Sonata Software Business Model – Success Story of Indian Tech Giant
Have you heard of Digital Engineering companies in India? Digital Engineering means creating, capturing, and integrating data using a digital skillset. Similarly, such practices are done by big companies across our country and the world. Sonata Software Limited is the leading modernization and digital engineering company in India. The company has its headquarters located in Bangalore.
Sonata Software Limited offers services such as business intelligence, application development management, mobility, cloud, testing, social media, enterprise services, analytics, and many more. This information technology company was founded way back in 1986 and has grown its branches in Europe, North America, and the Asia-Pacific region.
Sonata Software - About and How it Works?
When it comes to business, Sonata Software has partnerships with one of the leading technology providers in the world. Some of their highly reputed partners are Amazon, Google, Microsoft, and many more. The primary aim or motive of Sonata Software Limited is to help businesses accelerate their modernization and digital transformational journeys throughout the business operation.
The working process of Sonata Software Limited is very simple and to the point. This company provides modernization services using its unique proprietary Platformation approach. This platform introduced by the company is specialized in cloud and data modernization, digital contact center setup, Microsoft Dynamics Modernization, and management.
Sonata Software Limited’s, Platformation is their primary approach. This helps incumbent businesses to achieve their digital transformational mandates. The company leverages the power of platforms to help clients and companies and implement platform-based business models. With their excellence in engineering with full industry experience, platform assets, and niche horizontal expertise the company helps form the core of modern digital businesses today.
Sonata Software Limited - Logo and its Meaning
Logos are meaningful and one of the most significant parts of a company. An attractive and meaningful logo is important because it grabs attention, makes a good strong first impression, and gives your company or brand identity. Other than that, having a logo separates a company from its competitors, fosters, and brand loyalty. So, having a unique and attractive logo with a deep meaning to it is quite important for businesses.
Similarly, we have a beautiful logo for Sonata Software Limited. The logo of Sonata Software Limited is representing the instrument “piano” and just above that the branding of “Sonata” is written with a red background. Ust below the “piano” instrument with bold words there is “SONATA SOFTWARE”.
According to Sonata Software Limited, they offer a melange of scales, performers, rhythms, and instruments. All of these combined together create a performance that is both inspiring and marvelous. The logo resonates with the company’s core beliefs and founding principles, this is one of the many reasons why the company chose the name “Sonata”.
Keeping this in mind, the company decided to make a musical statement with long-playing records. LP records are believed to be known for flawless experience just like the company’s long and rich history.
Sonata Software - Founders and History
Sonata Software Limited was founded just to help small-scale businesses to grow in the digital field. Sonata Software Limited was founded way back in 1986 as the IT division of Indian Organic Chemicals. Later, the company spun off to become an independent entity in 1994. Again, later in 1988, the company became a public company in the country.
The key people who are playing a major role in this company are the following:-
- Pradip P. Shah- Chairman
- P. Srikar Reddy- Executive Vice Chairman
- Samir Dhir- Managing Director and CEO
- S.B. Ghia- Director
- Viren Raheja- Director
- Radhika Rajan- Director
- Sanjay Asher- Director
Over the years, the company has gained huge success and great appreciation from clients all across the country. In 2001, Sonata Software obtained SEI-CMMI level 5 certification and set up its offices in Europe, North America, and the Asia-Pacific region.
After this, the company opened up branches in many American, European, and Asia-Pacific regions. Throughout the journey, the company received several awards and recognition for its unique and attractive services to top clients. Ever since the company’s establishment, the focus of Sonata has been on innovation and customer-centricity.
Sonata Software- Recent News
Sonata Software has always been an emerging digital engineering company across the globe. The company has made and is making positive headlines almost every month. On 21 March, news came around that Sonata got a whooping $160 M contract from a US retailer due to which it's shares saw growth of 2%. Back in 2020, Sonata Software announced that they will be acquiring US-based data analytical and cloud modernization company, Quant Systems for a whopping $65 million.
Recently, according to CNBC18, IT Sonata Software has completed the acquisition of Texas-based Quant Systems. Inc. Sonata Software also bought its subsidiaries for $65 million dollars. As per some reports, Quant Systems was founded back in 2008 and has a team of over 300 engineers.
This acquisition of Quant Systems will enable Sonata Software to win larger deals in future businesses. Sonata Software’s largest-ever acquisition will contribute more or less 1/6th or 16.67 percent of the company’s overall revenue. This was revealed by Mr. Samir Dhir, the Managing Director and CEO of Sonata Software Limited.
Sonata Software - Mission
The mission and vision of Sonata Software Limited have always been clear and straightforward. The mission of Sonata Software is to help businesses accelerate their modernization and digital transformation journeys.
Due to this, Sonata Software Limited has become a trusted partner of world leaders in the retail, distribution, travel, and software industries.
Sonata Software Business Model
Sonata Software might have a long list of services to offer its clients but, “Platformation” is its primary business service. The company believes Platformation steers the digital agenda and accelerates the enterprise transformation.
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Platformation facilitates all the interactions between enterprises, clients, consumers, and ecosystems by unlocking value. This service enables a smooth response to changing customer demands through both innovative services and product propositions. This platform focuses on business solutions to serve clients both internally and externally. Some of the services that can be done using Platformation are the following:-
- Application Development Services
- Data services
- Cloud services
- Platformation on the Microsoft Stack
- AI/ML Engineering services
- Digital Consulting Services
Sonata Software Revenue and Growth
The alliance with top information technologies companies like Amazon, Microsoft, IBM, and many more have helped the overall revenue of Sonata Software. As of 2022, the total revenue generated by Sonata Software was a whopping Rs 5,553 crores when converted to dollars it was $700 million.
In the past month, the stock price of Sonata Software went up by 27%. This happened when the company performed strongly for the quarter that ended in December 2022. Interestingly, Sonata’s IT services revenue grew by 4.7% quarter-on-quarter and 3.9% on constant currency.
On the other hand, the EBITDA margins in IT services declined due to elevated employee costs and increased marketing spending. The same year, the company’s consolidated profit after tax jumped 20% to Rs 117.60 crore. If the company wins large deals and has strong digital spending by clients then they have estimated to grow over 28.8 percent CAGR over FY2022-25.
Sonata Software- Funding and Investors
Due to confidentiality, the officials have not declared its investors and funding received. Instead, the company actively invests in various startups and well-established companies all across the globe.
Sonata Software- Acquisitions
Sonata Software has been an active acquisition company. The company is making headlines by acquiring some companies or others. Here are some of the companies acquired by Sonata Software Limited:-
| Acquired date | Acquired Company Name |
| August 25, 2014, | Rezopia |
| August 6, 2015, | Halosys |
| December 8, 2018, | Scalable Data Systems |
| December 13, 2018, | Sopris Systems |
| March 4, 2020, | GBW Solutions |
| February 22, 2023, | Quant Systems |
Sonata Software Turning Point
All the recent headlines coming up from different sources are a major turning point for Sonata Software Limited. The primary turning point is its service “Platformation”, without this the company would not have achieved what it has today.
After the company achieved SEI-CMMI Level 5 certification in 2001, it started setting up offices across the world. The first Sonata Software American branch was opened in Redmond, Washington back in March 2014. Later, the same year, in August Sonata Software bought a controlling stake in Rezopia. It is a travel agency that was the very first to use the cloud for taking reservations.
Maybe, the SEI-CMMI Level 5 certification turned the company into a great success today.
Sonata Software Competitors
Here are the top competitors of Sonata Software Limited:-
- Accenture
- Coastal Cloud
- Magna5
- Shift Paradigm
- Wipro
- Tata Consultancy Services
- Navisite Services
- Code Zero
- PricewaterhouseCoopers (PwC)
- AGT Consulting
Sonata Software Future Plans
The only future plan for a company is to expand and penetrate in all market segments. Sonata Software’s partnership with Microsoft has a major role to play in the future as revealed by many sources. It was Sonata Software that proposed Microsoft expand its 30-year-old across geographies, technologies, and industries. This will help Sonata get more investments and will get maximum advantage from a huge and growing market opportunity.
Sonata revealed that the acquisition of Quant will boost its margin and growth. Moreover, it is proving that the more acquisition they make the more company will grow. We are expecting that will be the future plans of Sonata Software Limited.