Application stores have caught the fancy of both service providers and mobile handset manufacturers alike. After the successful adoption of Apps Store by Apple, Nokia and BlackBerry, Indian telecom players like Airtel, Reliance Communications have also announced their foray in the applications development segment.But, CanvasM says it has developed an integrated platform and their applications are both device and service provider friendly.
"We are creating an independent applications store environment and deliver it across devices. It need not be tied up with a phone or service operators. We have our own tool which facilitates this," said CanvasM CEO Jagdish Mitra. The company also has an IP around their device converter platform.
These applications will be ready to be launched in a month and the company is in talks with mobile companies to partner with them. These 6,000 applications have been developed under the 'innovas' initiative for which the company tied up with about six to eight universities along with some of the Mahindra Group companies.
Tech Mahindra had entered into a joint venture with Motorola in 2006 (Tech Mahindra has 80 per cent stake in the JV). When asked if the progress of CanvasM has been satisfactory, Mitra said: "I am happy with the progress but the speed of adoption of these services has been disappointing. But, what encourages us is the uptick in the adoption of mobile applications and an increased interest to adopt utility-based applications, among clients."
Unlike others, Mitra wants to focus on utility-based VAS like commercial transactions and mobile banking. In India, major VAS consumption has been restricted to entertainment-based applications like songs, ringtones, videos and astro alerts.
"We have taken a conscious decision not to go for an entertainment market. It is all about price and how cheap is the service. Until and unless 3G comes in, we will not play in that market," said Mitra.
While the company did not disclose the investment in developing these applications, experts say generally the price of developing an utility application starts from Rs 1 lakh and depending on the complexity can go up to Rs 8 lakh or more.
CanvasM is also looking at a slightly riskier, usage-based revenue model for these applications. If the application is successful, depending on the revenue share with the operator, CanvasM will get an annuity like earnings. Mitra did not disclose the details about the revenue model.
The company has steady stream of revenue from its international operations, but Mitra wouldn't share the numbers.
In Bahrain, CanvasM is launching a concept called smart homes, targeting the residential luxury market. "The owners can get voice, data and games on a variety of access media like TV, mobile and computer," said Mitra. It also plans to get this in India soon.
CanvasM has close to 45-50 customers currently. Mitra claims that the company's revenue will grow by 60-65 per cent this year, compared with last year.
