The networking market in India, which is estimated to be around Rs 3,000 crore (Rs 30 billion) is expected to grow by 35 per cent during the current fiscal year, says a study by Dax Networks, one of the top three networking brands in India.
The study was based on independent observations by Dax Networks after conducting a road show in Ahmedabad, Bangalore, Calcutta, Chennai, Chandigarh, Cochin, Coimbatore, Delhi, Hyderabad, Lucknow, Mumbai and Pune.
The study has found that it is because of the heavy investments made by banks and other financial institutions, private telecom players and also the government players that the total networking market in India is growing at such a brisk pace.
Banks in India, when they switched over from manual processing to mechanisation, went through agonizingly slow migration to electromechanical accounting machines in the sixties and seventies, stand-alone personal computers in the eighties and intra-branch local area networks in the nineties.
Smaller banks such as foreign banks and newly established private banks of the nineties could establish wide-area networks in the nineties but the huge network of branches all over the country prevented the public sector banks from adopting the model.
Now the new paradigm for even these banks seems to be to go for central data processing with wide area networks, to give anywhere-anytime service to customers, says the study.
Already, State Bank of India, the behemoth with more than 10,000 branches (for the group), is well on the way and others are not far behind.
Even co-operative banks now try to have all their branches online.
The enterprise networking market thus urgently needs products like VOIP products, routers, modems, structured cables, remote access servers, wireless LAN, switches and media converters. As a result, the market is tipped to grow by 35 per cent to reach the Rs 4,000 crore (Rs 40 billion) mark by next financial year.
"Our understanding is based on the phenomenal response from the channel network and the industry needs. While the Indian market for the enterprise networking products is pegged at Rs 1,600 crore (Rs 16 billion), we believe Dax Networks will contribute 8-10 per cent of that market in India in the coming year," said Sujit Singh, country manager, Dax Networks.
According to the IMRB survey, Dax Networks is the number two networking brand in the country currently, offering networking solutions to various state governments, the telecom sector, Internet service providers, financial organisations, education services, the defense department and the corporate sector.
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