Whalesbook
Sonata Software's second-quarter revenue fell by 30% to $242.8 million, primarily because Microsoft Corporation is now selling its software licenses directly to large clients, bypassing resellers like Sonata. This segment previously formed over 60% of Sonata's revenue. The strategic shift by Microsoft has led to Sonata Software dropping in India's IT ranking. Analysts are flagging an 'existential crisis' and advocating for diversification into areas like analytics and AI, while the company's stock has seen a significant year-to-date decline.