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SumTotal to explore Indian market

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CIOL Bureau
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HYDERABAD: SumTotal Systems Inc., an enterprise software products and services company, has identified India as one of the potential markets to explore business development opportunities.

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This apart, the company that recently acquired Pathlore Software Corporation is looking at more possible buyouts.

Neil Laird, chief financial officer, SumTotal Systems Inc, said, “The Learning Management System (LMS) is a fragmented market with lots of small companies. We are looking at acquiring companies whose products are a natural fit with our platform and also come along with a sizeable customer base.”

Detailing on the business potential in India, Sudheer Koneru, senior vice president, international operations, SumTotal Systems said, “Indian companies have in-house applications being developed. However, they are now recognizing the need for an integrated platform. We are exploring the possibility and by this year end we should be able to start business development in India.”

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Laird added that LMS space is in a consolidation phase globally and companies are looking at an integrated platform rather than using applications in multiple components. “The deal size is simultaneously increasing as customers are going for an integrated or implementing complete platform,” said Laird.

Currently, SumTotal's largest deal amounts to $3 million. Enterprise deals can range anywhere between $ 2 to 3 million. However, the company doesn't intend to lose the market in the SME space.

Laird said, “Pathlore is pretty strong in the small and medium size business market. And we will continue to be operating in this space.”

According to the company, the worldwide market for training platforms is around $ 300 to 500 million a year. SumTotal claims to have a market share of 25 to 30 percent. Laird said, “The industry is growing at 10 to 15 percent and we intend to grow at 15 to 20 percent year on year.”

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