Canarys to spin off Scorpus

Lines up $4 mn to build Scorpus as separate firm.

Canarys Automations Ltd, a software product engineering and services company focused on offshore outsourcing model, will shortly spin off its metadata-based enterprise software asset management solution (ESAM), Scorpus, as an independent firm to tap the US and Indian markets.

The $2.5-million company, which has over 150 employees in Bangalore, had invested $1 million in developing Scorpus during the last two years. It plans to spend another $4 million over the next 18 months on building Scorpus as a separate company.

Scorpus ESAM technology is aimed at assisting businesses in creating newer enterprise assets and augmenting them with assets harvested from the existing systems.

Such an augmentation will assist in providing a structure to align application strategies with business strategies. The demand for metadata repository or ESAM solutions are driven by industry initiatives such as service-oriented architecture, business process improvements and enterprise architecture.

These require the metadata repository and registry like Scorpus as the core of the implementation.

"We intend to leverage the India cost advantage and technical skills to acquire and support US and India-based mid-market customers. We are looking at expanding sales, marketing and delivery capability before the launch of the product in August," said Scorpus director and CTO Srihari B Gowda.

According to Gartner and Forrester, the ESAM market is expected to touch $600 million by 2010. Scorpus, the first such product from an Indian firm, will take on industry giants like BEA/Flashline and Logic Library in the world market.

"We are targeting around $35 million overall sales in the market space through 2011. We are confident of having at least 50 site installations by the end of 2008," he added.

The firm plans to open several offices in the US. It intends to partner companies that provide software development and maintenance to expand its market reach.

Canarys Automation, which has a beginning in manufacturing electronics-based software driven systems to the public sector and MNCs, forayed into product engineering in 1994.