-nerd, I would rather leave the valuations to the analysts but surely we would see new service providers offering IT services as an offering. A good example is of Enron, is while a power company, it is now offering connectivity and access.

Rain God: Mittal, in the new e-millennium, do you think we will be able to curtail brain drain? Or will we lose more brains to America than ever?

Som Mittal: Rain God, I think the brain drain is already reduced if not reversed. People have challenging jobs, remuneration is up, valuations high. I know of a lot of people who would prefer working here.

Ramneek: Rain God, I think brain drain is something we need to redefine. What exactly does that mean? With the Internet, where one works doesn't really matter. The IT industry in India has been providing a good atmosphere to retain brains.

Mano: What is your advise to start-up IT firms?

Som Mittal: Mano, be focussed, innovative and be sure that you are going in with your convictions and not just following a bandwagon.

Sunil Gupta: Som, what do think about the India achieving US$50 billion export turnover from software in 2008 as projected by IT Task Force? Are we prepared or ready for that or it was just like another political drama?

Anshu: $50 billion is too high as it does not account for future competition from the Chinese.

Som Mittal: Anshu, we are seeing software now getting into appliances, cars, in almost every sphere of our life. McKinsey have estimated this morning $87 billion by 2008. We should watch out for China but they would take some more time. This is one field which we all should work together to beat the world.

Cleopatra: What is Digital's positioning in India?

Som Mittal: Cleopatra, we are going to be a Tier I software provider and among the Top 3 Employers of Choice. We are excited at the prospects, our positioning is unique, we have the advantages of being a MNC at the same time, have a dream of our own.

Cleopatra: Why has Digital retained its name in India?

Som Mittal: Cleopatra, Compaq has a 51% stake. Digital India is the only company in the world which uses Digital brand today. It has always stood for great technology and customer relationships. The new Digital India also stands for the same.

E-man: Som, is Digital involved in developing Java based Jini technologies for its systems?

Som Mittal: E-man, yes we are. Most of our customers use multiple technologies and we have to integrate them. Our objective is to be our customer's Trusted Partners and our goal is to offer them life cycle services.

E-nerd: Mr Mittal, do you foresee consolidation in the Indian / Global IT sector in the future? Will only big five companies remain in business like in other sectors?

Som Mittal: E-nerd, the opportunities for e-services are many. We will in fact see a lot more entrepreneurs coming in. Consolidation, if at all, will take place in the infrastructure providers such as cable, telecom providers. We are already seeing mega mergers.

Moderator: With all these "mega mergers", how do smaller companies compete? Or, is there no hope?

Som Mittal: Moderator, the mega mergers are happening only in infrastructure, but on the other hand, smaller companies are getting added by the hundred. Even if they merge, they are coming out richer. Selling and buying companies would be common and would be accepted.

Technology Journalist: Mr Mittal, will we ever see Indian companies participating in international standards bodies like W3C and ECMA? Or are we only interested in making money through American technology?

Som Mittal: Technology Journalist, I think there is a lot of work going on currently on participating in these standards. Let us not forget that our real visibility has been in software over the last 5-10 years. I am sure you would see many more patents coming out here. Incidentally, many already exist.

Mr Y2K: Mr Mittal, what do you think is the potential of IT enabled services in India?

Som Mittal: Y2K, The potential here is extremely high. IT Enabled Services will be manned not by software engineers but a large number of other professionals/vocations. We are already seeing back office work, call centre desks, e-mail-based helpdesks emerging.

Sunil Gupta: Som, Can you throw some figures/estimates to achieve US$50 billion software export turnover as projected by IT task force?

Som Mittal: Sunil, there is a McKinsey conference tomorrow in Delhi by Nasscom. I am sure this could be of great interest.

Sunil Gupta: Som, I will miss the opportunity to participate in McKinsey conference. I am chatting from Germany with you!

E-nerd: Mr Mittal, do you think that economic wars and gaining of economic superiority between countries will happen over the net? There will be no battlegrounds?

Som Mittal: E-nerd, geographical boundaries are getting broken, trade barriers are vanishing. Net would surely be one of the battlegrounds, not so much to win or lose, but to survive.

E-nerd: Are you saying that economic activity is survival in the present with no idea of the future?

Som Mittal: E-nerd, for the future, what will carry us through is our value systems. These are not the era of having sacred cows, we need to be flexible and move and steer ourselves as changes happen. The future is going to be bright, more competitive and only the fast and flexible will gain.

E-nerd: Mr Mittal, what do you think will be the next wave after e-commerce?

Som Mittal: E-nerd, I would really say appliances and wearables. However, in the past, all predictions have gone wrong.