VOL 3-INDUSTRY ANALYSIS {im Relea Se DATAQUEST preter a) I) er DUA eet Dre ert rey eee Ue Arn Pee cee nn ere Tend TT TT er CL PRE rie bcs) Net) ty DUS Try Structured Cabling DSU ns Growing steadily at 9-10%, the IT industry is going through a transformative phase with [ARTS] vendors raising their tech quotient and augmenting innovation in emerging technologies ae Se 76 pages including cover Special Subscription offer on page 66EPSON EXCEED YOUR VISION World's First Original InkTank 25paise Colour _—— Ideal for 70m! refill ink Home & Office bottles @441 each Epson InkTank Printers THE ONLY WAY TO PRINT. EPSON L SERIES - COLOUR / Home & Office EPSON M SERIES - B&W / Office CONE FR Saar ae een ole gon isthe reitered tema of ‘Sb eoan CSporason dapan Ber eicaee Pare wea Tae Fee ene seen enc The Range of Epson InkTank Printers - A4 | A3+ | Photo | WiFi Get a demo at a store close to you. 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DATAQUEST | A CyberMedia Publication ‘wownw.dqindia.com September 30, 2018 | 5EDIT Shrikanth G shrikanthg@cybermedia.co.in Outlook Positive close view of the leading segments in IT software and hardware. We have sized up the market for FY15 and touched upon the key trends. and top vendors in each of these segments. T= issue concludes the DQ Top 20, 2015. In this issue, we take an up- Looking at some of the segments and picking up the performance threads, one thing that stands out is that despite sluggish economy IT spend is expected to go on. Enterprises have come to the realization that IT is indeed a profit center and not a cost center. While often times the intangible Rol is not clearly measured in absolute Rol, but that does matter a lot. So, ‘organizations are looking at two things as they invest in IT—whether it be services or hardware—the kind of disruption it can have on operational efficiencies and that in turn translating into significant bottom line impact and profits. Moreover, progressive enterprises with state-of-the-art IT organizations looked at tech to tide over recession and deepening the addressable market. So itis in this backdrop we need to take a due diligence of the segments. Certain areas are seeing a very strong uptick. For instance, look at storage, which is piggybacking on data explosion and in the bargain vendors are seeing greater momentum from across verticals as they ramp up their storage infrastructure. Similarly, IT services—both domestic and exports—is harping on transformational projects, which can enable enterprises to be more agile, elastic and be able to react to business dynamics. The name of the game is, ‘T-Led Business Transformations’. Other segments like enterprise applications as a market are also seeing a transformation. The vendors here are upping their innovation bar to woo the customers. ‘This time around we have featured cloud, as a dedicated segment given its escalation in the last few years, and particularly FY15 was a greater year for cloud here in India. The aggressive digital push along with the growing tech literacy among SMB segments is acting as a catalyst for the cloud adoption in this part of the world. ‘As we look at all the segments each one of them is caught in a transformation. And as we look at FY16, vendors across the segments will ty and up their bar in performance, innovation, and customer satisfaction in the days ahead. Shrikanth G Associate Editor 6 | September 30, 2015 woww.daindia.com ‘A CyberMedia Publication | DATAQUESTCONVERGED SERVER CHALLENGE In today's rapidly evolving business environment, managing the IT demands with traditional servers can be a eal challenge. Oferent products from different vendors rarely converge easly, Se how can you adapt to new ‘uends and innovations easly swiy and cost effectively? HUAWEIDATAQUEST EDITORIAL EDITOR AND GROUP EDITOR: Ibrahim Ahmad EXECUTIVE EDITOR: Srikanth RP ASSOCIATE EDITOR: Shrikanth G (Chennai, Shweta Nanda (Pune) ‘SR ASST EDITOR: Onkar Sharma (Gurgaon) ‘Sita Vasuevan (Bengaluru) ‘SR. VICE PRESIDENT Fachna Garga rachnag@eybermedia.co in) SALES NORTH (GENERAL MANAGER: Harminder Singh, Vandana Chauhan MANAGER: Ajay Dhoundlyal, Sudhie Arora ASST. MANAGER: Shoeb Khan west ASSOCIATE VP: Ravindranath Nair ASST, MANAGER: Aparna Tawde EXECUTIVE: Kanchan Kadam south ASSOCIATE VP: Ravindranath Nair ASST, MANAGER: Pradeep Kumar, Arun D cast ‘SENIOR MANAGER: Sandeop Roy Chowdhuri ‘Marketing & Alliances ASSOGIATE VP: Satish Gupta (stishg@eybermedia.co.in) Events, Online & Communities 'MANAGER: Debabrata T Joshi ASST. MANAGER: Preena Chauhan [ASST. MANAGER: Renuka Deopa ASST. 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Enclave "New Delhi 110017, Inca. Editor Irahim Ahmad, Distributor in Incia by IBH Books & Magazines Dist. Put. Lid, Mumbai ‘Subscription (inland): €1500 (2 issues), £8000 (8 issues) ‘Subscription Foreign: US $145 (SAARC Counties), US 875 (Rest of the world) By Airmail |For subscription queries contact: rsadincia@ybermedia.co.in) Dataquest does not claim any responsibilty to return unsolicited articles or photographs unless accompanied by adequate retumpostage. ‘All tights reserved, No part of tis publication may be reproduced by any means without prior written permission from the publishers 8 | September 30, 2015 woww.daindia.com ‘A CyberMedia Publication | DATAQUESTBe, Vol-3 Industry Seale Analysis Growing steadily at 9-10%, the IT industry is going through a transformative phase with vendors. raising their tech quotient and augmenting innovation in emerging technologies. To get an insight into how FY15 turned out to be for the industry, Dataquest analyzes key trends and top players in 16 major segments that continue to drive the IT industry in India IT Services Storag Dee Claes Cue eee 30 STR IES Desktops and Notebooks........... 40 CUCL UT TTT er CS Enterprise Security ..... a) ta VS ac) 1.) Structured Cabling...... oerIT SERVICES ‘Smita Vasudevan | smitav@cybermedia.co.in Growing ata Cautious Pace The Indian IT services market grew at a steady pace in FY15, yet as new technologies and transformational outcomes gain customers’ interest, the industry is looking at turning the tide 10 | Soptombor 30, 2015 woww.daindia.com ‘A CyberMedia Publication | DATAQUESThe IT services land- scape continues to get heated up with more and more custom- ers demanding agile and flexible solutions, faster service delivery, and transfor- ‘mational business outcomes. With budgetary pressures still a cause of worry for IT decision makers, the dual mandate is to drive IT-led business transformations, at the same time cutting corners wherever possible. On the back of revival of demand from the US market in FY15, the IT services export industry retained its ‘momentum it gained in the previous year. According to Nasscom, the to- tal IT-BPM exports industry was es- timated to be worth $98 bn in FY15. Out of this, the share of BPM was $23 bn, and the remaining segment collectively called IT services exports was about $75 bn, which indicated a nearly 14% increase over the previous year. Exports continue to hold the li- Con's share in total IT services revenue. rowth in infrastructure segments like cloud and mobile technology ca- abilities, business intelligence, and data analytical skills along with do- main knowledge have gone up sub- stantially,” reveals Sangeeta Gupta, Senior Vice President ~ Events, Re- search & Communication, Nasscom, Application development mainte- nance continues to see steady growth and accounts for a major chunk of the total IT services revenues. The changing expectations on the buyer side are forcing service provid- fers to realign their business models and look for smarter ways of deliver- ing services that optimizes cost and adds to efficiencies that can further bbe passed on to the buyers in the form of reduced prices. We are see- ing that the IT services industry is in the midst of a transformation as growing customer expectations from DATAQUEST | A CyberMedia Publication IT investments lead to the emergence of renewed business models for IT service providers. ‘The traditional manpower linked models where revenues are linked to a number of people are gradually becoming iimelevant. Customers are looking for partners who can work along them to drive transformational business benefits. There is a lot of in- terest especially around SMAC-based transformations and buyers world- wide are looking for strategic partners that are equipped with the right ca~ abilities around SMAC. This is also the reason why we are seeing leading Indian IT services companies getting into strategic partnerships to build on to their SMAC competencies. Sanchit Vir Gogia, Chief Analyst & Group CEO, Greyhound Research says, “IT service vendors are increas ingly engaging in strategic partner- ships to deliver better services to customers and build competencies around SMAC technologies, a recent ‘example being TCS partnering with US-based FICO to develop analytics solution excellence centers at TCS's global delivery centers.” EVOLVING BUSINESS MODELS The Indian IT majors TCS, Cognizant, Infosys, and Wipro have maintained their supremacy in the IT services space over the years and continue to battle it out amid tough competition from global competitors. The opportu- nity at present is to build new technolo- ‘y capabilities through organic growth ‘or acquisitions and partnerships, and this in turn is signalling new structural changes for these companies. Commenting on its. performance in FY15, an Infosys spokesperson points out, "During the year, we ar- ticulated our corporate strategy of duality, ‘renew and new’. Renewal involves re-thinking of existing busi- ness systems and processes by ‘wownw.dqindia.com (i i Mh —Sangeeta Gupta Senior Vice President - Events, Research & Communication, Nasscom Growth in infrastructure segments like cloud and mobile technology capabilities, business intelligence and data analytical skills along with domain knowledge have gone up substantially. Specialists with technical and business skills are a lot more in demand in comparison to previous years September 30, 2015 | 14GALGOTIAS TOP-RANKED IN ALL MAJOR NATIONAL MEDIA SURVEYS YET AGAIN! Times Engineering, The Week, DataQuest & Outlook all top-rank Galgotias among finest institutions of India. GALGOTIAS STUDENTS TOP UPTU HONOURS ROLLS SHRI RAM NAIK, HON’BLE GOVERNOR OF UTTAR PRADESH CONFERS PRESTIGIOUS AWARDS THREE REASONS WHY (@7NEG! OTIAS UNIVERS one STUDENTS ENJOY RECORD BREAKING 85% ROUND 1 PLACEMENT carci 2015) WITH COGNIZANT, INFOSYS & WIPRO @ COMPLETE INDUSTRY INTEGRATED EDUCATION @ FINEST SYLLABI, PEDAGOGIES & FACULTY © TOP RANKINGS IN NATIONAL MEDIA YEAR AFTER YEAR porter reaUSSU ALN UN AR Se MO "As Tem Gog 2 Tron Fares Slr entng edge ey altos vee" forthe NASA ving eset & ron cayat any he Epon Raver thehet cot Calne in wer sng heidorNASAe ive i Neskl ace Hc Fig ane, i Hie Usa ie ADMISSIONS 2015 OPEN + Bech Beh Hons) Mech Comoster cence Ener «Bech CSE wih speciation in oud Compute 8 \atalaton in association wth 1M» Tech CSE wth speciation n Open Source Sofware & Open StandarGs in aszciason wth IBM «Bech CSE with specalation in Buses ealytsin association with BM» Tech CSE with speciation in Telecom nfrmatisin association with IBM» B.ech CSE with spcaliation in Marae Technology assoaton ‘wth bh » Mech Stare Engineering» BCA MC In Computer cence & Engineering (Speilaton n SE/Sofware Engineering Yrs Year + Bech / ech Hons" Cl Engineering «MEE tucralEnineering «Mech neray &Enionrertal Engineering Ini Engrcering Speciation Structure Enginecing/Enery & Envronmental Enger) 5 Years "Bech / Tech Hons)" Mechanical Engineering» Bech / Tech (Hons) / MTech Automobile Engesring 1 beth CD/CAM « Mech Mechatres In Mechanical Engineering (Speclsaton in CAD-CAM / tombe Engincering/ Mechatronics) 8 Yeas + Blech / ech (one) Eeteal & Electrons Engineering» ech ech Hone ectroncs& Communication Engineering + BTech/ Bech Hons |* Elect Engieeig+ Mach omer Electonics an Ove « MTech Crimunation Engineering "MTech VSI Dosen «Mech Power tem Engineering InGlecrones& Conmunaton Eneaern |Spcalaton Vl / Communication ngeering)SYors Inlet Ennerng Specalsaton in Power System Engineering / Power Electrons Dies) $ Years + Breeh/ Bech hens" / Tech Chemical Enema, inChemeafrgnerng Sees +204 BMS [Years (Bschlor of Management Stuses| «Integrated BBA MA Yar)» MBA with Dual Speciation i: intrnatosl Busines / "Meda Management / nance / Marketing / umn fezouce Management information Tecnology / satay Management etal Management en Eat Msnagement/SUsoiy Cain Maragerent / Operations Managemen / Fry Busines trratoralAccouting Pacesin association with KPMG in Ina Taxation inasoction with KPMG in rela ‘+ MBA (Gulnss Analy naan th » MBA Hosp & Healthcare Management nastcieton wth MIMER, un of ou Seasons Foundston) + 8.com. Hons) facade association with KPMG) «M.Con, + MBA [Franca Management) “BA (Hons) MA. Applied Pecology «BA. (Hons) MA Economics + B.A. Hone) / M.A English «BA. Hone) / MA Sociology +8. (Hons) / M.A. Plc Scence Bache / Master of Sdl Work «Pst Graduate Diploma a Counseing |°GOC) * LL6 Hons)» BA. LLB, (hans) (5 ears)» BBALLB (Hons) (Years) LLM. [1 Year) bachelor / Master af brary & information Sener + 85e (Hons |/ M.Sc. Forens Seence» M.S. Maths, Phys, Chemistry, Blo Chemist, Be normats * Bahar Mater of Physetherapy»Bichelor of Phamucy"*™ «Bt. (Medial Lab Teenaoay + 8 optometry 1 B5e,Gardionslar Technology «Master of Pharmacy Pharmaceutes) * BSc (Nong Academic Partnership with MAX nit of Heath Education nd Research (MINER) "= BA./ MA Uouralam & Mass Communion) BSc ote! Management) + Bd (2 years) * MA (Education) Barc 5 Yeas) WSTHEFUTURE. See ni to nel has Najorl Cal rh aston “ppv mae Cauncl ind Fg hing Cure taagenat tao uth on oungs boehl(e caan, a)IT SERVICES —Madhusudhan KM Chief Technology Officer, Mindtree While the growth in ADM has been marginal, growth in infrastructure services has been significant; especially in the areas of cloud, cloud infrastructure management using DevOps model and datacenter modernization using software defined data centers 14 | Soptombor 30, 2015 leveraging new technologies and platforms, such a cloud, mobility, analytics, and sensor networks. New elements involve new ways of en- ‘gaging with, understanding custom- ers, and exploring new markets, and business models.” He added that the company is adding to its in-house Capabilities with strategic acquisi- tions and investments. Transformational deals around dig- ital wll drive the next wave of growth for IT companies. An HCL spokes- person hints on the growing contr- bution of new technology deals to total revenues, “In FY15, HCL signed 58 transformational engagements worth total contract value of over $5 bn. These bookings saw signti- ‘cant momentum driven by next-gen TTO, engineering services outsourc- ing, digital and modem apps deals, each of which had a component of new technology constructs like digi- talization, cloud, etc.” ‘Aithough IT spends stil remain controlled, companies are show- ing more interest towards transfor- rational deals and spending on new technologies like big data, oT is gradually picking up. "Most en- terprises stil spend 70% of their IT budget in ‘keeping the lights on’ and ‘only 30% of the budget on transfor- mational initiatives. This trend has been changing rapicly, as enterprises consolidate their portfolios and use technologies like cloud to do more with less,” says Madhusudhan KM, Chief Technology Officer, Mindtree. Service organizations are hence looking at new ways to add productivity ‘and enhance their new technology ca- pabilties. “Organizations want to focus ‘on smaller teams and build competen- ies therein; [TeS majors ike Wipro and Infosys are focusing on smaller teams ‘and building expertise on digital tech- nologies to boost their revenues from this segment,” says Gogia. woww.daindia.com Company YTS Revenue (cr) Tes 94,648 Cognizant 05,779 Infosys Tecologies 53,319 Wipro 47318 HCL Technologies 35,709 Souce: 00 Estates In their effort to move towards non- linear models, automation is increas- ingly being embraced by the services industry. “Enterprises are slowly ac- ‘quiring or investing into smaller com- panies that offer automation solu- tions. These solutions cut down on the human cost and dependency factor, bringing down the TCO and increasing the ROl,” adds Gogia. Cloud along with other SMAC technologies is powering a renewed interest in IT services. It has added a lot of scope for service providers: to bring in differentiation and offer transformational value to clients. According to Mind Commerce, a research and business intelligence provider, SMAC convergence will continue shaping the future enter- prise, making them ready to adopt more end-to-end technology solu- tions. The company predicts the SMAC solution market to generate considerable revenue through 2020 holding 80% of the total enterprise TT investment. Individually, mobile related applications are expected to contribute the highest percentage to the SMAC market. DOMESTIC OUTSOURCING INCHES FORWARD ‘According to Nasscom, the domestic IT services market (excluding BPM) revenue in FY15 was estimated to be about $44 bn, about 13% growth over previous fiscal. eCommerce emerged ‘A CyberMedia Publication | DATAQUESTas the major growth driver accounting for 33% of the revenue growth. Higher adoption of SMAC and loT also led to the growth momentum, Indian enterprise buyers are seek- ing more flexibility and this is reflect- ing in the way they are approach- ing IT services deals. A trend that is being witnessed in the domestic IT landscape is the shrinking deal sizes, both in terms of contract volumes and duration. Similar to their global counterparts, domestic enterprises are gradually building their appetite for new technologies like mobility, analytics, and as-a-service models. “Companies offering cloud-based solutions are in for a treat. As enter- prises are shifting their workload to the cloud, cloud players are seeing mas- sive traction on both ends—applica- tion and storage. This will only increase as the workload shifts from on-premise to purely cloud,” opines Gogia. Experts indicate that Indian enter- prises are primarily looking for solu- tions around cloud, infrastructure support, security, enterprise mobility, 1 Wipro won a strategic outsourcing contract estimated to be worth about $1.1 bn, its largest ever, from a Canadian company ATCO and, in the process, also bought the IT services business ofthe firm alnfosys signed a ve-year global dealto develop, support, and enhance a wide spectrum ‘of applications for ABN AMIRO. Ths was the largest mut-milion euro contract ever signed by infosys amHCL Technologies entered a $250 mn deal with a French telecom major Alcatel-Lucent that involved the service provider taking up complete R&D work of Alcatel-Lucent in technologies such as 2G and 36 and analytics. Commenting on the adoption of analytics by Indian or- ganizations, Gogia adds, “Although BI and analytics has been in the market for a while, enterprises aren't using it to its optimum. Telecom, banking and financial institutions, marketing, travel, retail, and hospi- tality industries need to widely adopt BI and analytics to understand the changing consumer demands to of- {fer customized solutions.” Leading players in the domestic IT ‘space including TCS, Wipro, and IBM are quickly ramping up their capabili- ties as Indian customers demand the benefits of new technologies like au- tomation to be passed on in the form of price cuts. Although it might take longer for the benefits to trickle down to customers in the form of reduced prices, automation technologies, and SMAC investments will certainly drive investments and open up revenue streams for service providers and add to overall efficiencies. Going forward, the accelerated growth of start-ups, expanding eCommerce, and the Digital India ini- tiative is expected to drive significant changes and offer a lot of impetus to the domestic IT services market. ® A Big Push for Domestic IT With the launch of Digital India, Indian government has finally taken a bold step towards establishing a global digital identity for itself and its citizens. What is interesting is that Digital India has now gone beyond just connectivity and the Indian government is ready to have an open dialogue about integrating technology into infrastructure development; cloud computing; privacy and data security, et al =Sanchit Vir Gogia Chief Analyst & Group CEO, Greyhound Research DATAQUEST | A CyberMedia Publication ‘wownw.dqindia.com September 30, 2015 | 15STORAGE | shrikanthg@cybermedia.co.in The Year of the Data As data volumes grow, so does storage capacities. During FY15, the storage market saw good traction and signed out with good double-digit growth he external storage market has undergone a fundamental. tran- sition in the last few years with the tradi- tional market taxon- omy of NAS and SAN giving way to a solution based unified storage re- gime (the convergence of block and file systems). What is driving this? Experts say that devices across mul- tiple form factors are all churning out data in multiple forms—pictures, vid- £08 oF data files—from millions of de~ vices. Given this backdrop, accord- ing to DQ estimates, the overall Incia external storage market grew by 25% in FY15 and stood at 21,884 crore. STORAGE ON THE GROWTH PATH ‘Among the key IT infrastructure seg- ments, storage is seeing a strong uptick. Clearly, with data explosion, storage capacities are growing by the day. According to a latest Gartner research on India IT infrastructure spending, overall IT infrastructure is expected to reach $2.02 bn this year ‘As we look at the storage part inthis, Gartner says that the storage market is on pace to reach $426 mn this year. Storage modernization and consol- dation, backup and recovery, and disaster recovery are some of the key drivers of this market, and are likely to remain relevant drivers over the forecast period through 2018. 16 | Soptombor 30, 2015 woww.daindia.com ‘A CyberMedia Publication | DATAQUESTAIS 31,884 crore: 4 T1511 crore Growth 2h Swe: 00 Etats According to an IDC report, as- pects like consolidation needs cou- pled with optimization of storage in- frastructure due to a sudden increase in both structured and unstructured data is driving organizations to con- sider solutions and products beyond the traditional route. High priority on back-up and disaster recovery so- lutions across organizations due to reasons like compliance/regulations is also expected to generate demand for disk storage solutions. The need for high |OPS for workloads like OLTP, VDI, and BI is also driving the growth of flash storage across organizations inall verticals and segments. VENDORS IN THE FRAY EMC Js the #1 storage vendor over FY15 with a market share of about 339%. The company had a very good year with strategic government wins like UIDAI, NIC, and other client wins like TCS, ITC, KPIT, ICICI, among others. Moreover, EMC's aggres- sion in the storage market can also be attributed to its aggressive chan- rel play, which has helped it to ex- and the market in areas like cloud, backup, and recovery. EMC also works on its federation model which it calls EMC Information Infrastruc- ture (EMCii)—Vmware, Pivotal, VCE, and RSA. Clearly, this model has helped EMC gain more customer sat- Isfaction and confidence over the last year. This federated model also al- lows the company to offer integrated solutions from its sister companies. HP at #2 says that India is a key market for its storage offerings and DATAQUEST | A CyberMedia Publication 1m The India market Is composed of 30% entry level, 45% mid-range, and 15% high end 12 The emphasis is more on intligent storage management for optimization of ublization levels 1= BFS! and telecom are driving the growth and this momentum is expected to continue mln FY15, one also saw a few initiatives around video surveilance which has a huge appetite for storage 1 The escalation of both public as well as private cloud is adding up a lt of data and driving storage needs from cloud service providers The Top Vendors Others include Dell, HDS, Fujitsu, etc See: 00 Etnates September 30, 2015 | 17STORAGE the company says that its growth rates are higher than worldwide and the Asia Pacifio-Japan region over- all. Given that the largest segment in the Indian storage market is the mid- range. With HP 3PAR StoreSery Storage and HP StoreOnce Backup focus- ing on increasing efficiency, HP says it is helping organizations in India to address some of their most acute concerns: Reducing upfront invest- ‘ment and running costs on data- center space and enhancing power and cooling, which they can achieve through built-in thin technology and massive de-duplication while ben- efiting from industry leading perform- ance, features, and benefits HP says that the benefits of HP Storage are relevant to most vertical ‘segments in India, and says it had ex- cellent traction during 2015 in those segments that harvested benefits faster ike IT/TeS. In addition, there is a significant opportunity with Indian service providers that can offer SMB customers easy-to-consume hosted infrastructure, including cloud serv- ers and storage, According to IDG's Worldwide Quarterly Disk Storage Systems Tracker, in 2014, HP had greater external disk storage system growth than any other major storage company, propelled strongly by its HP SPAR StoreServ Storage. ‘At #f3 Is NetApp, the company be- lieves that the customers across ver- ticals including BFSI, IT/ITeS, manu- facturing are looking for solutions that would help them better their business and optimize their opera~ tions. Almost every industry in India has become data-centric—organiza- tions have become dependent on IT to deliver products, services and to interact with various stakeholders. The key industries of growth for NetApp are verticals like banking, financial services, and insurance 18 | Soptombor 30, 2015 (BFS), telecommunications, health- care, retail, and the public sector. However, the company feels that there is still scope to build an under standing of how intelligent and inno- vative storage solutions in virtualiza- tion, cloud, business applications, big data, converged infrastructure can help these industries derive sig- nificant business benefits. NetApp also says that with the government's push towards ‘Dig- ital India’, FY15 will see that spectal- purpose clouds and applications will emerge to focus specifically on connecting devices and machines. They will gather data quickly, likely streaming off devices with very litte structure, as well as performing quick analysis of the data with the ability to instantly respond to the device. NetApp says that it is assisting customers in their move to software defined storage and cloud comput- ing architectures through the Clus- tered Data ONTAP Storage Operating System—a single storage and data management platform enabling un- restricted, secure movement of data ‘across public and private clouds. Meanwhile, other players like Dell also showed impressive traction and growth. The company is going ag- gressive on the hybrid flash storage ‘space. Dell stacks up at #6 in the vendor line-up and garnered a mar- ket share of about 9% in FY 15 LOOKING AHEAD. It's no brainer that storage is all set to grow very aggressively in the days ‘ahead. Reflecting on the macro forc- es that are shaping the storage indus- ‘ry, Anil Valluri, President, NetApp, India & SAARC says, “The enterprise market will lead our growth in FY15. ‘Some of our technologies that will drive this growth will be Clustered Data ONTAP, hybrid cloud, and flash technology.” woww.daindia.com Experts also believe that the role Of Glos inthe region wil undergo a massive change as it is no more a Conventions role of meray provide ing IT services tothe fim, but also to balp the company get the best of services keeping cost factors in con- sheraton, Industry also believes thatthe es- calationof cloud will further jumpstart storage market growth, For instance, today, the hybrid cloud is a range of Isolated, Incompatible deta sos. “Every cloud provider has a diter ent wey to eranage customers’ dat, making it difficult to move data from cone cloud to another A data fabric makes modern IT systems work. It seamlessly connects diferent data management environments across disparate clouds into a cohesive in- tegrated whole ‘A data fabric provides the data control and choles thet customers need to operationalize the hybrid Cloud. It wil transtomm how organi zations manage, secure, protect, tnd move thelr deta across the hy” brid cloud, no matter where tives. Our data fabric vision therefore wl inspire new data lifecycle solutions, aiving customers the confidence that no matter where their data ives, they can contol, integrate, move, secure and consistently manage i.” avers Vall ‘As we sum up, clearly the year 2018 Is going to be the year of data, While data has always been impor tant, we have not seen the kind of data surge as we see today. Cloud computing wil lead the pack, with IT spending increasing 42% and enter prise Investments in storage increas- jing as much by 36%, as per market sources, This only augurs well forthe stor age industry which la expected to come out with more iteigent stor tage aystera in the ongeing year. © ‘A CyberMedia Publication | DATAQUESTExperience the Brilliance of iPhone 6 pansasa1 siy6u jy ul alddy plOz © pue WL @ iPhone 6 RASHI PERIPHERALS PVT. LTD.Market onak ‘Smita Vasudevan | smitav@cybermedia.co.in Backed by the alarming increase in the number of smartphone and tablet users, growing adoption of cloud and the ever increasing need for data consumption by enterprises, the datacenter market in India is heading towards unprecedented changes ith data _con- sumption in the country touching new heights, the datacenter space is showing signs of strong re- 20 | September 30, 2015 surgence, In 2014, the Indian data- center infrastructure market reached $1.92 bn, and the momentum is likely to be sustained throughout the cur- rent fiscal as Indian enterprises con- tinue to spend impressively on data storage and infrastructure solutions. woww.daindia.com If we go by some numbers, we ccan see that the market is geared up for an impressive growth. Accord- ing to Gartner's estimates for 2015, the Indian datacenter infrastructure market, comprising of server, stor- age and networking equipment, will ‘A CyberMedia Publication | DATAQUESTtotal $2.03 bn in 2015, a 5.4% in- crease from 2014. Interestingly, it is also predicted that India will be the second largest market for datacenter infrastructure within the Asia-Pacific region, and it will also be the second- fastest growing market in Asia-Pacit- jc in 2015. ‘The momentum is being driven by new growth initiatives by organiza- tions primarily in the banking, insur- ance, telecom, and government sec- tors. Emerging verticals like media and eCommerce will also play a vital role in accelerating the demand for datacenter services. Experts indicate that both enterprise-owned data- centers and third-party hosted data- centers are seeing an uptick. Gartner's predictions for 2015 also reveal that while much of the SMB segment is likely to focus on infra- structure build up, large enterprises within the key segments will look at infrastructure replacement and growth-related projects covering mo- bility, cloud, and big data. “Although large enterprises across BFSI, tel- com, and eCommerce are setting up their captive datacenters, the de- mand for hosted datacenter services is driven by both SMB segment and Sema RUS ESS UY Ss cris: HP 18M ‘NetiMagic Solutions Tata Communications (Usted in alphabetical order) enterprises,” reveals Malay Shah, Di- rector, Advisory Services, EY. Apart from the growing interest on the enterprise side, the public sector Is also driving significant spending on datacenter infrastructure. “Digitiza- tion that causes massive growth in data, storage, and compute is also Griving datacenter growth. For ex- ample, government projects like the ‘Digital India’ initiative will generate tremendous amount of sensitive in- formation that will need secure and scalable datacenters,” says Vivek Ty- ‘agi, Director- Business Development & Sales, SanDisk India-Enterprise & OEM Sales. In terms of demand, it is being wit- essed that third-party datacenter services are growing faster. This is primarily due to lack of in-house skills, huge investment requirements, and long gestation periods that make it difficult for organizations to go for in-house datacenters. According to a report by Infoholic Research, ‘Datacenter Infrastructure Market in India—Trends & Forecast 2015-2020," in terms of datacenter types, third-party datacenters are expected to grow much faster than captives as enterprises are showing much interest towards these third- party datacenters that help them to focus on their core business areas. “Enterprises are demanding highly flexible, automated, software driven, and scalable networks. Further, da- tacenter service providers are fo- cusing on specialized services such as cloud, security, digital video sur- veillance, and storage,” comments Shah. With increasing demand for third- party datacenter services, the market is seeing many new players, especial- ly cloud service providers competing with the traditional infrastructure and storage vendors. Currently, the mar- ket is divided between different types of players including datacenter host- ing players, Intemet service provid- DATA CENTER INFRASTRUCTURE MARKET, PRODUCT SEGMENTS. 2015 & 2020 Sac: Datcetr faster nee & Forcast 2015 200 hate Pestach DATAQUEST | A CyberMedia Publication September 30, 2015 | 21DATACENTER Malay Shah Director, Advisory Services, EY Increased outsourcing of datacenter requirements by banks and government is fuelling the growth of third-party datacenter service providers 22 | September 30, 2015 DST Ss ise (MILLIONS OF US DOLLARS) Servers 656 67 Storage 382 409 Enterprise a, | 948 Total 1.929 2,033 ers, hardware vendors, system inte- grators and so on. The competition is ‘only going to get fiercer as the global cloud players expand their presence inthe domestic market. “With players like Amazon entering the Indian mar- ket, targeting the government seg- ment, the competition will become more intense,” points out Shah. ‘CLOUD'S BIG IMPACT Growing adoption of cloud comput- ing in the country is one of the major factors fuelling datacenter infrastruc- ture needs. Some global experts have also pointed out that colocation datacenters are in fact thriving on cloud adoption. As more and more ‘computing workloads get shifted to cloud, both third-party and enterprise datacenters are seeing a surge in de- mand. Also with cloud, refresh cycles are getting shorter than earlier. With fast advancements in technology, refresh cycles are getting reduced to 4-5 years as compared to 8-10 years earlier, which is an important factor Griving demand for infrastructure re- placement. Santhosh Rao, Principal Research Analyst, Gartner reveals, “Another key trend propelling da- tacenter spending is the increasing influx of start-up companies in India that are hosting everything on the cloud. On the whole, companies are looking at a mix of on-premise cloud woww.daindia.com 724 761 791 496 460 483, 70 1,007 4011 2.129 2227 2,285 ‘Source: Garter, (September 2014) solutions and hybrid solutions, where they are moving non-critical applica- tions to the cloud.” SMBs are going for public cloud service providers like ‘Amazon and Microsoft, which is en- Ccouraging these companies to set up their datacenters in India. With the boom in cloud services market, many players are planning to set up or expand datacenters in India, as due to security and com- pliance reasons many organizations prefer their data to be stored locally So it is apparent that the market will bbe seeing more vendors establish- ing datacenters within the country to cater to the growing demands of en- terprise as well as public sector. On these lines, IBM recently announced its plans of setting up another public cloud datacenter in India that will add to its existing datacenter in Mum- bai, It has also been reported that Microsoft is making investments to the tune of 21,400 crore for setting up three datacenters in India by the fend of this year, to offer its commer- cial and cloud services, especially to cater to the needs of customers in banking and telecom where there are high concems over data sovereignty. Local datacenters will benefit organi- zations in various verticals that are wiling to move their data to the cloud but are hesitant because of regula- tory constraints, Traditional IT infrastructure and ‘A CyberMedia Publication | DATAQUEST=Nitin Mishra ‘Senior Vice President - Products & Services, NetMagic Solutions Colocation is now largely driven by large deals from large enterprises, eCommerce players, and cloud providers DATAQUEST | A CyberMedia Publication Once global players like Amazon and Microsoft set up their datacenters in India, the competition will be intensified, leading to price wars storage players have their strategies laid out. Commenting on the com- Pany’s performance in the last few years, Nitin Mishra, Senior Vice Pres- ident-Products & Services, NetMagic Solutions, says, “We have grown at a CAGR of 35% over the last three years and cloud has grown at a CAGR of over 100%. The end-user experience pertaining to. customer portal and cloud provisioning portal, has added to the growth. We have initiated and completed business transformation processes internally spanning over CRM, ERP (procure- ment, finance, etc.) for improving productivity and efficiency.” The demand for software-defined datacenters is accelerating at a fast ace and service providers are fore- ‘seeing new opportunities emerging out of it. “One of the primary goals of the software-defined datacenter is to facilitate IT organizations to be more agile and deliver quick, cloud- like services to users. By virtualizing network, compute, storage, and oth- fer resources, the entire datacenter could be centrally controlled by a software layer that connects each woww.dqinl of these components. This results in being able to control the datacenter remotely. For SanDisk, the opportu- nity is in software-defined storage, and flash storage for datacenter and cloud,” says Tyagl. TOUGH FIGHT AHEAD Buoyed by the strong resurgence in the enterprise demand for datacenter services, global players will be raising their stakes in the domestic market, while traditional vendors will be look- ing at strengthening their portfolio and building strengths that enable them to cover the full datacenter li- fecycle services. Rao adds, “Once global players like Amazon and Mi- crosoft set up their datacenters in In- ia, it will intensify the competition in the datacenter space leading to price wars and bandwidth issues.” Traditional hosting players will also be focusing on equipping themselves. with cloud-based architecture, Ex- perts indicate that due to the heavy investments they are making, com- peting on price and scaling up will be a challenge for these players. For glo- bal players like Amazon and Micto- soft, the challenge will be to create more awareness in the SMB and mid- market space through successful use: cases, and to build customized offer- ings especially for the public sector. ‘Small and medium enterprises adopting datacenter solutions will also have their unique challenges, points out Tariq Ahmed Shaik, Re- search Operations, Infoholic Re- search. “These enterprises may not find datacenters cost-effective. Be- cause of the high operational and maintenance costs, SMBs will be more cautious,” he adds. Despite challenges, the growing in- terest on the enterprise side and the aggressive growth plans by various players signal a wave of change for the datacenter market in India. @ September 30, 2015 | 28oo Prerna Sharma | prernas@cybermedia.co.in S l H l h Digital push coupled with burgeoning SMB market has led to a significant traction in the Indian cloud market. Going forward, service providers need to address security concerns with the cloud model to keep up the momentum ‘A CyberMedia Publication | DATAQUEST 24 | Soptomber 30, 2015 woww.daindia.comfew years back, technologies like cloud computing were struggling to make inroads in In- dian organizations. Enterprises were sceptical about how their data will be stored and secured onto cloud. Many were not comfortable in moving thelr IT in- frastructure beyond their firewalls. But today, the industry is taking the plunge to the cloud, which has become one of the major parts of the IT department. This technology has transformed the IT departments from a cost center to a revenue center that drives business agility and provides a competitive edge. Cloud computing has made it pos- sible to run IT-as-a-service to drive maximum efficiency. Enterprises have become more open to the idea of cloud after as- sessing hybrid models which give them the flexibility as per their busi- ness needs. “The continuous need to boost productivity, control costs, mitigate complexity, and on top of it, the workforce increasingly becoming mobile and virtual are further driving the enterprises to move to cloud based services,” asserts Bala Ma- hadevan, CEO, India, Orange Busi- ness Services. Indian cloud market has shown strong growth momentum in the last few years. As of today, the market is seeing a large number of players pro- viding cloud hosting services across segments, On one hand, the market is driven by large players like AWS, Google, Microsoft, Salesforce, Ora- cle, IBM, etc, on the other hand lo- cal players have also started making foray into this space. Further, compa~ nies like TCS, Wipro, Zenith Infotech, Synapse India, Ozonetel and many other players have already joined the bandwagon. DATAQUEST | A CyberMedia Publication Public Cloud Market in India t 33% 2015 2014 See: Gre 2015 rambe bed an esas MARKET DRIVERS According to Gartner's latest cloud adoption survey, 53% of organiza- tions in India indicate that they are using cloud services, with another 43% indicating plans to begin using cloud services in the next 12 months. It is estimated that public cloud services revenue in India will reach 85,196 crore by the end of 2015 as compared to 3,918 crore in 2014, an increase of almost 33% accord- ing to Gartner. In 2018, public cloud services revenue will be driven by hhigh growth rate In key market seg- ments—cloud _infrastructure-as~ service, cloud management and se- curity services, and cloud application infrastructure platform-as-a-service. ‘The key market drivers of cloud adoption in India are: ‘The Increasing SMB Market: Ac- cording to Ernst & Young, the size and expenditure of SMB market, in terms of IT, in India is much more than any other country in Asia Pacific. SMBs have started their cloud journey for business operations on a much larger scale due to reduced costs. BYOD: The BYOD trend is increas- ingly gaining momentum, as organi- ‘wownw.dqindia.com —Neeraj Matiyani Director - Storage Solutions, Dell India Today, customers want a provider that is easy to do business with and that helps them get what they want, and when they want September 30, 2015 | 25CLOUD zations are understanding the ben- efits of cost savings and increased employee productivity and flexibil- ity that it brings in. With more busi- nesses becoming mobile, there is a shift towards cloud, as organizations need to shift IT assets from their own datacenters to the cloud. Enterprises have begun to host, at least parts of their data, on the cloud. Maturing Traditional IT Market: ‘As competition increases in market across verticals, organizations are ooking out for newer models of op- erations for their IT infrastructure to improve efficiency and reduce costs. Cost-Efficiency: Cost benefits are a major driver for the adoption of cloud services associated with mov- ing from owned IT assets to usage- based pricing schemes. Organiza- tions are realizing that managing datacenters can be expensive due to the costs incurred from power and cooling. Hence, many organizations choose to move to the cloud. Moreo- ver, businesses are considering buy- Ing services on-demand rather than purchasing physical hardware, soft- ware licenses, and maintenance con- tracts. More and more businesses will move towards paying for X-as- a-service type solutions on-demand, within their own datacenter or that of a provider, indicating a trend towards business models that favor opex. The need to move to the cloud for many ‘may not be technology, but the eco- nomics of running application work- loads. Adoption of ‘Hybrid Cloud’ Mod- el: In the past couple of years, CIOs as well as decision makers have become interested in cloud com- puting considering various benefits the model brings in (reduced capex and help with faster go-to-market, for instance), the coming years will most likely see the emergence of the biggest flavor of cloud: Hybrid. 28 | September 30, 2015 “Combining the best of both worlds, public and private clouds, the hybrid cloud environment is seeing traction from companies,” says Ananthara- man Balakrishnan, Country Head, EMC Global Services India. A hybrid cloud will allow them to switch cost- effectively between public and pri- vate clouds in addition to providing better security, more control, higher performance, and greater flexibility (and hence agility) Digital Explosion: The shift to cloud computing is being driven by the exploding digital universe. As er EMC-IDG Digital Universe study, digital bits captured or created each year in India are expected to grow from 127 exabytes to 2.9 zettabyte between 2012 and 2020. At the same time, gap between digital information generated and available storage ca- pacity will grow from a third in 2012 toa ninth by 2020. This is one of the key drivers of cloud adoption among Indian enterprises. INDUSTRIES DRIVING CLOUD ADOPTION ‘The flexibility and advantages offered by cloud in terms of cost efficiency and simplified management are now widely recognized by businesses both large and small, causing a clear shift and disruption in business mod- els across organizations. Cloud is Griving transformation across various industries be it retail, manufacturing, logistics, transportation, education, government, etc. Apart from these sectors, BFSI—on the back of inclu- sive policies such as bank accounts for all—will definitely see growth, “In addition to these sectors we are also seeing a lot of traction in some of the sectors like ITeS/professional service, travel, automobile, auto an- cillary, publishing, media, and real estate,” added Niraj Kaushik, Vice President, Applications, Oracle. woww.daindia.com —Anantharaman Balakrishnan Country Head, EMC Global Services India Combining the best of both worlds — public and private clouds—the hybrid cloud environment is seeing traction from companies ‘A CyberMedia Publication | DATAQUESTCeO RTM Celli aa cya} Pee CUP url) Digital Transformation has hit the corporate world by storm. For the uninitiated, Digital Transformation is the se of digital technologies to improve customer ‘experience, transform business models and improve processes. To drive this transformation, companies have to invest in technologies that are stable, reliable and scalable. Cloud and Mobility are two key technologies in digital transformation initiatives. With data driving the next era, cloud and mobility will be essential to handle ‘and make sense of the vast data generated by organizations. ‘CHALLENGES Digital Transformation comes with its fair share of challenges as well, Organizations need access ta the right people, technologies and expertise. They also need to ‘manage risks and compliance issues. Moreover, the amount of tools and resources at hand are simply too ‘complex for businesses. ‘CLOUD COMPUTING Cloud is extremely important to large scale digital transformation. One of the biggest advantage of cloud is that it helps you make the most out of other technologies such as Big Data, Mobility and the Internet of Things. e-Zest's cloud service offerings are geared towards simplifying cloud-enabled digital transformation to businesses around the world. One of our European clients In the travel industry was able to move away from traditional spreadsheets to our AWS powered SaaS-based solution. Through the cloud, we successfully digitized ‘heir business processes, Improved workflows, enhanced data security and delivered a high performance solution. ‘e-Zest leads digital transformation through the cloud and brings the twin benefits of agility and efficiency to businesses. MoBILITY ‘A mobile foundation is key to digital transformation. Mobile devices have become ingrained inthe life of consumers. Mobility can transform all aspects of the ‘customer experience lifecycle right from transaction, delivery and service, One of our clients in the retail sector successfully managed to improve workforce enablement through our mobile offerings. Through an Android and 10S app, the client was able to empower, engage and ‘educate his workforce to deliver great experiences to ‘their end consumers. With the next era set to be dominated by the Intemet of Things, mobility will assume ‘even greater significance in the networked ecosystem. Partner with us to experience the power of mobility for your business. ‘OUR APPROACH ‘Why partner with us? e-Zestisa cloud and mobility pioneer with 15 years of experience. We have a global presence with offices in Pune, Detroit, Hannover and London, Our technology, processes and people are aligned to consumer demands. ‘Our cloud and mobility services include: ‘Cloud Computing - Consulting, migration, deployment, automation and related services across leading cloud platforms such as Azure, AWS and Oracle. Mobility - Consulting, application development, migration, collaboration and enterprise mobility solutions ‘across 105, Android and Windows Moreover, we have a thriving culture of innovation at, ‘e-Zest. Our innovations are geared to accelerate your path towards digital transformation, Our cloud and. ‘mobility innovation offerings are: ‘CloudMaP - A platform to automatically set up and manage the rules and policies that govern your cloud instances. Tabit - A web-based platform that creates rich mobile applications and can work offline. ‘We have technology partnerships with leading names such a5 Microsoft, Oracle and Amazon among others, boosting our capabilities. To know more about our cloud ‘and mobility services, write to us at info@e-zest.net or visit us at www.e-zest.net.CLOUD ROADBLOCKS IN CLOUD JOURNEY Security and regulatory concerns are the biggest concerns for organiza- tions embarking on the cloud jour- ney. “The key challenges of adopting cloud technology include concerns around security, reliability, and inter- operability with internal applications and systems. As a result, most of the organizations have encountered bar- riers when migrating business-critical applications, such as collaboration, video, customer relationship man- ‘agement to cloud environment,” says ‘Ashok Shenoy, Director, Datacenter and Cloud Sales, Cisco India & Saarc. According to a survey, nearly 45% of respondents express their con- cern on huge cost that is required to run their business on cloud. They would like to bring down the cost of using cloud when compared with on-premises. Whereas 25% want to have vendors with domain expertise that can understand their business and criticality attached to it. Around 10% of them are looking for a local vendor to understand their business environment and at the same time can be easily accessible as com- pared to the vendors that have their DC outside India. For instance, mid-sized firms be- lieve that products and services that 28 | September 30, 2015 are offered under cloud technology sometimes don't match with their requirements. They believe that at times, it becomes difficult for them to fit into the available offerings in the market. Therefore, they are continu- ously searching for such vendors that not only understand their industry but also give them customized cloud- based applications “At Dell, we believe that each cus- tomer will have a different path to ‘the cloud but whatever that is, cloud should work for them, not the other way around, Today, customers want a provider that is easy to do business with and that helps them get what ‘they want, when they want it,” says Neeraj Matiyani, Director ~ Storage Solutions, Dell India ‘THE WAY AHEAD Imeepective of size, every organ’ zation is today already on cloud or planning to move to the cloud. Some of them are using private/public or hybrid cloud depencing upon their needs and atfordeilty. Today, ClOs or CMOs have clearly understood the Importance of cloud but stil struggle with choosing the right deployment model and the right provider "we bolieve cloud services are likely t0 be adopted more quickly by small and medium enterprises as well as start-ups, since IT of these tuslnasaea la more trnaperent end simple, and thus itis easler to adapt to cloud services," says. Sandeep Lodha, Co-founder, Tyrone Systems. Going ahead, cloud ls set to wit ness further traction, however, the need of the hour is for the service providers to adcress data security and incompatiblty issues with leg- acy systems. Service providers need to bring attractive value propostion tony customer, lege or aml, ken on not getting locked into a propr- etary solution. © woww.daindia.com ~Ashok Shenoy Director, Datacenter and Cloud Sales, Cisco India & Saare The key challenges of adopting cloud technology include concerns around security, reliability, and interoperability with internal applications and systems ‘A CyberMedia Publication | DATAQUESTCe ED TOP-CLASS | Ts a COMPROMISED ON THE QUALITY OF MY NETWORK SECURITY SYSTEM...WHY? India Inc. loses Rs. 3.41 billion due to cybercrimes every year*. Install SEQRITE - The new-age Enterprise Security Solution today, and stay protected. Seqrite 3) Endpoint Security Ce cee Meee Ree Ue Ree eC ETRE) ORT) Pete Rca .ENTERPRISE APPS Onkar Sharma onkars@cybermedia.co.in Expectations Galore Indian enterprise applications market continues to grow amid expectations of growth post the government's push on Digital India, Make in India, and Smart Cities initiatives nterprise applica tions market is un- dergoing a transfor- mation since most of the players are pursuing customers in the midsection of most of the verti- cals. While there was a time when the 380 | Soptomber 30, 2015 enterprise app market had slowed down because of the tepid spending by Indian organizations, but thanks to the new wave of start-ups in the enterprise app space, it is gaining some pace and becoming a lot more vibrant, New start-ups and emerging players have added spice to the mar- woww.daindia.com ket through their targeted, core appli- cations which are easy to deploy and do not need big setups. These play- ers are wooing customers with their innovative solutions claiming to solve the age-old process-related prob- lems in large enterprises. Sensing the growing competition, the traditional ‘A CyberMedia Publication | DATAQUESTAAS 2410 | 8% F184 2,238 Sue: 0 stats Revenue RO) players are upping the ante with new launches of their solutions which they claim can address more problems and bring in further benefits, All in all, the enterprise software marketplace has become dynamic as its growth and structure are being shaped by the factors and forces of decentralized purchasing, consum- erization and mobility, influence of emerging markets, cloud-based im- pplementations, and new consump tion models. Enterprise resource Planning (ERP) software, customer relationship management (CRM), supply chain management (SCM), and Business Intelligence (1) or an- alytics software are being adopted across verticals. The top business priorities for In- dian users have been: Increasing enterprise growth; delivering opera- tional results; improving profitability and margins; improving IT applica- tions and infrastructure; and consoli- dating business operations. These priorities have led Indian enterprises to increase their IT spending. Overall, positivity in the market in the regime of the new government added energy in the market and inspired organiza~ tions to invest in IT and improve their processes. Plus, the government spending also increased on IT. Key initiatives around Digital India and Make in India also contributed to the growth of the enterprise applications market. Retail, media, BFSI, and manufacturing, among other verticals were keen to upgrade their systems. If Gartner is to be believed, opti- rmism regarding spending within Indi- DATAQUEST | A CyberMedia Publication Indian ERP Market Share 2% Infor 20% Ohtte Source: 0 stints Reverse 98) September 30, 2015 | 31ENTERPRISE APPS AGS 1A12_| 16% AIMS 2,380 | 18% AY13-14 1,222 Fr13-14 2,002 ‘Sou: 00 Estes ovenoe Ree) ‘Sau: Estates Revo Reo) 31% Sac: 00 Estes Reve Rx) an organizations reflects confidence in India's regional economic perform- ance, as well as the need to adopt better technology to effectively com- pete in a tougher global environment Gartner also believes that in the next five years, priority areas of software spending will include web conferenc- ing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM); and security Indian organizations favor the cost- effective use of these technologies before embracing these tools. It often leads them to make a quick decision ‘on buying any application. 82 | Soptombor 30, 2015 SCM MARKET SHARE CRM MARKET SHARE 20% Salesforce Microsoft 2% 1% Infor iM sce: DO Estates Revo) ERP GOING STRONG ‘The Enterprise Resource Planning ‘software remains the first choice for large enterprises as they are faced with multiple organizational challeng- es and have to deal with day-to-day business complexities. Besides, the Popular verticals such as BFS, retal, pharma and manufacturing, mid-size ‘companies have also embarked on their ERP journey. Better licensing and pricing models on the cloud led software companies to tap the mid size players. Players such as SAP, Oracle, Microsoft and others closely ‘worked with their partners to deliver cloud-based ERP. woww.daindia.com ‘Another reason why the ERP software market witnessed posi- tive rebound was the improvement in global economic conditions. It somewhat relaxed the strain on the Indian economy, thereby boosting corporate sentiments. Along with a stable government at the center, this, has helped in alleviating concerns about economic growth—to a certain extent—with early signs of spend- ing in growth initiatives beginning to emerge. Although the ERP software mar- ket witnessed only 8% growth, it is poised to register a double-digit growth in the ongoing year because of revived buying and increased spending, The overall market size in FY15 stood at %2,410 crore against 2,233 crore in FY14, SAP remained an undisputed player with 479% mar- ket share, Oracle continues to fol- low with close to 17% market share followed by Microsoft and others, Interestingly, Infor also tried to gain momentum in the ERP space as it went ahead to acquire a host of new customers for its solutions. (CRM WITNESSING STEADY GROWTH India enterprises are moving ahead for the CRM upgrade, with increas- Ing need to meet the expectations of today’s customers. Especially, the boom in the online retail or eCom- merce has added dash to the CRM market in India. There is whole new dynamism and vibrancy in the CRM space in the Indian market as the traditional vendors have realized the need to reach out to every possible ‘company or organization, irrespec- tive of size through their SaaS-based or cloud offerings. FY15 witnessed interesting implementations in the mid-market by all players such as Oracle, Microsoft and others. Ora- cle and SAP seemed to have broken the premium tag which used to shoo ‘A CyberMedia Publication | DATAQUESTCommitted to Nation A\\ Committed to make i in | Ong Frasted (71 Partacr ereENTERPRISE APPS AIMS 1,548 | 13% F314 1,875 ‘Rar 0 Etats Rovere RoW) BI MARKET SHARE ae Se. lik Tech 1% 7h Microsoft ots ore Sue: 0 Estates Fens oe) customers away. Emerging players such as CRMNext also intensified the market. The overall CRM market in In- dia stood at 22,860 crore in FY15 as against 22,002 crore in FY14. The market grew at 18% rate and was led by Oracle with 24% market share, Oracle was closely followed by Salesforce with 20% market share. ‘SAP occupied 12% of the CRM mar- ket followed by Microsoft with 7%, and Infor with 296. ‘SCM MARKET MAINTAINING ‘MOMENTUM Indian Supply Chain Management and procurement applications market 34 | Soptombor 30, 2015 sustained its growth with more than 16% growth. According to an ana- lyst firm, the SCM software market experienced robust growth through sustained application demand, as supply chain continues to be a key source of competitive advantage in driving business growth objectives, such as improved customer satisfac~ tion, greater business agility, and op- erational improvements, Organizations modernizing supply chains drove opportunity for both large-suite and specialized provid- ers to become more agile and drive innovation within their businesses. India's SCM software market stood at &1,412 crore in FY15 from &1,222 crore in FY14, SAP continues to hold onto the top spot with 36% market share, closely followed by Oracle with 319%. Infor, Sage and JDA Soft- ware also consolidated their position in the supply chain market. Overall, the SCM market is frag- mented as there are several small players. Plus, many enterprises con- tinue to rely on open source alterna- tives. The fragmented market points out at the growth opportunity in the SCM space. New business models such as cloud and SaaS are sig- nificantly changing the supply chain market. THE RISE OF BI Indian business intelligence (Bl) soft- ware revenue reached at 71,548 crore in FY15 over 81,375 crore in FY14 with 18% growth. Big data and ana- Iytics are becoming a topic of serious discussion in Indian organizations as they want to be able to predict and take informed decisions. ‘The BI and analytics market has ‘majorly been influenced by the devel- ‘opment of mobile, information, cloud, and social media technologies which are disrupting the market. Self-serv- ice analytics engines are disrupting woww.daindia.com the space as organizations are able to deploy and use analytics on their ‘own unlike before when the tradition- al BI tools could only be handled by an expert in the organization, Players such as Tableau and Qlk are offering customers freedom to choose and deploy analytics quite easily. Tailored solutions for verticals are proving to be another advantage as. mid-size players are able to use them and take insights into their business. In India, there are several Bl and analytics players. However, the mar- ket is led by SAP with 26% market share followed by IBM (2396), SAS (16%), Oracle (10%), Qlik Tech (3%), and Tibco (1%), among others. The BI market also reserves a great op- portunity for vendors as this is largely a fragmented space where several players are active and trying to inno- vate with their applications. Given the positivity in the market, the India software market is expect- ed to register a healthy growth in the ‘ongoing year. Government's push on Digital India, Make in India and Smart Cities initiatives is expected to drive —_____—- A‘Power’full Future Indian power backup market is on an upswing, driven by huge demand-supply gap in power distribution and the growing need for power continuity across industries he UPS market seg- ment in India grew by about 7% this. year, with the market size touching about 5,500 crore. And as long as there's power deficit in the energy sector, demand for power backup devices in India will continue to in- crease. As per industry reports, the Indian Uninteruptible Power Supply (UPS) market is expected to get past $1.2 bn by 2020 The segment is witnessing an up- ward trend as the sectors like bank- ing, healthcare, IT, and hospitality are increasingly demanding 24x7 power supply for smooth operations and worktiow, Demand for high power range of UPS systems in India is also DATAQUEST | A CyberMedia Publication being generated as eCommerce, servers, datacenters, medical equip- ment need uninterrupted power sup ply. These factors will help UPS mar- ket to clock a double-digit growth in the coming years. Further, the Indian UPS systems market (up to 100 KVA) is anticipated to grow at a CAGR of 11% in value terms during 2014- 2018. ‘As per a report by research agency Ken, the market is dominated by a few leading brands including Lumi- nous Power Technologies, Microtek International, and Su-Kam Power Systems, among others. In inverter market, Luminous Power Technolo- gies, with a share of 28% in revenue in FY14, emerged as the market leac~ ‘er, Microtek was the second largest ‘wownw.dqindia.com India UPS Market g 2 E Fy201015 FY 2013-14 ‘Source: DO Estimates brand in the inverters market with a revenue contribution of 23% in FY14, Emerson emerged as the leading contributor to the Indian online UPS market, with market share of 20% in FY14, followed by APC by Schneider Electric which occupied 18% share in the market. ‘THE MARKET DRIVERS (One of the key reasons for the boom in the back-up power market in India is the rising demand for power supply due to scarcity in power distribution, The power deficit hovers between 8 to 10% in various states. The de- ‘mand is especially higher in power- Intensive sectors like manufacturing and healthcare, “From the industry perspective, September 30, 2015 | 61UPS Ashok Rao Director Strategy-Planning & Alliances, IT Business, Schneider Electric The UPS segment has witnessed a consistent rise in demand owing to the rapid development of the IT sector coupled with a growing consciousness to protect costly electronic equipment which can be adversely affected by sudden power failures 62 | Soptombor 30, 2015 oor power supply and interruptions Is causing damage to equipment in manufacturing, lifesaving depart ments in healthcare industries, day- ‘to-day functioning in hospitality sec- tor along with the productivity in the infrastructure sector,” asserts Ashok Rao, Director Strategy-Planning & Al- liances, IT Business, Schneider Elec~ tric. This is motivating these industries to adopt UPS systems. Further, com- puterization of various departments of the government and penetration of the IT/TeS sector in tier-2 and -3 cities are also key drivers of the UPS. segment. Rao agrees, “The UPS segment has witnessed a consistent rise in demand owing to the rapid develop- Major 18% APC by Schneider lal teitae ‘ment of the IT sector coupled with a growing consciousness among indi- viduals to protect costly electronic equipment which can be adversely affected by sudden power failures. The demand for diesel powered gen- erator sets come from various sec- tors such as IT, telecom, and con- struction, while inverters are primarily used In households, shops and com- mercial establishments.” Aliso, it's important for customers with critical applications like data- centers, banking, ITS, etc, to ensure quality, uninterrupted power to run their operations smoothly for which they cannot rely on the grid supply. Thus, they look at UPS to mest their power requirements. In addition, there is increase in demand from Players 28% Luminous 23% IN Helge} Kg Source: Ken Research woww.daindia.com ‘A CyberMedia Publication | DATAQUESTSushil Virmani Managing Director, Socomec Price plays a key factor for decision makers, it's necessary to show the customers the value of their investment or return on the investment which calls for innovative products or solutions DATAQUEST | A CyberMedia Publication SMEs and the manufacturing sector. ‘THE KEY TRENDS The Indian UPS market is largely de- pendent on ow range (upto 25 KVA), ‘accounting for more than half of the total UPS market. However, this trend is set to change due to rising applica- tions of UPS systems in the industrial sector. With the industry's immense ‘growth potential, there is a huge op- portunity for both existing and new market players. The fact is corroborated by a re- ‘search conducted by Schneider Elec- tric last year through an independent research agency. The study provided detailed analysis of the power con- sumption habits across industries like manufacturing, healthcare, infra- structure (airport, marine) and hospi- tality, and the resulting impact that it has on business. The study revealed that for companies in the manufac- turing sector, the overall loss can be to the tune of 8% of top line due to power downtime. Companies are trying to avoid this using DG power back-up for critical processes. The report says that using UPS to avoid material loss and impact on equip- ment could increase profitability sig- nificantly, and if eritical processes too are run on UPS then profitability can increase further by 8.1% in full time use scenario and 7.8% in non-outage hours use scenario. Thus, the industry is witnessing fa shift towards new technology and design in order to support critical applications. The focus is moving from standard UPS to modern UPS systems with high efficiency even at partial load to reduce the operating cost. AS a part of green revolution, the power density of the UPS sys- ‘ems is being increased with unity PF design (KVA=KW) due to recent de- vvelopments of PF in modem server loads. Modular UPS systems are also ‘wownw.dqindia.com gaining steam due to an attractive concept of answering power protec- tion needs as the organization grows. The concept enables to increase UPS capacity or redundancy when needed, by means of small, light- weight, compact, hot swappable, af- fordable modules, without allocating additional floor space. According to ‘India UPS Market Forecast & Opportunities, 2018, study by Research and Markets, one of the emerging trends that has been witnessed is that foreign players are acquiring domestic companies of In- dia in order to have access to well- established distribution network and value chain of the UPS systems mar- ket in India, The regional demand for UPS systems is being majorly driven by the level of scarcity in a particu- lar area, for instance, J&K (Jammu & Kashmir) has the highest scarcity of power followed by Bihar & Kerna- taka, thus creating high demand for UPS systems. Another noteworthy trend is in- creasing focus on innovative prod- ucts. Sushil Virmani, MD, Socomec pines, “in recent years, depreciation of Indian rupee against US dollar or euro was a major concern in the mar- ket as it directly affects the pricing strategy. Although price plays a key factor for decision makers, it's neces- sary to show the customer the value of their investment or return on the investment which calls for innovative products or solutions.” ourtoox Driven by steady demand from various | sectors, the indian UPS market is ex- Pected to grow at a robust pace. The key players in power backup segment wil need to focus on product cus- tomization, going forward. End-users Of UPS have spectic applications and they expect products customized to meet the requemeris. @ September 30, 2015 | 68IT DISTRIBUTION Team DQ | maildgindia@cybermedia.co.in Sustaining Through Tough Times IT distribution industry continues to face issues being mired by oppressive tax regulations. Despite challenges, there were opportunities in pockets, which allowed some distributors to clock robust growth 64 | Soptomber 30, 2015 woww.daindia.com ‘A CyberMedia Publication | DATAQUESTY15 was an unusually challenging year for ‘the IT distribution in- dustry, The change of the government at the center, credit policy, etc, continued to plague the seg- ment. Adding to the woes, the inter- fest rates remained high which con- sequently put pressure on margins. ‘Apart from this, the whole ecosystem was disturbed due to explosion in the business being diverted to the eCommerce sites and this took time to play itself out Overall, there were growth oppor- tunities, though in pockets, which allowed some distributors to show a reasonable growth as an organiza- tion, but broad-based opportunities were limited. Some managed to do it better than the rest CHANGING MARKET DYNAMICS Continuing the trend of FY14, the distributors adhered to their credit policy while the channel partners kept on raising the issue of stockpil- ing and hoarding. Distributors blame that lack of effective credit control and policy is resulting in stockpiling and undervaluation of the commodi- ties for the channel partners while the counter argument raised is that there is flux in market operation price and trade terms. Also, distributors have often been blamed for the ongoing scenario of putting partners under pressure for hoarding and the im- ending case of DoA. Several companies of the order of Supertron, Savex, Mediaman In- fotech, Sogo Computers, among others continued with challenges of ‘cheque bouncing’ and partners ‘not paying on time’. The entire dis- tribution segment is estimated to be plagued by this trend leading to a bad debt scenario. In spite of all the mentioned chal- DATAQUEST | A CyberMedia Publication lenges, some distributors tried to make the best of the situation. For instance, Ingram Micro grew 12%, ‘while another major player Reding- ton managed to grow only 796, HCL Infosystems too witnessed decline in its distribution business by the year ‘end and has now changed its entire model and become a primarily chan- nel company. Tier-2 players like Savex, Iris, and ‘Supertron probably had their best years in recent memory. Wis and Supertron reported an increase of 44% and 25% respectively in their revenues in FY15. Even many tier-3 sub-distributors or regional distribu- tors recorded high growth in the top line, though the margin squeeze was more secular. ‘THE TOP PLAYERS. In order to get a better picture of the fiscal that breezed past, let's put the top players under the scanner: Overall, there were growth opportunities, though in pockets, which allowed some distributors to showa reasonable growth but broad-based opportunities were limited woww.dqinl Ingram Micro: FY15 was a pret- ty good year for Ingram Micro and the company witnessed significant growth across its entire product Portfolio, with the mobility business growing very strongly. The growth of the mobility business was ow- ing to all major brands like Apple, ‘Samsung, HTC, and Micromax do- ing well last year. The company's consumer business on the IT side grew well. In order to focus on the consumer business, Ingram strengthened its engagements with LFRs, which continuously invested in opening more stores. And as the market has moved towards larger retailers, this has helped in Ingram’s growth as well Redington: Three factors colluded to ensure Redington’s single digit growth: The pressure on funds rota- tion of Redington’s channel partners, the high interest rates, maintaining pressure on margins, and the ecosys- tem disturbed due to business being diverted to the eCommerce sites. The ‘company saw good traction in the ‘overall consumer segment helped by the market share gains by HP and Lenovo. It secured high growth in the overall Apple portfolio as well. The Apple Mac business saw good up- tick and there was good traction in iPhones too. Redington also formu- lated and initiated its cloud strategy, with an integrated vendor-agnostic, partner-centric, services based ap- proach. Savex Computers: In FY15, Savex Computers has emerged as the fourth largest ICT distributor in the country despite registering a marginal growth. The company exe- cuted large value High Performance ‘Computing (HPC) orders for various RAD institutes in the range of %35- 40 crore each. The company added new product categories in its kitty, including the Samsung's commer- September 30, 2015 | 65DATAQUEST OTE) The Fastest way to understand the Technology Industry DATAQUEST as \ eray a! WIN SOME... Se LOSESOME §<« Book Your Subscription Mega 35% Po TEC ToT LY 4 EASY WAYS & SUBSCRIBE Email: Call: Fax:Yes! | want to subscribe to Dataquest Gearing Up tor the New Normal eet ed ard Cee ay [ 1 year 24 %2,400/- | = 1,500/- Save =900/- LJ] 2years 48 %4,800- | %3,0007- | Gave [1,800/- [ 3 years 72 z7,209- | %4500- | Save =2,700/- or Subscribe online: subscriptions.cybermedia.co.in/dataquest Please tick your subscription choice above, fill the form below in CAPITAL LETTERS and mail/fax it to us. C1 twantto avail premium service of receiving your copy by courier, please add 25 per issue. Tick which ever is applicable. 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All outstation {cheques shouldbe payable at par.» Cyber Meda fra) Lid. will nctbe responsibe or postal delays, ansit losses ormutltion of subscription form. « Cyber ‘Mexia india) Li. reserves te right to terminate or exton this offeror ary part thereat. The decision to acceptor reject ary oral forms received i al the Apgoluteascretion of the pupishing compary without assigning ary reason. «Please incu pn code for prompt celvery of your copy incase payment ‘through creditcard, dataofbinhmustbe mentioned, «Al depute shal be eubjacted to De uradton only.IT DISTRIBUTION BLUE aity 1 Ingram Micro 2 Redington 3 HOL Infosystems 4 Savex Technologies 5 Rashi Peripherals 6 Iris Computers 7 Compuage 8 Supertron 9 Neoteric informatique Global Infonet cial TVs to the hospitality industry. It also added Philips to its portfolio. As of date, the company has 43 ware- houses and 30 sales points across the country. HCL Infosystems: FY15 was yet another challenging year for HCL Infosystems as revenues continued to tumble southwards for the third consecutive year. The major or- ganizational and structural changes initiated in FY14 and the decision to discontinue the computing prod- ucts business led to the decline. The enterprise distribution business though achieved good traction by adding new partners like Acer for projectors, Philips for large-format displays and others across AV, in- formation security, server and stor- age spaces. It also entered a strategic alliance with Lenovo India to sell and sup- port Lenovo's entire portfolio of PCs and tablets through its wholly owned subsidiary. In FY15 only, Prem Ku- mar Sheshadri took over as the new 68 | Soptombor 30, 2015 15,823 12% 14610 1% 6239 10% 5,980 5% 2,980 3% 2723 44% 2129 6% 1,975 25% 1,606 ™% 1,237 12% Source: D0 Estimates MD. Channel veteran Bimal Das from Ingram Micro and services veteran Biswanath Bhattacharya from HP also came on board, Rashi Peripherals: For Rashi Pe- Tipherals, FY15 was one of its best performing years in recent times. ‘While it witnessed 36% growth YoY, its CAGR for the last 10 years has been 29%. This made the company ‘one of the fastest growing national distributors in the country. The in- crease in market share within the ex- isting brand portfolio accounted for about half of this total growth while the remainder came from adding new brand portfolios. The unique strategy that worked for Rashi is working 365, days along with faster decision mak- ing process and empowerment at the branch level. Tier-2 players Iris Computers, Su- pertron Electronics, and Global In- fonet registered double-digit growth In the last fiscal. Post-acquisition, the distribution business of Iris has witnessed major growth signs. This woww.daindia.com FY15 was yet another challenging year for HCL Infosystems as revenues continued to tumble southwards for the third consecutive year year too, the company registered 44% growth over the previous year. Kolkata-based Supertron Electronics also registered 25% growth in FY15. THE WAY FORWARD Looking at FY16, the distributors are expectedto enhance customer focus through restructured and integrated business groups, Vendors lke HP b- fureating on hardware and software into two independent entities Is ex- pected to create more focused op- portunities for dlatbutors and chan hel partners. But cash crunch and flow would be one big challenge for distributors and they need to man- age It judiciously. The realignment of business in an integrated fashion across consumer, commercial cloud et als also expected to deepen its mandates. in all, FY16 looks lke @ farbetter year as compared to FY'5, however, much also depends on the technalogy refresh cycles end Its the emerging tech areas that offer bigger scope for all distibutors. © ‘A CyberMedia Publication | DATAQUESTACTIONABLE INCISIVE ERTAINI WHAT ELSE WOULD YOU EXPECT FROM AN INDUSTRY a INT | ONLINE | EVENTS | CUSTOM | TABLETS S, mail to: marketing@cybermedia.co.inMONITORS AND PROJECTORS Going Steady Monitor market manages to maintain its foothold despite rising popularity of smartphones and tablets, while projector market continues to grow, riding on the strong demand from SMBs and the education sector ei ————— fter witnessing a slowdown in the last few years, PC moni- tor market is going steady. This is in line with trends in the PC market, which in FY15 was able to contain its degrowth to 19% as com- pared to 7% in FY14, ‘The demand can be attributed to growing push in government and BFSI verticals on cigitization. Also, there is a consistent market that gives preference to desktops over mobile devices. This is especially true for sectors lke manufacturing and heavy graphic work like design, architec- ture, etc. Further, with PC penetration increasing in rural India, the demand for PC displays is expected to remain intact and India as a country will con- 70 | September 30, 2015 tinue to outperform the developed economies in the segment. The PC monitor market in India in FY15 was dominated by LG, Sam- sung, Acer, and AOC. According to reports, key players are eyeing great- er traction in the standalone monitor market segment in the coming years and delivering innovative products to grab the market share, KEY TRENDS Since the last few years, LED back- lit monitors have been stealing the show. In line with the global trend, LED monitors have overtaken their LCD counterparts. This can be at- tributed to leading vendors discon- tinuing production of LCD technology based models and at the same time promoting the LED form factor. woww.daindia.com Jasmine Kohli | jasminek@cybermedia.co.in at AOC lg Samsung Acer Another major trend that is expected to witness greater demand in the com- ing years is touchscreen monitors. AS the popularity of tablets and smart- phones continue to rise, many leading players ike Dell, Samsung, LG, ete, are launching touchscreen monitors. The demand for big monitors also continues to grow, with more and more users opting for larger screens, According to industry reports, de- mand for displays 32-inches and above is on the rise. PROJECTOR MARKET The Indian Digital Projector market is witnessing considerable growth as the demand continues to be gen- erated by the IT, corporate, media & entertainment, cinema, rental, BPO, and education sectors. Beyond this, demand in the gaming and home en- tertainment market is also on the rise. As per a report by Futuresource Consutting, the projector market in India grew by 8% in volume YoY in 2014 with a total unit sale of 232,000 projectors. The education sector has been the biggest driver of projector sales in India, further boosted by the ‘A CyberMedia Publication | DATAQUESTgovernment's Digital India campaign. Projectors play a key role within the digitization of education, as the pri- mary devices to deliver digital con- tent to schools cost-effectively, As a result, the sale of educational system integrators is booming by catering to the growing requirement of AV equip- ‘ment in educational institutions. This trend has expanded from private to government schools due to increased government spending on education. Educational system integrators like Educomp, Edurite, Tata Interactive, Next Education and others continue to play an important role in the in- creased projector sales in India. The home and small office home office (SOHO) segment has. shown high potential with the advent of HO, 8D and WiFi support features within current projector models. This growth in enterprises and small and medium businesses has created a simultane- (ous uptick in the demand for monitors. MARKET DYNAMICS The digital projectors market in India is a highly cluttered one, with esti- ‘mates of around 20 players. In terms of market visibility, BenQ, Epson, ‘Acer, Hitachi, Vivitek, InFocus, NEC, Panasonic, Sony, and Dell occupy the top space. ‘According to a report by Future- source Consulting, BenQ emerged as the leader in the Indian Projector Mar- ket in 2014 with 19.11 % market share, ‘To stand outin the fragmented seg- ‘ment, vendors are focusing on newer technology and launching innovative products to suit different price points. Toru Hasegawa, Divisional Manag- ing Director, Solutions Division, Pa- rnasonic India says, “We are uniquely positioning ourselves in the market by offering varying levels of technol- ogy at different price points. In the projector market, our product line ex- tends from entry level (2,700 lumens) DATAQUEST | A CyberMedia Publication TOP PROJECTOR PLAYERS Bend Epson Acer Hitachi to high-end models (20,000 lumens), which allows us to harness multiple consumer verticals. We are one of the few vendors that provide inexpen- sive solutions for SOHOs and SMBs, which is becoming a growing seg- ment in the business market. After having expanded our low-end portfo- lio, our product focus will now be on mid-level and high-end models.” ‘Commenting on the product line, Hasegawa further said, “In the last ‘two years, our focus has been on providing low-end range projectors and flat-panel display solutions, tar- geted at B2B and B2G businesses. Besides portable projectors, our tri- partite product line included LED LCD displays from §5- to 80-inches, plasma range from 42- to 103-inch- ‘es, and professional plasma ranges from 85 to 152-inches.” The market leader BenQ is contin- ting to focus on the home entertain- ment segment through its living room video projectors while reinforcing its leadership position in education though its wide range of short throw, ultra-short throw and XGA projectors. It is also focusing on the DLP tech- nology-based projectors, which have ‘gained traction in the last few years. ouTLooK With tech-savvy consumers display- ing a demand for high-quality optics, large-format wide screen require- ments are becoming the norm. Look- ing ahead, projector industry doesn’t show any sign of slowing down, riding on the demand generated by ecucatign sector, SMES, ard home woww.dqinl Toru Hasegawa Divisional Managing Director, Solutions Division, Panasonic India In the last two years, our focus has been on providing low-end range projectors and flat-panel display solutions, targeted at B2B and B2G businesses September 30, 2015 | 74STRUCTURED CABLING Two Worlds Coexist! NBase-T development promised extended lease of life for Cat 6 and number of macro- ‘economic factors, contributed to a re- covery in the struc- tured cabling indus- try, which had seen ‘a somewhat slower growth in the recent past years. In particular, the launch of the Digital India program, which encompasses components such as smart cities and industrial corridors, is expectedly providing a long-term filip to the cabling industry. In the context of mega projects 72 | September 30, 2015 such as the smart cities, structured cabling players are firming up part- nnering considerations with system integrators and consulting firms such as IBM, TCS, Wipro, and HCL to bet- ter align with the specifics of the po- tential projects. More generally, as video becomes an increasingly important part of en- terprise communication as well as in the digital homes, the preferences are shifting in favor of higher-catego- ry structured cabling solutions that ‘are Cat 6 or higher so as to support woww.daindia.com bandwidth intensive applications such as video conferencing, VoIP calling, online gaming, YouTube, and IPTV. KEY MARKET DEVELOPMENTS TE Connectivity has further sharp- ened its focus on the structured ca- bling business after it made a global sale ofits Broadband Network Solu- tions (BNS) business unit to Com- mScope for $3.0 bn. (The sale does not include TE’s subsea communica- tions or data communications busi- ‘A CyberMedia Publication | DATAQUESTnesses, which also reported into TE’s Network Solutions segment) STRUCTURED CABLING SYSTEMS TE Connectivity is understood to PUR M@um SUES be working actively to tap into the opportunities presented by new seg- ‘ments such as smart cities, among other areas. As it works closely with system integrator partners to help TE Connectivity 523 a them get to speed with nuances of Schneider Electric 393 367 7% instaling new cabling solutions, it r i hopes to develop an ecosystem of Comoe ls certified partner in the process. Ones 565 765 28% CommScope, which offers Is slu- Tota sutured tions under two enterprise brands— Cabing Systems 1,758 1.609 % Systimax and Uniprise, has also Mati upped: focus. in the} India| market: Others include Molex, DLink, R&M, Belden, Panduit, Belkin, DAX itis well-positioned to leverage its service provider business for grow- OT tena eh ee rey PERT ing the enterprise cabling business : and vice versa. It would also expect Structured Cabling Systems Market Share to benefit from its local manufactur ing investment made ahead of the government's Make in naa program, Ithad set up 25,000 sq mt state-of the-art facility in Goa, which is one temang four of ts large global fa tes, india has become an important market for all the global vendors and most of them have a presence in the country. Apart from TE Connectv- ‘ity and CommScope, the other key player in the market include D-Link, Molex, Schneider, REM, Sterite, Lov. itan, Belden, Bekin, Panduit and Dax Networks. Tre ct cours sl 22% ey vance even as the bandwidth require- Schnedier o wna an ra og. tc am spe ha aah wcrc! or CommScope port for cabling standarde promige to Company % Share in Overall Structured Cabling Systems ive copper cables extended lease of Revenue of 1,758 crore lite 8D Ceca nse nay Suey 204-15 DATAQUEST | A CyberMedia Publication ‘wownw.dqindia.com September 30, 2015 | 73STRUCTURED CABLING IEEE has been working to bring 25G and 5G Ethernet speeds to existing cables like Cat 5e and Cat 6 and has formed a study group to understand the need for these new speeds. This would make it possible for a number of enterprises to use their existing cable assets to run ap- plications that require more than 1G Ethernet but can do with less than 10G. The addition of the 2.56 and 5G Ethernet lik protocol speeds will enable the cost effective scaling of network bandwidth delivered to en- terprise access points and provide TT professionals with more data rate options, it says, With active networking vendors an- nouncing port-level support for 2.5G and 5G Ethernet, the opportunity for enterprises to protect their existing Gat Se and Cat 6 infrastructure in- vestments has become very much real. In January 2015, Cisco's enterprise networking group announced the company was adding 2.5 Gbps and 5 Gbps por to several ofits switch- es. The ports would incorporate the technology behind NBase-T, and would essentially be purpose-built to support 802.11ac Wave 2 wire- less access points with the installed base of Cat Se or Cat 6 cabling. (it is notable that the 802.11ac Wi-Fi standard has been developed to support very high throughput of the order of 1Gbps by making use of up to 160 MHz wide channels in the 5 GHz band. This, in tur, could poten- tially choke the LANs running on the Cat 6 standard or below, so the IEEE workaround in the form of NBase-T has been very timely) ‘Another development that has been helping the copper cabling segment is the continued low cost of copper in the global market. This enables the industry to keep doing technological innovations, particularly in the un- 74 | September 30, 2015 Advanced applications in enterprise networks and the rapid proliferation of wireless computing devices that access the cloud are driving the demand for speedier cabling solutions shielded twisted pair (UTP) segment, while keeping the prices competitive ‘enough for the India market. These developments give enter- prises sufficient confidence to keep investing in Cat 6 as a reasonably future-proof technology for their hori- zontal cabling needs. At the same time, for vertical cabling as well as for application areas such as data cent- fers, network administrators are opt- ing for a mix of fiber and advanced copper solutions such as UTP Cat 6a. The advanced applications in enterprise networks and the rapid proliferation of wireless computing devices that increasingly access the cloud infrastructure are driving the demand for these speedier cabling solutions, In datacenters, fiber is considered {a5 an appropriate medium for sup- porting mission-critical applications. woww.daindia.com While installing optical fiber cables might be on an expensive side in the beginning, as compared to traditional solutions, it has its own future ben- fits, especially given the rapidly ris- ing enterprise mobility needs and the consequent benefits of having fiber in the backbone, Fiber is also benefi- cial since it can be laid out for longer distances and is immune to electro- magnetic interferences. This makes it useful in campus installations as well. The 4G rollouts are also likely to drive FTTH and FTTP adoptions, civen the need to support WiFi offload- ing in the enterprises. Fiber is a pre- ferred choice since it is better suited to meet the exponential data growth associated with wireless broadband networks like 3G and 46. WIRELESS AS A KEY DRIVER, Wi-Fi has had a dual impact on the structured cabling market and serves both as a driver and an inhibitor, de- pending on the context or the appli- cation. For example, Wi-Fi enabled devices significantly reduce the need for cabling within a workplace and it often suffices to run the cables to the access points only. However, the need for mobility also drives the deployment of cabling in places like cafeteria, gym and even outdoors in case where enterprises have a cam- us environment, Similarly, the in-building solutions used to extend coverage for mobile networks such as 3G and 4G LTE of- ten make use of small cells that could be powered by Ethernet cabling. Ex- tending the cabling deployment to support power requirements of these ‘small cells is also a driver for the ca- bling market, and more so as these LAN cables could be used to offload mobile data and thus reduce traf- fic on the macro networks in a given area. @ Source: Volce&Data ‘A CyberMedia Publication | DATAQUESTFaster-than-the PAIN 0 1 G b The new range of Optinet Structured Cabling Systems offers you LAN cables, ver ps connectors and components for high speed and superar performance backed by decades of manufacturing expertise. Ths is not all. 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