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Gandhi
The lesser known 'Sabeer Bhatia'
Husein Gandhi is also an Internet prodigy - but in a twisted sort of way
Rohin Dharmakumar
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No one symbolises Indian success and enterprise in the information age better than Sabeer Bhatia. At an age when most of us were in college or busy watching movies, Bhatia accomplished two things that can be called truly world-class. He started Hotmail, a service that caters to over 100 million people in more than 30 countries across the world. And not just that - he made $400 million by selling it to Microsoft!

But was Sabeer Bhatia a flash-in-the-pan entrepreneur as far as Indian success in harnessing Internet technologies directed towards end-customers was concerned? It would seem so, as most Indian entrepreneurs in 'the Valley' have focussed on enterprise solutions and not consumer solutions. Kanwal Rekhi of Excelan, K.B. Chandra- sekhar of Jamcracker, Vinod Khosla of Sun Microsystems and Vinod Dham of Intel - most Indian entrepreneurs have been partial to enterprise solutions.

And so Husein Gandhi came as a surprise.

Husein who? Husein Gandhi - the undisputed Indian king of spam.

Spam? What's that?

Okay, I guess you were asleep for the last couple of years or so. 'Spam' refers to unsolicited email, often of a commercial nature, sent indiscriminately to multiple mailing lists, individuals, or newsgroups. Put simply, these are mails you unfailingly find in your inbox every day from addresses like katie77xxx99@onlineco-eds.com or viagradeals@ clinic.net asking you if you "want to have a hot date", want to "buy herbal Viagra real cheap" or if you are interested in "getting out of debt for free".

Spam is more than just a nuisance in case you were wondering what the big deal was. Even though it appears so, nothing comes for free - even on the Internet. Every email you send (yes, including Hotmail/Yahoo!/Rediffmail) has to be stored on servers and requires electronic circuitry to transmit. All that costs money. In addition, there are hidden costs related to the corporate email usage caused by spam. To get an idea of the costs involved just answer this. How many 'relevant' emails do you get in a day and how much time does it take for you to sort through your cluttered inbox to arrive at them?

To put things in perspective, according to available statistics, companies the world over will spend $20.5 billion managing spam in just 2003. It is also estimated that nearly half of all the emails that are sent everyday are spam. AOL and MSN block around 4.8 billion spam messages a day, and that's not counting the ones that get through to your inbox.

So that's spam. And Husein Gandhi from Mazgaon, Mumbai, is the lone Indian on Rokso's list of the world's worst spammers. Rokso, or the Register Of Known Spam Operations, is a free-access, non-profit register of known hard-line spam operations across the world. This list, complete with the IP (Internet Protocol) addresses of the spammers, is used by thousands of mail servers across the world via a database called the Spamhaus Block List (SBL) to block spam. There are around 138 people on the latest list, and Rokso estimates that these 138 people are collectively responsible for more than 90% of all spam in the world. These 138 people choke up your mailboxes and make sure that you lose at least a couple of productive hours a day deleting the stuff.

Quick back-of-the-envelope calculations will show us why Gandhi is big. Ninety per cent of the total cost of handling spam globally works out to around $18.4 billion. Assuming Gandhi's share of the spam pie is only around 5%, he still costs $92.2 million or Rs 434 crore to companies around the world! And mind you, we are talking big money here.

So now we know that Gandhi is worth $90 million or so. The only difference with most other Indian entrepreneurs is that they are worth that much directly and because they increase the productivity of companies, while Gandhi is that much of a cost to others. But hey, that's real entrepreneurship!

Unlike most other Indian entrepreneurs, information about Gandhi is tough to come by, primarily because his profession demands some covertness. The Rokso site maintains profiles on each spammer in the list collated through the years by affected mail administrators and users all over the world. But even they have only sketchy details about Gandhi and some of that information is already outdated. For example, the phone number the Rokso site lists as Gandhi's is invalid.

Gandhi used to run a company called Anmol Solutions, which offered website hosting and designing services. Now, via Anmol, Husein offers 'bullet-proof hosting', spammer-speak for servers that will let you send millions of unwanted emails a minute without booting you for such behaviour, from countries like Brazil and Argentina. Incidentally, the company's own website, anmol.com, has been taken off the Net, but a simple Google search will prove that the company still exists. One of the few legitimate jobs it undertook some time back was creating the website of a Mumbai-based steel trading company.

Gandhi's most notable 'business partner' is a convicted fraudster and one of the worst spammers in the world - Alan Ralsky. He has been operating in the spam business since 1997 and, hence, must be like a father figure to the relatively young and 'inexperienced' Gandhi, who is just 25 or 26 years old.

At Elance.com, a company that lets individuals and companies offer their services at a price, Gandhi offers bullet-proof hosting among other things, and claims that "need-based research and specific tailormade solutions for clients have resulted in the company's steady growth over the past five years". He also claims that he is an MBA from the Mumbai-based Narsee Monjee Institute of Management Studies (NMIMS), a reputed Indian business school. A little digging took me to a page at the NMIMS website which proved Gandhi's claim. He graduated in marketing in June 2003 from NMIMS after undergoing his summer training with Blue Star.

So here we have an Indian entrepreneur who graduated from one of India's leading business schools and took the road less travelled. Today, he is among the world's best in his field. The only problem: he will make it to the list of the infamous, not the famous. His profession demands secrecy and the ability to hide his tracks and he's been able to do that until now. Is Gandhi really any less of an entrepreneur than Sabeer Bhatia? In fact, if anything, he's smarter, though in a twisted sort of way. Gandhi rides piggyback on the same product that Bhatia created (Hotmail) to serve his 'customers'. Parasitic entrepreneurship, even if it can claim to be world-class.

Kanwal Rekhi, another prolific Indian entrepreneur, is reported to have once remarked that "the great thing about American democracy is you get to vote with your jackpot". Gandhi is hitting the jackpot - though not in the way you or I would approve of.

Every day, BW gets a lot of unsolicited articles through both snail mail as well as email. Unlike what you may think, we go through them diligently to see if there are any outstanding pieces that we should print. Last week, we found one. This article has been written by a recent graduate from the Indian Institute of Management-Calcutta (2001 batch). At present, he works as a business analyst with a mid-sized IT services provider called Caritor (formerly IT Solutions).
 
 
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