Apps designing: Entrepreneurs are making million
Kamya Jaiswal, ET Bureau
What you need: A unique idea. Little or no investment. A few hours. What you get: A global market of over 250 million smart phone and tablet users. A time share in 33,675 downloads a minute, or 17.7 billion a year.
The trade off has never been so one-sided, in favour of entrepreneurs. Start with minimal investment (no cost is also possible) and access a market with no physical boundaries. What do you make? Mobile applications - bite-sized programs that make millionaires of entrepreneurs holed up in nondescript places, even tiny Udupi in Karnataka.
What you need: A unique idea. Little or no investment. A few hours. What you get: A global market of over 250 million smart phone and tablet users. A time share in 33,675 downloads a minute, or 17.7 billion a year.
The trade off has never been so one-sided, in favour of entrepreneurs. Start with minimal investment (no cost is also possible) and access a market with no physical boundaries. What do you make? Mobile applications - bite-sized programs that make millionaires of entrepreneurs holed up in nondescript places, even tiny Udupi in Karnataka.
Apps based on new ideas with user-friendly presentation
Rohith Bhat, the 39-year-old Udupi-based app maker who boasts clients like Apple and addicts of his products like Prison Mayhem HD and WordsWorth in far-flung Europe, is one of India's little-known cache of star mobile app millionaires. They have the agility to keep up with the fast-moving technology and produce apps based on new ideas with user-friendly presentation choc-a-bloc with features.
As app-making is an idea-intensive, not capital-intensive business, small outfits can make it big - a perfect fit for creative, tech-savvy but resource-constrained Indians.
The opportunity is huge in both volume and value. A 2011 report by Gartner predicts annual worldwide mobile app downloads will reach 185 billion by 2014. Juniper Research says these clicks are likely to add up to over $25 billion in revenue.
As app-making is an idea-intensive, not capital-intensive business, small outfits can make it big - a perfect fit for creative, tech-savvy but resource-constrained Indians.
The opportunity is huge in both volume and value. A 2011 report by Gartner predicts annual worldwide mobile app downloads will reach 185 billion by 2014. Juniper Research says these clicks are likely to add up to over $25 billion in revenue.
Making money from freeware
The potential has never been higher. At the same time, the entry barriers have never been lower," says Kenny Mathers, Nokia's head of developer relations for Asia Pacific. He is not referring to the investment but the technology required to build an app. All major platforms, Google's Android, Apple's iOS and Nokia's Ovi, offer comprehensive software development kits (SDKs) online. Now, you may know nothing about coding and still put your app out there.
So if not in-depth programming, what does it take to make it to be in Bhat's league? And is the road to their millionaire club as simple as it seems? To find out, ET spoke to the Indian app-preneurs with global hits in their kitty.
They share some everyday challenges: lack of adequate talent. Some unique ones: making money from freeware. But collectively, they can't stop gushing about the hottest new business. And explaining why the next Angry Birds may come from their research labs.
So if not in-depth programming, what does it take to make it to be in Bhat's league? And is the road to their millionaire club as simple as it seems? To find out, ET spoke to the Indian app-preneurs with global hits in their kitty.
They share some everyday challenges: lack of adequate talent. Some unique ones: making money from freeware. But collectively, they can't stop gushing about the hottest new business. And explaining why the next Angry Birds may come from their research labs.
Where idea is king
"When the first iPhone was launched, it had no zoom function. We thought, why not create a digital zoom for its camera?" says Bhat. The app, one of the biggest hits of his company, Robosoft, recorded over 15 million downloads. There was no rocket science behind this success. It was just an idea that clicked.
"We were into software development when the Apple app store went live. Robosoft developed five of the 200 launch titles. The numbers we notched up - it was shocking. We then knew we wanted more of this action," says Bhat. An idea is a cheap entry ticket into such a big business. But already, over 3 lakh apps are floating on various platforms.
Though there is room for many more, not all of them are downloaded a million times. Any less and the app doesn't make enough money.
The idea must be a hit, and reach the magic number within one week to a month. "An app's life is one day. The downloads must start within hours of publishing it.
"We were into software development when the Apple app store went live. Robosoft developed five of the 200 launch titles. The numbers we notched up - it was shocking. We then knew we wanted more of this action," says Bhat. An idea is a cheap entry ticket into such a big business. But already, over 3 lakh apps are floating on various platforms.
Though there is room for many more, not all of them are downloaded a million times. Any less and the app doesn't make enough money.
The idea must be a hit, and reach the magic number within one week to a month. "An app's life is one day. The downloads must start within hours of publishing it.
You have to be original
A hit app peaks in about a month," says Vishal Gondal, CEO of Indiagames, a company that builds gaming apps for iOS, Ovi and Android. The norm can be broken. Rovio, the Finnish company showed how by stretching the Angry Birds mega-success to over a year. The trick is to update the game regularly with new versions that keep the app fresh.
To copy this formula, a company needs at least one big hit. The problem: you can make hundreds of apps and still not crack it. After all, the competition is the best from across the world. As the number of apps increase, the one unique idea has become difficult to find. "You have to be original and the novelty should be in-your-face. The app is designed for instant gratification. So it must entertain or give information in minutes," says Bhat.
Most developers admit that making utility apps is easier than those with entertainment content. Games are considered to be most creatively challenging. However, it is this segment which is most popular among users. According to Juniper Research, games followed by media and entertainment apps will remain bestsellers till 2014.
To copy this formula, a company needs at least one big hit. The problem: you can make hundreds of apps and still not crack it. After all, the competition is the best from across the world. As the number of apps increase, the one unique idea has become difficult to find. "You have to be original and the novelty should be in-your-face. The app is designed for instant gratification. So it must entertain or give information in minutes," says Bhat.
Most developers admit that making utility apps is easier than those with entertainment content. Games are considered to be most creatively challenging. However, it is this segment which is most popular among users. According to Juniper Research, games followed by media and entertainment apps will remain bestsellers till 2014.
What is the wellspring of a brilliant idea?
What is the wellspring of a brilliant idea? No one can say. It can emerge from a need, like Robosoft's zoom app. It can evolve from an existing craze: Indiagames creates a cricket game to coincide with every major tournament. The series has millions of loyal fans. Or it can be a whim. Another app-preneur, Rohit Singal, hit it big with Nightstand, an app that converts the smart phone into a bedside clock with a glowing dial.
"Ideas rarely emerge from meetings and boardrooms. If they do, there is no guarantee they will succeed. I don't believe in analytics or software to generate and test ideas," says Singal. His company, Sourcebits, did not start as an app maker. "I was the typical guy-in-the-garage working on an open-source radiology imaging archive and communications software for a Bangalore-based medical school. We were just three people on board. Two years later, Apple launched its SDK. The idea of apps excited me and we were on. Today, our portfolio has over 300 apps across all categories," he says.
"Ideas rarely emerge from meetings and boardrooms. If they do, there is no guarantee they will succeed. I don't believe in analytics or software to generate and test ideas," says Singal. His company, Sourcebits, did not start as an app maker. "I was the typical guy-in-the-garage working on an open-source radiology imaging archive and communications software for a Bangalore-based medical school. We were just three people on board. Two years later, Apple launched its SDK. The idea of apps excited me and we were on. Today, our portfolio has over 300 apps across all categories," he says.
Every developer has to devise his own way of overcoming creative challenges. Some like Gondal swear by analytics and user behaviour to test an idea. Others like Bhat have a feedback group spread across countries.
Singal thinks "democracy is bad for creativity" and goes by the opinion of chosen few. Evaluated by outcome, all strategies have worked and helped build sustainable businesses. To each, his creative own.
Singal thinks "democracy is bad for creativity" and goes by the opinion of chosen few. Evaluated by outcome, all strategies have worked and helped build sustainable businesses. To each, his creative own.
Good looks matter too
Though indispensable, a good idea is not enough. A compelling design is equally critical. "Apps which are easy to use and beautiful to look at are killers. Indian developers make apps that can do everything, but rich features are not enough.
The presentation must be world class," says Nokia's Mathers. This is why Nokia's training forums allocate two days to technology and half a day to design.
"The Americans build user-friendly interfaces. The French make beautiful apps. If Indian developers can also learn the art, more global hits will come from here," he adds.
Good design is not just about flamboyant colours and special effects. Its foundation is user-friendly engineering. From the number of menus you must go through to reach the main function to the ease of customisation and multi-tasking, all are part of an app design. "One of our earliest challenges was to fit the framework of the small screen size of a phone.
Then came the usage: most frequent functions must be easy to operate with one hand. These little things matter because an app must at least be user-friendly," says Bhat.
Developers agree that design is an Indian app weakness. Singal feels the lack of talent in this field crimps app makers: "We need more design schools. Our engineering colleges have done their bit. We need to marry technical skill with aesthetic sensibilities. This is not true of just mobile apps but all tech products."
Gondal blames the software services mindset for this lacuna. "Most Indian companies don't want to innovate. Give them the idea, they make the product. Then American and European companies make millions from the app. We can be more than the technical back-end of developers abroad. We can make our own successful apps." he says.
The presentation must be world class," says Nokia's Mathers. This is why Nokia's training forums allocate two days to technology and half a day to design.
"The Americans build user-friendly interfaces. The French make beautiful apps. If Indian developers can also learn the art, more global hits will come from here," he adds.
Good design is not just about flamboyant colours and special effects. Its foundation is user-friendly engineering. From the number of menus you must go through to reach the main function to the ease of customisation and multi-tasking, all are part of an app design. "One of our earliest challenges was to fit the framework of the small screen size of a phone.
Then came the usage: most frequent functions must be easy to operate with one hand. These little things matter because an app must at least be user-friendly," says Bhat.
Developers agree that design is an Indian app weakness. Singal feels the lack of talent in this field crimps app makers: "We need more design schools. Our engineering colleges have done their bit. We need to marry technical skill with aesthetic sensibilities. This is not true of just mobile apps but all tech products."
Gondal blames the software services mindset for this lacuna. "Most Indian companies don't want to innovate. Give them the idea, they make the product. Then American and European companies make millions from the app. We can be more than the technical back-end of developers abroad. We can make our own successful apps." he says.
Good Work=Great App
For this, nurturing creativity is not enough. Setting up a regular stream of revenue is important too. Making apps is like making movies. If one app is a runaway success, 99 other ideas turn out duds. Their short lifespan means you must dish out hits more regularly than a film production house.
"The trick is to keep your quality benchmarks high. It sounds cliched, but good work always translates into a great app. We invested time to overcome technological barriers and to build in-house capability for game development across different platforms.
This reduces the uncertainty inherent to the business," says Tarun Kumar, 39-year-old CEO of Arch Mobile Solutions, one of the six Indian app developers to have crossed 1 million downloads on the Ovi store. His first bestseller: Train Defender, a game in which users fight dacoits on the roof of a moving train with the mission to save the passengers.
"The trick is to keep your quality benchmarks high. It sounds cliched, but good work always translates into a great app. We invested time to overcome technological barriers and to build in-house capability for game development across different platforms.
This reduces the uncertainty inherent to the business," says Tarun Kumar, 39-year-old CEO of Arch Mobile Solutions, one of the six Indian app developers to have crossed 1 million downloads on the Ovi store. His first bestseller: Train Defender, a game in which users fight dacoits on the roof of a moving train with the mission to save the passengers.
The trick is to keep your quality benchmarks high
Some companies hedge their bets by producing apps for other businesses or powering ideators with their technology. Mobisy is such a one-stop-solution app company. "Our technology platform called Mobitop creates apps for multiple platforms. This enabled us to specialise in building apps for other brands," says Lalit Bhise, CEO of the two-year-old company. Mobisy has worked with 25 companies till date and has built apps such as Spam Manager and Heart Beat Counter under its own banner.
Bhise wanted to build more apps for end users. Twelve years in the handset and software development industry gave him a vantage point to predict that apps were the next big thing. But when he set up Mobisy, he discovered that end-user apps do not bring in enough money.
"The monetisation channels are fragmented. On one hand, Apple and Google share 70% of an app's revenue with us. On the other, Indian operators demand as much as 80% of the profit. This forces a hike in price. Then, even if it is a great idea, the app loses its competitive edge,"
Bhise wanted to build more apps for end users. Twelve years in the handset and software development industry gave him a vantage point to predict that apps were the next big thing. But when he set up Mobisy, he discovered that end-user apps do not bring in enough money.
"The monetisation channels are fragmented. On one hand, Apple and Google share 70% of an app's revenue with us. On the other, Indian operators demand as much as 80% of the profit. This forces a hike in price. Then, even if it is a great idea, the app loses its competitive edge,"
The revenue share for app developers in India is similar to the West
Dipesh Shah, VP of Samsung India's Software operations, doesn't agree: "The revenue share for app developers in India is similar to the West." But a quick poll among developers corroborates Bhise's view. "Verizon, AT&T and European operators follow the same revenue sharing model as the handset makers. Indian operators need to revise their revenue share not only to attract developers but also to compete with global handset manufacturers," says Kumar.
Developers of Ovi, Apple and Android apps have no such complaints. You register on their website, upload the app and the money comes in at a monthly cycle. We couldn't confirm the payment gateway of Android, but Apple and Nokia follow a credit card-based billing system. In end-February, Nokia also added the option of operator billing.
The friendliest platform though can't guarantee a hit. And till an app company gets one, it remains on the ventilator. According to Bhise, it takes one crore hits for an app to earn Rs 10,000 as in-app ad revenue. Even Robosoft and Sourcebits, companies with first-mover advantage, don't rely on ads for revenue. Paid subscriptions remain bread and butter with price per download ranging from Rs 50-250 for most apps (for iPad, the prices go up to Rs 500 or so). Says Singal: "At these rates, it takes at least 30,000 downloads to recover the cost of an app built over 9-10 months."
Developers of Ovi, Apple and Android apps have no such complaints. You register on their website, upload the app and the money comes in at a monthly cycle. We couldn't confirm the payment gateway of Android, but Apple and Nokia follow a credit card-based billing system. In end-February, Nokia also added the option of operator billing.
The friendliest platform though can't guarantee a hit. And till an app company gets one, it remains on the ventilator. According to Bhise, it takes one crore hits for an app to earn Rs 10,000 as in-app ad revenue. Even Robosoft and Sourcebits, companies with first-mover advantage, don't rely on ads for revenue. Paid subscriptions remain bread and butter with price per download ranging from Rs 50-250 for most apps (for iPad, the prices go up to Rs 500 or so). Says Singal: "At these rates, it takes at least 30,000 downloads to recover the cost of an app built over 9-10 months."
A new revenue stream for apps: monthly subscriptions
Thankfully, if you snag a hit, it can be milked in newer ways. In-app purchases are the latest find. These are tools that users must buy to kill the biggest dragon, crack strategy codes or read the final step in a recipe. "Our new games will have several virtual goods that users can buy. International brands have tried this successfully and we hope to do the same," says Singal.
In February, Apple announced a new revenue stream for apps: monthly subscriptions. To begin with, they will apply to only newspaper, magazine apps and their ilk. These apps feed regular content to users who will pay for it just as on regular websites or offline. The platform will keep 30% of any new subscription routed through it. Some app developers think the cut is high. Nonetheless, it will make their monthly payouts fatter.
In February, Apple announced a new revenue stream for apps: monthly subscriptions. To begin with, they will apply to only newspaper, magazine apps and their ilk. These apps feed regular content to users who will pay for it just as on regular websites or offline. The platform will keep 30% of any new subscription routed through it. Some app developers think the cut is high. Nonetheless, it will make their monthly payouts fatter.
Capital challenges
As big money chases these bite-size products, the app business is becoming complicated. Though the entry barriers are low, the price of staying in is increasing. For instance, a year ago, word-of-mouth was enough to push an app. Today, entrepreneurs have marketing budgets for their latest creations. "Ours is a very sharp marketing strategy: target popular app reviewing sites. If they rate you well, and the app cracks the top 100 list on the store, it makes money," says Singal.
Maintaining a reputation is a must. So app makers don't think twice about dumping a finished product either, never mind the loss in man hours. "I have learnt not to fall in love with my apps. In fact, the junking process starts at the ideation table. Many concepts fall away in various stages of development. Having built a brand, we can't slip up now," says Bhat.
Maintaining a reputation is a must. So app makers don't think twice about dumping a finished product either, never mind the loss in man hours. "I have learnt not to fall in love with my apps. In fact, the junking process starts at the ideation table. Many concepts fall away in various stages of development. Having built a brand, we can't slip up now," says Bhat.
You need an appetite for rapid innovation
Another challenge is laying hands on good content and using it on multiple operating systems. "For app developers, access to the real copyright of characters, scripts and stories is important. So is the knowledge of chipset or OS platforms to build high-end gaming applications. These days apps need strong back end infrastructure. Without it the ability to innovate or scale up operations is limited for some local developers," says Samsung's Shah.
This doesn't mean that app start-ups don't face small-company challenges. App entrepreneurs were equally impacted by the recession in 2008, suffered consequences of pinning all hopes on one app and have to match-up, if not pre-empt, every technological innovation.
Shaheer Ahmed, CEO of LocationGuru, a company that specialises in location-based apps, sums up the requirements to be an app millionaire: "You need an appetite for rapid innovation, fast delivery capability, ability to sell to a fragmented marketplace, Plus, infinite patience. It is a road for the hobbyist, or the toughest, none in between."
This doesn't mean that app start-ups don't face small-company challenges. App entrepreneurs were equally impacted by the recession in 2008, suffered consequences of pinning all hopes on one app and have to match-up, if not pre-empt, every technological innovation.
Shaheer Ahmed, CEO of LocationGuru, a company that specialises in location-based apps, sums up the requirements to be an app millionaire: "You need an appetite for rapid innovation, fast delivery capability, ability to sell to a fragmented marketplace, Plus, infinite patience. It is a road for the hobbyist, or the toughest, none in between."
THANKS TO ET.
