The acquisition of the enterprise communication business of Ericsson by
Aastra Technologies will have a long-term impact on the Indian market. With this
acquisition, Aastra, which has grown rapidly by protecting its customers'
investment while offering a roadmap for customers to evolve to IP
communications, will have a globally installed base of enterprise communication
customers with presence in Western Europe. The acquisition has also ensured an
extended footprint in key markets across Eastern Europe, the Middle East,
Africa, Asia Pacific, and North and South America. And, post this acquisition,
it was time for the top management to go-to-market with their view about the
short term and long-term business plans. Hugh Scholaert, regional group
president, Aastra Technologies, was in India to chalk out its India strategy.
Excerpts
What are the key challenges Aastra Technologies would face in the Indian
market following the acquisition of Ericsson's enterprise business division?
Our strategy was to become a global player, and this finally culminated with
the acquisition of Ericsson's enterprise business. Post acquisition, we have
indeed become one of the top players in the EMEA market.
Though, in India we will have several challenges starting with the fact that
we are not a global brand name. The major challenge is to increase our company
awareness and of our solutions that would help Indian businesses to have more
efficient communication infrastructure. Besides, we need to increase our market
reach in India, and the building up of our channels will require lot of
investment in local competence.
What will be the main shift in your strategies as compared to Ericsson's
business approach in India?
Our way of working is totally different from Ericsson's. Our model is much
decentralized. And this has led to major changes in our local organizational
strategy. Each of our country sales unit or market unit has full control of
their local go-to-market strategy. This includes channel development and the
choice of products to be launched in each channel. In the Indian market, we
expect that this should add a broader portfolio while our local team strengthens
our channels. As such, we also expect a renewed focus on building up local
competence in terms of presales and after sales support. We will further
continue to build on Ericsson's success by supporting all existing products and
applications, and by providing a smooth migration path to new technologies.
What according to you are the new trends in India?
The growth of the IP telephony market, coupled with enterprise demand on
converged communication is a much talked about area. The fall in bandwidth
prices has spurred this growth. In India of course, there has been a major
growth in the domestic contact center market, an area where we have
market-leading solutions, and this has brought in major growth in the enterprise
voice communication space as well. Finally, solutions like unified
communications and mobility, which have been our major focus areas globally, are
the buzzwords in the enterprise world with customers wanting to deploy
technologies which could better support them in future.
The global economy is slowing down and in the scenario how are you
planning to maintain growth?
Contrary to the general global slowdown, India has still not experienced any
major slowdown. Although, it has impacted the IT/BPO sector, we are still
witnessing growth in sectors like hospitality, real estate, and BFSI. In our
case, the products under our spectrum cater to all segments (SMB, LME, and the
high-end segment). In addition, applications in our portfolio like unified
communication, mobility, and multimodal contact centers, as well as some of our
terminals are either based on open standards or are simply platform agnostic,
allowing us to address much more than our traditional installed base.
What are your future plans for India?
We have chalked out a two-prong strategy, keeping in view the fast changing
market demands, especially in the enterprise space. In short term, we are
planning to increase our market reach, strengthen existing channels, and build
up local competence. And in the long-term, we plan to launch new product
portfolios in new markets, increase channels, and start initiatives for brand
awareness.
Is India the right market for your acquisitions? What are your plans?
Since the acquisition is global, viewing it from a single market perspective
would not be the right approach. However, from our global strategy perspective,
India is a focus country from the management's point of view. We are a global
leader on SIP platforms and are also acting as OEM to major enterprise players
offering solutions for the same. Going forward we will concentrate our effort to
launch our latest SIP products in the Indian market. We are also building up a
state-of-the-art experience center, which will house our technological
innovations for customers to interact with at our corporate office in the Noida
IT Park.
Sunny Sen
sunnys@cybermedia.co.in