NETWORKING: Gear Up For The Challenges

Though some networking solutions are still in the nascent stage, the business
offers a plethora of opportunities for the channel. However, partners need to
understand these technologies to excel and therefore it has become a challenge
for vendors to train their channel. Especially with the rollout of news products
in the wired, wireless, 10G and Wi-Max platforms.

With the economy shining, most IT business verticals are also looking up. The
story with networking is no different, though it is a different ball game. The
highly technology-oriented industry demands better understanding of customer
requirements and delivery of the right solution by partners, to retain the
accounts. Moreover, customers today are more knowledgeable in comparing the
proffered offerings before making any purchase decision.

In
this competitive environment, partners who are street-smart, and invest in
continuous product training and employee retention will always have an upper
hand. Of late, partners have realised this as well and are investing heavily in
skill set building and services management. Service is key for any player today
as it provides

profitable margins in business, going beyond hardware deployment.

CHALLENGE TO TRAIN AND RETAIN

While making IT investments, enterprises often do not take into account the
nature of their business and the level of deployment required. In such a case,
partners require special training to understand and help their corporates
clients more profitable in the long run by reducing communication cost and
increasing employee efficiency. This channel awareness is lacking at present,
and vendors are trying to organise intensive training programmes for their
partners to help them map their client requirements better.

“Vendors are quick in providing training and support whenever there are product additions. But retaining trained manpower has become the biggest challenge for the channel” -S Pulla Reddy, Director, SP Software

Nortel Networks, for instance, follows a stringent authorisation process for
channels before they can sell its products. "We have partners who have
specific areas of specialisation, like call centres. We take several factors
into consideration before selecting our partners, ranging from resources,
trained people, support strategy, spares inventory, demo-labs and
equipment," said Ravi Chauhan, Vice-President (India and SAARC), Nortel
Networks India.

However, the vendor offers help to partners who meet most of these
requirements and support in setting up a demo lab or buying equipment. It
ensures that its customers have direct SLAs with the partners. The company has
four categories of partners, such as Platinum, Gold, Silver and Bronze. It
invests significantly on training and by the end of this year; it would have
completed 300 man-days of training.

Nortel also offers customised training programs in India. It has classified
its channel under two broad categories —tier-one and tier-two systems
integrators. Tier-one partners carry out large, complex integration works, while
its tier-two channel works with Ingram Micro to provide products and services in
the SMB space.

D-Link India offers a series of training programs on network structure. These
include Certified Cable Engineer (DCCE), Certified Network Engineer (DCNE) and
Certified Sales Professional (DCSP). It also offers certification programs for
Foundry Networks.

Even importers like Pronet, a registered brand of Mumbai-based Kunhar
Peripherals, are also focusing on training. "The biggest challenge in the
industry today is shortage of skilled manpower, who are commercially as well as
technically knowledgeable. We get regular updates from our suppliers in Taiwan
on new technologies and trends in networking. And, we put our best efforts to
pass on this knowledge to our partners here," said Anil Daryani, Director
(Sales) of Kunhar

Peripherals.

RETAIN WITH DEMO EQUIPMENT

Complimenting the vendor initiatives on training, S Pulla Reddy, Director,
SP Software said, "Vendors are quick in providing training and support
whenever there are new product additions. They also offer good pre and post
sales support to us." However, he noted that retaining trained manpower has
become the biggest challenge for partners.

“It took us six months to obtain an license to import wireless products from the Ministry of Communication. Though the adoption of wireless solution is increasing, policy issues affect the trade and slow its growth” - Anil Daryani, Director (Sales), Kunhar Peripherals

A certain section of partners feel that more than training, vendors should
also support in terms of demo equipment. "Spreading awareness about
wireless technology is also the key thing in networking business," Col
Balvinder Singh, MD of Delhi-based Targus Technology opined.

Dax, a leading domestic brand, has also invested significantly on training
its channel partners in the current year. It provides hands-on exposure on edge
to core networking products. "The partners' interest and response are
overwhelming, and we are churning out 25-30 Dax Certified Networking Engineers
every month," said C Sujit Singh, Country Manager, Dax Networks Limited.
Though this is not an en masse programme, there is a sustained interest from
channels to get trained and certified.

Cisco's Go-To-Market strategy is also driven entirely through the channel.
It has more than 1,500 resellers in 100 cities across India. "Our focus for
the coming year is to increase the rhythm of business that these partners drive
for us across India. We intend to do this by investing in upgrading the skills
and competencies of our partners," said Ranajoy Punja, VP (Marketing),
Cisco Systems India and SAARC.

In fact, the vendor launched some innovative channel programs, over the last
year, which helped to connect better with the partners across the board. It not
only offers periodic trainings, but also daily updates on the company website,
that keep the partners informed about its roadmap.

Cisco's Advanced Technology Partner Program enables its premier partners to
specialise in multiple solutions and latest technologies, and deliver a more
compelling solution to customers. It specialises in latest networking
technologies such as wireless LAN, IP telephony and security, among others.
Rashi Peripherals, which is the Compex distributor in India, is also focusing on
solution selling and its major thrust area is wireless currently.

WIRELESS OPPORTUNITY

Wireless is the latest buzzword in the industry. All leading vendors and
partners have begun to embrace the technology and deliver solutions based on it.
Wireless is most suitable for smaller network environment and indoor
requirements. Wireless, however, has its own limitations and doubts in terms of
security, data transfer capacity and range.

“While wireless offers unparalleled mobility and freedom in the last mile, the core of networks will be wired, as a result of which a lot of fiber will come into play” -Ravi Chauhan, VP, India and SAARC, Nortel Networks India

Meanwhile, obtaining a licence from the central government to import wireless
products acts as an impediment for small and medium players as it is a very time
consuming and regulatory involved process. But, the market is showing an
enthusiastic response for wireless solutions and a wide segment, including
corporate, institutions, government and home, is adopting it. Wireless is a big
hit in old buildings and other infrastructures, where laying of cables lines is
a problem.

Wi-Fi is also becoming popular in public places like cafes, malls, commercial
complexes and trade centers, offering true mobility to the users, while staying
connected. However, the market has mixed views about wireless solutions and its
adoption in the country.

Nortel Networks, which bets big on wireless, claims to be a leader in
development, deployment and evolution of all major wireless interfaces,
including CDMA, GSM, GPRS, EDGE, UMTS, TDMA, and WLAN. It offers a wide range of
products and solutions for all applications providing end-to-end service.
"In fact, the largest and most sophisticated wireless LAN network in the
world has been implemented by us at a premier stock exchange. Nortel has also
deployed its wireless LAN technology in several cities to provide a citywide
broadband access network. The future is wireless," said Ravi.

The going gets smooth with wireless once into it, but setting foot there may
be a tough task - as it was for Kunhar Peripherals. "It took almost six
months for us to obtain licence from the Ministry of Communication to import
wireless products. Although the growth and adoption of wireless solution is
increasing everyday, which is a welcoming sign, the policy issues are affecting
the trade and slowing the growth," added Anil.

EXPLORING WIRELESS

Rashi Peripherals was one of the early companies in this space. It started
exploring the wireless market as early in 2003. "Training is very important
to promote the solution and at Rashi, we offer 13 wireless training and
certification programmes. The idea is to educate more partners on wireless
solutions and the response is overwhelming from the market," said Sanjay
Aggarwal, Business Manager (Networking Products), Rashi Peripherals.

Till date, the distributor has done 29 training programs and has really
helped in gaining the market share. "Initially, we started with just 5%
share of wireless in our overall networking business, but continuous training
programmes have helped to take this share to 50% today," Sanjay added.

“We churn out 25-30 Dax Certified Networking Engineers monthly. This is not an en masse program, but there is a sustained interest from the channel to get trained and certified” -C Sujit Singh, Country Manager, Dax Networks

D-Link is looking at this nascent technology in a big way. It has introduced
a wide range of indoor and outdoor wireless products for SOHO, SME and
enterprise networks. "All are standard based - 802.11b, 802.11g and
802.11a, and we are extending the benefits of wireless to various other products
like video conferencing devices, Internet cameras, and other Wi-Fi hand held
devices," said Anand Mehta, Manager (New Business Areas Development),
D-Link India.

Dax wireless portfolio includes 802.11b and 802.11g access point bridges,
routers, adapters and other accessories except antennas. Wireless is a key
growth area for Cisco too and forms part of the core strategy of focusing on
five advanced technologies, which include security, storage, optical and IP
Telephony, in addition to the core technologies of routing and switching.

WIRELESS OR NETWORKING SOLUTIONS?

While a majority of the channel is engaging itself in providing wireless
solution, partners like SP Software in Hyderabad are adopting the wait-and-watch
policy. "Today, optic fiber cables offering high data transfer is a runaway
hit in the market. Moreover, optic fiber solution prices are also coming down
everyday ensuring mass adoption and we are betting high on this. As far pure
wireless solutions are concerned, we have to wait for the market to mature
before investing significantly in that space," said Pulla. The company
offers end-to-end networking solutions from vendors like Cisco, 3Com and D-link.
This year, it is targeting Rs 2 crore from networking business, of which only
10% will come from wireless.

“Our focus for the coming year is to increase the rhythm of business. We intend to do this by investing in upgrading the skills and competencies of our partners” -Ranajoy Punja,VP (Marketing), Cisco Systems India and SAARCÂ

On the other hand, players like Surana say that 90% of the customers
preferred wireless to wireline solutions. "The market for wireless is
witnessing an exponential growth and we see a tremendous scope for solution
providers here. We are very bullish about the market," said Sujeet Surana,
MD of Hyderabad-based Surana Computers. The company is the network partner for
NetGear and D-Link.

Another network integrator, Chennai-based Fourth Dimension Technologies, is
also looking at increasing its wireless revenue to 50% from the current 5%. The
company is very active in the wireless space providing LAN and WAN solutions.
Similarly, Targus is also betting big on the opportunities in wireless.
"Like any other player, we are also looking at increasing our revenues
here," said Balvinder.

PRODDING ABOUT THE FUTURE

There is a debate in some sections of the market whether wireless technology
will replace the wireline technology. Though wireless is becoming popular in the
market, many feel that nothing can replace the other. Wireless is effective in a
small network as the maximum speed in wireless is still 54Mbps whereas the wired
network can go up to 1000Mbps. 

"Wireline and wireless will co-exist and complement each other rather
than competing. While wireless offers unparalleled mobility and freedom in the
last mile, the core of the networks will be wired as a result of which a lot of
fiber will come into play. Also, a major trend now is the fiber deployment
initiatives to enable broadband services," said Ravi.

“Since 10G is yet in the nascent stage, not many hardware vendors have products based on it. Though it will be ratified by June 2006, nothing has been proved on its inter-operability and backward compatibility”  -Anand Mehta, Manager (New Business Areas Development), D-Link India

On the other hand, Anil's experience says that the corporate, software,
educational institutions, government and other segments still prefer wired
network due to cost and speed. And that today, wireless solutions are just
limited to smaller environment.

Rashi Peripherals feels that both wireline and wireless technologies will
continue to grow and hold their respective market shares. "Wireless is in a
very initial stage and bandwidth, range and security are some of the concerns
for wireless growth," said Sanjay.

D-Link envisages the technologies to co-exist and complement each other.
"One needs to have a good physical back up to support wireless in big
infrastructures. Moreover, both technologies are ideal for different locations.
For example, an office can have a wired LAN, while it can establish wireless LAN
(WLAN) in specific locations like conference rooms and cafes. However,
compatibility and manageability are critical factors in the converged
environment," said Anand. The key benefits of mobility by integrating WLAN
with the wired LAN can be utilised by installing multiple access points in an
enterprise, making it possible for mobile users with wireless laptops and PDAs
to seamlessly roam in the organisation without having to compromise on the
network connectivity.

"Though there are a wide range of products available to integrate
wireline and wireless technologies, customers are concerned about the
investments as wireless technology is expensive. It will take time for the
market to mature," said Reddy.

For Surana Computers, it is a market of opportunity in wireless. "Any
product based on latest technology, when introduced, will be higher. However,
price will come down slowly facilitating growth and mass adoption," added
Sujeet Surana.

According to Sujit Singh of Dax Networks, wireless by and large will only be
complementing a wired network and not replace it, especially when it comes to
indoor office establishments. Yet wireless will take away a major share when it
comes to outdoor connectivity such as large campuses, commercial Internet kiosks
like hotspots and Internet to home through Ethernet kind of applications.

Ranajoy said, "De-licensing of the 2.4 GHz spectrum (specifically, the
2.40-2.48 GHz band) allowing the use of 802.11b and g within the band both
indoor and within the campus is a positive step. However, the government needs
to clarify some of the restrictions it has imposed such as low power level,
coverage area, hotspots in public places, licence for outdoor use, spill over of
signals and the punishment it attracts."

WI-MAX TECHNOLOGY

Worldwide Interoperability for Microwave Access (Wi-Max) has been making a
lot of news these days. Wi-MAX promises to provide high-speed, scalable and
affordable wireless connectivity. It offers the scalability to deliver
affordable broadband access even across the country. Its wireless infrastructure
can be extended to provide support for portable and mobile devices in the
future. Wi-Max offers additional advantages for developing economies such as
India, which do not have widespread broadband infrastructure in place. Because
of India's diverse geography, there is no comprehensive wired communication
infrastructure in the country.

Wired broadband technologies can reach only about five kilometres from the
central office switches, making them an expensive and unrealistic option to
reach the rural and remote areas of India. Spreading and managing the last-mile
solution in these regions is a Herculean task in terms of cost of infrastructure
and maintenance.

"If the technology works the way it is supposed to, Wi-MAX can
fundamentally alter the entire paraphernalia of mobile Internet access and even
disrupt the 3G technologies. It is also expected to make it easier and cheaper
for service providers to get high-speed Internet connections to homes and
businesses," informed Ranajoy.

With Wi-MAX, there is no longer a need to dig up city roads to lay fibre-optic
cable. It may also prove handy in providing high-speed Internet service to small
towns and rural communities that have been not covered by a network today.
However, these are still early days for Wi-Max and it faces standardisation and
interoperability issues, besides no uniform allocation of spectrum (unlike the
802.11-based technologies). But, the industry expects the issues to be sorted
out this year, paving the way for Wi-Max to take off.

Nortel claims to be a front-runner in contributing to the advancement of Wi-Max.
It recently joined the Wi-Max Forum, through which it contributed its expertise
and capabilities in wireless, wireline and broadband access technologies. Nortel
will also offer its expertise in the development of two emerging technologies -
Orthogonal Frequency Division Multiplexing (OFDM) and Multiple-Input
Multiple-Output (MIMO) - that greatly enhance Wi-Max's potential for
widespread adoption by improving spectral efficiency and data rates. With OFDM
and MIMO, service providers can use fewer spectrums to serve more customers with
a single base station.

10G IS HERE TO STAY

Today, most applications and solutions revolve around Gigabit to the desktop
with fiber as the backbone to support unlimited bandwidth. 10G is available on
passive cabling components basically to give a scalable option for the customer
to migrate in the future. The need of 10G to the desktop, however, is not
required right now unless broadband spreads its wings and heavy-duty
applications become online.

Meanwhile, on the active product side, few chipset vendors claim to have this
technology and products. But unless the products become affordable in the
market, 10G to the desktop will not become that popular. "It is still in
the nascent stage and not many hardware vendors have products based on 10G
technology.

Although some vendors claim to launch 10G over copper solutions, there are so
many issues remaining unresolved. The actual standard will only be ratified by
June 2006," said Anand. The main issues with any standard are
inter-operability and backward compatibility. So far, nothing has been proved on
these fronts. In short, 10G over copper technology is still under development.

It would take at least few months to make its presence in the market.

S GOPIKRISHNA With
inputs from Goldie in Bangalore, Faiz Askari in New Delhi, Amishi Shah in Mumbai
and Sunitha Natti in Hyderabad