CLS-2017

CLS 2017 anti- irUs

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Indian market witnessing a strong demand for AV solutions

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$17.38 (in billions)

Market Size

Key Takeaways: According to Gartner, the security spending is expected to grow over 10 per cent CAGR to reach $1.67 billion by 2020. Many organizations have started to invest not only in security solutions but also in the workforce handling the solutions to counter security breaches. The enterprise segment per se is going to make signiicant contributions this year in not only anti-virus solutions but complete security solutions.

n de ivery net

$11.62

2015

Key Vendors: Norton, McAfee, Kaspersky, Quick Heal, Symantec and others including Sophos, Trend Micro, eScan, ESET, K7 Computing.

apP icat

2020

Global Anti-Virus Market

ork

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SMBs pushing the ADN market towards growth

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igence / a a ytics

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$5.82

2015

2018

Global ADN Market

Key Vendors: F5, Radware, Citrix, Cisco and others including A10 Networks, Akamai, Array Networks, Symantec Brocade, Palo Alto, Riverbed, RSA (Dell Technologies)

BUSineSs inte

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Key Takeaways: Organizations are embracing BYOD (Bring Your Own Device) which is offering its employees the freedom to work from anywhere and any device. This is one of the major drivers of this market, as any increase in network virtualization in a BYOD environment will enhance scope for ADN market.

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Market Size

The Application Delivery Network is helpful to meet greater application mobility and security in a distributed enterprise, besides helping in classifying and prioritizing applications, content and user access in real time. It is expected that worldwide the ADN market will be worth $5.82 billion by 2018. The factors that are driving the growth of ADN market are data center consolidation and virtualization and increasing adoption of cloud and enterprise mobility. The major pull for ADN is witnessed from small- and medium-sized businesses (SMBs), which are shifting from manual load balancing techniques to advanced ADN technology.

The job of a load balancer is to distribute trafic across multiple servers. For example, you can place a load balancer in front of multiple web servers or email servers. This will enable high availability, better performance and scalability.

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As the number of internet users across various verticals has been growing constantly, the demand for Anti-Virus (AV) solutions to avoid data breaches is also increasing. Not only has the number of cyber threats increased but so has the complexity and modes of attacks. So it could be conidently stated that any device connected to the internet is not completely safe from malware attacks. Experts believe that enterprise security spending is on pace and will continue to grow. According to the market pundits, the Global Antivirus Software Package market will grow at a CAGR of 10.88 per cent over a period of ive years, i.e. from 2013 to 2018. In India, the government has launched free anti-virus for PCs and mobile phones and has also approved Rs.900 crore for NCCC to keep an eye on the cyber attacks on the Indian internet domain. The IT Ministry, along with Cert-In, has set up a National Cyber Coordination Centre (NCCC).

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Shift to cloud catalyzing next round of investment in BI 

The Indian market revenue of Business Intelligence (BI) software is projected to reach US$245 million in 2017, up by 24.4 per cent increase over 2016 revenue of US$206 million. This revenue forecast includes BI platforms (comprising of traditional and modern BI platforms), data science platforms, analytic applications and CPM Suites. The global BI and Analytics software market is predicted to reach $18.3 billion in 2017, an increase of 7.3% from 2016. It is expected that the market will grow to $22.8 billion in revenue by 2020.

Key Takeaways: A signiicant change is taking place in the data and analytics market. The changes include adoption of machine learning in techniques for data management and analytics and settling of hype around big data through more mature data storage, and processing and analytic solutions. A shift to cloud and hybrid data management, emergence of modern BI, etc are acting as a catalyst for the next round of investment. Moreover, Indian companies in segments like consumer packaged goods (CPG) and manufacturing sector are focussing largely on IoT, data integration, data management and analytics.

Key Vendors: Tableau, Microsoft, SAS and others including IBM, Oracle, SalesForce, Qlik, SAP, Tibco

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c

Ud Bac Up/reCovery Soft

are

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Cloud Back-up market to grow on the back of increased cloud adoption 

The backup/recovery market is expected to grow from US$1.30 billion in 2017 to US$4.13 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 26.1 per cent during the forecast period. The demand for this market is driven by factors such as huge volumes of data generation, lower costs, greater eficiency, growth in on-premises backup and growing adoption of SaaS. The APAC region is projected to be the fastest-growing region with the highest CAGR due to the rise in data generation in many of the countries. The emergence of Cloud as an important trend among businesses and the mandatory government regulations are simultaneously helping boost the growth of the cloud backup market in this region.

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Key Takeaways: The cloud backup market is expected to gain a major traction during the period from 2017–2022 mainly on the back of the increased adoption of cloud computing among enterprises and the need to manage voluminous amounts of data. The adoption of backup solution has increased due to its various beneits such as simple management and monitoring, real-time backup and recovery, simple integration of cloud backup with enterprise’s other applications, data de-duplication, and customer support.

Key Vendors: Dell EMC, Commvault, IBM and others including HPE, Actiio, Arcserve, NetApp, Veeam, CA, Sysmantec,Veritas

Data center

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Digital India program to be a big influencer for the growth of datacenters

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Valued at $2.2 billion currently, the Indian data center infrastructure market is expected to touch $4.5-billion mark by 2018. Experts also predict that India would move to be the second-largest market for data centers in Asia-Paciic by 2020, with investments soon reaching $7 billion. Growth demand for data centers will come from verticals like BFSI, telecom and IT-ITeS. Organization’s dependence on data and their inclination towards optimization of business processes is also driving the demand for data centers. Also, state initiatives like Digital India and eGovernance are also leading to the growth of data centers in the states.

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Key Takeaways: The focus on data center market is not restricted to the private sector alone, but the Government is also increasingly reliant on IT-intensive services to improve their performance and organize their services to the citizens. The Digital India programme enumerates the enormous projects that the Government has planned and aims at promoting rigorous internet penetration by connecting one billion population and eficient delivery of services electronically through mobile, thereby placing a demand on more data centers to come up. Going forward, mobile phone companies and social media companies are to have data centers in India to comply with the new data security privacy policy.

Key Vendors: Sify, CtrlS, Netmagic, ESDS and others including Amazon, BSNL, Go4Hosting, IBM, GPX Global, Pi Datacenters, Net 4, Tata Communication, Ricoh, Reliance, Microsoft

Dot- atriX printer

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BFSI and retail segment expected to boost Dot-Matrix Printer sales 

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For the past few decades, dot-matrix printers have been dominating the Indian printing market.

While the market has registered a decline due to the demand of new technologies like laser and inkjet printers, a type of market is still present there that demands dot-matrix printers. Dot-matrix printers are still relevant and useful in certain markets, mainly because of their facility to print carbon copies, use continuous paper and be less expensive than other printers to maintain. Some businesses ind all these characteristics appealing.

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Key Takeaways: In the coming years, it is assumed that this market will witness growth from the Indian BFSI and the retail segment in the country. Having said this, dot-matrix printer vendors are concentrating on other verticals as well. However, the technology is now also moving towards the POS market. When it comes to price, it is an easy decision – dot-matrix models are less expensive than their thermal counterparts. Though prices will vary between product lines, thermal printers are almost always pricier.

Key Vendors: Epson, TVS-E, and WeP

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CLS 2017 eleCtr

iC se urit y / C ntr l Syste s / B

Metrics

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Smartphone and internet usage to have a positive impact on biometrics market

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The growth percentage for the country’s biometrics market during 2016-2021 is projected to be at a CAGR of around 31 per cent. The wide deployment of biometrics technology across various government projects such as Aadhaar programme (UIDAI), national ID cards, coupled with issuance of e-passports and visas deine the growth of the biometrics market. In addition, rising security concerns, increasing deployment of ingerprint, iris and voice recognition systems are also underpinning growth in the Indian biometrics market. The market for authentication systems is also poised to grow at a higher pace owing to increased security concerns and inlating security budgets all over the world, as compared to the intruder alarm and perimeter security systems market.

Biometrics, however, is the major contributor to the authentication systems market. The growing consumer electronics sector in the country also offers huge growth opportunities for integration of biometrics technology.

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Key Takeaways: Increasing industrialization and the growing presence of various IT/ITeS and manufacturing industries in the western and southern parts of the region will further throw up huge opportunities for this sector to grow. Rising number of ATMs, coupled with growing number of smartphone and internet users, will also have a huge positive impact on the country’s biometrics market during the period 2016-2021.

Key Vendors: Honeywell, CP Plus, HIK Vision and others including Bosch Security, HID, Matrix, Solus, Smart Eye, Spectra, Zicom

enterprise Di ital rights

a ageMent (edrM)

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EDRM market allowing organizations for a seamless, secured way of information sharing

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As workplaces have transformed to digital workplaces, companies are now seeing beyond the perimeter and adopting solutions, ensuring that data and iles are persistently protected wherever they travel, including while they are at rest, in transit, or “at work”. Enterprise Digital Rights Management (EDRM) solutions allow organizations to share information, without worrying about where it might end up, or who might get their hands on it. Implementation of EDRM is highly helpful for telecom, utilities, government to drive demand for digital rights. The EDRM market is estimated to grow to US$3,000 million by 2020.

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$2,898.9 (in billions)

Market Size

Key Takeaways: The recent developments in technology have given rise to different kinds of concerns pertaining to the internet. With downloading speeds becoming faster and more iles are getting distributed over the internet, the market for EDRM solutions is also booming. It promises to be the most lexible and pervasive future technique to protect iles regardless of whether they travel in an internal or external environment.

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$1,066

2015

Key Vendors: Microsoft, Seclore, Vaultize and others including Giga Trust, Vaultix

enterprise

2020

Global EDRM Market

Bi it y

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BYOD and IoT adoption: The driving factors of Enterprise Mobility

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Enterprise Mobility has been one among the trending technologies for the last few years.

About 71 per cent of enterprises regard mobility as a top priority. NASSCOM estimates the global enterprise mobility market to be worth $140 billion a year by 2020. However, mobility is still an emerging technology and an extremely luid space. New paradigms emerge by the day, and there is no standardized way to apply or govern technologies. Similarly, the global Enterprise Mobility market is estimated to grow at 24.7 per cent CAGR over the forecast period of 2015-2022.

Key Vendors: Cisco, Aruba HPE, Dell EMC, Airwatch, BlackBerry, Huawei, Ruckus and Cambium Networks

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$140 (in billions)

Market Size

Key Takeaways: Enterprise Mobility is fast becoming a top priority for large organizations, both for workforce mobilization and customer engagement. To increase productivity and achieve greater operational eficiencies, enterprises are adopting Enterprise Mobility. It helps in increasing top-line and improving bottom-line of an organization by its reach, reducing information islands and improving business performance. Apart from BYOD, another big push for this market is the increase in IoT adoption.

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2016

2020

Global Enterprise Mobility Market

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enterprise reS urce P a

i g (erp)

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ERP market expects to deliver $41.69 billion by 2020 

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The enterprise resource planning (ERP) software is witnessing a robust growth, especially among the SME groups. Analysts believe that the global ERP software market is expected to deliver $41.69 billion by 2020, registering a CAGR of 7.2 per cent during the forecast period of 2014-2020.

Gartner has also asserted in its 2016 report that the enterprise application spending in India (which includes spending on ERP) will grow to $2.39 billion in 2017, with an increase of about 17 per cent. Due to various factors like low operational and infrastructure cost, faster deployment, low IT manpower, data backup and agility, SMBs are adopting this software increasingly, thus making them the key drivers to deploy ERP. The adoption of cloud ERP is believed to grow at a CAGR of 27.6 per cent, while in SMEs it is expected to grow at a CAGR of 23.9 per cent by 2020.

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$38.99

$36.84

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Market Size

Key Takeaways: Due to the rising demand from SMEs, the Indian market is expected to grow at a larger pace in the near future, which at present is not as strong as its counterparts. Analysts believe that competition and globalization are the main driving force behind the deployment of ERP among SMBs. As a result, the ERP vendors are aggressively focussing on SMBs. The deployment is expected to grow more dynamically due to the emerging trends of cloud and increased access via mobile devices. SMBs are also forecasted to drive the cloud ERP market, more than that of large enterprises.

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$33.87 $31.56

2016

2017

2018

2019

Global ERP Market Key Vendors: Microsoft, SAP, Tally, Oracle and others including Marg, Ramco, Infor, Ginesys, Deskera

eleCtr

iC Survei

ance

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Smart city mission – an unprecedented opportunity for the video surveillance industry The video surveillance market is anticipated to reach Rs.5, 718 crore (US$841 million) in 2016, with a CAGR of 32.49 per cent. It is expected to touch US$2.4 billion by 2020. Currently, though analog-based surveillance systems have accounted for majority of the share (68%) in the overall market, yet IP-based surveillance systems are expected to increase in the next ive years due to increasing IP infrastructure, declining prices and demand for remote access. According to “India CCTV Camera Market Outlook, 2021”, the India CCTV camera market is expected to grow with a CAGR of about 27.16 per cent in the period from 2016 to 2021. However, the video surveillance analytics market is also projected to grow at a CAGR of 35 per cent during 2017-2023.

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Key Takeaways: The rising incidents of crime, burglary, bank robbery and growing awareness about beneits of constant surveillance among the people have primarily driven the Indian surveillance security market. In the wake of the government’s Smart City mission, the video surveillance industry is standing on the verge of a golden opportunity. Lastly, Smart City models will operate on information gathering, storing and its distribution through ICT for communication and the tool that can aid in achieving all the above is surveillance systems.

Key Vendors: Honeywell, CP Plus, Hikvision, Zicom, Sparsh and others including Axis Communications, Bosch, Canon, Dahua, Impulse, LG, Oncam, Panasonic, Pelco, Samsung, Tyco Security

ethernet S

itches

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Digitization to encourage the growth of Ethernet Switches Generally, business uses a switch to connect computers, printers, servers and other devices within a building or campus to form a network. In India, the Ethernet Switch market has seen a growth of 12.4 per cent year-on-year in Q1 2017. The value of this market is worth US$126.6 million (by vendor revenue). The growth of this market is being driven by sectors like telecom, BFSI, professional services, government and education. Apart from this, government’s initiatives like digitization will attract investments and further propel growth in this segment. Due to increased spending from both enterprise and service providers' segments, Cisco continues to be the leader in this market, followed by HPE and Huawei.

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Key Takeaways: The Ethernet Switch market is expected to grow in single digits in terms of compound annual growth rate (CAGR) for 2016–2021. As the demand for bandwidth and high data speed is continuously increasing along with growing number of internet users across the globe, Ethernet Switch market is expected to experience decent growth during the forecast period and rollouts will catalyze the demand for network infrastructure investment.

Key Vendors: Cisco, HPE, Dell EMC, Juniper and others including Digisol, D-Link, Edimax, Honeywell, Huawei, Netgear, TP-Link

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CLS 2017 grap iC car s

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Graphic card market can growth with support of technologies like Deep Learning

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In the context of the computer hardware market, a research irm in its 2017 Q1 report has estimated that GPU shipments decreased by 17.5 per cent seasonally as compared to Q4 of 2016. It has also asserted that the yearly trend also witnessed a 4.5-per cent decrease in desktop GPUs. Also, the dedicated graphics industry has observed the yearly decrease of 17.5 per cent. Apart from this decline, brands like AMD and NVIDIA have come out as market leaders. Vishal Dhupar, Managing Director, South Asia, NVIDIA, says, “W are keenly focussed on fostering key partnerships with the ecosystem to accelerate the growth and adoption of GPU technology.”



 





Key Takeaways: A new generation of super-smart cars requires serious Artiicial Intelligence.

A newer technology “Deep Learning” is at the core of the development of autonomous cars. A part of Artiicial Intelligence, Deep Learning allows computers to perform tasks for which they have not been speciically programmed. With the support of Graphics Processing Unit (GPU), originally developed to power video games, Deep Learning is accelerated for real-world deployment. Large amounts of training data are fed through sophisticated algorithms to build Deep Neural Networks (DNN), which are complex mathematical models which mimic the human brain.

Key Vendors: NVIDIA, AMD, Qualcomm and others including Broadcom, Gigabyte

H d

 









Innovation of high-storage portable external hard disks boosting market growth With the decline of the PC market, the Hard Disk Drive (HDD) market has been adversely affected. Another factor that has affected the market is lash-based SSDs. Adoption of SSDs in laptops and PCs is gaining momentum which, in turn, is hampering the traditional HDD market.

However, the trend that helped to boost the market growth is the innovation of high-storage portable external hard disks, though the hard disk drive market and its prices are likely to continue to drop in the coming years.







$410

(in billions)

Key Vendors: Seagate, WD and Toshiba





Market Shipment

Key Takeaways: Increasing demand and adoption of cloud storage and other enterprise applications are driving the growth of the hard disk and drive market. Consumers are inclining towards portable wireless storage solution rather than the traditional HDD market. This shift will hamper HDD shipments. The increased usage of CCTV and DVR for security purposes may offer growth for both internal and external drive market.



$376

2015

2017

Global HDD Market

i

jet printers / i k ta k printers

 



Ink Tank Printer market grows due to sturdy demand from SMEs 

The Inkjet printer market has registered 15.4-per cent growth YoY. According to IDC’s latest Hard Copy Peripherals (HCP) 2017 Q1 report, the increasing shift is seen happening towards Ink Tank printers. The growing demand for Ink Tank printers over Inkjet printers is due to the low-cost ownership. The report considers that the demand from SMEs has fuelled the growth of Ink Tank printer shipments in 2017 Q1.

Looking ahead, the market for Inkjet printers is expected to grow at a higher pace than Laser market because of the Ink Tank printers. The commercial segment that was earlier completely dominated by the Laser printers is now being penetrated by the Ink tank printers. Overall, HP stands as the leader in the InkJet category, while in the Ink tank space Epson enjoys the maximum share.

Key Takeaways: A report says that the global market for inkjet technologies will see a growth to $12.6 billion by 2021 at a ive-year annual growth rate (CAGR) of 24.6 per cent. It is also predicted that its sales will hit double-digit growth rate.

Key Vendors: Epson, HP, Canon and others including Brother, Ricoh.

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





 







aserjet printers

 









Laserjet market witnessing decline due to low pull from government and enterprise 



The Laser HCP (Hardcopy Peripherals) market has witnessed a decline of 10.2 per cent in Q1 of 2017 compared to Q1 of 2016. In this segment, HP Inc. maintained the leadership position, whereas Canon registered a growth of 12.6 per cent for the same period and occupied the second position, followed by Samsung. A decrease in the number of large government deals affected the Laser market complemented by the low pull from the enterprise segment in the A4 printer base segment.

 





Key Takeaways: It is almost a year that the printer market is undergoing a technological shift from entry-level laser printers to cost-effective and high-yielding ink tank printers. This shift has also been triggered by vendors with their marketing strategy. Following the implementation of GST tax slabs, confusion has prevailed as printers are listed in both 18 per cent and 28 per cent, respectively and so the industry is waiting for a clariication on it, while the channel partners are holding back on inventory stocking which may affect printer shipments.

Key Vendors: HP, Epson, Canon and others including Konica Minolta, Kyocera, Ricoh, Xerox.

a aged print ser ices ( Ps)

 



Organizations driving business value by adopting MPS



  



$50.78 (in billions)

Market Size

Key Takeaways: While cost will always be the primary reason for adopting a managed print service, organizations are relooking to achieve more than just cost savings to drive business value; security remains top of the agenda. The need for secure print solutions and services remains at the top for CIOs, given the fact that 61 per cent of organizations reported at least a single print-related data breach in the past year. It is expected to reach US$94.97 billion in revenue by 2024, rising from US$26.18 billion in 2015. The market is estimated to expand at a CAGR of 14.8 per cent during the forecast period 2016 to 2024.







The Managed Print Services market is still in the nascent stage of adoption in the Indian market and hence there is a vast untapped opportunity for the market to expand with many Indian enterprises yet to embrace these technologies. It is seen as an important driver for ushering the Digital India initiative. Xerox continues to maintain the leadership position in the global managed print services (MPS), according to the latest market landscape report by the analyst research group Quocirca.

A large number of irms globally are now considering MPS to cut operational expenditures, both to reduce the printing activities of employees and to achieve a more seamless worklow within the organization.



$28.40

2016

2023

Managed Print Services

Key Vendors: HP, Xerox, Canon, Ricoh and others including HCL, Konica Minolta, Kyocera, WeP.

Ulti UnCt

n printers/de ices (MFPs/MF s)

 



Tier II & III markets in India fuelling the demand for MFPs 

The last few quarters have seen Indian consumers shifting their preference towards MFP printers over normal document printers. The growing internet penetration and rise in the usage of digital content is responsible for attracting consumers to target more reliable and cost-effective printing solutions. Interestingly, the increasing small and medium businesses, especially in the tier-II and -III cities have further fuelled the demand for MFPs in the country. Also, vendors and the government taking up initiatives like increasing the number of government kiosk centres will help to further increase the penetration of multifunction printers. In terms of unit shipments, Hewlett Packard led the market, followed by Canon and Epson.









  



Key Takeaways: The demand for MFPs is increasing as they deliver enhanced functionality and productivity for an organization, thus redeining ofice life and helping organizations to consolidate their investment, maximizing the use of space and simplifying worklow processes. This, in turn, is increasing the sale of these products and hence this segment is clearly growing much faster and has been undergoing many changes in its functionalities.

Key Vendors: HP, Canon, Epson and others including Brother, Kyocera, Ricoh, Xerox.

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September 2017

61

CLS 2017 pen S urce

 









Open Source - A critical technology for the Digital India programme 

The Open-Source software market is gradually gaining momentum in India. India as a market is the biggest contributor and user of this technology. It has witnessed remarkable growth and adoption in the market, as presently it is more matured and lexible. Open source is critical for the success of Digital India programme, especially for e-governance projects and electronic delivery of services to citizens. The Government of India is encouraging the nation to embrace Open Source which was supported by the government’s policy on Open Source.



  



Key Takeaways: Microsoft now says that 60 per cent of the software it sells from its Azure marketplace for developers is interestingly Linux-based, and this has inluenced the CIOs to embrace the technology to drive digital innovation to support various business processes with a new angle. It is a preferred technology by SMBs which created positive impact on their businesses. As most of the businesses are undergoing digital transformation, it makes imperative to include Linux into virtual appliances and varied web servers.

Key Vendors: Red Hat, Suse, Micro Focus and others including Ubuntu, Mongo DB, Black duck, Redish, Symbian.

PBX Syste s / U i ied C

U icat

s

 





Organizations preferring IP-based products over PBX systems







Businesses hold off new PBX purchases as companies are evaluating cloud alternatives and investing in uniied communications (UC) applications instead of PBX. Due to this, the PBX market continues to struggle. The market marginally recovered due to the uptake of Pure IP Telephony (Pure IP PBX, IP Phones and Voice Gateways). However, shortfall continued in traditional systems such as PBX/Key systems and AD phones as enterprises preferred IP-based products rather than traditional PBX systems. The revenue-generating industry segments for this market, including inance, telecom and manufacturing, restricted growth as they curtailed the spend due to their own lacklustre performance. As in the last year, Cisco, Avaya, NEC and Mitel led the combined PBX and uniied communications market by global revenue.



  



Key Takeaways: Hosted PBX and UC services are a growth market that has moved well beyond early stages and expected to take off in India too. Both the Enterprise Telephony and Enterprise Telephony market in India recovered slightly by a single-digit number. However, if seen globally, IP telephony (IPT) is still typically one of the main drivers for organizations that are provisioning new communications technologies.

Key Vendors: Cisco, Microsoft, Mitel, Avaya and others including Alcatel, Matrix, Panasonic, Polycom.

pC

arket

 





PC market continues to be subdued in first half of 2017

Key Takeaways: Many PC vendors believe and are expecting the sale of PCs to fuel up after small businesses are demanding for GST-enabled systems, as they need to comply with the latest GST norm. This is expected to further lead the market to growth of PCs in India.

Key Vendors: HP, Dell, Lenovo and others including Acer, Apple, Asus.

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





The global PC market has witnessed a continuous slump for ive years, as reported in the Q2 2017 report of Gartner. While HP Inc. retained the top position in the market followed by Lenovo, Dell and others, the market has registered a signiicant decline of 4.3 per cent from the same of previous year. Analysts believe that the component shortage for DRAM, solid- state drives (SSDs) and LCD panels have impacted the sale of PCs in the market. While in the countries like Russia and Germany, PC shipments have shown sustained improvement, but for markets of India and the Asia-Paciic region the shipment igures indicated a pitiable condition dedicated to the various market scenarios.



  



P int of Sale (P s)

 



Government initiatives triggering the demand for POS machines The Government plans to transform the country’s commercial economy to a cash-less economy by encouraging the adoption of digital payment methods. As a result, the demand for POS terminals in the world’s second most populous nation is at an unprecedented high. The share of the Indian POS terminal market is poised to surpass US$3 billion by 2021, while the portable POS terminal documented highest revenue contribution in the market. This growth was triggered by major deployment in end-user markets like hospitality, government and retail.



 







    



Key Takeaways: As an impact of Demonitisation, POS devices are likely to grow at CAGR of 30% in 5 years; with this the terminal market will further witness a huge demand owing to the advantages offered by technologies such as enhanced security, free loor space, and minimized customer waiting time. The Government’s emphasis on creating a cash-less economy has substantially increased the demand for these machines from banks, propelling the growth of the Indian POS terminal market. The Indian Government has been encouraging banks to deploy over one million terminals after demonetization to meet the rising demand and address the major cash crunch crisis.

Key Vendors: EPSON, VeriFone, TVSe and others including HoneyWell, Posilex, Toshiba Visiontek, WeP.

pr jeCtors

 



Projector sale swells with high demand coming from education sector Projectors have become a must-have for small businesses, besides its increasing demand in the corporate sector, media and BPO. With the latest HD and short throw projectors, home entertainment is also getting a shot in the arm. 3D projectors are also making this category more attractive for 3D gaming and entertainment. Projectors also are one of the fastest- growing product lines in India, thanks to the booming education market. Analysts believe that the market is growing with a CAGR of 21.74 per cent over the past four years and is expected to grow at a much faster pace. The Indian projector market has registered 0.13 million units in CY H1 2016. While comparing to the same of previous year, it has registered a signiicant growth of around 38 per cent. Among the major brands, Epson has emerged as the new market leader in CY H1 2016.









 

  



Key Takeaways: Owing to the adoption of digital learning initiatives, the demand of projectors has increased. However, one cannot ignore the factors such as high installation cost and lack of awareness which are restraining the growth of the projector market.

Key Vendors: Epson, BenQ, Hitachi and others including Acer, Canon, Casio, LG, Panasonic, NEC, Sony.

r uters

 



Router market up in 2017, witnesses YoY growth of 33.5% in Q1 

The router market in India has witnessed YoY growth of 33.5 per cent in Q1 2017 and stood at US$92.5 million (by vendor revenue), as reported by IDC in its report. A research irm has also forecasted that the market will witness a steady growth and will post a moderate CAGR of close-to 7 per cent during the forecast period of 2017 to 2021. According to experts, the 4G services demands are driving the growth of routers in India. The growing demand for data centers and cloud-based deployments are also expected to boost the sales in future.







 

    



Key Takeaways: The market reports assert that the high-end and mid-range routers have fuelled the growth in the enterprise sector. Also, the recently introduced and future government schemes and projects are also expected to contribute to robust sales. Telecom 4G rollout and government projects comprising of various e-governance, surveillance and digital initiatives will contribute to sales in the coming quarters.

Key Vendors: Cisco, HPE, Huawei, Dell EMC and others including D-Link, Netgear, TP-Link, Digisol, ZyXEL.

www.varindia.com

September 2017

63

CLS 2017 servers (X86/

n X86)

 









Server growth to be boosted by increased IT investments by SMBs 



The x86 server market in India saw a steep decline of 16.8 per cent quarter-on-quarter in Q4 2016, with 30,501 units shipping in Q4 2016 as against 36,668 units in Q3 2016. This was primarily because of the absence of large multimillion dollar deals. However, majorly due to the sale of highdensity servers, in terms of revenue there was a 4.2-per cent quarter-on-quarter growth as registered in Q4 2016. The non-x86 server market declined by 31.0 per cent quarter-on-quarter in terms of unit shipments and 34.7 per cent in terms of revenue in Q4 2016. Market verticals like banking, manufacturing and telecommunication were the strongest contributors to the non-x86 market, with IBM dominating the market in terms of revenue with the share of 62 per cent at the end of Q4 2016.



 



Key Takeaways: Digital India initiatives continue to drive investments in the Government, led by access of Government services on mobile devices and expansion of broadband services. Indian server market has so far witnessed a dificult quarter. In the coming days however, growing SMBs, IT investments from enterprises towards data center consolidation will be some of the factors that will boost the growth of the server market. Deals from Government towards digitalization, e-governance, smart city and surveillance projects that are in the pipeline will further fuel the growth of the Indian server market in the coming quarters.

Key Vendors: HPE, Dell EMC, Cisco and others including Huawei, Fujitsu, Lenovo, Oracle.

S artp

ne

 

Smartphone market keeps up a strong pace of growth









 

The global smartphone market remained resilient in the irst quarter of 2017 and registered sales of 380 million units, which showed a 9.1-per cent increase over the irst quarter of 2016. The Indian market has witnessed 27 million smartphone shipments in CY Q1 2017 with a 14.8-per cent growth over the same period of 2016. This is even after the Indian market witnessed the introduction of demonetization and the newly-introduced GST tax reform.











For the past few quarters, the Indian market has been completely dominated by the Chinese brands like Huawei, Oppo and Vivo and Xioami. Hence, they continued to strengthen their position and capture 51.4-per cent share of the smartphone shipments in India with 16.9-per cent sequential growth and striking 142.6-per cent growth over the same period last year. On the contrary, the home-grown vendors slumped to 13.5 per cent in the Q1 2017 from 40.5 per cent in Q1 2016.

Key Takeaways: Various economic factors were earlier believed to be negatively impacting the smartphone market, but vendors and retailers are deploying various tactics to ensure the smartphone market to grow more. Hence, the igures show a positive status of the Indian smartphone market which is expected to accelerate the growth in the coming years. Apple remains as Apple.

Key Vendors: Samsung, Xiaomi, Vivo, Oppo and others including Apple, Micromax, Lenovo, Intex, Lava, LG.

S

id-state drives

 

SSD market poised to grow three-fold













$156 (in billions)

2016

2023

Global SSD Market

64

September 2017

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

Market Size

Key Vendors: WD (SanDisk), Seagate, Samsung and others including Kingston, ADATA.

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In the overall storage device market, the solid-state drive (SSD) segment has recorded high growth over the last three years in India. It is a niche area of the data storage device market. The SSD market is predicted to reach nearly $156 million by 2023. Though India’s storage market is dominated by Hard Disk Drive (HDD) segment, but it is also a fact that the SSD segment is poised to grow three-fold in the next six years. This is because it is faster, crash- proof, the data remains secured and reduces power consumption, thus leading to good cost savings.

Key Takeaways: The rise in advanced connected devices, growing high-end PC market, need for higher performance & capacity storage devices, increasing IT spending, and the growing number of data centers are a few factors that would continue to trigger the growth of the SSD market in the country. Amongst the application market, this segment grabbed the lion’s share of revenue in the market.

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storage

 

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Emergence of hyper-converged infrastructure to determine growth of the Storage industry





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The storage market in the country has seen a good traction, the key contributors being banking, professional services, manufacturing and government. As in Q4 2016, the external storage market witnessed a growth of 17.5 per cent quarter on quarter and stood at $77.8 million. Dell is the clear leader in the Indian storage market with a market share of 44 per cent and HPE being in the second, followed by IBM and NetApp achieving signiicant growth due to uptake from banking, telecom government verticals and UPI platforms in the last quarter. In addition, securities, transportation, education and insurance also drove incremental growth in the storage market. 2016 has also been signiicant for witnessing a year-on-year growth for All Flash Arrays (AFA), due to uptake from banking, IT/ITeS and manufacturing verticals.

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Key Takeaways: The growth of hyper converged infrastructure, software-deined storage and lash storage in data centers are getting more relevance to more users in the Indian organizations, which eventually will lead to the rise of the storage industry in the times to come. The external storage market is further expected to grow in single-digit for the 2017– 2021 time-period. Huge storage spending is expected to come from banking and government segments in the coming quarters.

Key Vendors: AMI, Cisco, EMC, Dell, Hitachi Data Systems, HPE, Huawei, NetApp, Netgear, Oracle, QNAP, and Quantum

t in c ient

 

Corporates relooking at Thin Client as a renewed computing strategy

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Thin client is a computing device that is connected to a network, unlike a typical PC. It is evolving in newer forms like the VDI (Virtual desktops). In fact, India happens to be the fourth-largest market for VDI in the world and has overtaken Japan this year (2016). The business market in India contributes close-to 5.5 per cent of the VDI segment worldwide. HP continues to dominate the thin client market, followed by Dell Wyse and NComputing. The increasing demand for Thin Client comes from sectors such as business process outsourcing, banking & inancial services, education, government, retail, aviation and healthcare, among others.

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Key Takeaways: Though the demand for Thin Client is waning among CIOs of today’s businesses, it is still an attractive option for businesses across diverse verticals, such as healthcare, banking, education and retail. An improved outlook for the thin client market is, however, expected going forward, especially as companies begin to re-think their computing strategy. APAC is, however, expected to be the fastest-growing region for the global industrial thin-client platform market due to the rising investment in the industrial sector. Countries like China and India are attracting a substantial amount of FDI due to lexible government policies.

Key Vendors: Dell Wyse, Fujitsu, HP, NComputing, RDP, and VXL Instruments

UPs

 





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UPS market continues to grow due to expansion of various Industries 

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The UPS market forecasters has estimated the Indian UPS market to reach $1.2 billion by 2021 and are expecting the Indian market to grow at a CAGR of 8.4 per cent over the period 20142019. The global industrial UPS market is also likely to witness a steady growth and expected to post a CAGR of over 6 per cent by 2020. Due to factors like the rise in demand of uninterrupted power, voltage luctuations affecting the systems and to prevent data loss, the requirements of UPS especially among the end-users in enterprises per se is growing and hence leading to the growth of UPS market in India.

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$12 (in billions)

Key Takeaways: The market is also expected to strengthen along with the technological advancements and M&A changes in the near future. Experts, however, believe that the transport infrastructure market will generate the highest revenues by the end of 2021.

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Market Size

Also, expansion of digital and technological demand across various sectors such as IT, healthcare, retail, educational institutes, telecommunication, textile industry, etc are also further contributing to the demand for UPS in the country.

 

2016

2022

Indian UPS Market

Key Vendors: APC by Schneider, Vertiv, Luminous, Delta and others including BPE, Microtek, Numeric, and Socomec

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65

CLS 2017 utM / neXt generat

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ire a l

 

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UTM market trippling its size for last five years

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 The Uniied Threat Management (UTM) market makes 50 per cent of the worldwide revenues  in the Security Appliance market. The growth of the Security Appliance market continues with the UTM market tripling its size over the last ive years. The market recorded a revenue of $5.7 billion  for 2016 and year-over-year growth of 17.3 per cent, the highest growth among all sub-markets.

The Asia-Paciic (including Japan) region contributes 29 per cent of the global security appliance  market revenue. The market reported the strongest growth in 2016 with yearover-year revenue growth of 21 per cent, followed by Japan with 16.9-per cent          revenue growth compared to 2015. The matured markets of the world, the United States and Europe and the Middle East, and Africa (EMEA) together           accounted for 38 per cent of the total security appliance market revenue.

  

   

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     

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

       

Key Takeaways: The major forces driving the UTM market are strict           data protection directives and cyber-terrorism. The market is growing rapidly             because of growing security needs of Internet of Things (IoT) and Bring Your           Own Device (BYOD) trends, and increased deployment of web and cloud-      based business applications. Increase in cyber threats and rising enterprise mobility demand for mobility is pushing vendors to offer advanced UTM appliances. SMBs, mid-market and enterprises are also adopting UTM these days.

      

Key Vendors: Cisco, Check Point, Dell EMC, Fortinet and others including IBM, Sophos, Juniper, Palo Alto, SonicWall, Trustwave.

ideo C nferenci g

 

SMBs rapidly adopting Video Conferencing solutions Video conferencing refers to a service that enables real-time, two-way communication, across geographies. It also helps in enhanced productivity and faster decision-making. With CAGR of 8.3 per cent, the global video conferencing market is expected to be of US$8,958.7 million by 2025.

The forecasted period is from 2017 to 2025. It is also visible that SMBs are rapidly adopting video conferencing solutions for communication. Its growing demand is driven by a focus on simpliication, lower prices and enhanced meeting experience by end-users. These trends are being witnessed in the Asia-Paciic enterprise video conferencing market and are pushing the market towards growth.

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Key Takeaways: There is some good news for the worldwide enterprise video conferencing equipment market – revenue and video endpoint shipments (units) saw both sequential and annual growth in 3Q16, although some regions showed decline. Moreover, emerging trends like mobile workforce and BYOD (Bring Your Own Device) have affected cloud-based video conferencing services. On the contrary, high initial investment and installation costs are shortcomings of this market.

Key Vendors: Polycom, Cisco, Vidyo and others including Avaya, Business Octane, Huawei, Lifesize, PeopleLink, Panasonic.

W an

 





The need for last-mile wireless connectivity will influence WLAN growth

Key Takeaways: Digital transformation efforts contintue to grow the market with vendors competing against each other to addrress the emerging segments that includes opportunities like smart cities and IoT. As in the previous years, the WLAN market is expected to grow on the back of increasing number of hand devices coupled with the need to be connected for a wireless last-mile connection.

Key Vendors: Cisco, HPE-Aruba, Huawei, Ubiquiti and others including D-Link, Ruckus, Netgear, Cambium Networks, Extreme Networks, TP-Link, Digisol, ATI, Zebra.

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The fourth quarter of 2016 (4Q16) saw the combined consumer and enterprise worldwide wireless local area network (WLAN) market segment decreasing 0.1 per cent year over year. However, it increased 3.1 per cent for the full year, thus inishing at $2.43 billion. The enterprise segment grew 3.1 per cent year over year in 4Q16 to reach $1.41 billion, and 7.2 per cent for the full year 2016 reaching $5.4 billion. The Asia-Paciic (excluding Japan) (APeJ) market saw the maximum 4Q16 growth by having grown to 22.7 per cent year over year in 4Q16 and 21.7 per cent for the full year 2016. Cisco with its largest share continued to be dominant in Q4 2016 with 65.74-per cent market share, followed by Huawei and HPE. Due to increased investments in the enterprise space, Avaya too has posted a signiicant growth in the quarter.

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