On Wednesday, Zoho, in collaboration with IDC, published a study titled IDC State of SaaS Adoption in India Survey, shedding light on how businesses lose up to Rs 5.6 crore in revenue due to delays in SaaS implementation. The delays are driven by integration issues, security concerns, and technological challenges.
Zoho has recognised this challenge and is equipped to deliver new technologies to enterprises without prolonged deployment cycles. The company is also developing its own foundational AI models.
Mani Vembu, CEO of Zoho, in an exclusive interaction with indianexpress.com, said, “We are building small language models specific to our products and the data we handle. These models are currently in the research and development stage, and we aim to launch them within this year, although there is no specific estimated time of arrival. Our approach is to first test the models with a few customers for accuracy, and based on the results, we will finalise the launch.”
The upcoming small language model will be integrated within Zoho’s product ecosystem as part of its common technology stack, rather than being available as a standalone chatbot like ChatGPT or Gemini.
“In the long run, we aim to develop more core technologies, including AI models that deliver real value to our customers,” Vembu said.
Vembu also mentioned that while Zoho is developing its foundational model, the company will continue to integrate popular large language models, providing customers with multiple choices.
Zoho has already embedded several AI-driven features within its SaaS suite, including capabilities like auto-correction and co-pilot functionality. The company is also developing AI-powered agents and exploring new use cases and solutions.
“Businesses want to achieve more with fewer resources and are increasingly looking for automation to enhance efficiency and minimize errors. Our technology enables them to do exactly that,” Vembu said.
For Zoho, India is currently its second-largest market. The company serves both small and medium-sized businesses and large corporations. The United States remains the company’s biggest market. As digital transformation accelerates, businesses are increasingly adopting SaaS solutions for customer relationship management, human resources, finance, and other critical operations, with companies like Zoho playing a pivotal role in this shift.