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Nov 25-Dec 1, 2013

Chennai delhi Kolkata Mumbai

National Supplement - Networking

Not a ROSY PICTURE

As the market saw consolidation over the last couple of years, the networking industry saw a marginal dip FY13 was a year when enterprises started consolidating their IT requirements into a single pool as they had the flexibility to scale up. Many state governments, PSUs, and banks rolled out IP networks and laid down the roadmap for stronger network rollouts in the coming years. The networking market grew marginally by only 3% in FY13. The networking market revenue stood at `9,104 crore in FY13 as compared to FY12. The contributors to the growth of the overall market was majorly seen from Switches and WLANs. The switches market showed close to 6% growth in FY13 whereas WLANs showed whooping 22%. Modems and router market declined considerable from last fiscal. As the market saw consolidation over the last couple of years, the modems industry dipped to -17%. The routers market also showed dip of -6% due to integration and optimization of both cost and capability. Although driven by new deployments plus productivity enhancement initiatives in the business enterprise segment and continued strong consumer

demand for clients, most enterprises are working towards setting-up a strong and reliable network infrastructure. This, in turn, has raised the networking products demand in various sectors. Organizations these days are investing heavily in infrastructure support that can deliver end-to-end, effective, and reliable solutions that will eventually transform their business operations. Hence there will be a strong demand for wireless, storage, broadband, switching, security, cabling, etc, that forms a part of the complete end-toend networking solution. Deploying enterprise applications like ERP and SCM is becoming a norm, thus leading to increased adoption by all enterprises, including SMEs in remote areas. Multi-national companies establishing their presence in India are setting up connectivity between their domestic offices as well. In addition, newer networking technologies and applications are driving organizations to deploy networks of the scale and complexity never seen before. The pressure to reduce cost amongst budget constraints and competitive pressure

is making organizations search for innovative ways of designing, building, and managing networks. Wireless picked up tremendously in the last couple of years and thus networking products saw huge influence of this technology. So, be it switch, router, modem, or other networking products, the demand was to grab a wireless product than a product that can only be connected through physical mediums. Virtues like connectivity, portability, and being future-proof drove the wireless equipment business way ahead of its wired counterparts. Few areas where we saw great demand for networking and will continue seeing the same this year as well are collaboration, data centers, and network security. Collaboration is clearly the number one solution from networking standpoint. This was the trend last year and will continue this year as well especially within larger companies. Data centers are the second big area for networking products. IT is becoming a strategic part of the business strategy for organizations. In order to access the right information at the

right time, the data center and technology around the data center are increasingly becoming important. A third area that continues to gain momentum is overall network security. Security whether its from the compliance standpoint or to mitigate overall risk is gaining importance as companies build up their IT departments. As the number of laptop users increase so does the number of people accessing the network, hence it is important to have the right security policy and components in place to ensure a secured network. Grappling with Issues As the industry evolves, new and newer challenges are being met by vendors. Networking comes as business transforming solutions for enterprises as they look at scaling up their performances. CIOs often face the challenge of working on dissimilar systems while trying to integrate the backend requirements of the IT infrastructure. Manageability across systems has become critical in integrating network resources for the delivery of optimized results. While working on an

integrated network it becomes crucial that the security concerns of applications and systems are taken into consideration. IT infrastructure requires multi-level security in order to manage smooth operation within the organization. Compiling multiple networks to form a unified system reduces the complexity of IT infrastructure and service management. Today, integrating routing, switching, security, QoS, and wireless technologies saves organizations up to 49% compared to the cost of purchasing and operating separate products for each function. Modems The industry saw dip in the overall revenues as many vendors performed way below their own expectations. The incoming of next-generation networking devices that can completely replace modems, routers, switching, etc, are already leading the wired traditional modem industry. The emergence of technologies like 3G and WiMax are already out in the market with their much improved devices. Last mile connectivity based on wireless technolo-

Networking Segments (In `crore, Growth%)

6%

Total FY12 8,844

Total FY13 9,104 -6%

21%

-17% 378

2,966

4,421

1,079

314

2,788

FY12 Modems

Routers

4,686

1,316

FY13 Switches

WLAN

Collaboration, data centers, and network security saw great demand for networking and will continue seeing the same this year as well

gies such as 3G will boost broadband in India. The demand for 3G modems and routers will increase significantly. This will probably decide the future of this market. The modems market has undergone several innovations and this era has given a push to 3G modems. Since, India is already trying to work out its ambitious broadband plans, the broadband access devices will find market presence in the coming years. Atrie Technologies also saw dip in its revenues by almost 27% during the last fiscal. FY12 marked the

dawning of D-Link’s ‘Cloud Era’. The company showed impressive growth with many product launches. D-Link launched its cloud product portfolio to emphasize its commitment to the cloud space integrating with its ‘mydlink’ platform. With speed becoming the deciding factor in choosing broadband service, the dial-up modem market seems to be going southwards. Besides, the ADSL2+ technology modem continues to gain more and more popularity in the SOHO market due to its effectiveness to

offer high-speed broadband connectivity to small and medium businesses along with the home consumers. The newer ADSL models with further enhanced chipsets like the latest ADSL2/2+ standards provide internet transmission of up to 24 Mbps downstream and 1 Mbps upstream. And these modems also continue to be the hot favorite of service providers. Switches The switches market saw upwing in its overall revenues thanks to the verContinued on page 3


2

networking v e n d o r c h a n n e l s t rat e g i e s

Nov 25-Dec 1, 2013 The DQ Week

mahesh gupta, Lead, Enterprise Networks Sales, Cisco India & SAARC

T

-Link is one of the very few companies to offer end-to-end networking solution in the country. Hence our products are popular across the vertical like retail/manufacturing, telecom, corporate, hospitality, banking (BFSI) etc. All these verticals have shown positive growth. However government and education in particular vertical have shown stupendous growth. Also, last year we bagged quite a few large projects including GBBN – Goa broadband project which was one of the biggest projects rolled out in India for passive products along with a lot of D-Link active products. On the SDN front, it is too early to comment on, the standards are yet to be defined. Will it be implemented in faster space? Will it be economical? How the compatibility issues are met within the existing infrastructure? These are some of the key questions yet to be answered. Till now, D-Link was more of SMB, SOHO and consumer centric but after the recent partnership with Ruijie Networks, D-Link will focus on enterprise networking for the India market. Under the brand name 'Ruijie - Powered by D-Link', the company will offer the finest of networking technology and solution to large business enterprises in India. With this business alliance D-Link looks forward to

T

he large enterprise segment will be one of our key focus areas this year. We have been actively working with our partner system integrators and service providers across the country, and will further strengthen our position in this space. In the networking market, we would like to capitalize on Software Defined Networking (SDN) and security. These are the focus areas for us and we have engaged in many strategic security conversations with enterprise CSOs. Junos WebApp Secure—our thought-leadership intrusion deception technology—has garnered significant interest from the enterprise. With the advent of 3G and 4G technologies resulting in more data consumption has emerged as a key growth-driver. Other factors like cloud computing and mobility will be the stepping stones for our business to evolve. The solution and products offered under this space are: Contrail: Juniper’s Contrail is a simple, open, and agile software defined networking solution that automates and orchestrates the creation of highly scalable virtual networks. These virtual networks let you harness the power of the cloud—for new services, increased business agility, and revenue growth. Junos Space Network Management Platform: Junos Space is

Searching for Genuine

D

sajan Paul, Director, Systems Engineering - India & SAARC, Juniper Networks

Spare Parts??

tushar sighat, CEO, D-LINK (India)

less Control System Navigator, Cisco Prime Infrastructure, Cisco Wireless Control System, Cisco Wireless Location Appliance. Our partners are strategic collaborators in the business and we deliver almost 100% of our products through our partners. We have more than 2000 channel partners in India currently and are increasing our partner base rapidly. We believe that investing in the development of this integral community is of the foremost importance and we run multiple programs and certifications to enable them efficiently. To strengthen our Partner-led program, we have made significant investments in providing tools, training, and resources to help partners accelerate the adoption of Cisco architectures. • Certified partners can avail additional rebate • Sales acceleration programs • Soft skills enablement for the partners In addition to this, we have introduced several enablement programs like Business Transformation Certifications and incentive programs like VIP 22, Profithon, Connect Rewards, Kiwi Adventure etc. over the last year in India.

Visit : www.mtechspares.com

he Indian networking segment has seen significant transition in the last year, which have primarily been influenced by four trends, viz. the rapid rise of the consumerized endpoint (multi device syndrome), the onset of virtualization and cloud computing, social and enterprise class collaboration and the growing use of high-definition video conferencing, and the Internet of everything. With the rising adoption of next-gen technologies by enterprise customers like Enterprise Networking, Virtualization, the move to cloud computing, application-on-demand and Collaboration services; customers are beginning to prioritize their spend on the network (Unified Access = wired and wireless) and thus the market for networking products is expected to grow further. Consumerization has also created a new mindset - end user experience, which spans across all spheres; Cloud, Collaboration and Enterprise Mobil- ity. These new trends have drastically altered the industry’s perception of the network, since it is the core platform which supports the seamlessly delivery of these new capabilities. We see that there is a steady increase in the demand for smarter (intelligent) networks as they become more of a platform for business enablement. This evolution has also sparked the need for Unified Access (a term coined by Cisco) which has also been acknowledged by the analyst community. Gartner has recently eliminated the traditional bifurcation (wired and wireless) networking too, in their renowned Magic Quadrant and combined these segments into one, given that organizations are looking at networking more from a capability standpoint. From a technology perspective, the top five trends that are driving the demand for Networking are as follows: Mobility - The increasing adoption of Enterprise Mobility with the influx of smart mobile devices and tablets, and the continued proliferation of higher performance 802.11ac ready networks are driving organizations to upgrade, extend, and replace their wireless infrastructures. Cisco believes that BYOD and Mobility initiatives are changing the rules of the game and, the challenges as well as the opportunities they present, can be tackled with a unified approach - a hallmark of Enterprise Networks. Cloud - Cisco believes that cloud computing will be a key opportunity for partners and organizations to leverage as it has revolutionized the way technology is consumed. Cisco’s architecture play in the cloud is all encompassing and it extends from the network core to network edge - data centre to mobile device - and serves as an organizing principle for everything from switches and routers to video, servers, wireless access points and security. Network programability/SDN - Software defined networking is an emerging concept in the industry that looks at de-coupling the control and data planes in network devices and abstracting the control plane intelligence. Cisco’s Open Network Environment or Cisco ONE is the industry’s broadest approach to network programability. Internet of Things: The Internet of Things (IoT) is the connection of all machines, devices, sensors, automobiles, cameras, and other "things" to help customers improve operations and save valuable time, money and even lives. Cisco sees a tremendous potential in IoT and estimates its value at about $14 trillion by 2020 alone. The Cisco ONE Enterprise Networks Architecture is a foundational element in enabling the “Internet of Everything,” intelligently connecting people, clouds and things. As people become more and more connected to information, electronic devices, and to one another, it is important to ensure that the underlying backbone can support this expansion. The current version of the internet, IPv4, is running out of addresses very quickly, therefore there is an immediate need to transition to the new IPv6 platform. Collaboration: The rapid growth of enterprise collaboration tools is resulting in an increased demand for bandwidth, given the video hungry applications that are increasingly being consumed, thus driving the demand for seamless networking connectivity. On the solutions offered in this space, Cisco Enterprise Networks Architecture portfolio provides an all-encompassing set of products which aim to deliver the industries best approach to Networking, for each category of customers across enterprises and SMBs. Here’s an overview into the product categories that fall under this architecture: Switches: Cisco offers a range of switches to allow organizations drive more value from their network and save on operations with a range of products including the Cisco Catalyst 6807-XL, Cisco Catalyst 6880-X, Cisco Catalyst 6800ia, Cisco 4500E Supervisor Engine 8E and Catalyst Compact range of Series switches. Routers: Cisco Integrated Services Router (ISR) 4451-AX and Cisco Aggregation Services Router (ASR) 1000-AX routers deliver a superior customer experience with increased architectural scalability and investment protection. Wireless: Products from Cisco on the wireless networking front include solutions from Cisco Wireless Controller Software for SRE, Cisco Wireless Services Module 2 (WiSM2), , Access Points, Wireless Controllers, Converged User and Access Management and Cisco Mobility Services. Management: Cisco offers a suite of management solutions that simplify network management, reduce errors and speed troubleshooting while reducing operation costs. These solutions include Cisco Prime Network Control System Series Appliances, Cisco Configuration Assistant (CCA), Cisco Wire-

403-A, Sant Nagar, East of Kailash, New Delhi-110065 Ph. : 26235576, 26433377, 26435511 Mobile-9811068707 e-mail: spares@mtech.in

Branch Office: Chennai: 1st Floor Flat No. Old 10/5, New 25/5, Nathamuni Street, T. Nagar, Chennai-600017 Ph.-044-28156156, 28152156 offering high-end enterprise networking solution & establishing a strong presence in the enterprise domain. With distinct focus on large enterprise domain since last couple of years, D-Link has enhanced its engagement with System Integrators and also realigned its strategy. Last year D-Link introduced 5S networking solution (Switching, Structured Cabling, Surveillance & Storage, Security, and Software) for large enterprise that aims to offer streamlined integration, centralized management, simplified trouble shooting, guaranteed interoperability and ease of use. D-Link's alliance with Ruijie is another step in this direction, as the company is committed towards addressing the data centre and large enterprise domain. Overall, D-Link India's strong presence across different industry verticals coupled with Ruijie Networks high-end networking solution will definitely help address the complex and high-end networking demands of enterprise customers in the country. D-Link (India) is one of the key networking players in India, with close to two decades of presence in the region. It fully understands the local market requirements and offers a robust product portfolio and superior services. Ruijie Networks is an IP solution and networking product supplier. It provides complete end-to-end product lines and mature industry-based networking solutions for large enterprises. Thus this partnership will bring together the strengths

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of both parties to formulate complete and versatile enterprise networking products, solutions and services to India market. The coming together of Ruijie Networks & D-Link (India) will bring values to enterprise customers in India and also enhance the IT applications for the enterprises. With its large basket of solution offerings, 'Ruijie powered by D-Link' will introduce 40G/100G unified switching solutions to address the high performance computing need of large enterprises. Also 'Ruijie powered by D-Link' plans to take IT infrastructure management to next level with its Real Time Intelligent RIIL solutions. The cooperation between Ruijie Networks and D-Link (India) will be focused on all industries in India, including Education, Hospitality, Manufacturing, BFSI, IT/BPO (IT enable service), Government and Telecom carriers. This partnership will pave the way for both companies to collaborate and reach a boarder set of enterprise customers. At D-Link ‘Channel engagement’ has always been the core. Our key agenda is to create a healthy business ecosystem, wherein both D-Link and its partners reap maximum benefit and grow mutually. Our channel mantra has always been ‘Let’s grow together’. As a result everything we do in terms of partner engagement, is keeping in the view the well being of our business aides. All incentive programs at D-Link are formulated on the basis of partners present in large and small cities both. We ensure that the partners from smaller cities are not neglected and also get equal benefits out of these schemes and we shall continue to do the same. In order to support partners sell better, we ensure that these partners are better equipped to meet customer requirement on technology front through various training and technology up-gradation programs. We deliver almost 100% of our products through partners. We have more

a comprehensive Network Management Solution that simplifies and automates management of Juniper’s switching, routing, and security devices. It is a critical component of our SDN strategy by providing a centralized management plane for a single point-of-contact into the network and a common management platform for managing and creating applications that meet specific needs. MX Series: SDN-ready MX Series 3D Universal Edge Routers are Ethernet-centric services routers that are purpose-built for the most demanding carrier and enterprise applications. Powered by the Junos Operating System and the Junos Trio chipset, the MX Series 3D delivers unprecedented scaling in bandwidth, subscribers, and services, that ensures investment protection in even the fastest growing markets. Additionally, the MX Series 3D portfolio is tightly aligned with Juniper Network’s Software Defined Network (SDN) and Network Function Virtualization strategy; its’ advanced architecture cleanly separates control, management, services, and forwarding planes, and it supports virtualized network services, all managed by the Junos Space Network Management platform. QFX Series: QFX Series 10GbE/40GbE switches are highperformance, low-latency, 1 and 2 U edge devices that are optimized for virtualized data center environments. The QFX Series switches act as universal building blocks for multiple data center fabric architectures and can be used in seamless Juniper 1/10/40GbE architectures, such as Virtual Chassis, Virtual Chassis Fabric and QFabric deployments, as well as in open architectures such as Spine and Leaf and Layer 3 fabrics. The QFX5100 line of flexible, high-performance, low-latency and feature-rich Layer 2 and Layer 3 switches are optimized for virtualized data center environments. QFX5100 switches are a universal building block for multiple fabric architectures including Juniper’s mixed 1/10/40GbE Virtual Chassis, Virtual Chassis Fabric and QFabric architectures, and open architectures such as Spine and Leaf and Layer 3 fabrics. All QFX5100 switches support In-Service Software Upgrade (ISSU) to deliver hitless data center operations. EX Series: EX Series Ethernet switches deliver access, aggregation, and core layer switching services in branch, campus, and data center networks to ensure fast, secure, reliable delivery of data and applications. All EX Series Ethernet Switches address escalating demands for high availability, unified communications, mobility and virtualization within enterprise networks. The EX Series switches increase competitiveness and contribute to business success by delivering operational efficiency, business continuity, and network agility for end-to-end enterprise environments. SRX Series: Integrated with Junos WebApp Secure now benefits from the latest Intrusion Deception technology, as well as the Junos Spotlight Secure Global attacker intelligence service. The integrations extends the ability of the SRX Series to block attackers that are identified at the security perimeter, and is particularly effective in blocking botnets and large scale web attacks. MetaFabric: To help enterprise organizations and service providers address the challenges associated with managing multiple, geographically dispersed data centers, Juniper Networks unveiled MetaFabric, a new architecture for next generation data centers. MetaFabric simplifies and accelerates the deployment and delivery of applications within and across multiple data center locations. This new architecture enables customers to run data center networks securely and more efficiently through a combination of Juniper's network innovations, professional services and strategic partnerships. PTX Series: PTX Series Packet Transport Routers are high-performance Converged Supercore platforms for service provider networks. These routers deliver powerful capabilities based on the Junos Express chipset and forwarding architectures optimized for MPLS and Ethernet, with integrated, coherent 100GbE technology. The PTX Series routers deliver critical core functionalities, game changing density and scalability, cost optimization, high availability, and network simplification. The Converged Supercore is an integrated end-to-end packet transport solution optimized to deliver the routing and transport technology necessary to economically accommodate the core networking requirements of the new connected economy. On partner strategy, Juniper Networks operates completely with partners in India. Our focus is on driving and supporting a deeper and profitable relationship with our partners. All of our initiatives are designed to help our partners cultivate deep customer relationships and, at the same time, effectively respond to the macro trends that are driving change across the entire industry. We believe it is all about scaling with precision, investing with impact, and recognizing achievement. Juniper New Partner Advantage program is a tool for growing network architecture expertise, and differentiating partners based on the value they add. It is about evolving to help our customers adapt and represents an unparalleled refocusing on mutual opportunity.

than 10 thousand partners in the consumer space, around 5 thousand in SMB and 200 for enterprise and are increasing our partner base rapidly. To strengthen our partner-led program, we have made significant investments in providing tools, training, and resources to help partners accelerate the adoption of Cisco architectures. Certified partners can avail additional rebate, sales acceleration programs, Soft skills enablement for the partners Based on their experience and skill sets, we have divided our partners into the following groups; Gold, Silver, Premier, Service Provider (SP), Managed Services (MS), Architecture, and Distributor-led categories in our products. We have appointed separate product managers for each of the category. Our product manager along with our partner and other channels work towards sales development\activities both in terms of customer and channel awareness. We have successfully been able to realize our true market potential and deliver substantial sales with 95% growth in this quarter vis-à-vis the same period during last year. Our distribution strategy is very clearly defined, making D-Link products readily available in each and every part of the country. At present D-Link has 2 national distributors (ND’s), and over 75 business distributors spread across India. Both our ND’s Ingram Micro and Redington provide us with widespread regional presence, superior logistic capabilities, strong pre and post-sales support and effective end-to-end customer support. While our RD’s/BD’s ensure continuous business support and enable us to reach-out to more and more re-sellers/partners present in smaller cities/ towns in India. As a result both national distributors and regional distributors play a very important role in our company’s growth path.


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Net r ksi n g nweow v e n d o r c h a n n e l s t rat e g i e s

Nov 25-Dec 1, 2013 The DQ Week

subhodeep bhattacharya, Regional Director-India and SAARC, netgear

bimal raj, CEO, Smartlink Network Systems

I

ndian economy is now driven by younger generation and they are now hungry for newer technology, higher bandwidth and lifestyle infrastructure therefore we are expecting a good growth in the coming days. However, in India, Networking market is recovering after facing a slowdown in the past few quarters The growth drivers of networking market are increasing penetration of internet/ broadband in Urban and Rural India and use of converged (Triple Play i.e. V/V/D) network over same physical network infrastructure. When we talk about home and SOHO market, connectivity with mobility is driving the market, the popularity of Handheld devices such as notepads, smart phones is certainly helping in wireless networking growth as need for more and more wireless connectivity is increasing. Apart from this demand for IP base Surveillance is also coming up. We estimate the total market size of the LAN and WLAN in India to be around Rs 4500 crore. Indian LAN and WLAN market has been growing at modest rate of 10-12%. With regard to our market scenario, DIGISOL has taken the lead role to launch the new lifestyle products for Home, SME as well as Corporate requirements. When we talk about enterprise networking, we are the 1st and only Indian networking Brands to launch Software Define Network ready devices in our core equipments. Also introduced datacenter solutions and many more new products are in the pipeline. We are seeing good growth in SMB and SME segment and growth in Enterprise/Education and Government infrastructure. Last fiscal year was good for DIGISOL. We emerged as a strong player in home and SOHO segment and got good mind and market share for broadband routing. We did good business in wireless segment and are now amongst the top brands in Wireless. We also did significantly well in the data switching market in India due to our end-to-end solution offering and achieved major wins in Government and BFSI segments. Channel community as one of the most channel friendly companies in India. We ensure healthy margins for the Channels and also introduce new products with newer applications to increase the scope of growth for the Channels. These new products and solutions enable the channel to value add and hence can generate better margins from their customers. We are supporting our partners with strong advertisement campaigns, retail branding and publicity material. Apart from this we are conducting Technical Trainings, Seminars, Road Shows and Trade shows to keep them abreast with the latest technological trends and markets. We have been coming out with regular channel incentive programs where in we handsomely reward partner

Continued from page 1 ticals like government, telecom, and financial services which deployed switching components onto their IT infrastructure. Last year it saw rising trend of storing data on network drives and SANs and with the continuous increase of highbandwidth applications in organizations. This availability of new technologies by enterprises held promise for vendors which were being squeezed for margins in their volumes business of unmanaged layer-2 and -3 switches. Pricing competition among big vendors like Cisco, HP, and Juniper maintained intense pressure in the market. Juniper in FY12 focused on innovative customer solutions in India. Juniper is helping the Essar group to manage its mobile network security. They are also managing Bajaj Capital’s (financial planning and investment) integrated wired and wireless campus network. Juniper helped Spectranet to extend its geographical reach with the deployments of an IP/ MPLS network core running their ‘Junos’ operating system. The company has also worked with the Government of Chhattisgarh to link its public agencies and deliver e-government citizen services. Netgear will be launching L2&L3 switches in India. D-Link launched a new range of HD camera’s, DGS-6600 series chassis switches, and IPV6 ready managed switches in the enterprise space whereas in the consumer space, the company launched 3G routers and ‘mydlink’ cloud services. D-Link also rolled out its broadband network solution with a state government undertaking in FY12. Ethernet remained driven by its lower cost and ease of administration. Both metro ethernet and ADSL were largely driving the business last fiscal. Telecom service providers rolling out ADSL networks continued buying the large 10G and IG over ethernet switches for their broadband deployments.

community. The objective is to ensure healthy margins for partners who are putting in efforts and we wish to grow these partners along with us. We are present in almost all the locations in India either directly or through our distributors or dealers. We have a strong distribution network of 28 exclusive territory distributors, 400+ dealers and 4000+ resellers across the country and we have been working very closely with most of these partners since the past 2 decades. Traditionally ours is a strong regional distributor sales model, over the period we have upgraded skill levels of many of business partners in to System Integration and solution/services offerings. Apart from our regional distributor we also are working with Ingram Micro as an National Distributor who is helping is cater to NSI business, ISP Business, SAARC Business. Our regional distributor in turn cater to SI/Stockist/VARs in their territories. Under the tier 3 we have connect partners who are our stockist partners who are aligned to RD and cater to resellers and dealer community in their respective territories. Channel expansion within India is a continuous process. We are constantly increasing our base across the country. We plan two fold sale strategies. One strong point we already posses is to reach SME and SOHO customers through our present regional distribution channel, we have empowered them with good amount of pre-sales training on our products as well as latest technological trends.

I

ndian market continues to grow, though a little slow, and we are seeing a lot of action in the SMB and SME segment of the market. This is a market segment which was price sensitive and probably a technology laggard. However, we see this changing with more organizations embracing IT, as the demand for quality and technologically capable networking products is on the rise. NETGEAR has an end to end product line and we are specially focused on 10G, PoE, and Gigabit Smart switches. These focus areas are tagged to specific solutions. For example, 10G switches come in varying form factor and manageability features, but we see a very popular segment in media where we see 12 port smart 10G switches selling a lot with our rack mount storage solutions as a quick archival and retrieval solutions. Similarly our PoE solutions have many applications in surveillance, voice, hospitality access points etc. NETGEAR has been an industry leader in smart switches and the Gigabit smart products are leding the pack on the lowest total cost of ownership. We offer switching, wireless, storage and security products with each having a very deep product range. We believe that we have one of the widest range of networking and storage products in the SMB/SME segment. Switching accounts for more

than 60% of our business where we are growing at 40%. We have had significant wins in education, hospitality, healthcare, IT/BPO, corporate campus LANS and select public sector companies. The competition is strong but very low end focused. We see many of our competition focusing on commoditization while we focus on adding value to commoditized products to differentiate. We believe that the only way to survive in the market is by adding value and creating quality products which serve specific segments best, accordingly NETGEAR is not in the price war at the lowest end of the market. NETGEAR is a 100% channel company. We do not bid directly. Firstly, we reach out to broad-based channel partners across the country using our distributors and sub distributors. In addition we have a focused list of partners selling solutions. In continuation of the earlier point on channel strategy, we reach about 1000+ partners through our network or sub-distributors. VAR and SI partners help us reach the customers directly. We also have touch points with end customers through our presence in online stores and large format retail stores. Consequently, we develop more resources in developing channel partners. At the moment we have two clear motions, one is large sub-distributor driven volume channel and the other focus solution partner drive end user targeted channel. We keep the management method simple and effective, the mantra being engaging with partner day in and day out. We believe in adding partner only when we are increasing geographical reach or introducing new products to tap new markets. NETGEAR does not believe in the principal of over distribution and we keep our partners limited and focused. NETGEAR is also planning to expand its presence in all over India by getting into five state capitals and five major cities. The company has been continuously expanding its business in India. As a part of the plan, NETGEAR will reach out to 10 new locations in India including state capitals like Lucknow, Chandigarh, Bhopal, Raipur, Patna, Guwahati, Vijayawada, Cochin, Pune , Nagpur. The growth will only come if we penetrate into the tier 2 and tier 3 cities and that is where we are trying to show our presence. We are committed to provide proper services to our clients at their doorstep and are therefore focusing on influential channel development India is a growing market. The adoption of broadband and introduction of 3G internet and 4G services are set to expand at a high pace in India. Out of the proposed 10 cities in which NETGEAR plans to expand, some already have NETGEAR's retail presence. While for other cities NETGEAR is in the process of roping in new partners and dealers.

Not a ROSY PICTURE

The real push in terms of volumes in the enterprise switching business will come with greater rollout of metro ethernet networks.

Routers FY12 saw enterprises deploying futuristic routers. The market today demands for routers which can support both 3G and 4G technologies. Enterprises are looking at routers that support features like 3G and in-built switching at affordable prices. Capacity augmentation and upgrades continued to take place at various network points as ethernet and IP remained traditionally preferred choices of packetized communication requirements. The market saw routers that had the capability to integrate some latest features like content processing, VPNs, firewalls, and load balancing. Wireless capabilities are quite popular and are replacing the need for separate wireless access points for small office networks. Cisco launched a router which is used in mobile towers and is also tailored to meet the constraints— poor power supply, high

last fiscal. Edge router solutions with lesser last mile bandwidth costs are the major boosters and these routers also help in the uptake of cloud based solutions. Due to this, there is a demand for devices that handle 3G connectivity, switching, and routing in a single device. The explosion of voice, video, and data devices has led to an increased demand for data bandwidth.

WLAN Increase in devices/ hand-helds (laptop, iPads, smartphones, etc) with Wi-Fi demands, high bandwidth, and triple play capabilities at low costs are only few to mention for wireless LAN’s good performance in the last fiscal. Cisco showed consistent performance in wireless LAN for the past couple of years. Ruckus wireless is second in the lead which has grown outrightly in the last fiscal. For Ruckus, hospitality, education, and healthcare have been the largest contributors for its revenues. Ruckus wireless was involved in many major projects last year for deploying its wireless LAN

Highlights

„„ The pressure to reduce costs amongst budget

constraints, organizations are searching for innovative ways of designing, building and managing networks „„ Networking products saw huge influence of wireless „„ Collaboration, data centers, and network security saw great demand for networking products real estate costs, and huge growth in fresh subscriber numbers—with which operators functioned. Dax Networks witnessed flat growth irrespective of many products and projects executed in FY12. The company executed IP surveillance project in Manappuram and also supplied active and passive products to ELCOT, Punjab e-governance projects as well as to Sarva Siksha Abhayan. The deployment of routers in both the categories ensured that the above parameters met without fail, and those were the driving factors in the routing business in the

which included Mumbai Airport, Delhi University, You Broadband, Oberoi Hotels, and Delhi Airport metro. For wireless LAN products, Dax completed many projects with IIT Guwahati and National Institute of Technology. Netgear witnessed prominent growth with new and innovative product launches. Some of these include the R6300 dual band gigabit Wi-Fi router based on Broadcom’s 802.11ac router platform, launched its small business video surveillance suite, universal Wi-Fi range extender (WN3000RP) for

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laptops, tablets, smartphones, and home theater devices for the Indian market. The influx of smart mobile devices and the continued proliferation of higher performance 802.11n networks are driving enterprises to upgrade, extensions, and replacements of their wireless infrastructures. Mobility has played a very important role in driving the growth of WLAN. Now BYOD will further emphasize on the necessity of Wi-Fi as the most cost-effective, secure, and reliable technology. This boom is being fueled by the sales of smartphones and tablets. The wireless LAN technology has evolved rapidly in the recent years with 802.11n standards. The industry adopted the 802.1x secure authentication framework. This system enables users to authenticate and encrypt data traffic on the wireless medium. Another emerging technology in this segment is IEEE 802.11n. This solution will operate in the 2.4 and 5 GHz radio band, offering backward compatibility with the pre-existing 802.11a/b/g deployments. Wireless solutions based on the 802.11n standard employ several techniques to improve the throughput, reliability, and predictability of wireless LANs. The 3 primary innovations which has further improved the growth are MIMO (Multiple Input Multiple Output) technology, packet aggregations, and channel bonding. Together, these techniques allow 802.11n solutions to achieve an approximate 5-fold performance increase over the current 802.11a/b/g. Today, IEEE 802.11n, 3G, HSxPA, EVDO, and TD-WCDMA are some of the technologies that the vendors are adopting in India for a complete solution. The cloud, on the other hand, is another major growth driver. Devices and services and software are becoming more integrated with each other, and accessibility on the go is gaining popular-

ity. There is going to be more public WLAN access pro-

viders (hop spot) with data roaming agreements with different service provid-

ers. Users get flexibility to roam with any WLAN access provider, but still

being customer of one service provider of his or her choice.

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National supplement november 13