China's Huawei Technologies said on Friday it had no plans to buy a stake in Alcatel-Lucent, two days after the French-American telecoms equipment maker's stock jumped on market talk a Chinese rival could acquire it.
"Our customer-centric innovation strategy is driving Huawei's growth and that remains our strategy," Ross Gan, global head of corporate communications at Huawei told Reuters. "Huawei has no plans to take a stake in Alcatel-Lucent," he said.
Alcatel-Lucent's shares rose 16 percent on Wednesday on the market chatter and a rating upgrade by Natixis. By 0820 GMT on Friday, the stock had gained 3.1 percent in a broader market .FCHI up 1.3 percent.
A public relations official at Huawei's domestic rival, ZTE Corp, also said she had no information on any upcoming deal. "I think it is just a rumour," she said.
Huawei and ZTE have been expanding their operations aggressively in overseas markets, but those efforts are being driven mostly by organic growth. Analysts said any acquisitions would face stern regulatory scrutiny.
That scrutiny derailed an attempt by Huawei and partner Bain Capital to buy U.S.-based 3Com in 2007.
"Huawei is keen to expand internationally, so I'm not surprised that this has come up, but I would be surprised if it went ahead," said Damien Bailey, a telecoms specialist at law firm Simmons & Simmons.
"There will undoubtedly be consolidation in the telecoms equipment manufacturing sector, and I think there will probably only be three or four left, with Huawei and ZTE being two of those," he said.
Besides the regulatory concerns, any deal for Alcatel-Lucent would mark a major acquisition as the 2006 merger between France's Alcatel and U.S.-based Lucent Technologies has a current market value of about $9 billion.
For a related analysis on rival Nokia Siemens Networks
Alcatel-Lucent has been struggling to turn a profit since its 2006 merger, which was supposed to help it cut costs and better compete with Chinese gear makers including Huawei and ZTE. ($ = 6.83 yuan)
Agencies
Showing posts with label 3Com. Show all posts
Showing posts with label 3Com. Show all posts
Monday, August 31, 2009
Friday, October 17, 2008
BA Systems eyes 10pc of Indian networking solutions market
BA Systems, the Bangalore-based router manufacturing company, headquartered in San Jose, California, has entered the router market and is aiming at a market share of 10 percent in the networking solutions space in India by 2009-10.
The company has launched 'Enterprise' category of routers with a contract manufacturer in India. Its USP is its price, which it claims is about 30-50 percent cheaper than competitors. B. Jagadish, director marketing, BA Systems, speaks about the company's entry into the Asian market and the growing market for Enterprise routers, in an interview with CIOL's Manu Sharma. Excerpts:
CIOL: Being a US company what made you roll out your products in India?
B. Jagadish: BA Systems is headquartered in San Jose and has presence in Bangalore, Singapore, Hong Kong and China. We are targeting the Asia-Pacific market since it is growing by many folds in the Enterprise segment of routers. India, in particular, has a big market and the router market is growing at 15-18 percent. In comparison, it is growing by only 5 percent in the developed countries. Therefore, we have launched our products here and plan to expand overseas through our OEM network. In fact, we have already sent our first shipments to China and Bangladesh.
CIOL: Describe the Enterprise router market and what is its estimated growth in India?
BJ: The Enterprise routers industry segment is presently estimated at $4 billion and is likely to grow at a CAGR of 30 percent to touch $10-billion by 2010. According to an IDC report, while Edge, PC based, wireless, ADSL, broadband, XDSL and core routers make up most of this industry, Enterprise is in lesser numbers, but is catching up.
CIOL: What are the routers that you have launched and what applications do those support?
BJ: The BA Systems' EN3500, and EN2400 integrated routers uniquely address key customer requirements such as reduction in CAPEX and OPEX, and the power to implement IP networking services with minimal disruption and maximum remote control from a central location. This is achieved by combining the high performance and carrier-grade reliability of the BA Systems Operating System (BOS) with a central management application -- a BA Systems Element and Services Management Supervisor (BESS).
The modular, multi-threaded design of BOS, in combination with the EN series high-performance hardware, provides for the best-in-class performance, both raw and with multiple services loaded.
CIOL: Who are your competitors in this segment?
BJ: Cisco Systems has a market share of over 90 percent, while Juniper Networks, Nortel, Tasman, Huawei and 3Com are the other major players in this segment. BA Systems has just made an entry into the market and hopes to capture a 10 percent market share by 2010.
CIOL: How do you plan to tackle your competitors?
BJ: The BA Systems' EN series represents the next generation of integrated routing platforms. The EN series is the first routing platform that leverages the combination of optimized hardware with tested, interoperable, and modular high-performance operating system –(BOS), thereby affording significant CAPEX savings.
BA Systems' products are deployed in mission-critical networks at high profile customers, including a leading national telco, banks, stockbrokers, MSPs and BPOs. BA Systems strategically partners with channels, including systems integrators and service providers to go-to-market. The company provides partners with level-3 technical support, training and feature customization for partners/customers.
CIOL: What kind of marketing and sales support does the company provide?
BJ: Our support base for the customers will be out of India. We have already started a toll-fee line that will be attended by us starting next January. Presently, we provide technical support to our customers that make it unique unlike others and have no plans to outsource the aftersales support. We provide technical support to our customers to handle them faster and understand their needs better. Presently, it is offered 12x5, and once the volumes build up, it will be 24x7. The company also has marketing offices in Bangalore, Chennai and Delhi. Besides, we will have full-fledged offices in Mumbai, Kolkata, Ahmedabad and Hyderabad by October 2007.
CIOL: What sort of pricing models are you following for you products?
BJ: Our USP is our cost that is incomparable to any competitors even Cisco. Our solution comes at a cost that is at least 30 percent lower than close competitors Cisco, and can even be as less as 50 percent less if it is an end–to-end solution. Our hardware contributes a lot, while our software has own patent rights. We are the only router company with a local manufacturer. Neither Cisco, Juniper or anyone else has such a facility. Most of them source their products from either China or Taiwan.
CIOL: Who are your present customers and whom are you targeting?
BJ: Our products are affordable, off-the-shelf components. We started production in May 2006 and have already installed the products at the Taj Group, ITC, STPIs and co-operative banks. We also have corporate clients like Fortune Financials, Bosco Steel, BNA BPO and Divya Systems. The company will also be tapping into the railways, airlines, telecom and defence sectors in 2008 as they are all based on tenders.
CIOL: How is the feedback from your existing customers?
BJ: The feedback has been phenomenally good. It is because of our modular operating system, inherent features, rollback graceful restart, route tracking, SLA monitoring tool, etc. All of these are the major empowerments that our customers have experienced. We offer end-to-end solutions, including real-time WAN management. In fact, we have moved away from offering a product to a total solution.
The company has launched 'Enterprise' category of routers with a contract manufacturer in India. Its USP is its price, which it claims is about 30-50 percent cheaper than competitors. B. Jagadish, director marketing, BA Systems, speaks about the company's entry into the Asian market and the growing market for Enterprise routers, in an interview with CIOL's Manu Sharma. Excerpts:
CIOL: Being a US company what made you roll out your products in India?
B. Jagadish: BA Systems is headquartered in San Jose and has presence in Bangalore, Singapore, Hong Kong and China. We are targeting the Asia-Pacific market since it is growing by many folds in the Enterprise segment of routers. India, in particular, has a big market and the router market is growing at 15-18 percent. In comparison, it is growing by only 5 percent in the developed countries. Therefore, we have launched our products here and plan to expand overseas through our OEM network. In fact, we have already sent our first shipments to China and Bangladesh.
CIOL: Describe the Enterprise router market and what is its estimated growth in India?
BJ: The Enterprise routers industry segment is presently estimated at $4 billion and is likely to grow at a CAGR of 30 percent to touch $10-billion by 2010. According to an IDC report, while Edge, PC based, wireless, ADSL, broadband, XDSL and core routers make up most of this industry, Enterprise is in lesser numbers, but is catching up.
CIOL: What are the routers that you have launched and what applications do those support?
BJ: The BA Systems' EN3500, and EN2400 integrated routers uniquely address key customer requirements such as reduction in CAPEX and OPEX, and the power to implement IP networking services with minimal disruption and maximum remote control from a central location. This is achieved by combining the high performance and carrier-grade reliability of the BA Systems Operating System (BOS) with a central management application -- a BA Systems Element and Services Management Supervisor (BESS).
The modular, multi-threaded design of BOS, in combination with the EN series high-performance hardware, provides for the best-in-class performance, both raw and with multiple services loaded.
CIOL: Who are your competitors in this segment?
BJ: Cisco Systems has a market share of over 90 percent, while Juniper Networks, Nortel, Tasman, Huawei and 3Com are the other major players in this segment. BA Systems has just made an entry into the market and hopes to capture a 10 percent market share by 2010.
CIOL: How do you plan to tackle your competitors?
BJ: The BA Systems' EN series represents the next generation of integrated routing platforms. The EN series is the first routing platform that leverages the combination of optimized hardware with tested, interoperable, and modular high-performance operating system –(BOS), thereby affording significant CAPEX savings.
BA Systems' products are deployed in mission-critical networks at high profile customers, including a leading national telco, banks, stockbrokers, MSPs and BPOs. BA Systems strategically partners with channels, including systems integrators and service providers to go-to-market. The company provides partners with level-3 technical support, training and feature customization for partners/customers.
CIOL: What kind of marketing and sales support does the company provide?
BJ: Our support base for the customers will be out of India. We have already started a toll-fee line that will be attended by us starting next January. Presently, we provide technical support to our customers that make it unique unlike others and have no plans to outsource the aftersales support. We provide technical support to our customers to handle them faster and understand their needs better. Presently, it is offered 12x5, and once the volumes build up, it will be 24x7. The company also has marketing offices in Bangalore, Chennai and Delhi. Besides, we will have full-fledged offices in Mumbai, Kolkata, Ahmedabad and Hyderabad by October 2007.
CIOL: What sort of pricing models are you following for you products?
BJ: Our USP is our cost that is incomparable to any competitors even Cisco. Our solution comes at a cost that is at least 30 percent lower than close competitors Cisco, and can even be as less as 50 percent less if it is an end–to-end solution. Our hardware contributes a lot, while our software has own patent rights. We are the only router company with a local manufacturer. Neither Cisco, Juniper or anyone else has such a facility. Most of them source their products from either China or Taiwan.
CIOL: Who are your present customers and whom are you targeting?
BJ: Our products are affordable, off-the-shelf components. We started production in May 2006 and have already installed the products at the Taj Group, ITC, STPIs and co-operative banks. We also have corporate clients like Fortune Financials, Bosco Steel, BNA BPO and Divya Systems. The company will also be tapping into the railways, airlines, telecom and defence sectors in 2008 as they are all based on tenders.
CIOL: How is the feedback from your existing customers?
BJ: The feedback has been phenomenally good. It is because of our modular operating system, inherent features, rollback graceful restart, route tracking, SLA monitoring tool, etc. All of these are the major empowerments that our customers have experienced. We offer end-to-end solutions, including real-time WAN management. In fact, we have moved away from offering a product to a total solution.
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