Virtual Netcomm to foray into e-governance

Ahmedabad-based Virtual Netcomm, the sole value-added distributor in India for Nasdaq-listed Blue Coat Systems of California, is planning a foray into e-governance.

The company, which is primarily engaged in securing web communications, WAN optimisation and video streaming, is close to securing a deal with two state governments and various other state and central-backed organisations.

Under the contracts being worked out, the company is set to provide proxy appliances in web communications to protect against risks and inefficiencies from spyware, web viruses, inappropriate web surfing, instant messaging, video streaming and peer-to-peer file sharing to the state government departments and organisations.

The deals are set to be closed for around Rs 70 crore and solution implementation would be completed by the end of 2007.

"The market for security solutions in e-governance alone in the country can be estimated at around Rs 400 crore and growing. Security concerns are on a high on account of hacking, phishing and other illegal methods to access critical information and this is especially true of governments and research organisations for whom secure communication and information transfer are most important," said Rajendra Shah, director, Virtual Netcomm.

Blue Coat launched a software interface to integrate its WAN optimisation with those of enterprise video vendors in the last week of February 2007, and this has been made available through Virtual Netcomm in India, which has found favour with the larger enterprises across the country.

Most of the interest has been generated for on-demand video for training and other communication purposes that can be delivered from the destination office to branch-based appliances across the country in spite of lower bandwidth.

Virtual Netcomm, which had entered the SME markets in 2006, is looking at video streaming and IPTV as the biggest growth drivers for the company for the year 2007-2008.

"Many internet service providers (ISPs) have already started pilot testing their IPTV projects and some of them are planning to enter the market by the end of this year, which indicates the tremendous opportunities for solution providers like us, " said Shah.

The company has a wholly-owned subsidiary at Singapore and is currently working to enter the web security markets in Vietnam, Thailand and Indonesia.

Priority for web security, which currently makes up 95 per cent of the company's revenues, could be overhauled by video streaming and WAN optimisation for its international markets, added Shah.