Zoho is not looking at these companies as subsidiaries. It is also not looking to acquire them fully at some point in time. The synergy could be Zoho learning some aspects of hardware from these companies and they could learn in terms of software from Zoho. However, these are independently viable companies that make products that can be independently valuable.
"This is not like an investment where you expect financial return such as selling it to a larger company. What we like about these companies that we looked at is that they have a similar vision. We don't want to go public even 20 years from now, but stay private, do good products and keep adding good, happy customers. Just like Zoho, where we are not building a company to be acquired. It is a similar model. Unlike the VC model, this is different," he added.
There could be some product announcement related to these incubated companies in the near future. Sridhar Vembu, founder and CEO of Zoho, earlier said that the company is looking at creating additional brands over time, similar to Zoho and ManageEngine.
Commenting on the company's policy of not acquiring technology or companies for growth, he said, "We don't see Zoho as a software company. We see it as a technology company. It is much broader and deeper than the software you see and use. Deep technology expertise is important."
He pointed out the example of Apple, they make the hardware, operating system, the software and the applications in it, the graphic elements, the security check, etc. According to Vembu, Apple is not just a phone or application company. It is a technology company. "In a similar way, when you go down deep and it would take tens of years to yield the result. This is not gained from acquiring a company. It is not the technology we acquire, but also the people and culture. Integrating technology is probably the easiest part, but integrating the people and culture is the toughest," he said.