National Supplement - Structured Cabling

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National Supplement - Structured Cabling CHENNAI DELHI KOLKATA MUMBAI Oct 29-Nov 4, 2012 www.twitter.com/dqweek www.dqweek.com MALINI M September 23, 2012 S tructured cabling market had re-couped completely in the last fiscal (FY11) from the global recession in 2009 and 2010. Infact, it had a double digit growth but from the last 2 quarters the industry has slowed down and it is not meeting the growth expectations of the cabling vendors. This sluggish growth is because of the fear of recession and rupee depreciation. And this fear has made corporates even more cautious and they are holding back on investments. Cash flow was dull since July, and the market is only slightly getting back on track since February 2012. Market Scan TE Connectivity:The industry witnessed a stra- tegic acquisition of ADC Communications by Tyco Electronics in December 2010 and the company was renamed as TE Connectiv- ity. In the first 2 quarters of FY12, the company had a very slow growth as it was grappling with the integra- tion process. But the growth gained momentum in the third and fourth quarters. And most of the accounts of ADC Communications fell into the piggy bag of TE Connectivity. The company intends to keep the product ranges of both Tyco and ADC as a separate entity as this would help them to address both the cost-sensitive and the high-end technology con- scious customers. ADC’s wireless segment has been a value addition to TE and its products and solutions for telecom vertical complement the Tyco’s product portfolio. TE is strong in verticals such as IT/ITeS, telecom data cen- ters, and BFSI and now ADC has added its strong verticals including government and education. Digilink’s Acquisition by Schneider Electric Again, the acquisition proved significant for Digilink. Schneider Electric is promoting Digilink in Middle East, Europe, and other countries. Schneider Electric is not a very promi- nent player in India but has got a major market share through this acquisition. CommScope has now resolved its indifferent sup- ply chain. Its major clientele includes Seven Hills hos- pital, United Commission Bank in Bangladesh, and Sri Lankan airlines amongst oth- ers. On technology front, it will focus more on category 6 and 6a installations, intel- ligent cabling, and on safety technologies like low smoke halogen. R&M products and solu- tions are used across a myr- iad of sectors like telecom, IT/ITeS, manufacturing, BFSI, education, automotive, etc, to name a few. R&M has added regional distributors in the west of India along with the states of Gujarat, Maharashtra, Kerala and Tamil Nadu. In FY12 the company, provided embed- ded infrastructure to the college campuses and also bagged deals in retail and hospitality sectors. FY12 was a dull year for Dax Networks as its cabling business had nil growth. The company states that its revenue on cabling has not met the expectations because of several factors including the fluctuation in copper prices and the steep rise in dollar. Its key proj- ects include Manappuram Group, ELCOT, and SSA (Sarva Skisha Abhayan). Leviton in its third year of operations, has tripled the headcount at present. The key revenue driving verticals for the company include infrastructure, IT/ITeS, gov- ernment, education, and data centers. Its key customers include Bengaluru interna- tional airport, University of Hyderabad, NTT, WNS, Omega healthcare, etc. It has launched offices in Kolkata, Pune, and Hyderabad. It also intends to focus heav- ily on data centers and large enterprises. The prominent products of the company are 40/100G Ethernet on fiber MTP, retention force tech- nology, high density plug, play solution, etc. Within 2 years of opera- tions in India, 3M has a huge of growth. Two huge deals have contributed immensely to it. The company has offered cabling solutions to Cognizant Technology Solutions (CTS) It has installed cabling solutions at Pune campus. It plans to focus on tier-1 cities at present and aims to hit $10 mn in India by 2015. 3M has a customer base across the industry viz IT/ ITeS and transportation sector with their biggest installation in the IT/ITeS space. Belden is betting big on emerging markets and its prominent markets include India, Brazil, and China. It is focusing on high growth end markets namely trans- portation systems, alterna- tive energy, data centers, oil and gas, and broadcast. The company is growing at a compounded annual growth rate (CAGR) of 25% in BIC nations. Belkin h a s posted a revenue of `150 crore in 2011, with a growth rate of 60% in 2011 over 2010. It seems that the company is reinforcing its strength. Between October 2010 and September 2012, Belkin India aims to target sales of `250 crore. In September 2011, Belkin entered into an agreement with Bright- Point India as its national distributor. Along with the govern- ment, the key growth ver- ticals for D-Link structured cabling solutions have been education, manufacturing, hospitality, and the retail segment. In addition to this, railways and court projects will be the growth driv- ers along with BFSI, data centers, and disaster recovery (DR) centers. The company has expanded into international market such as Middle East, Russia, and Africa. D-Link has bagged Goa broadband proj- ect (GBBN) which was one of the biggest projects rolled out in India for passive products along with a lot of D-Link active products. Growth Drivers Advanced cabling systems are now being demanded in India and newer technolo- gies are being adopted. There is a huge acceptance of Cat 6A deployments which meet higher bandwidth needs in data centers as well as at work stations. The SMB and residential and commercial complexes are also the key drivers for growth. There has been a shift towards converged networks and fiber. In a new township, enterprise and telcos are getting intertwined to offer the best converged network solutions to the end users. Data center implemen- tations have gathered huge momentum. FTTX/ FTTH is another major driver for structured cabling business in the country. Higher per- forming connecting devices replaced legacy supplies. Growth drivers in struc- tured cabling have remained same since 2003 such as the growth in the software exports, exponential growth in IT-enabled services, government initiatives to enhance IT deployment across various departments, growth in BFSI segment, higher deployments in edu- cational institutions, hos- pitality, retail, and manu- facturing. After healthcare, government is the second largest sector, with an 11.8% share, followed by retail sec- tor with 11.6% share. Other leading sectors include professional and technical services at 8.7% share and manufacturing with a share of 8.4%. These 5 vertical sectors account for more than half the SCS market and are expected to continue with a positive growth till 2015. Earlier, the tier-1 cities were the high revenue earn- ers, but now new opportuni- ties are being thrown open by tier-2 and -3 cities viz, Coim- batore, Cochin, Chandigarh, Bhopal, Puducherry, Mysore, etc. The mid-sized market has picked up, despite its price sensitivity, because of the industry verticals?IT and ITeS, BPO, BFSI, PSUs, gov- ernment, healthcare, SoHo, and residential. These driv- ers will roll out in a positive growth curve for the market. The data center cabling market is poised to grow several times and is expected to drive the potential market for Cat 6A and above. In addition, FTTH deployment is also projected to grow multiple times in the near future. Emerging markets like the tier-2 and -3 cities and verticals like manufacturing, IT/ITeS, and hospitality are expanding. Data centers in India are booming. We will see more and more data centers coming in the future with green facili- GAIN, WITH PAIN! The market for structured cabling is tricky, with a lot of potential but enough roadblocks too Continued on page 6

description

Structured cabling market had re-couped completely in last fiscal (FY11) from the global recession in 2009 and 2010

Transcript of National Supplement - Structured Cabling

National Supplement - Structured Cabling

CHENNAI DELHI KOLKATA MUMBAI Oct 29-Nov 4, 2012

www.twitter.com/dqweek www.dqweek.com

MALINI MSeptember 23, 2012

Structured cabling market had re-couped completely in the

last fiscal (FY11) from the global recession in 2009 and 2010. Infact, it had a double digit growth but from the last 2 quarters the industry has slowed down and it is not meeting the growth expectations of the cabling vendors. This sluggish growth is because of the fear of recession and rupee depreciation. And this fear has made corporates even more cautious and they are holding back on investments. Cash flow was dull since July, and the market is only slightly getting back on track since February 2012.

Market ScanTE Connectivity:The

industry witnessed a stra-tegic acquisition of ADC Communications by Tyco Electronics in December 2010 and the company was renamed as TE Connectiv-ity. In the first 2 quarters of FY12, the company had a very slow growth as it was grappling with the integra-tion process. But the growth gained momentum in the third and fourth quarters. And most of the accounts of ADC Communications

fell into the piggy bag of TE Connectivity.

The company intends to keep the product ranges of both Tyco and ADC as a separate entity as this would help them to address both the cost-sensitive and the high-end technology con-scious customers. ADC’s wireless segment has been a value addition to TE and its products and solutions for telecom vertical complement the Tyco’s product portfolio. TE is strong in verticals such as IT/ITeS, telecom data cen-ters, and BFSI and now ADC has added its strong verticals including government and education.

Digilink’s Acquisition by Schneider Electric

Again, the acquisition proved significant for Digilink. Schneider Electric is promoting Digilink in Middle East, Europe, and other countries. Schneider Electric is not a very promi-nent player in India but has got a major market share through this acquisition.

CommScope has now resolved its indifferent sup-ply chain. Its major clientele includes Seven Hills hos-pital, United Commission Bank in Bangladesh, and Sri Lankan airlines amongst oth-ers. On technology front, it will focus more on category

6 and 6a installations, intel-ligent cabling, and on safety technologies like low smoke halogen.

R&M products and solu-tions are used across a myr-iad of sectors like telecom, IT/ITeS, manufacturing, BFSI, education, automotive, etc, to name a few. R&M has added regional distributors in the west of India along with the states of Gujarat, Maharashtra, Kerala and Tamil Nadu. In FY12 the company, provided embed-ded infrastructure to the college campuses and also bagged deals in retail and hospitality sectors.

FY12 was a dull year for Dax Networks as its cabling business had nil growth.The company states that its revenue on cabling has not met the expectations because of several factors including the fluctuation in copper prices and the steep rise in dollar. Its key proj-ects include Manappuram Group, ELCOT, and SSA (Sarva Skisha Abhayan).

Leviton in its third year of operations, has tripled the headcount at present. The key revenue driving verticals for the company include infrastructure, IT/ITeS, gov-ernment, education, and data centers. Its key customers include Bengaluru interna-tional airport, University

of Hyderabad, NTT, WNS, Omega healthcare, etc. It has launched offices in Kolkata, Pune, and Hyderabad. It also intends to focus heav-ily on data centers and large enterprises. The prominent products of the company are 40/100G Ethernet on fiber MTP, retention force tech-nology, high density plug, play solution, etc.

Within 2 years of opera-tions in India, 3M has a huge of growth. Two huge deals have contributed immensely to it. The company has offered cabling solutions to Cognizant Technology Solutions (CTS) It has

installed cabling solutions at Pune campus. It plans to focus on tier-1 cities at present and aims to hit $10 mn in India by 2015. 3M has a customer base across the industry viz IT/ ITeS and

transportation sector with their biggest installation in the IT/ITeS space.

Belden is betting big on emerging markets and its prominent markets include India, Brazil, and China. It is focusing on high growth end markets namely trans-portation systems, alterna-tive energy, data centers, oil and gas, and broadcast. The company is growing at a compounded annual growth rate (CAGR) of 25% in BIC

nations. B e l k i n h a s

posted a revenue o f `150 crore in

2011, with a growth rate of 60% in 2011 over 2010. It seems that the company is reinforcing its strength. Between October 2010 and September 2012, Belkin India aims to target sales of `250 crore. In September 2011, Belkin entered into an agreement with Bright-Point India as its national distributor.

Along with the govern-ment, the key growth ver-ticals for D-Link structured cabling solutions have been education, manufacturing,

hospitality, and the retail segment. In addition to this, railways and court projects will

be the growth driv-ers along with BFSI,

data centers, and disaster recovery (DR) centers. The company has expanded into

international market such as Middle East, Russia,

and Africa.D-Link has bagged

Goa broadband proj-ect (GBBN) which

was one of the biggest projects rolled out in India for passive products along with a lot of D-Link active products.

Growth DriversA d v a n c e d

cabling systems are now being demanded in India and newer technolo-

gies are being adopted. There is a huge acceptance of Cat 6A deployments which meet higher bandwidth needs in data centers as well as at work stations.

The SMB and residential and commercial complexes are also the key drivers for growth. There has been a shift towards converged networks and fiber. In a new township, enterprise and telcos are getting intertwined to offer the best converged network solutions to the end users. Data center implemen-tations have gathered huge momentum. FTTX/ FTTH is another major driver for structured cabling business in the country. Higher per-forming connecting devices replaced legacy supplies.

Growth drivers in struc-tured cabling have remained same since 2003 such as the growth in the software exports, exponential growth in IT-enabled services, government initiatives to enhance IT deployment across various departments, growth in BFSI segment, higher deployments in edu-cational institutions, hos-pitality, retail, and manu-facturing. After healthcare, government is the second largest sector, with an 11.8% share, followed by retail sec-tor with 11.6% share. Other leading sectors include

professional and technical services at 8.7% share and manufacturing with a share of 8.4%. These 5 vertical sectors account for more than half the SCS market and are expected to continue with a positive growth till 2015.

Earlier, the tier-1 cities were the high revenue earn-ers, but now new opportuni-ties are being thrown open by tier-2 and -3 cities viz, Coim-batore, Cochin, Chandigarh, Bhopal, Puducherry, Mysore, etc. The mid-sized market has picked up, despite its price sensitivity, because of the industry verticals?IT and ITeS, BPO, BFSI, PSUs, gov-ernment, healthcare, SoHo, and residential. These driv-ers will roll out in a positive growth curve for the market.

The data center cabling market is poised to grow several times and is expected to drive the potential market for Cat 6A and above. In addition, FTTH deployment is also projected to grow multiple times in the near future. Emerging markets like the tier-2 and -3 cities and verticals like manufacturing, IT/ITeS, and hospitality are expanding.

Data centers in India are booming. We will see more and more data centers coming in the future with green facili-

GAIN, WITH PAIN!The market for structured cabling is tricky, with a lot of potential but enough roadblocks too

Continued on page 6

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MARTIN ISAAC, MARKETING MANAGER, MOLEX PREMISE NETWORKS

JN MYLARIAH, COUNTRY TECHNICAL MANAGER, TYCO ELECTRONICS

GB RAVICHANDRA, DIRECTOR, NETWORK CONNECTIVITY, SCHNEIDER ELECTRIC

The sales increased due to our association with Schneider Electric. Our existing partners benefited with the addition of the new product line to their

existing portfolio. We have also focused on geographic expansion by expanding our sales to 250 cities. We bring a lot of channel partner

initiatives, which include Network 160, a 55 city roadshow across the country where we meet our resellers and exchange our company programs, reward performing partners and also train our partners on complete solutions from Schneider Electric; SI Loyalty program aimed at system integrators, a long-term three-year program which encompasses training the SIs on complete

solutions, educating them on new technologies, enhancing their competencies and rewarding them; SCCE, a certification program that we conduct for the channel partners; and approximately 20

programs that have been conducted in the last fiscal.

large enterprises due to its currently limited capacity. We are seeing an increased penetration of VoIP over analog phones, and Molex has a complete solution including MIIM for DC and VoIP applications. Copper is the main stay for now as in the past. Fiber is still primarily used for backbone applications despite the improved viability of fiber as a to-the-desk solution with the ever decreasing cost of active equipment. Traditionally installing fiber in the field has always been an expensive option, based on the time needed and the necessary fusion equipment. However, the continued demand for bandwidth will ultimately lead to increased opportunities for fiber and the development of pre-terminated fiber solutions, where there is no need for on site termination. As always, speed and bandwidth continue to be the key factors influencing the industry. The development of Cat 6A has seen the next step in infrastructure performance. The uptake and interest in intelligent infrastructure has also increased, with companies looking to consolidate and streamline their infrastructure requirements and gain a greater effi-ciency with their assets. Intelligent systems also provide an exceptional level of security, which has also become a key factor in cabling systems. Physical layer management is an important area which is evolving rapidly. Customers are looking beyond the ability to manage only the patching field/wiring closet. Systems have now evolved, eg, Molex APLLM, which allows complete integration from planning to execution and uploading all data automatically into physical layer management system. As size

of networks grow and large customers implement offices across multiple locations, management of networks is gaining importance. Environmental commitment and environment friendliness of products is becoming more important as people start to design green buildings. The cable itself and the bundling can impact heat emissions within a common room. Use of multi-pair cables—as in a plug and play solution—can help mitigate this. We have to remember that the electronic devices within a network are also emitting a considerable amount of heat! Careful and proper airflow

management in cabinets and data centers could reduce heat and thus indirectly save energy. Molex provides end-to-end solutions for connectivity. This includes systems like FSO (Free Space

Optics), blown fiber, MIIM—intelligent cabling and insight—which is a software tool for the customer to deploy and manage projects. This vast spectrum of prod-ucts allows the customer to

choose an optimum solution for their needs. Molex participates in exclusive CIO senates, BICSI conferences, expos, and trade and technology fairs. It also organizes and conducts reward programs

for performing integrators, distributors, etc. In addition, we conduct technology roadshows in all the major metros and cities of India. Our top product experts are specially brought in. These events are organized internally to a select audience. We conduct eDM campaigns for new products and launch roadshows. All collaterals are made available to all our SIs in the region on a regular basis including demo kits. We advertise in major publications and PR agencies. Currently, we are in talks with a likely vendor to run a rewards and recognition program. Our consultative approach is that we work with our customers to understand and address their business requirements. Our innovative solutions are in the form of free space optics, plug and play solutions, high density solutions, intelligent lifecycle management (ILM) solutions. Molex invests a lot in R&D to bring in new technology and

innovations for a reliable and stable network. Our Modlink range is state-of-the-art for fiber and copper. The Premise Networks division of Molex introduced Advanced Physical Layer Lifecycle Management (APLLM)—a revo-lutionary new suite of solutions offering enterprises the opportunity to manage their physical layer and infrastruc-ture with a level of visibility and integration previously unattainable in the structured cabling industry. Using a combination of software, electronics and

structured cabling products, APLLM enables users to track and manage their investment from planning to design, procurement, installation, moves, adds and changes and the

eventual upgradation of the infrastructure. Molex is a technology leader having over 70 years

of expertise in connectivity systems and being a global leader, we offer cutting edge technology. For example, the pre-terminated copper solutions (Modlink) use the i-pass connector which allows the customer to deploy high speeds (1G) in pre-terminated copper cassettes. Molex has been present in India since 1988 and has invested significantly in infrastructure.

“We want to increase our partner base to 15,000”

“TE Connectivity

always thrives for post-sales

support”

The warranty support system is automatically a part of the package when you specify end-to-end products from enterprise networks. TE Connec-

tivity—authorized Netconnect design and installation contractor—registers the network project with Tyco Electronics and performs the actual installation in accordance with TE Connectivity requirements. We have two types of warranty Coverage: (1) 25-year Sys-tem Performance Coverage AMP NETCONNECT cabling system that keeps performing to the current TIA/EIA 568B industry standards, and if it ever fails to meet the standards within 25 years of the date of installation, we will provide the reasonable parts and labor to replace or repair the AMP NETCONNECT product. (2) 25-year Component Coverage Tyco Electronics offers a 25-year Component Warranty to protect individual AMP NET-CONNECT cabling system components. If a component fails within 25 years of the date of installation, we will provide the reasonable parts or replace or repair the registered AMP NETCONNECT product. There

are not any major issues except in some instances when customers get the installation done without verifying whether the system integrator is authorized for a particular product or not. In cases where an installation is not done by an authorized SI, our tech team has to do a complete review of each

product purchase/test ports in our presence, audit the installation practices and then issue the component warranty. We have seen stringent measures being put in within the system to issue a warranty certificate with

Hundred percent of our sales are through channels. Sch-neider is a channel focused organization and we encour-age partners to be a part of our growth. We are strong in all the regions and plan to grow in tier-2 and -3 cities. We are very strong in hospitality, government, educa-tion, SME, and SMB. We plan to grow in the IT/ITeS and manufacturing segments. We have a strong channel base of 10,000 partners across the country, and we are spread across 250 cities. Moving ahead, we plan to increase our partner base to 15,000 and sell in 400 cities in the coming years. We will continue to work with our partners with innovative schemes and loyalty programs. We treat our channel partners as our family and their benefits

are highly important for us. High margins, flexibility of products, channel-friendly policies, good quality are one of the important criteria for us. We have a customer education program, where we conduct seminars, round table conferences for the end customers. We also publish white papers on industry trends and cabling technology. We have a strategic strength here since our manufacturing is based out of Goa where the present tax rate is one of the lowest in the country.

respect to product purchase/site audits for random testings to be done. With respect to the support sys-tem, we have seen a great transformation. We have dedicated a technical/customer team to work closely with partners/customers at every specific region/location. Another transformation is the web based warranty management. There are also some of the best practices followed by our company like educa-tion, where we provide training to the installers on all the warranty aspects/requirements regularly and also before the installation starts at the customer site along with regular updates on the latest products and technology, so that the partners are aware of the installation. We also have regular update sessions on technology/products which also includes the update of warranty systems in place. TE has never come across a single requirement for replacement based on warranty in its entire history of 16 years, which is a testimony of the quality of products manufactured and supplied to the customer. We have strong systems in place to issue the new warranty certificates with respect to tracking of test reports of the products implemented, site details, products purchase of each line item including quantity, etc. We foresee it to become com-pletely web based, including the necessary site details, product purchase details, and test report document uploading, where each authorized integrator can view the status of each customer and there happens to be any issues, the same can be reported or tracked online conveniently.

“We follow a consultative approach”

Considering India to be a developing economy, the market will continue to scale upwards. We estimate the market size to be around Rs 1,000 crore. Cat 6

system in copper forms the default choice of the customer, with Singlemode and OM3 seeing increased deployment. Customers are also aware of the need to deploy higher spec solutions, eg, Cat6A, to futureproof their network for high speed applications such as 10G (on copper). Data centers are driving the growth for high speed solutions. We also see an increased interest in intelligent cabling systems. The Indian market is reviving and has seen growth in the recent years. The boom in data centers has also raised the bar on technology. Increased absorption of Cat6A has been seen in such installations. Telecom and infrastructure projects have scaled up in SCS deployments. The older establishments on unstructured cabling are migrating to SCS. Uptake of 10G systems is on the rise, generally by the larger enterprises that are looking to implement the latest cabling technology to ensure longevity. There is a higher uptake in the BFSI vertical and manufacturing research vertical. The PoE still has a limited uptake and is used for security applications, but has not been adopted across

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Without the wires and the cables required to trans-mit data and programming over communication networks, the technology in the networks can

never function smoothly. Most organizations, either small or large, need a system that ensures efficient cabling and correct storage of network equipment, while also moni-toring and managing the high volume and array of data essential for a smoother operation.

Recognizing the increasing importance, and demand, for full visibility in all data center assets, RiT Technologies (RiT), one of the biggest companies in cabling topology and monitoring solutions in the world, has developed a range of technologies. Established in 1989, RiT is located in Israel and has a growing client base in India. A recent visit by the senior company management to Mumbai in May 2012 supported the company’s drive to penetrate the Indian market which offers huge promise for RiT’s tech-nologies, especially as the data centers increase in number. Also, the data center managers are under the ever-growing pressure to reduce costs and energy consumption.

The company’s product line includes a host of solu-tions for local and wide area network cable systems and fiber optic networks. RiT’s Xlight, is a comprehensive set of advanced fiber optic products from single-mode and multi-mode fiber optic cabling to customized solutions that complement data center, backbone and fiber-to-the-desk applications.

RiT also provides more traditional solutions, such as copper-wire telephone networks. The first of its kind, RiT’s SMARTen line of products is an end-to-end managed category 6A solution enabling companies to leverage their copper cabling investment for the network infrastructure. In addition, the NASDAQ listed company produces several monitoring systems to ensure administrators are instantly alerted when connections goes awry, and in the event of any other general network problems. Two such systems are RiT’s PatchView IIM Hardware and Center-Mind DCIM (data center infrastructure) solutions.

RiT CenterMind is a new approach to DCIM, enabling optimized performance through a real-time consolidated view of all data center assets. Through this single solu-tion, which combines environment, power, connectivity and security management, higher server density, energy efficiency and more capacity are guaranteed, delivering the service levels customers expect, and eliminating the need for complex and costly integration. RiT’s PatchView IIM (intelligent infrastructure management) hardware works as a part of CenterMind, enabling the efficient and cost-effective management of all connections and bridging the gap between patch cord connectivity status, copper frames and fiber trays identification.

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V E N D O R C H A N N E L S T R A T E G I E S

Latest technologies demand huge bandwidth and therefore, the current trend is to deploy high band-width carrying and future-ready products. We are

experiencing an infrastructure boom andcabling now is becoming a standard part of all these

projects, including residential. We already saw a lot of FTTH projects being rolled out in many residential projects, so this vertical is set to increase the market size and opportunities in this space. On the technology side, CAT 6A is seeping in and we already have a lot of opportunities and customers keen on these solutions. Cat6A and FTTH

will be the two driving technologies moving ahead in the cabling space. Also, the innovations in cabling com-ponents, such as the angular patch panels, OM4 fiber, etc, are welcomed by the

market. Ease of use and cost-effective solutions are other important criteria. Another observation in terms of market analysis is that the OEMS are facing tough times meeting the price expectations viz-à-viz margins trade off. Further reduction in prices is difficult considering the increased dollar value. At D-Link, FY12 brought in a lot of positive energy, as we witnessed a 74% growth in revenues and 106% growth in net profits for our overall product categories, with structured

cabling making a significant contribution. Our struc-tured cabling business achieved good growth in terms of revenues, customer acquisitions and renewed partner confidence. Moving ahead we

expect to build up on this confidence shown by our partners and customers. Our wide product range com-bined with premium quality and excellent brand recall, helped us generate good confidence among our partners and customers. We also introduced a wide range of fiber products and accessories to provide a complete structured cabling solution to our customers. We are the only vendor to be able to provide a complete solution to our custom-ers, including the active and passive range of products. Throughout the year we bagged quite a few large projects. Just to mention we also bagged the GBBN—Goa broadband

3M Volition structured cabling solution is positioned to cater to all data and voice communication seg-ments like enterprise, data center, residential, retail,

ITeS, manufacturing, BFIS, etc. Currently the split is 90:10 between copper and fiber. Our 3M brand is very receptive and Volition cabling has had good acceptance in the industry. The major factors for our success have been meeting customer delivery timelines, innovative products, and good understanding of customer and chan-nel needs. We are able to generate interest in our products and also make customers change from existing vendors. We are the latest entrants building our footprint in this market. 3M management believes that investing in this business will help its customers and also to be a part of the growth currently taking place in the infrastructure space. We are investing in our partners steadily. Training and certification programs are a continuous activity. Our channel sales contribute to around 20% of our sales. We are currently addressing all India market and we have established bases in North, South and West. We have teams working in all these locations to support our chan-nels and customers. 3M is a pioneer in FTTX technology and has a strong presence in the global market. We are bringing this expertise and technology in our Volition portfolio and we currently have total solutions and offer entire suite of products in India.

We plan to increase our penetration in newer markets and seek to have channel partners in metros, and B- and C-class cities. Channel programs will be our focus in the coming year. Partnering with an organization like 3M not only provides partners with comfortable margins

TUSHAR SIGHAT, CEO, D-LINK INDIA

NAVIN JACOB MATHEW, DIVISION MANAGER, COMMUNICATION MARKET DIVISION, 3M

SHAILENDRA TRIVEDI, DIRECTOR, OPERATIONS AND CHANNEL DEVELOPMENT, R&M INDIA

R&M’s end-to-end cabling systems comprise of an exhaustive range of copper and fiber optic cabling systems: R&M offers Cat.5e, Cat. 6, Cat.

6A cables, connectors, components, and patch panels in both shielded (STP) and unshielded (UTP) solu-tions. For fiber optic cabling solutions, R&M offers multi-mode OM3/OM4 and single-mode OS1/OS2 fiber optic cables, with SC and LC connection systems and patch-panels. The high-performance E-2000 connec-tor offered by R&M delivers the highest performance for high-end applications and telecom networks. For data center solutions, R&M’s end-to-end, modular data center solutions offer a high grade of reliability and are modular for ease-of-use and administration. R&M’s award winning Cat. 6A connection module and MPO/MTP solutions and pre-terminated cabling systems delivering performance sought by modern data centers while simplifying the installation process. R&M’s innovative, Swiss-quality cabling products and solutions have really gathered momentum. The product quality and technical features help channel partners and installers offer a greater degree of differentiation and value to the end customers. Next, our efforts to augment our reach has led to the appointment of six regional distributors who manage different regions like Gujarat, Maharashtra, West Bengal, Karnataka, Tamil Nadu, Kerala and Andhra Pradesh. We will be appoint-ing more regional distributors soon. This has helped us improve our reach in tier-2 and tier-3 cities as well. Partners in these cities have improved access to our products and solutions due to our regional distributors’

As per segment-wise classification of cabling solu-tions, we offer 90% copper and 10% fiber. And on the sale ratio, it can be put across as copper

CAT-6A: 10%, CAT-6: 85%, CAT-5E: 5%, fiber- MMF-OM3/OM2: 75%, and SMF: 25%. Some of the factors that helped us increase the sale of

cabling solutions in India are quality products with a ‘Made in USA’ tag, patented solutions, best-in-class price/performance matrix and local warehouse and faster delivery terms. We have conducted regular contractor training programs across the country in Delhi, Bangalore

SRINIVASAN BADRINARAYN, NATIONAL TECHNICAL MANAGER, LEVITONand Mumbai. We have

also participated in various third-party channel events. We have trained over 100 partners across

the country in the last fiscal. We have a direct touch model with the end customer and route the orders through the channel partner or the distributor. Seventy to eighty percent of our deals are through channels only. We have presence in North, West and South, where we have a very strong clientele. The major revenue-generating verticals are infrastructure (airports), government, IT/ITeS, hospitality, hospitals, hotels, and education. The latest technologies offered are 40G/100G Opt-X Unity System on 24 Fiber MTP, high density solution for data center e2XHD, CAT-6A Component Solution offering 10G performance even in short permanent links upto 10 ft, secure RJ and secured LC solution for enhanced physical security. In FY13, we have many plans in the pipeline, including strengthening of channel network by addition of tier-1, tier-2, and tier-3 partners, increasing our pres-ence in tier-2 cities, adding channel incentive schemes to boost gross margin for channel network and focus on data center solutions from Leviton—e2XHD, 40G/100G Opt-X Unity solutions. Every year, approximately 10% of our revenue is spent for the marketing support of our chan-nel partners. A channel partner can find many reasons for partnering with us. A channel partner makes better margin by selling Leviton Network Solutions’ product range as we offer industry’s

best price, performance matrix and above all, the specification support which can help a partner secure a project for higher gross margins. To increase the aware-ness of cabling among the

channel partners and customers, we are conducting regular certifications, product trainings and roadshows across the country. We have also distributed several demo kits to our channel partners to help them posi-tion technology in front of end customers. We sell our products through our distribution network, which takes care of the local VAT structure and provides logistics support to the partners.

project which was one of the biggest projects rolled out in India for passive products along with a lot of D-Link active products. We also spread our wings to international destinations like the Middle East, Russia and Africa with our structured cabling solutions. From the business pro-spective, we had a great FY12, and moving ahead

we are poised to keep up the momentum and achieve stupendous success in FY13. For this we have charted out strategies, with a strong focus on the enterprise space. We already enjoy good market share in the SMB and SME space, along with an excellent channel ecosystem. Hence we would now like to increase our market share among the enterprise markets, and have already deployed a dedicated team focused towards this goal.

“Structured cabling holds significant share in our business”

“More than 70% of our deals are through channels”

“R&M has a range of innovative products tailored to meet the needs of specific applications and industries”

efforts. We have also been carrying out roadshows and Qualified Partner Program (QPP) trainings in various cities all over India. This has helped us improve our products’ awareness and partner base in all these cities. Our product and system warranty is also extensive, in sync with partner expectations. R&M has always sought to create programs that benefit our partners.

At the center of our initiatives is the Qualified Part-ner Program (QPP). This is a global, exhaustive program where in partners are both trained and certified so that

they have hands-on knowledge of R&M’s products and solutions and can install R&M’s products as per best practices of the industry and technical specifications of the customer. Our qualified partners are given sales and technical assistance as required so as to help them win more customers faster. Furthermore, we organize technical sessions and product briefings for partners periodically so that our partners are updated with information, so that they can sell efficiently. In the last quarter, we organized a technical briefing of data center solutions at Bengaluru, which was attended by over 80 representatives.

We conducted 10 training programs in cities like Mumbai, Pune, Ahmedabad, Cochin, Coimbatore, Ban-galore, Chennai, Kolkata, New Delhi, and Hyderabad. We have more plans for the coming months. We have R&M sales and technical representatives in all these regions. In addition, we have over 180 QPP certified partners evenly spread across all these regions to help end customers install our products and solutions. Our regional distributors are present in Kerala, Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra, Gujarat and West Bengal along with several resellers in these regions.

We are currently in the process of finalizing regional distributors and resellers in central and North India. We see immense growth in the channel market across regions, given the demand for high quality cabling solutions that are easy to install, take less time to install and last longer. Verticals such as IT/ITeS, automotive, telecom and manufacturing have seen

significant growth. Emerging verticals like healthcare, retail, BFSI, and hospitality are bound to grow and contribute to our business in the time to come. R&M has an agile channel set-up allowing us to respond in the best way to our customers across the country. At the national level, we have two national distributors: Vibgyor Net Connections and Inflow Technologies. At the regional level, we have six regional distribu-tors managing different regions like Kerala (Gateway Networking), Maharashtra, Gujarat (Ultima Infotech), Tamil Nadu (DuPont Networks and Secutron Systems), Karnataka (Magnified Solutions), and Andhra Pradesh (ARS Powertech). Furthermore, each of our regional distributors has their own resellers in their respec-tive regions. In addition to cables and components for copper and fiber optic systems, R&M has a range of innovative products tailored to meet the needs of specific applications and industries. R&M’s end-to-end, modular data center solution delivers high performance and reliability to meet the needs of modern data center. High-density patch panels for Cat.6A systems, cable managers, fiber optic raceways, consolidation floor box etc, are all geared to serve the needs of the data center. R&M’s industrial cabling products such as the FM45 connector, venus boxes offer IP grade protection for industrial networks to prevent foreign particles and splashes from disrupting the network, thus ensur-ing greater availability. In addition, there are 3-level security systems for cabling that include color coding, mechanical protection and locks to protect the network from unauthorized access.

“Channel programs will be the focus of 3M this year”

and innovative products but also opens opportunities in selling fire stop solutions, electrostatic, QSFP and AOC products for data centers. In addition, we also enable them to address the growing market of FTTX. We plan to have more customer-focused events to educate the importance of technology which goes into building the infrastructure. We hope these programs will increase the awareness of cabling importance in their infrastructure.

We are one of the world’s leading suppliers of opti-cal connectivity solutions

for communication networks. We are a wholly owned subsidiary of Corning Incorporated which is known internationally for its global manufacturing capabili-ties and award-winning service and support solutions. Corning LANscape solutions offer enter-prise network service solutions for your fiber optic and copper needs. LANscape solutions ensure successful and efficient founda-tion of your data center, local area network (LAN), fiber area network (FAN), intelligent traffic system, and industrial network. Corning LANscape Pretium EDGE solutions are pre-terminated optical cabling systems that take your data center to the next level. Consisting of optical trunks, harnesses, modules, housings and jumpers, Pretium EDGE solutions address the evolving concerns of data center owners and operators, helping them increase revenue, reduce expenses and minimize risks. Compared to traditional data center cabling systems, Pretium EDGE solutions offer 35% faster installation, 25% faster moves, adds and changes, and 100% more density. This equates to 144 fibers terminated in a 1U housing and 576 fibers in a 4U

PRASANNA KUMAR, COMMERCIAL DIRECTOR (CCS-EN), CORNING CABLE SYSTEMS

housing. This extreme increase in density and solution flexibility is enabled by Corning’s ClearCurve multimode fiber which delivers the best macrobending perfor-mance in the industry—upto 10x better than standard multimode fiber.

At the intersection of Corning’s enterprise solutions is the suite of Corning Cable Systems’ UniCam connectors. With more than 50 mn UniCam connectors installed globally, and as the most widely deployed “no-epoxy/no-polish” (NENP) connector available, Uni-Cam connectors have established themselves as the first choice as field installable connectors within the LAN and DC markets. Intuitive installation practices, install times of less than a minute,

the use of Corning invented NENP fiber optic connector technology, and the lack of required expensive equip-ment or ongoing consumable purchases make these connectors the logical choice.

Corning currently has two authorized distributors in India for its enterprise cabling business, namely, Anixter and TelExcell Information System. It also has a set of authorized system integrators trained and certified by Corning.

“Corning Cable Systems will take you to the next level”

S T R U C T U R E D C A B L I N Gwww.dqweek.comOct 29-Nov 4, 2012

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R.N.I. NO: 66909/97 (Posting Date: Mon-tue every week, Post at LODHI ROAD H.P.O.) DL(S)-17/3158/2012-14LICENSED TO POSTWPP, U(SE)-220/2012-2014N E W S Oct 29-Nov 4, 2012

The DQ Week6 S T R U C T U R E D C A B L I N GV E N D O R C H A N N E L S T R A T E G I E S

R SUBHASHINI, CHIEF TECHNOLOGY MANAGER, DAX NETWORKS

Surveillance and security today is a funda-mental requirement for every establish-ment. Security systems must not only

help detect and facilitate swift action, but also help design and plan a proactive strategy against future threats. Dax plans to exclusively take IP surveillance solutions this particular vertical as we believe that the government sector is only sparingly exposed to application benefits of IP surveillance. Dax city surveil-lance solution is a comprehensive portfolio of applications that can fulfill each department’s specific requirements, ie, security, operations, safety, law enforcement and environmental monitoring while operating as a single inte-grated system to ensure quick distribution of information to all concerned when any event occurs. Analog deployments are generally in a disintegrated manner. Although, on first sight, the cost of an IP based system is higher, over the long term, it is more efficient as compared to analog. Seamless integration to an existing Data network and existing security systems further enhances the benefit of IP to the end-users. Focus on financial institutions would also be a part of our plans, as we have custom solutions to enhance efficiency and performance. Dax has devised a comprehensive IP sur-veillance solution with Alert Management System (AMS) that provides a birds-eye view of the bank’s surveillance infrastructure on a single screen. This platform can monitor up to 10,000 cameras on a single screen. The Alert Management platform also gives timely alerts and escalations. At the central HQ, with the control center, one can get a dash board view of the entire ATM/branch network.

Dax has customized a unique IP based multi location surveillance solution, wherein the surveillance solution can be rolled out as a service.

The service delivery will cover cloud based footage storage, cloud based Alert Management System as well as a choice of local and HQ based streaming. Dax would continue to explore opportunities in routing, switching, cabling and other networking products with verticals like manufacturing, retail, government, edu-cation, etc. Recent technological devel-opments reveal that the IP network and mobile applications are gaining momen-tum. Easy accessibility, an all-in-one-box concept and integrated solutions mark the current trends in this category. As far as Dax IP surveillance is concerned, high image quality, advanced video analytics, storage options, cloud based video man-agement software, saving on bandwidth, etc, spell the required deliverables today. Our products are packed with features to support cloud, accessibility anywhere anytime, heterogeneous platforms with effective storage options while provid-ing security for your data. Choosing

technologies and solutions that save on energy, costs, lower OPEX and facilitate faster ROI will continue to be challenging. While technology innovation is a continuous process, new threats and security breaches emerge day in and day out, and always keep us on the edge in bringing out innovating solutions. The gaps should be fixed and addressed from time to time. Yes, the market slowdown is a factor to be considered. However, organizations are thick into research and analysis for the right solution. Therefore even though sales have taken a back seat for now, we do anticipate a positive change by the end of the third quarter this year. The market trend is expected to take an upward shift by then.

“We will continue to explore opportunities in manufacturing, retail, government and education”

There is an overall growth seen in the structured cabling solutions market in India as health care, manufactur-

ing, and financial verticals started expand-ing their operations, which has contributed to the growth of Siemon India. Siemon conducts the Certified Installers training and brings on its board esteemed system integrators in India and Saarc countries every year as its partners. The broad design principles and installation practices are: (1) A three day Certified Installer training for partners, emerging technology forum, product run-through and market trends, hands-on training on specific solutions, ice pack cooling door systems for data centers, etc. The data center sessions cover an overview of the TIA 942 and ISO stan-dard including basic topology, definitions and cooling concepts as well as how our products, services and key differentiators fit into the DC, stressing the importance of 10GBase-T trend and promote the advan-tage of shielded cabling (F/UTP 6A + Tera) and MTP fiber solution. Approximately, Siemon has conducted three Siemon Certi-fied Installer training programs in Mumbai, Hyderabad, and New Delhi, attended by 63 regional and global SIs.

In the order of revenues, North comes first, followed by the West and the South. A special focused approach is set for

eastern India and Saarc countries to make inroads into these geographies. Healthcare and manufacturing are the key verticals, which have given a 60% growth for Sie-mon India. The focused verticals will be government, BFSI, green data centers, cloud computing, IT and ITeS. At present, the channel is strong in tier-1 cities in a focused and phased way. Siemon India is growing and expanding its wings in tier-2 and -3 cities too. Icepack cooling door solution (rear cooling door system), data center design services and converged IT intelligent building cabling are the latest technologies we are having. Siemon India has set up a center of competency (CoC) in Hyderabad, which acts as a backend office for Siemon global operations present in 37 countries. Siemon CoC will be hosting data center design developers, customer support representatives and supply chain planners. Siemon India is also investing significantly in expanding their operations strategically in high potential cities like Cochin, Trivandrum, Rajkot, Ahmedabad, Mysore, Mangalore, Jaipur and Bhopal. We also try to create awareness by educat-ing the customers/channel partners with technology updates viz, TIA, ISO, IEC, ethernet Alliance, IEEE, BICSI, US Green Building Council, present market trends, and cabling standard updates.

SRIRAM ADIRAJU, COUNTRY MANAGER, SIEMON INDIA

“We are expanding our wings in tier-2 and tier-3

cities also”

ties. With this, there has been a growing need to deploy faster and secure cabling systems in data centers and even horizontal cabling. The boom in data centers has also led to increased deployment of high-end systems. The need of IT-en-abled services is growing at a faster pace in this country which is fueling the growth of structured cabling market. Another trend has been of the technology buyer shift-ing towards addressing their large scale and vast location applications using Intelligent Physical Layer Management Solution (IPLMS).

Plug and play solutions are also gaining preference as they are easier to install and manage. Increasing security requirements for sophisti-cated networks crave for intelligent networks which can locate and identify phys-ical intrusion. Collaboration via unified communications and video is also driving the cabling market to handle bandwidth hungry applica-tion.

Customers are demand-ing intelligent cabling solu-tions because traditional network management tools offer limited value because information through these is collected manually. But the manual process is time consuming, sometimes inac-curate, and can prove to be costly in terms of money, man hours and network downtime. The intelligent infrastructure management system allows easy plan-ning and detection of MAC’s while maintaining accurate records for handling help desk tasks. The solution offers features that help to trace all devices connected to the network and in map-ping and documentation of the ‘end-to-end’ physical infrastructure. It helps in monitoring all connections and events. The automatic log reports, alarms, and alerts generated by the system in case of changes and/ or disruptions in the network, allow network managers to detect and trouble shoot problems much faster.

Asset and configuration management teams can also optimize their processes

and tools by using system derived real-time connec-tivity information to locate assets for audit or upgrade purposes, establish the potential impact of the loss of a network device or to establish departmental usage of network assets for recharge purposes. Security, facilities, network availability, conti-nuity management teams, and processes can all benefit from the information derived from the system. It naturally follows that more the work-streams and processes that are aligned to intelligent cabling system, the more savings can be realized thus creating better RoI.

The key drivers for growth in the structured cabling market in recent years were in commercial real estate, airports, hospitals, hotels, malls, and educational insti-tutes. Other segments sup-porting the growth are IT/ITeS, BPO, KPO, and govern-ment projects. There is a shift towards converged networks and fiber, which plays a significant role in converged technologies. This trend is catching up in new township networks where enterprises as well as telecom networks are getting collapsed to offer the best converged networks. Fiber-to-the-home is another trend which is increasingly being proposed in new realty projects. Cabling industry is consolidating and is see-ing more copper and fiber deployments in manufac-turing industry, hospitality, health, and government. More townships will have fiber-to-the-home concept deployed and with security taking importance, there will be lot of solutions on perimeter security being deployed in offices, factories, and townships.

Technological TrendsAt present, most of the

cabling vendors have quit category 5 manufacturing. Currently, category 5e is widely installed across India than any other cabling infrastructure. Category 6a operates at a frequency of 550 MHz and is backward compatible with the existing standards. This technology is suitable for industry sectors utilizing high performance computing platforms to sup-port very high bandwidth

intensive applications. 10G/Cat 6a applications would initially be deployed in server farms, storage area networks, and data centers. It supports 10G.

Currently, most organiza-tions are migrating either to Cat 6 or 6a, based on the applications required in India. However uptake of Cat 6a is still slow and in pockets mainly in financial sector. Cat 6a is the evolution of UTP cabling to support 10G or more bandwidth when compared to Cat 6. We hardly see any difference between Cat 6a and Cat 7. Moreover, Cat 7 is likely to have a natural death as it is unadaptable, have issues in installation and cables ought to be re-pulled. Category 7a is known to operate at 1,000 MHz, but it is yet to be ratified. It is at a very nascent stage. Cat 6A will see an increased deployment as it is in line with the growth in sectors such as data cen-ters. Also, end customers are future proofing critical parts of the network such as their storage, server farms, and backbone with latest technology.

Shielded Twisted Pair (STP) cabling is generally in use for residential envi-ronments and is largely refrained when it comes to commercial environments. Unshielded Twisted Pair (UTP) is cheaper, and there-fore more common, since the shielding from electro-magnetic radiation is not generally needed. There are circumstances under which STP is beneficial or required. Specifically, steel mills generally use shielded cabling (or optical, where possible) because of the massive currents in use, which play havoc with the signal in a traditional UTP Ethernet cable.

Intelligent cabling has sto-len the show of late. IT man-agers are demanding intel-ligent cabling as it enables proactive network monitor-ing and fault diagnosis. It is more efficient, reduces costs, and resolves issues like unplanned downtime, inefficient manual moves, reliability, redundancy, additions and changes, redundant ports, and inac-curate records. It will pro-vide real-time management of the physical layer. Having an intelligent cabling solu-tion enables an immediate rectification, as this system can indicate where exactly the network is experienc-ing problems. It can track IP based addresses and the network manager can access, control, and manage them from one central location,

thereby troubleshooting them remotely.

Fiber is primarily used for backbone applications and despite its improved viabil-ity as a fibre-to-the-desk solution, the cost of active equipment is still stagnant. Increased use of fiber con-nectivity particularly, factory terminated plug-and-play fiber solutions, can be attrib-uted primarily to the data center applications where the density is critical. Multi-mode (50/125, 62.5/125um) OM1, OM2, and OM3, Single mode (9/125um) in fiber cat-egory are ruling. OM4 fiber cabling was seen last year in parts. OM3 fiber cabling is gradually picking up and plug-and-play copper and fiber solutions have been employed in key installa-tions. Outdoor plant fiber cabling also saw an increase in usage last year. OS2 (Low Water Peak Fiber-G652.d) is the standard for most deployments.

OM4 in multi-mode tech-nology will see increased deployment to support 40G and 100G applications. Fiber requirement has gone up to address campus network-ing situations. Fiber optics has an advantage of being immune to electromagnetic interference. It uses less power and provides less signal degradation than cop-per cables. Fiber cables are generally non-flammable and virtually unable to be tapped. It is also of smaller diameter and is of less weigh than its copper counterpart, making it ideal for a variety of cabling solutions. Fiber optics has always been the preferred choice for back-bone cabling in buildings and campuses. The cable costs much less to maintain and offers greater signal capacity. The fiber optic cable’s smaller diameter also makes it impervious to inter-ference, with a much lower transmission loss.

Market CrisisThe growth of business

in all verticals is directly proportional to the growth of structured cabling market. The doldrums in Europe and the US have impacted the market to a certain extent. A rise in dollar has also affected the industry. OEMS are facing tough times in meeting the price expecta-tions vis-a-vis margins trade off. Further reduction in prices would be difficult for the players considering steep rise in dollar. Most of the OEMs are not based in India; as they import, thereby increasing the cost of mate-rial which ultimately results in higher cost of ownership.

Continued from page 1

GAIN, WITH PAIN!Several organizations are reducing capital expenses (capex). Telecom is one of the strongest verticals for structured cabling market. But its contribution is rela-tively low. Government is also slowing down but not finalizing any decisions.

L iquid i ty has a l so impacted the industry. Industry consensus states that whole supply chain is

under pressure. There is a severe shortage of quality system integrators in the market. Due to the growth in fiber-to-the-home, fiber-to-the-premises, fiber-to-the-building, etc, employees of structured cabling are being absorbed.

The cabling industry in India does not have any set guidelines. It follows TIA/EIA 568B and other ISO

standards. The market is extremely fragmented and competitive. It tends to push price down. Cable price is derived from competition, the price of copper at MCX, LME, and exchange rate fluc-tuations. It is approximately 50% of the BOM in projects. Industry is also facing prob-lems in shipment.

Manufacturers are pri-marily concerned with the

fluctuations in copper prices and foreign currency. The prevailing low sentiments in the market coupled with the fixed price contracts, which most large projects are heading too, are the major challenges OEM’s in India are facing. It is difficult to resolve this as most custom-ers are using this to mitigate their risks and push OEM’s amongst themselves.

R.N.I. No: 66909/97 DL(S)-17/3158/2012-2014 U(SE)-220/2012-2014, Posted at Lodhi Road HPO New Delhi - 110002 Printed and Published

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