Thread by @Finstor85

#newgen software - as we go into 5G & its adoption increases, speed of enterprise activity will increase in tandem. Speed along with reliability of connectivity/communication forms the base of new modern enterprise

For enterprise, go-to-market speed will differentiate winners from laggards. Product lifecycles are getting shorter & shorter & urgency to support enterprise activities is growing even more.

The large scale, bulky software are losing flavor. Slice & consume is the theme & therefore, many more opportunities galore, one such opportunity is #newgen

One can now build mobile app or a website just by drag & drop. Enterprise cloud software too provide such capabilities. Such mundane activities no longer need to consume major resources, automating these activities is the future.

#newgen is a company that offers lowcode enterprise application deployment. Much like deploying pre-fabricated frameworks onsite to build houses in a day.

The company offers lowcode application platform that brings business process rules & allow it to model through integration with content services & communication, catering all aspects of onboarding, process enabling, documenting, engagement

All platforms are built on mircoservices architecture, eliminating single-source failure scenarios. Allows platform to function even when there is a failure on any layer. Increases agility

See it this way - Amazon's catalog, search, cart, checkout are all different services. So if catalog service fails, someone can still use cart/checkout service and so on.

Newgen caters Shared services, Insurance, Banking, Government, and email/message/scanning services on communication layer level. So far only 3 aspects are catered to - Process, Content, Communication. All through product platforms.

Caveat - Pl note Newgen cater routine, mundane enterprise tasks by bringing in automation to fill in the need, free resources for other important tasks. However, every enterprise struggle with such tasks, so automation is always welcome change.

Newgen works with consulting parterns (the big 5), system integrators, VARs, and tech platform providers to bring in more sales. It is very common for a product company to have these business channels.

Big organizations often tend to avoid products offered by new/small companies, hence a recommendation by consulting partner bring in trust and helps grow through a symbiotic relationship.

Newgen's consulting partner list is very good - BCG, PWC, KPMG, LTI, McKinsey, TCS, TechM, Deloitte, EY, and Accenture

As Newgen is mainly product company, the recurring annuity revenue is the most important aspect while looking at valuations/investment decisions.

In 2019, revenue split was - 23% implementation, 25% sale of product, 28% support. Not including other details. Let us see how to read this

Approx. 1:1:1 performance on implementation, sales, support shows strong performance. Very common structure for a product company but 1:1:1 shows very strong performance.

Company eared 25 rs selling their product, make 23 rs more implementing/customizing/consulting the same product, and made 28 rs in support to exiting implementation.

Very good split on geographical split as well - 11% APAC, 32% India, 29% EMEA, 28% US. No concentration risk at all from any one geography.

Also no risk on top-client revenue. Client-wise revenue is also de-risked. No risk of losing one client and getting hit badly.

Diwakar Nigam is founding member of NASSCOM so he understands technology, market, scale, and future well. That side is taken care of. No need to question management capability

The digital/cloud business has grown 111% YoY. This is where many on-premise product companies struggle. To take their on-prem product into cloud maintaining its scale/usability/stability.

I am not getting into results, numbers, etc just yet. But this company is ticking all the right boxes that any good product company must.

For a product company, adoption on DevOps is the game changer. Large scale enterprise software companies have struggled providing stability in release, maintenance, upgrade. That is due to large scale of the product.

This is relatively easy for small product companies as CD/CI gets easier. CD/CI - Continuous deployment/Continuous Integration helps organizations release new product feature, upgrade, and provide maintenance patches without ender user even knowing it.

Newgen seems to be doing this well. However, I am not sure if there are any entry barriers. Newgen's products cater aspects that cater regular/mundane activities, The moat here is recurring annuity and not products.

I will add more to this thread as I go on studying!