The overall market for enterprise networking equipment improved during the
last fiscal, as it was able to chart a much better 10 percent growth as compared
to the 1 percent growth during the previous fiscal. In FY 2002–03, the
enterprise networking equipment market was worth Rs 4,735 crore, as compared to
Rs 4,302 crore during FY 2001–02. Although the datacom equipment market slid
down, to Rs 2,517 crore in 2002–03 from Rs 2,575 crore during 2001–02, the
voice/call center solutions segment and network storage segments saved the day.
These segments clocked growth rates of 49 percent and 15.7 percent respectively.
|
| V&D
estimates |
CyberMedia
Research |
|
Growth was mostly fuelled by a buoyant banking and finance sector and a
sprinting BPO segment. The banking and finance sector continued the networking
adoption trend that was set off in the previous fiscal. Thanks to buyers from
this ever-attractive sector, networking contracts took orders of Rs 50 crore and
above. Never before were such big networking orders in the enterprise space
seen. One of these mega orders, from SBI, even got entirely executed during the
course of the year. Such was the volume and pace of deployments!
| Call
Centers Propose, Storage Seconds Growth |
| Product
Categories |
Revenue in Rs
crore |
Growth (%age) |
| FY 2002–03 |
FY 2001–02 |
| LAN
Switch |
841 |
783 |
7.40 |
| Network
Security |
165 |
150.00 |
10.00 |
| Router |
459 |
423.00 |
8.50 |
| Structured
Cabling |
265 |
270.00 |
-1.80 |
| VSAT |
234 |
252 |
-7.10 |
| Modem |
181 |
252.00 |
-28.10 |
| Broadband
Wireless Radio |
95 |
94 |
1 |
| Others* |
277 |
351.00 |
-21.00 |
| Total
Datacom Equipment |
2,517 |
2,575 |
-2.2 |
| Voice/Call
Center Solutions |
820 |
550 |
49 |
| Network
Storage |
700 |
605.00 |
15.70 |
| Total
Enterprise Equipment |
4,037 |
3,730 |
8.2 |
| *Others
include NIC, hub, wireless LAN equipment, media transceivers/converters,
RAS, NMS, etc. |
| |
| Service
Categories |
Revenue
in Rs crore |
Growth
(%age) |
| FY
2002–03 |
FY
2001–02 |
| Network
Integration Services* |
698 |
572 |
22.02 |
| *Does
not include product revenues that form part of NI projects. |
| V&D
estimates |
CyberMedia
Research |
|
The
fast growing BPO segment saw a further burst of implementations, with the entry
of global players and well-established domestic IT companies. As a result, there
was significant growth in the amount of business from these companies, and
vendors of voice/call center solutions particularly harvested these
opportunities.
|
| V&D
estimates |
CyberMedia
Research |
|
Two
major trends were noticed during the fiscal. One, networking rose above mere
connectivity—usage was driven by applications and redundancies, and SLAs. Two,
enterprises went in for more outsourcing of network maintenance and monitoring.
As a result, network integrators (NIs) saw their margins improve.
|
| V&D
estimates |
CyberMedia
Research |
|
As
the rollout of enterprise telecommunications services gets more intense, with
BSNL and major private players like Tata Indicom Enterprise Business Unit (TEBU)
and Reliance Infocomm getting more serious than ever, infrastructure is being
put in place for greater deployments of enterprise networks. The enterprise
network equipment industry is slowly but surely coming out of the stagnant post-dotcom
period. Faster growth lies ahead for this evergreen sector.
Nareshchandra Laishram
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