Dax Networks shifting focus to SMB Market

By VARINDIA - 2010-02-18

Dax Networks shifting focus to SMB Market

Why are you focussing on SMB market at large?
SMB is one of the fastest-growing markets. SMBs are considered to be the growth driver for many IT companies.

Small- and medium-sized businesses in India today have unprecedented access to new markets, suppliers, and customers; it is truly a global marketplace today. They are constantly looking at shaping industry conditions and understanding holistic solutions that their customers seek in order to help them pursue a quantum leap in value to dominate the market.

Indian SMBs today are focussing to increase their business relationship, operational efficiency, employee productivity, customer responsiveness, cost containment, network security and their agility to react to competitive pressures and high-speed business changes.

The company’s primary focus has been to bring in world-class products to India and provide India-centric solutions that enable domestic firms to save on networking capital expenditure. We improve the product usability as we Indians believe in continuing solutions for a longer period of time and do not adopt a use and throw approach.

How are you going to tap this market?
We have planned to tap the SMBs through our extensive network of ADSPs by offering Dax package of network Infrastructure solutions which include Core NI Solutions, Structured Cabling NI Solutions, Voice NI Solutions, Convergence NI Solutions and Data Acquisition and Device Management Solutions. And, these scalable solutions will be marketed by our ADSPs across the addressable market. Dax has introduced new-generation networking access and connectivity products to meet the growing of the SMB market along with the traditional S, C & R solutions.

There are many other companies as well, targeting SMB market aggressively. How do you plan to take up this competition?
We believe our solution-based approach could be a differentiator. We empower our channels to deliver value add to their portfolio we are offering our extensive “solution-based” approach, which can be tailormade to suit the specific customer’s main business line. This gives an edge to our partners in providing solutions which can turn as business enabler.

What is your go-to-market strategy?
SMBs are looking for customized solutions and products that would cater to their unique customer requirements and applications. SMB customers are more prone to deploy solution-based offering than a mere product. To empower our channels to deliver value add to their portfolio, we are offering our extensive “solution based” approach, which can be tailormade to suit the specific customer’s main business line. This gives an edge to our partners in providing solutions which can turn as business enabler.
Our Channel thrust focusses on:
· Targeting regional sales across the country
· In reaching SMBs and the niche market
· Supporting customers in terms of total Service Level Agreement (SLA) relating to 99.9% network uptime

What is your market share?
Dax Market Share for 2008-2009:
· Routers: 2.7% with Rs.54 crore revenue (Total Market Revenue: Rs.2,000 crore)
· Switches: 1.3% with Rs.29 crore revenue (Total Market Revenue: Rs.2,350 crore)
· Structured Cabling: 0.9 % with Rs.13 crore revenue (Total Market Revenue: Rs.1,324.48 crore)
With the adoption for solution-based approach, we have geared up to acquire the position of # 3 in routing, # 4 in Switching and #9 in structured cabling, according to 2008-2009 V&D Ranking.

Do you have any special plans/ trainings for channel partners to cater to SMB market?
Dax has designed and implemented many mission-critical networks, large enterprise networks and even some technically challenging SMB networks (always through partners). The efforts of Dax Partners and their Marketing team have contributed substantially to meeting our objectives. Everyone knows that for a Networking Principal, the most important link to the market is the System Integrator's (SI) Marketing Team. The Dax Drona Reward Program has been rolled out to reward the Dax SI's Marketing Team Members for their support.

For every Dax product sold, points are rewarded to a specific member of the Partner's Marketing Team, for efforts put in to promote/build-in Dax products into the End-User's networking solution. This team member is called a “Drona”.

Owing to our rich 20-year experience of networking in India, we at Dax have a deep understanding of the networking requirements and challenges in Indian enterprises. We share this understanding and knowledge with our community partners through our technical training programmes.

Schemes alone do not boost sales. If RoI can be justified, industry is willing to spend. The key is to suggest suitable solution, which will address the current requirement as well as result in significant cost savings, despite pricing factor playing a major role. SMBs are looking for customized solutions and products that would cater to their unique customer requirements and applications.

What are the products that you are pushing for SMB market?
Routers, Switches, End–to–End Structured Cabling, Data Acquisition and Device Management, Network Storage, IP Surveillance, LAN Extenders, etc.

How important are tier II & III markets for you?
Tier-II and tier-III are very important to us. We are focussing on partners in locations such as Coimbatore, Cochin, Aurangabad, Guwahati, Gwalior, Nagpur, Pune, Berahampur, etc., though they are very small operations the business deliverables would make a great difference in the market.


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