Silicon Valley of India

Two years ago there was this article on rediff terming Bangalore as not the Silicon Valley but the Coolie Valley. It compares how the technology companies at Silicon Valley like HP, Intel, Apple, Adobe, Yahoo, Seagate, Symantec were churning out new technologies and products every year, while Indian companies were providing low end end-to-end solutions to the global firms.

Silicon Valley companies are based on ‘know what.’ They know the market, they know the technology and they know what products to make to earn money.
Coolie valley companies are based on ‘know how.’ They do the software coding for other companies that have the ‘know what.’ If you tell them what to do, they know how and will do it for you.

But in the past two years, things have changed a lot. Recently there was this article on Nytimes about how Bangalore is the hot destination for technology startups. Venture Capitalists are looking at Bangalore based startups for promising investments.

Of course not all startups turn out to be successful. Some product or technology companies that have stayed in the market and established themselves are Sasken, which has developed communication products, Tally the maker of the popular accounting software and now planning to foray into the ERP product space also, Mindtree, which has started making money by licensing its patented communication technology.

The NYtimes author concludes by saying that though Bangalore can never be compared with silicon valley in the near future, it can match up with Boston or Austin as a competitive place to start up innovative product companies.

4 Comments so far

  1. Santosh (unregistered) on April 24th, 2006 @ 2:34 am

    if govt supports infrastructure
    indians give more improtance to studies, respect to nation we can surely beat the silicon valley of USA..
    yes we are not comparable to siliconvalley USA..
    but if all want we surely can..

    bangalore to expand…lets say mor IT Companies in devanhalli, or on mysore side…
    bangalore can be expanded in small chunks..

    every chunk can have a special malls/places like mg, brigade…so people wont stick to the present highlighted areas…

    like a guy from yelhanka has o come to MG rd or recidency..to have a taste of malls..
    why are malls at one places
    if we got infrastructure malls can surely go further… which will infact control traffic, people would prefer to so called outskirts…

    1st foremost thing needed is roads..


  2. Ambar (unregistered) on April 24th, 2006 @ 3:31 am

    IMO, understanding of ‘what’ can only come after understanding of ‘how’. As an example of what happens when you try to skip the ‘how’, think of the PHB in Dibert. He went to liberal arts college, while the rest of the characters are all engineers. :D

    And OT, what after ‘what’? A ‘know why’ company?


  3. Agent Pal (unregistered) on April 24th, 2006 @ 9:23 am

    @santosh: Yes, in addition to quality companies coming up, quality infrastructure is also needed, which I think is in a very bad state in bangalore.
    Fortunately the infrastructure issue was not mentioned in the nytimes article.

    @ambar:Yes u r right. But Indian companies have a 10+ years experience in the ‘know how’ and are sitting on huge cash piles but are still hesitant to take the first steps towards becoming a ‘know what’.

    And ya, it is why after what. Once u release a product and it succeeds/fails, you need to know why it happened right. Wow looks I m all set to start up my own cmpny!!!


  4. krishna kumar (unregistered) on May 14th, 2006 @ 10:51 am

    What does infrastructure got to do with ‘creating’ products? I don’t get the connection.



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