The Hindu Business Line : `India to be No 2 market in Asia Pacific by 2009'

Bangalore May 6 Growing use of broadband services, emergence of wireless mesh services and IP telephony, application-aware networking is enticing networking firms to the country. Universities and large IT enterprises are top adopters of networking equipment in the Asia Pacific (APAC) region, according to US-based 3Com, a player competing with the likes of Cisco, Nortel, Avaya and Juniper Networks.

Speaking to Business Line recently, Mr Peter Chai, Vice-President & General Manager, 3Com Asia Pacific, spoke of the recent acquisition of H3C and India's growing importance in the APAC market.

How will your recent acquisition of H3C affect India?

The acquisition has boosted our presence in APAC, including India. Currently we have two research centres — one in Hyderabad, and the other is H3C's centre in Bangalore. We employ around 200 engineers in all. H3C's centre in Bangalore works on latest networking products. Its products will target very specific large enterprises in India. Enterprises in India are adopting and upgrading networking products quickly. Their expansion is the root to heavy demand in the country.

What are your plans for this market?

We are in a growth and investment mode here. Investment in customer support, branding, partner programmes and technical support will be undertaken shortly.

Wireless switches and routers is a growing market with the biggest users of wireless switches being universities in APAC. In the education segment alone, 3Com has over 100 customers. We plan to continue to target this segment. Government, railways, defence and health form up to 40 per cent of 3Com's sales, while banking and financial sector, IT and BPO and manufacturing form the rest.

What is your strategy to woo the small and medium enterprise (SME) segment?

The SME market here is difficult. Products are expected to be low-end both in functionality (up to 4 ports) and price. And the customers expect technical support for installation too. This is unique to India. Most work to reach out to them will be done through channel development and resellers.

In other countries in APAC, 50 per cent of business is from SMEs. Here, it is 20 per cent. We have more of project and enterprise-based business done here.

How does India compare with other countries in APAC?

There is not enough traction in the Indian IP telephony market. In comparison, Australia is a mature market, and not that price sensitive. APAC contributes to 42 per cent of global revenues for 3Com. This is primarily from mainland China. Korea, Australia, Malaysia and Thailand follow. India comes last as a market. That is why I have a mandate to bring India up to the second position in terms of top revenue generating markets in APAC in the next two years.

What's next?

3Com will introduce electronic surveillance and storage products to India in 2008. We are also waiting for IT mall phenomenon to start in India. Then, retail will be a market and we could offer volume production, SOHO (small office/home office) products.

More Stories on : Interview | Telecommunications

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IBM copies pattern-creating process to build better chips

LG Electronics' desktops with finger-print access soon

3DLive: Collaborative tools get new dimension

Microsoft ties up with Sonata

`India to be No 2 market in Asia Pacific by 2009'

Microsoft's Imagine Cup finalists

Midnight marathon