IT IS MY PLEASURE TO COMMUNICATE WITH YOU VIA THIS LETTER. THE LAST YEAR HAS BEEN ASIGNIFICANT YEAR FOR E2E IN WHICH WE ACHIEVED KEY MILESTONE OF LISTING ON NSE EMERGEPLATFORM. THIS YEAR THE TENTH YEAR OF THE E2E's JOURNEY; ALTHOUGH STARTS ON A CHALLENGINGNOTE BUT KEEPS US VERY EXCITED GIVEN THE HUGE OPPORTUNITIES IN THE SECTOR AND THE UNIQUEPOSITIONING OF OUR COMPANY. I WOULD LIKE TO TOUCH UPON SOME OF THE SIGNIFICANTDEVELOPMENTS THAT TOOK PLACE IN THE YEAR GONE BY.
An improved cloud product
We have put major efforts in improving our cloud offering both from technology andproduct perspective. We are very positive about the opportunities which are present in thecloud enabled solutions for the SME and the emerging companies in India. We would like tofacilitate the adoption of cloud by SMEs through development of solutions to meet theirniche workload requirements. We have increased the flexibility of our infrastructure byintroducing newer compute options with better configurations. Further we have enhancedour product offering by introducing Windows cPanel and Plesk on many of our existingcompute series. Launch of GPU and Smart Dedicated Servers are also worth mentioning. Wewill continue to add to our offering and add more flexibility to our product to enableadoption of our compute infrastructure. We have made progress on improving the customerexperience and enabling greater adoption via self-service customers. These developmentscontinue to adhere to our philosophy of offering a superior public cloud with great valueto customers.
Growth risk and opportunities
FY 18-19 has been a challenging year from growth perspective mostly due to decline ofrevenue from few key customers as compared to last year. However we have maintained ourinvestments in people and technology to be able to capture the opportunity lying ahead ofus. Owing to our conscious effort of pushing for more growth amongst self-servicecustomers our client concentration has reduced significantly.
As per estimates around 65 percent of the compute in India is still on-premise. We seeopportunities for us in enabling transition to cloud solutions among the large number ofmid-scale companies in India. Our roll-out of some of the solutions last year is initialstep in this direction. This transition will enable richer business data over cloud whichcan be used to derive better insights using analytics and AI based solutions. Thusenabling analytics and AI specific workload on our compute will be a natural progressionfor our product in future.
Team E2E has grown significantly in the last one and a half years. We have on-boardedsome exceptional talent to make ourselves ready for the cloud opportunity in India. Somekey hires include senior management hiring in Engineering Delivery Sales and Marketing.These are professionals with years of experience in delivering in an agile setup likeours. We continue to add to our Engineering team as we speak. We also have ESOP planamongst other initiatives to attract retain and motivate talented employees of theCompany. We have initiated various knowledge sharing initiatives at E2E with keenparticipation of engineers both internally and externally. This will help in furtherestablishing ourselves as an industry leader.
We have frequently deliberated internally about the trade-off between the long-termgrowth and immediate profitability. It remains a difficult balancing act with onesuperseding other based on where one is in its journey. Given the massive opportunity inour space we feel it is crucial to continue to make investments in people and technologywhich will lead to better adoption of our cloud platform. Despite growth headwinds we havecontinued to make these investments. We will continue to focus on improving our publiccloud product on various aspects including customer experience. We have planned launch ofvarious products and new features in the coming year. We believe these launches will helpus in augmenting our growth in the medium-term. We will be communicating to you on thelaunches on a regular basis.
Finally I would like to thank you for your support consistent commitment engagementand encouragement. We continue to seek your participation in our journey of growth.
Chairman & Managing Director