"Manageability of services for SG-8 is simpler as all applications are built on a common platform to provide a common look and feel"

With the imminent launch of SG-8, which is NetDevices' first product, Uday
Birje is confident about its prospects, considering the positive initial
responses received from top-tier companies. The product will address switching,
routing, VPN and firewall with NAT, ALG and DOS prevention capabilities. Uday
talks at length about the new product and its uniqueness, which is the
first-of-its-kind solution.

What is the specialty of this new to-be-launched product?

NetDevices (NetD) will initially introduce the 8 slot system, SG-8, which will
address a variety of different applications including switching, routing, VPN
and firewall with NAT, ALG and DOS prevention capabilities amongst others. The
product, which is to be launched globally in the first quarter of 2005, is
priced at one fourth the cost of acquiring the necessary individual devices to
address these services. 

Which category will this product fall under?

NetD's best-of-breed remote office gateway solutions unify all the required
services including routing and security. The product comes under a new category
called 'Business Gateways' or 'Services Gateways'. It is being developed
from scratch in sharp contrast to existing multi-service products.

This makes it easier for us to unify multiple applications onto a single
device, to be fully interoperable from the product conceptualization stage. This
is the first time that as many as eight different applications are being unified
on a single platform.

What is the current stage of development of the product?

We are currently in the beta testing stage. It is being tested at some top
tier companies in India and globally. Their feedback has been extremely
positive. 

How do you plan to take it in the market?

We will adopt a three-tier channel model. This will consist of one value
added distributor, five systems integrators and about five resellers in each
region. We will also organize product road shows, technology and product
seminars for our customers and channels to create awareness about our products
features and its benefits.

We plan to institute regular channel programs for partners, including
certification, so that they can deliver the highest levels of service to end
customers. From the marketing and communications perspective, we will
proactively use advertising, direct marketing and public relations to keep
audiences informed about new

developments. 

How closely will NetD work with systems integrators? What will be their
revenue contribution to the company?

We will start with a regional distributor model and appoint national
distributors as our volumes grow. Channel partners will thus be an integral part
of our marketing and sales efforts, as our products will be targeted at a wide
cross section of verticals and geographies.

What cost benefit will customers get on using your solution, from the
capital and operational expense perspective?

An important drawback of the 'string of boxes' approach is that the
Capital Expense (CAPEX) increases each time a new device is added to the network
edge, or if an upgrade is required for any of the edge devices. This approach
thus does not allow for network expansion at incremental costs for each
additional service.

In case of NetD's product, the services built into the product will be
completely modular, and capable of operating independently. An organization will
thus only pay incremental costs for adding new services at the network edge.

It also delivers significant advantages in terms of Operational Expense (OPEX)
savings. Being a unified services product, manageability of services is much
simpler as all the applications, built on a common platform, will provide a
common look and feel. This also reduces the need to have more people
specializing in network

management.

Who are your primary target customers?

Our products will be ideally suited to address the growing needs of
enterprises, managed service providers and basic telecom solution providers. Any
organization that needs cutting edge, but affordable technology at the network
edge will benefit from our products. 

What is the market size for such a solution and its business potential in
India?

In-Stat/MDR forecasts that the Business Gateway market will grow from $1.2
billion in 2004 to $16.6 billion in 2008. This market will emerge over the next
12-24 months. NetD plans to capture 10%-15% of the market within the first year
of the product launch.

The market for Business Gateways includes small businesses with 20-99
employees, as well as branch offices of mid-range and large enterprises. It
would be difficult to ascertain the exact potential of this product because it's
the first product of its kind in the world.  

Gopi Krishna