Zoho Corp’s arm ManageEngine eyes $1 billion in revenue in 2-3 years
ManageEngine, the enterprise IT management division of Software-as-a-Service Company Zoho Corporation, is set to touch $1 billion in annualised revenue in next 2-3 years, Co-founder and CEO Sridhar Vembu said. This comes at a time when IT and technology companies are seeing an increasingly challenging demand environment globally.
Zoho Corp overall, including business suite vertical Zoho and enterprise IT vertical ManageEngine, touched $1 billion in revenue in 2022.
Started in 2002, ManageEngine is a full-stack software company, currently catering to over 280,000 clients, including over 10,000 organisations in India, across 190 countries.
Vembu said, “ManageEngine has long been Zoho Corp.’s bread and butter. Over the last five years, ManageEngine’s cloud services averaged 70 percent year-on-year growth, peaking during the time of the Covid-19 pandemic.”
“We see tremendous potential in India. The rate of digitalization is picking up here at a rapid pace, making IT management more important than ever and setting up ManageEngine to soon reach $ 1 billion in global revenue,” he added.
At present the third largest market by revenue for ManageEngine, India is expected to surpass United Kingdom in the next three years to become the second largest market globally. ManageEngine India saw a year-over-year growth of 50 percent in 2022, while the customer count increased by 30 percent, driven by demand primarily from the BFSI, manufacturing and real estate sectors, the company said.
ManageEngine’s offerings include real-time IT management tools to enable optimal performance of their IT infrastructure, including networks, servers, applications, endpoints etc. The firm also runs its own data centres. It currently has over 15 data centres globally, two of them are in India in Chennai and Mumbai.
Shailesh Davey, Co-Founder and Vice President of Engineering of Zoho Corp said that it will soon open data centres in the UK and Canada. It also plans to set up another data centre in the Middle East.
Davey added that unlike ManageEngine’s bigger competitors which spend 3X on marketing as compared to R&D, ManageEngine invests 3X on R&D against marketing.
Last week, Zoho Corporation reported its FY22 numbers. As per Registrar of Companies (RoC) filings, the company’s net profit was up by 43 percent YoY, touching Rs. 2,700 crore, driven by growth in revenue from its enterprise IT management software business.
Revenue from operations grew 28 percent YoY, coming in at Rs. 6,711 crore for FY22. Majority of this revenue came from the North America market, which contributed about Rs. 3,198 crore followed by Europe at Rs. 1,505 crore.
In November, Vembu had said that the India market is growing very fast for the company and he expects it to become its largest market in the next 10 years. Vembu also added that the company plans to open 100 network PoPs (points of presence) around the world in the next five years for providing users with faster network, and also double investment for technologies such as blockchain and artificial intelligence. Moneycontrol
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