virtualsoft systems ltd Management discussions

VIRTUALSOFT SYSTEMS LIMITED ANNUAL REPORT 2009-2010 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS AND OPERATIONS OF THE COMPANY: VIRTUAL SOFT-PIONEERING BROAD BAND, VIRTUAL EVENT & MOBILE ROAMING SERVICES & SOLUTIONS: Broad band networks are revolutionizing the way we do business. Virtual Soft and its vReach division offer outstanding digital broadband solutions. They use technology developed in-house and by our best-of-breed global partners to the advantage of large enterprises, associations and media companies. Broadband network & application solutions offer you a convergence of voice, data and video that can be used for your business by creating and leveraging business function specific virtual events-both live & on-demand, ideally through an annual engagement contract with VirtualSoft. Virtual Soft transforms conventional business, learning, entertainment and media enterprises into rich media digital corporations. It uses the technologies of the day to set up the infrastructure & application platforms needed for streaming interactive rich media content - as well as creating and managing virtual events - over the internet, Internet or extranet. A proprietary system called v Code guarantees clarity and seamless delivery of audio, video and multimedia files across both narrowband and broadband networks. Virtual Soft has developed a world-class Enterprise Communication Platform called vReach that utilizes existing corporate computing infrastructure to make realtime business meeting and events more cost-effective and convenient by reducing travel and extending reach to globally dispersed customers, partners, and coworkers over low-bandwidth network connections through a simple browser interface VirtualSofts vReach division also offers Rich Media content creation and migration services using proprietary technology and business methods. It creates near video on-demand content synchronized with Power point slides and other interactive mechanisms for leading conference organizers like Cll, FICCI, The Times of India Group, The Federation of Asian Advertising Associations, Business Today; and for leading enterprises such as SAP, IBM, The World Bank and the Tata Group. It has created over 8000 hours of such content for over 400 different conferences and training events. This content is available in CD/DVD form as well as on knowledge on-demand servers accessible over the intranet and/or internet. In the year under Review, three new initiatives were successfully launched: First, based on inhouse R&D, Virtual-Soft suucessfully developed and deployed a B2B live Text Chat Platform (Multi - Panelist & Multiple Levels of Moderation) with a video featurepp, for Intel India. 7 Virtual Events were then created and launched for Intel successfully during the year. Over 3,000 of the Target Audience registered and over 1500 attended. Second, based on a strategic partnership for India and APAC with 6Connex Inc (www.6Connex.com)- a California based global leader in Virtual Experience based business solutions & our own domain competence, processes and goto market ecosystem, Virtual Soft launched a range of next generation Virtual Experience based events for demand generation, customer engagement, collaboration, learning and knowledge management for brands like CNBC/Web 18, Cisco, Oracle and Intel - both at the India & APAC level. Third based on technology & market development work done late in the year under Review, in April 2010, VirtualSoft created a new Telecom division to focus on Mobile Roaming Solutions for the global traveller under the brand name Roaml (www.roam1.com) Currently the options for an International Traveler for telephony during his overseas travel-is either to use the International Roaming facility on his existing SIM or take a country specific SIM Card that our competitors provide. We have, along with a UK based company developed a unique solution which allows a consumer to use a single UK based SIM which provides low cost telephony in international roaming. This SIM provides Free Incoming in over 100 countries and provides low cost Call Back to India. Over the past few months we have piloted this SIM and have now over 2500 customers who regularly use this product. The Card is a prepaid card, which again makes it very attractive for an Indian Customer as it allows him to control his international telephony expenses. The billing is in real time and is visible instantly on the net which ensures that there is no room for over billing. The customer gets to retain the card and can publish the number as his permanent International Number. This way every time the customer goes abroad, he adds talk time on his card which makes repeat business very easy for us. With the foundation in Enterprise Broadband solutions and the three new initiatives launched in the year under Review, the Company now expects significant growth in both revenues and profitability in the current year and the years to come.