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According to International Data Corporation,CY 2014 was one of the best years for the Networking market (LAN and WLAN included) in India with over 20 percent growth year on year,a similar pattern is expected in CY 2015 as well on the back of government initiatives and organizations willing to invest in future technologies.
According to IDC’s APeJQuarterly Switch and Router tracker, the Ethernet Switch marketclocked end-revenue of USD 124.0millionduringQ1 2015, with a slight decrease quarter on quarter (-0.8%)but impressive growth year on year (15.1%). The Router market stood at a total of USD69.4 million, a -13.6% growth year on year and 3.0% quarter on quarter.
Yet again, Cisco retained its dominance in the Switch & Router market, increasing its revenue quarter on quarteras well as year on year. Revenue from the Telcos and refresh business from well-establishedtraditional clientele remained the key for vendor’s growth.Apart from traditional verticals, Education vertical provided a sustained demand to the market during Q1that is further expected to grow with the start of new sessions.
Organizations are increasingly taking interest in thethird platform technologies to leverageitsbenefits inworkforce optimization, supply chain, customer experience and efficient resource utilization. On the same lines, higher enterprise spending coupled with 3G/4G upgrades/new rollouts and increasing broadband penetration is set to push growth further in CY 2015.
The IP-based security-surveillance market is alsolikely to take a faster routegiving vendors, small or big, an opportunity to grow. Further, the SMBs are likely to offer similar growth to the market and the verticals, like any other traditional segment to benefit from mobility and network optimization solutions.
The WLAN market in India clocked an8.9% growth quarter on quarter and 37.1% year on year during Q1 2015, according to IDC’s Quarterly APeJ Wireless LAN tracker andregistered USD45.1 millionas end-user revenue.Though WLAN market in India continues to be driven by the traditional contributors like Education and Professional Services, the increasing deployments of Hotspots by the Government and Telcos to get new avenues of revenue streams are likely to contribute an additional stream Q2 2015 onwards.Education remained the most promising vertical with growth investments from new universities and colleges as well the old ones towards the upgrade/refresh.
Suman Bisht, Market Analyst – Enterprise Networking and UC&C, IDC Indiasays,“ The success in hardware market is a blend of technology, partner ecosystem, cost competence and of course marketing. To woo the spoilt-for-choice customer, the vendors are aggressively working with the national and regional partners to get the edge over competition. The solutions such as BYOD, traffic offloading, surveillance and IoT are beginning to be visible in the market and start contributing towards an incremental revenue stream.”
Gaurav Sharma,Research Manager, Enterprise Computing, IDC India, comments,“Governmentinitiatives and increasing adoption of third platform by the enterprises is pushing the need for smart network solutions that can sustain the growth of unstructured network traffic. Upcoming verticals like e-commerce, healthcare and hospitality along with traditional ones are expected to drive future investments.”
