Enterasys Networks, with its concentration on the enterprise space, emerged
as the second largest vendor in the data networking space, with an annual
estimated sales revenue of Rs 315 crore. The success for Enterasys comes due to
its focus and approach on the changing market conditions. It opted for a
solutions route in association with key technology vendors. It adopted the SAM
model–security, availability, and mobility. For the company, almost 80 percent
of its revenue is on account of switch sales. In the FY 2001-02, Enterasys also
concentrated on adding new partners–Ramco, Tata Elxsi, QI Networks, HCL
Infosystems, and Wipro’s Professional Services.
Traditionally, Enterasys has been strong on the manufacturing, IT, and the
government fronts. But due to the slowdown in the IT sector, it focused more in
the banking and finance, and education sectors. As a result, it was able to rake
in about 20 percent from this segment. The bulk, about 30 percent, of its
revenue, however, came from the government sector. It had seen some direct deals
which were $500,000 and above from Axes Technologies, Motorola, Lucent, Veritas,
SAGE, GE, and Philips. Some of these had repeat orders also. The largest order
for the company was the MAN project from BSES Telecom. This year, the company
plans to consolidate its market position with a heavy focus on the SME market
and the tier 2-3 cities.
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