IT Infrastructure Market in India 2014-2018

2014-2018 IT Infrastructure Market in India
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CONTENTS
01. Executive Summary ..............................................1
02. List of Abbreviations ..............................................2
03. Scope of the Report ..............................................4

03.1 Market Overview ................................................................. 4
03.2 Product Offerings................................................................. 4
04. Market Research Methodology ...........................7

04.1 Market Research Process ................................................... 7
04.2 Research Methodology ...................................................... 7
05. Introduction ...........................................................9

06. Market Landscape ..............................................11
06.1 Market Overview ............................................................... 11
06.2 Market Size and Forecast ................................................. 13
06.3 Five Forces Analysis .......................................................... 15
07. Market Segmentation by Products ....................17

07.1 IT Infrastructure Market in India ....................................... 17
07.2 Server Market in India ....................................................... 19

07.2.1 Market Size and Forecast ....................................................................... 19
07.3 Storage Market in India .................................................... 20

07.4 Network Equipment Market in India................................ 21
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08. Market Segmentation by Technology...............22

08.1 Network Equipment Market in India................................ 22
08.2 Enterprise LAN Market in India ......................................... 24

08.3 Enterprise WAN Market in India ....................................... 25

09. Buying Criteria .....................................................26
10. Market Growth Drivers ........................................27
11. Drivers and their Impact .....................................29

12. Market Challenges .............................................30
13. Impact of Drivers and Challenges .....................32
14. Market Trends ......................................................33
15. Trends and their Impact .....................................35
16. Vendor Landscape .............................................36

16.1 Competitive Scenario ....................................................... 36
16.1.1 Key News ................................................................................................... 36
16.2 Market Share Analysis 2013 ............................................. 37
16.3 Other Prominent Vendors ................................................. 40

16.3.1 D-Link .......................................................................................................... 40
16.3.2 EMC ............................................................................................................ 41
16.3.3 Huawei ....................................................................................................... 41
16.3.4 Juniper Networks ..................................................................................... 42
16.3.5 NetApp ...................................................................................................... 43

16.3.6 Oracle ........................................................................................................ 43
16.3.7 Smartlink Network System ...................................................................... 44
16.3.8 TP-LINK ........................................................................................................ 44
17. Key Vendor Analysis ...........................................46

17.1 Cisco Systems .................................................................... 46
17.1.1 Key Facts ................................................................................................... 46
17.1.2 Key Information ........................................................................................ 47
17.1.3 Business Overview .................................................................................... 47
17.1.4 Business Segmentation by Revenue .................................................... 48
17.1.5 Business Segmentation by Revenue .................................................... 48
17.1.6 Geographical Segmentation by Revenue ........................................ 49
17.1.7 Business Strategy ...................................................................................... 49
17.1.8 Recent Developments ........................................................................... 50
17.1.9 SWOT Analysis ........................................................................................... 51
17.2 Dell ...................................................................................... 52

17.2.1 Key Facts ................................................................................................... 52
17.2.3 Business Segmentation by Revenue 2013 ........................................... 53
17.2.4 Business Segmentation by Revenue 2011-2013 ................................. 54
17.2.5 Sales by Geography 2013 ...................................................................... 54
17.2.8 SWOT Analysis ........................................................................................... 56
17.3 HP ........................................................................................ 57
17.3.1 Key Facts ................................................................................................... 57
17.3.3 Business Segmentation by Revenue 2013 ........................................... 58

17.3.4 Business Segmentation by Revenue 2012 and 2013 ......................... 59
17.3.5 Geographical Segmentation by Revenue 2013 ............................... 59
17.3.8 SWOT Analysis ........................................................................................... 61
17.4 IBM ...................................................................................... 62

17.4.1 Key Facts ................................................................................................... 62
17.4.2 Business Description................................................................................. 63
17.4.3 Business Segmentation ........................................................................... 63
17.4.4 Revenue Segmentation by Business Segment .................................. 64
17.4.5 Revenue Segmentation by Business Operation ................................ 65
17.4.6 Revenue Comparison of Business Segments 2012 and

2013 ................................................................................................................ 65
17.4.7 Revenue Segmentation by Geography ............................................. 66
17.4.9 Key Developments .................................................................................. 67
17.4.10 SWOT Analysis ......................................................................................... 68
18. Other Reports in this Series .................................69

EXHIBITS
Exhibit 1: Market Research Methodology ....................................... 7
Exhibit 2: Segmentation: IT Market in India 2013 ........................... 11
Exhibit 3: Market Share: IT Infrastructure Market in India.............. 12
Exhibit 4: Market Overview: IT Infrastructure Market in

India ................................................................................ 12
Exhibit 5: IT Infrastructure Market in India (US$ million) ................ 13
Exhibit 6: IT Infrastructure Market in India by Product

Segmentation 2013 .......................................................... 17
Exhibit 7: Market Share: IT Infrastructure Market in India

2013-2018 ......................................................................... 18
Exhibit 8: Server Market in India (US$ million) 2013-2018 ............. 19
Exhibit 9: Storage Market in India (US$ million) 2013-2018........... 20
Exhibit 10: Network Equipment Market in India (US$ million)

2013-2018 ......................................................................... 21
Exhibit 11: Network Equipment Market in India by

Technology 2013 ............................................................. 22
Exhibit 12: Market Segmentation: Network Equipment

Market in India 2013-2018 .............................................. 23
Exhibit 13: Enterprise LAN Market in India 2013-2018 (US$

million) .............................................................................. 24

Exhibit 14: Enterprise WAN Market in India 2013-2018 (US$

million) .............................................................................. 25
Exhibit 15: Segmentation of Server Market in India by

Vendor 2013 ..................................................................... 37
Exhibit 16: Segmentation of Storage Market in India by

Vendor 2013 ..................................................................... 38
Exhibit 17: Enterprise Wireless LAN Market in India by

Vendors 2013 ................................................................... 39
Exhibit 18: Ethernet Switch and Router Market in India by

Vendor 2013 ..................................................................... 40
Exhibit 19: Cisco Systems: Business Segmentation by

Revenue 2013 .................................................................. 48
Exhibit 20: Cisco Systems: Business Segmentation by

Revenue 2011-2013 (US$ billion) .................................... 48
Exhibit 21: Cisco Systems: Geographical Segmentation by

Revenue 2013 .................................................................. 49
Exhibit 22: Dell: Business Segmentation by Revenue 2013 ............. 53
Exhibit 23: Dell: Business Segmentation by Revenue 2011-

2013 (US$ billion).............................................................. 54
Exhibit 24: Dell: Sales by Geography 2013 ...................................... 54
Exhibit 25: HP: Business Segmentation by Revenue 2013 ............... 58
Exhibit 26: HP: Business Segmentation by Revenue 2012

and 2013 (US$ million) ..................................................... 59
Exhibit 27: HP: Geographical Segmentation by Revenue

2013 .................................................................................. 59

Exhibit 28: IBM: Business Segmentation ........................................... 63
Exhibit 29: IBM: Revenue Segmentation by Business 2013 ............. 64
Exhibit 30: IBM: Revenue Segmentation 2013 ................................. 65
Exhibit 31: IBM: Revenue Comparison of Business

Segments 2012 and 2013 (US$ million) .......................... 65
Exhibit 32: IBM: Revenue Segmentation by Geography

2013 .................................................................................. 66

IT Infrastructure Market in India 1
01. Executive Summary

 2013: US$1,862.5 million
Market Size
 2018: US$2,535.4 million
 2014 4.55 percent

Market Growth Rate
 2018: 7.41 percent
CAGR  6.36 percent
 Large Enterprises
Key Customer Segments  Medium-sized Enterprises
 Small Enterprises
 Infrastructure Modernization and Consolidation

 Increased Government Spending and Supported Reforms
Key Market Drivers
 Increased Need for Cost Benefits
 Increased Connectivity
 Storage Technology Knowledge Gap

 Energy Management and Capacity Planning
Key Market Challenges
 Issues Related to Limited Expenditure
 Increased Commoditization of Storage and Network Equipment
 Increase in Server Demand across the Industry

 Adoption of Co-location and Cloud Services
Key Market Trends
 Rising Number of Specific Service Providers
 Growing Usage of DID
 Cost-effectiveness
 Quality Orientation
Key Buying Criteria
 Reliability
 Technical Knowledge
 Cisco Systems Inc.

 Dell Inc.
Key Vendors
 HP Co.
 IBM Corp.

02. List of Abbreviations

ADC - Application Delivery Controllers
ADSL - Asymmetric Digital Subscriber Line
APAC - Asia Pacific
BFSI - Banking, Financial Services, and Insurance
CIBIL - Credit Information Bureau India Ltd.
CRM - Customer Relationship Management
DID - Datacenter in Datacenter
DVS - Digital Video Surveillance
ELCIA - Electronics City Industries Association
EMEA - Europe, the Middle East, and Africa
ERP - Enterprise Resource Planning
ESP - Evolved Service Platforms
IoT - internet of Things
LAN - Local Area Network
LTE - Long-term Evolutions
NAS - Network Attached Storage
OS - Operating System
SaaS - Software-as-a-service
SAN - Storage Area Network
SDN - Software-defined Network
SMB - Small and Medium Business

SME - Small and Medium-sized Enterprise
SSL - Secure Sockets Layer
UCS - Unified Computing System
UPS - Uninterruptible Power Supply
VAR - Voice Access Router
VDI - Virtual Desktop Infrastructure
VDSL - VHBR Digital Subscriber Line
VHBR - Very High Bit Rate
VOIP - Voice Over internet Protocol
VPN - Virtual Private Network
WAN - Wide Area Network
WLAN - Wireless Area Network

03. Scope of the Report

03.1 Market Overview
This report covers the present scenario and the growth prospects of the IT Infrastructure market in
India for the period 2014-2018. To calculate the market size, the report considers revenue
generated from three segments: Storage, Server, and Network Equipment. Network equipment
comprises revenue generated from enterprise LAN services and enterprise WAN services. Major IT
companies in India are now investing in internet infrastructure to enhance their revenues and
operational efficiencies. The core area of focus of major IT firms has been wireless internet
access that targets the introduction of e-commerce and development of IT infrastructure.
The report also presents the vendor landscape and a corresponding detailed analysis of the top
four vendors in the IT Infrastructure market in India, analyzed by domain, functions, and buyer
focus. In addition, the report discusses the major drivers that influence the growth of the IT
Infrastructure market in India. It also outlines the challenges faced by vendors and the market at
large, as well as the key trends emerging in the market.
03.2 Product Offerings

Some products offered by major vendors in the IT Infrastructure market in India are listed below:
Company Products Offered
Cisco Systems  Application Networking Services

 Blade Switches
 Cloud and Systems Management
 Collaboration Endpoints
 Connected Safety and Security
 Customer Collaboration
 Data Center Management and Automation
 Data Center Switches
 Interfaces and Modules
 Networking Software
 Optical Networking
 Routers
 Security
 Servers - Unified Computing
 Service Exchange
 Storage Networking

 Switches
 Unified Communications
 Wireless
Dell  Tower Servers

 Rack Servers
 Blade Server Solutions
 Density-optimized Servers
 Shared Infrastructure
 Power Management
 Server Systems Management
 Network Attached Storage
 Storage Area Network
 Direct Attached Storage
 Storage Software
 Data Protection
 Dell Networking Switches
 Wireless Networking
 Basic Ethernet Switches
 Chassis Switches
 PowerEdge M-Series Blade Interconnects
 Server Network Adapters
 Network Management
 Fiber Channel Interconnects
 Network and Data Security
 Dell Networking OS 9
 Dell Netshelter SX racks
 Console Switches
 Dell Smart-UPS
 Network Security
 SSL VPN Secure Mobile Access
 Email Security
 Centralized Management and Reporting
 Endpoint Security
 Client Systems Management
HP  BladeSystem Server
 Hyperscale Server
 Mission-critical Server
 Rack and Tower Server
 Rack and Power Infrastructure
 Converged Storage
 Backup, Recovery, and Archive
 Primary Storage

 Software-defined Storage
 Small and Midsize Business Solutions
 Storage Product Selector
 Switches
 Network Security
 Network Management
 Application Delivery Platforms and Solutions
 Wireless LAN Routers
 Rich Media Communications
 Transceivers and Accessories
IBM  System Networking

 PureSystems
 Power Systems
 System z
 System x
 Blade Enter
 UNIX Servers
 Linux Servers
 Storage
 Entry-level Servers and Storage Products
 Disk Systems
 Flash Systems
 Tape Systems
 Storage Area Networks
 Network Attached Storage
 Storage A - Z

04. Market Research Methodology

04.1 Market Research Process
TechNavio has collected key data related to the IT infrastructure Market in India and analyzed
these data using a variety of methods. The market dynamics have been ascertained following a
detailed study of the micro, meso, and macroeconomic indicators of the market.
04.2 Research Methodology

This report is based on in-depth qualitative and quantitative analyses of the IT Infrastructure
market in India. The quantitative analysis involved the application of various projection and
sampling techniques. The qualitative analysis involved primary interviews, surveys, and vendor
briefings. The data gathered as a result of these processes were validated through experts'
opinions.
Exhibit 1: Market Research Methodology
IIT Infrastructure
Market in India 2014-
2018
Source: TechNavio Analysis

Based on the research results and technical insights thus gathered, TechNavio analysts have
provided a comprehensive analysis of the varied aspects of the market. The impact of global
economic conditions and other macroeconomic indicators was also considered when assessing
the market.

05. Introduction
IT infrastructure refers to the composite hardware, software, network resources, and services
required to run IT-related operations and manage an enterprise IT environment. It allows an
organization to deliver services pertaining to IT-based solutions to its employees, partners, and
customers. It is usually internal to an organization and deployed within owned facilities. IT
infrastructure consists of all components that play an important role in overall IT and IT-enabled
operations. It can be used for internal business operations and to develop customer business
solutions. The Indian IT infrastructure market comprises server, storage, and networking
equipment.
Currently, Indian enterprises focus on building intelligent data centers that aim to optimize
existing hardware assets by using additional software capabilities. This is expected to drive
increased focus on emerging trends such as public cloud and integrated systems. Enterprise
Networking Equipment is the biggest segment, with revenue expected to touch US$891.3 million
in 2014. Virtualization and data center consolidation along with cloud and mobility are the key
trends influencing network purchases. The Storage market is growing at a fast pace to reach
US$383.9 million in 2014, an 11.21 percent increase from 2013. Storage modernization and
consolidation, backup and recovery, and disaster recovery are some major drivers in this
market, and they are expected to play an important role during the forecast period. The IT
Infrastructure market in India is expected to grow at a CAGR of 6.36 percent over the forecast
period.
The IT Infrastructure market in India is growing at a moderate pace. One of the prominent factors
driving the market is the increased adoption of IT infrastructure modernization and consolidation.
Enterprises have become more agile while controlling costs to stay competitive. Data center
modernization helps organizations support an agile operation and a mobile workforce. It helps
to resolve some of the issues related to technology-based architectures, and solutions include
convergence and virtualization of storage, servers, networking, and data centers. Another major
trend is increased government spending and supported reforms.
There are some key challenges faced by the IT market in India. One of the major challenges is
the significant gap in storage technology knowledge. Technical education provided by colleges
in India is still not providing the storage technology professionals required to manage big data.
This gap is expected to widen further with the increasing number of companies adopting cloud-
based and virtualization services that require a considerable amount of technology knowledge.
Capacity planning and energy management for big data centers are other major challenges.

Despite these challenges, some important trends adopted in the IT Infrastructure market in India
are expected to influence the market positively. Increased server demand across industry
verticals is one of the major trends. With the rise in the installation of data centers, the IT
Infrastructure market in India is witnessing the benefit of server installations to reduce operation
costs, optimize energy consumption, and increase efficiency. Therefore, the Server market in
India is expected to see remarkable growth during the forecast period. The adoption of co-
location and cloud services is another major trend.

06. Market Landscape

06.1 Market Overview
Exhibit 2: Segmentation: IT Market in India 2013
The IT market in India has registered significant growth over the past few years. It consists of
Hardware, Software, and IT Services segments. The IT Services services accounted for 49.7
percent of the market, with infrastructure support outsourcing and hardware support being the
largest revenue-generating services. Hardware accounted for 30.7 percent of the IT market in
India. Notebooks, tablets, and desktops comprise a major part of the Hardware segment. The
Software segment holds the lowest share, accounting for 19.6 percent of the IT market in India in
2013. It is primarily divided into application development software, system infrastructure software,
and application software.

Exhibit 3: Market Share: IT Infrastructure Market in India
The IT Infrastructure market in India is part of the Hardware market. It accounted for 24.2 percent
of the Hardware market in India in 2013, while the rest of the IT Hardware market accounted for
75.8 percent. The rest of the Hardware market comprises revenue generated from PCs,
notebooks, tablets, peripherals, and other devices.
Exhibit 4: Market Overview: IT Infrastructure Market in India

IT Infrastructure Market in
Server
India
Storage
Enterprise WAN
Network
Equipment
Enterprise LAN

The IT Infrastructure market in India is broadly categorized into three segments: Server, Storage,
and Network Equipment. In addition, Network Equipment is categorized into Enterprise WAN and
Enterprise LAN services. Network Equipment is the biggest revenue-generating segment in the
overall IT Infrastructure market. It is expected that increased investments by companies in
expanding and upgrading their current IT infrastructure will lead to increased investments in
network equipment by most of the end–user industries. Growing acceptance of cloud
computing, virtualization, and digitization is expected to drive demand for servers and storage in
the years to come.
06.2 Market Size and Forecast

The IT Infrastructure market in India was valued at US$1,862.5 million in 2013 and is expected to
reach US$2,535.4 million by 2018, growing at a CAGR of 6.36 percent.
The IT Iinfrastructure market in India is driven by hardware revamping, consolidation of services,

and IT infrastructure resource optimization efforts. The market has witnessed investment in terms
of building new data centers, primarily driven by service providers, which is expected to offer
many opportunities to this market. The Network Equipment market accounted for the biggest
chunk of the market, totaling US$1862.5 million in 2013. Increased acceptance of x86-based
technologies together with continued investment in virtualization are expected to drive server
growth. Virtualization is extending beyond servers and is helping several industry verticals in
private cloud adoption in many leading organizations.
Exhibit 5: IT Infrastructure Market in India (US$ million)

Despite global economic challenges, India leverages strong growth opportunities across the
segments in the IT market. The IT Infrastructure market alone is expected to surpass US$2.5 billion
in 2018. Some emerging trends such as big data, cloud, social analytics and mobility offer real-
time business-driven opportunities that bring a paradigm shift in the way IT infrastructure delivers
business and are expected to impact positively on the IT Infrastructure market in India.

06.3 Five Forces Analysis
Bargaining Power of
Suppliers
(Moderate)
Though buyer companies
have various options to
choose from and can
articulate their needs,
many companies are
dependent for all upgrades
and technology
requirements, making it
difficult for clients to switch
Bargaining Power of
Threat of Substitutes Buyers
Threat of Rivalry
(Moderate) (Low)
(High)
Cuntries such as China, A knowledgeable
Korea, Japan, and Taiwan No huge investment is employee base is the
have been major regions in required to start a new largest requirement for the
developing strong IT venture, leading to a large IT Infrastructure market, as
infrastructure, so Indian number of SMEs, yet few there exist many
companies need to be top and niche players competitive suppliers in the
more innovative to have a enjoy the pricing power market, resulting in the low
competitive edge bargaining power of
suppliers
Threat of New Entrants

(High)
Government policies
promote entrepreneurs by
providing benefits in terms
of tax benefits and building
technology parks

Key
The impact of the five forces is graded on the basis of the intensity and duration of their
influence on the current market landscape. The magnitude of the impact has been categorized
as described below:
 Low - Negligible or no impact on the market landscape

 Moderate - Medium-level impact on the market
 Moderately High - Significant impact on the growth of the market
 High - Very high impact, with radical influence on the growth of the market

07. Market Segmentation by Products

07.1 IT Infrastructure Market in India
The IT Infrastructure market in India is categorized into three broad segments: Network
Equipment, Server, and Storage. In 2013, Network Equipment was the largest segment,
accounting for 45.5 percent of the market, while the Server segment accounted for 35.9
percent. The Storage segment held the lowest market share with 18.5 percent share, yet it has
witnessed the fastest growth over the past few years.
Exhibit 6: IT Infrastructure Market in India by Product Segmentation 2013
Indian IT organizations are making immense changes from a distributed IT setup to a more
efficient, manageable, and centralized model that leads to the consolidation of branch and
remote IT resources. For in-house data centers owned by organizations, companies are looking
for strategic partners to optimize the usage of data center resources. Though India is in the
nascent stages of cloud adoption, cloud service providers are likely to be key contributors to IT
infrastructure consumption, especially for scalable technologies such as scale-out systems and
extreme low-energy servers.

Exhibit 7: Market Share: IT Infrastructure Market in India 2013-2018
The Storage market in the IT Infrastructure market in India is expected to witness huge spending
during the forecast period as the adoption of social analytics and big data services has been
increasing over the past few years, requiring the storage of huge amounts of data to extract
useful information and customers insights. It is expected to account for 24.8 percent of the IT
Infrastructure market in India by 2018. The growth of the Server market in India was a little
sluggish in 2013 and 2014. Due to the uncertain the political situation across the country, many
large enterprises and banks have been limiting investments in the Server market, yet it is
expected to grow slowly during the forecast period. The Network Equipment market has
witnessed moderate growth. Increased connectivity and internet penetration are some of the
growth drivers for the Network Equipment market in India. It is likely to account for 44.6 percent
of the market in 2018.

07.2 Server Market in India
Market Size and Forecast

The Server market in India was valued at US$669.2 million in 2013 and is expected to reach
US$776.1 million by 2018, growing at a CAGR of 3.01 percent.
Virtualization has had a positive impact on server purchases, and the shift in the usage of more
private and public clouds has affected the server purchase behavior of companies, with the
increase in the usage of cloud services the Server market is likely to witness growth, but the
servers sold to the enterprises are witnessing a decline in the market. Some large vendors such as
IBM, HP, and Dell are optimistic about the Enterprise Server market and expect it to grow at a
moderate rate during the forecast period.
Exhibit 8: Server Market in India (US$ million) 2013-2018
The overall Server market in India witnessed a sudden decline in 2013 and is likely to recover
during the forecast period because of a large number of deals being driven by large corporate
investments. Extraordinary projects in the government and BFSI verticals are expected to be key
drivers in the Server market. Server x86 is a key contributor to growth in terms of units in the
market that includes several vendors such as HP, IBM, Fujitsu, and HCL. This strong presence is
due to strong server-unit shipments and the revenue generated through direct sales and various
channels across India. On the other hand, the Non-x86 market saw a decline of over 30 percent
in 2013.

07.3 Storage Market in India

The Storage market in India was valued at US$345.2 million in 2013 and is expected to reach
US$628.1 million by 2018, growing at a CAGR of 12.72 percent.
There are several players in the Storage market offering NAS devices, popular because of the
centralized way they store multimedia and other data, which eventually offers services such as
sharing, streaming, and remote access of content. This market is expected to grow at a double
digit growth rate because of the rise in awareness about data security among SME customers.
The key business verticals driving the Indian Storage market are high-performance computing,
engineering design, offshore development, digital animation, and web services. Every business,
big or small, that is rapidly expanding needs NAS solutions for data backup and storage.
Exhibit 9: Storage Market in India (US$ million) 2013-2018
The market is expected to continue to grow in the coming years as a stable government is now
in place to drive investment in the Government sector. Finance, Manufacturing, and
Communication and Media have been the key verticals in the market. In addition, major growth
is expected in the Telecom and Government verticals as a combination of revamped
investments in business outcome-led technologies and capacity requirements are expected to
drive storage investments in the near future.

07.4 Network Equipment Market in India

The Network Equipment market in India was valued at US$848.1 million in 2013 and is expected
to reach US$1,131.2 million by 2018, growing at a CAGR of 5.93 percent.
Indian enterprises are likely to focus on building intelligent data centers that focus on optimizing
legacy hardware assets by using networking equipment and additional software capabilities.
This is expected to increase attention on newer trends such as public cloud and integrated
systems, and eventually positively influence network equipment purchases.
Exhibit 10: Network Equipment Market in India (US$ million) 2013-2018
With increased usage of server virtualization technologies, it has become necessary to

significantly reduce the complexity of networks and the costs involved in network convergence.
Organizations have witnessed increased benefits by consolidating servers as a result of the
increase in demand for greater throughput to both LAN and WAN. This has pushed
convergence of Ethernet and fiber channels, offering better connectivity, low latency, and high
performance.

08. Market Segmentation by Technology

08.1 Network Equipment Market in India
Network Equipment made the largest contribution to the IT Infrastructure market in India as the
usage of Ethernet switch and router in the Enterprise LAN market has significantly grown. Wider
acceptance of the third platform service, increasing popularity of mobility, social networking,
big data and analytics, and cloud services among enterprises was the key reason for the growth
in the market. Inexorable data growth, strong competition, and a shift in consumer demands are
the major factors driving the growth of the Enterprise LAN market in India. With market-friendly
policies and advance disruptions such as LTE rollouts, the Enterprise WAN market is expected to
witness moderate growth.
Exhibit 11: Network Equipment Market in India by Technology 2013
The Network Equipment market in India is categorized broadly into two segments: Enterprise LAN
and Enterprise WAN. Enterprise LAN accounted for 70.38 percent of the market in 2013.
Enterprise LAN consists of wireless LAN products, Ethernet switches, and routers. Enterprise WAN
accounted for a significantly smaller market share, with 29.62 percent.

Exhibit 12: Market Segmentation: Network Equipment Market in India 2013-2018
Enterprise LAN is likely to account for 70.85 percent of the market in 2018, while the Enterprise
WAN segment is expected to slightly decline to a market share of 29.15 percent. In India, traffic
offloading is rising due to increased popularity of data-guzzling applications and the existing
strained network infrastructure. With a new government in place, the public hotspots projects,
announcements in the budget, and the pro-investment environment are likely to have a positive
impact on the WAN Networking market during the forecast period.

08.2 Enterprise LAN Market in India

The Enterprise LAN market in India was valued at US$596.9 million in 2013 and is expected to
reach US$801.4 million by 2018, growing at a CAGR of 6.07 percent.
Exhibit 13: Enterprise LAN Market in India 2013-2018 (US$ million)
The highly revered SDN and network functions virtualization are likely to affect investments in
conventional networking infrastructure and are expected to emerge in time to give a
noticeable revenue stream to vendors. In addition, in the Enterprise LAN market, in-house
manufacturing of white-label box network devices by big enterprises as well as SMEs are also
creating a growth barrier to networking vendors who are already experiencing pressure on their
margins. The Ethernet Switch and Router market in India grew at a remarkable rate, indicating
stronger demand ahead after seasonal lows and a slowdown. BFSI, Government, and
Manufacturing are some of the sectors that will lead investment in the Enterprise LAN market in
India.

08.3 Enterprise WAN Market in India

The Enterprise WAN market in India was valued at US$251.2 million in 2013 and is expected to
reach US$329.8 million by 2018, growing at a CAGR of 5.60 percent.
Enterprise WAN is essentially used to optimize IT infrastructure on a much larger scale. Optimizing
enterprise WAN helps to address issues in a network such as de-duplication, protocol spoofing,
and traffic shaping to increase data-transfer efficiencies across WAN. Various network edge
products such as ADC, load balancers, and WAN optimization appliances help organizations to
reduce network latency and improve application performance.
Exhibit 14: Enterprise WAN Market in India 2013-2018 (US$ million)
With the rise in employee workforce mobility in organizations across the region, firms have been
facing new challenges to provide LAN connectivity because of issues with response time. This
has driven demand for enterprise LAN. In addition, desktop virtualization projects have been
driving demand for latency reduction solutions and application acceleration. To get the
maximum benefit from VDI, organizations are more likely to spend on WAN-driven devices that
give them a LAN-like experience than on WAN.

09. Buying Criteria

Parameter Details Customer Segments Significance Attached
Small Enterprises Low High
Solutions provided by 1 2 3 4 5
vendors should be Medium Enterprises
Cost- Low High
competitively priced
effectiveness 1 2 3 4 5
and comply with
acceptable standards Large Enterprises Low High
1 2 3 4 5
The enterprise service 1 2 3 4 5
should adhere to Medium Enterprises
Quality Low High
quality specifications as
Orientation 1 2 3 4 5
per the service level
agreement Large Enterprises Low High
1 2 3 4 5
Small Enterprises
The ability of the Low High
vendor to detect every 1 2 3 4 5
possible error before Medium Enterprises Low High
Reliability the production stage in
1 2 3 4 5
developing the
required IT Large Enterprises Low High
infrastructure 1 2 3 4 5
The provider should be 1 2 3 4 5
able to understand the
Technical technical aspects of Medium Enterprises Low High
Knowledge the products and 1 2 3 4 5
services to deliver the Large Enterprises
specific service Low High
1 2 3 4 5
Key
The impact of the buying criteria is graded on the basis of the intensity and duration of their
influence on the current market landscape. The magnitude of the impact has been categorized
as described below:


10. Market Growth Drivers

Some drivers of the IT Infrastructure market in India are listed below:
 Infrastructure Modernization and Consolidation

 Increased Government Spending and Supported Reforms
 Increased Need for Cost Benefits
 Increased Connectivity
Infrastructure Modernization and Consolidation

Several organizations are witnessing an inefficient, underutilized server environment. Various
organizations across the vertical face problems with disorganized and expensive server estates.
To deal with these challenges, companies are increasingly adopting infrastructure
modernization services that rationally reduce server and storage resources for improved
utilization. Server consolidation helps to find opportunities and financial benefits. It also reduces
storage costs through data placement associated with consolidating and virtualizing servers.
Storage modernization and consolidation and disaster recovery are likely to remain relevant
drivers during the forecast period. HP is one of the major vendors serving the needs of customers
in this market.
Increased Government Spending and Supported Reforms

The Indian government has emerged as one of the major end-users of data centers. Some
special projects in the Government sector continue to be an essential milestone in the Server
market. As one of its several e-government initiatives, it is setting up state data centers in all
states to create a common and secure IT infrastructure that hosts state-level e-governance
applications for seamless delivery of government services. Compliance to government
regulations is also driving the Enterprise Server and Storage segment in the IT Infrastructure
market in India. Under the Indian IT Act, organizations are required to maintain records for seven
years and messages for five years.
Increased Need for Cost Benefits

Demand for enterprise servers is driven by fast-growing large enterprises that adopt innovative
techniques to achieve cost benefits. With the emergence of cloud computing, more companies
are moving their IT infrastructure out of commercial buildings into professionally managed data
centers. In addition, SaaS hosted services are required to provide the expertise and application
services of data centers. The popularity of managed hosting and co-location services has been
increasing because of the significant cost savings offered. Data center providers lease entire

servers to SMEs with add-on services such as updates, monitoring, and application
management. These shared resources help SMEs to own a server at a much lower cost.
Increased Connectivity
Increased internet penetration, rapid adoption of smartphones and mobile devices, improved
communication infrastructure enabling delivery of 3G and 4G services, and the popularity of
social media are driving many more to the internet. Increased online access has resulted in a
substantial growth in the e-commerce business in India. Organizations are looking to gather a
vast amount of unstructured data to gain insight into their customers' mindset, thus driving the
growing need for storage. In addition, most businesses are moving to the cloud to serve
customers better, thus requiring management of data centers and strong IT infrastructure.

11. Drivers and their Impact

Impact on Key Customer Category
Driver
Small Enterprises Medium-sized Enterprises Large Enterprises
Infrastructure Low High Low High Low High
Modernization and 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Consolidation
Increased Government Low High Low High Low High
Spending and Supported 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Reforms
Increased Need for Cost Low High Low High Low High
Benefits 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Low High Low High Low High

Increased Connectivity
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Key
The impact of the drivers is graded on the basis of the intensity and duration of their influence on
the current market landscape. The magnitude of the impact has been categorized as
described below:


12. Market Challenges

Some major challenges faced by the IT Infrastructure market in India are listed below:
 Storage Technology Knowledge Gap

 Energy Management and Capacity Planning
 Issues Related to Limited Expenditure
 Increased Commoditization of Storage and Network Equipment
Storage Technology Knowledge Gap

Shortage of experienced storage professionals and the lack of storage technology education in
academic institutions and the marketplace have created a huge mismatch between supply
and demand of skilled professionals in India. This skills gap is continuing to widen as organizations
adopt virtualization and cloud services. Migrating to a highly virtualized cloud environment
needs significant transformation that requires a considerable amount of technology knowledge.
As cloud services require cross-skill expertise, companies need to hire certified storage
professionals, which eventually results in poor knowledge transfer to internal employees.
Energy Management and Capacity Planning

The major challenges faced by storage and data center vendors are the continuous rises in the
cost of power and real estate, and non-reliability and low penetration of bandwidth. Ensuring
an uninterrupted power supply is another major concern. Along with this, many firms are also
facing issues with estimating the future capacity and scalability of data centers with the legacy
infrastructure. As providers are reliable with regard to efficient power management systems,
hardware/software reliability, and controlling labor and power costs, failing to monitor and
control these issues can escalate vendors' costs.
Issues Related to Limited Expenditure

Across several industry verticals in India, companies are running a heightened risk by delaying IT
infrastructure investment in sustainable technologies because of the uncertain political
environment and elections in April 2014. As a result, they could lose their competitive edge and
be left with the option of maintaining and supporting legacy systems with risk. Along with private
companies, government agencies in the various industry verticals such as Education, BFSI, and
Telecom have been allocated a certain amount of money to spend on technology because of
the huge investment required to replace legacy systems with new infrastructure.

Increased Commoditization of Storage and Network Equipment
As a result of the low entry barriers to offering storage and network equipment services, the
market faces imminent danger of being commoditized unless players create differentiators in
new delivery models and the use of innovative and emerging technologies to provide services
and develop domain expertise. Meeting customer expectations and standing out as a specialist
among many service providers is a difficult task for vendors. To remain competitive in the market,
vendors have to continuously innovate and provide value-added specialized services. However,
the increase in cost of innovation and lack of capabilities are expected to play a major role
over the next few years.

13. Impact of Drivers and Challenges
Key
The impact of the drivers and challenges is graded on the basis of the intensity and duration of
their influence on the current market landscape. The magnitude of the impact has been
categorized as described below:

 Moderately High - Significant impact on the growth of the market

14. Market Trends

Some of the trends expected to influence the IT Infrastructure market in India during the forecast
period are discussed below:
 Increase in Server Demand across the industry

 Adoption of Co-location and Cloud Services
 Rising Number of Specific Service Providers
 Growing Usage of DID
Increase in Server Demand across the Industry

Various large enterprises and SMEs have been witnessing the benefits of server installation in
terms of increasing efficiency, reducing operating costs, providing data backup, and optimizing
energy consumption. They support the major functions of an enterprise and help to make an
enterprise more centralized, scalable, and flexible. The Sever market in India is expected to
register remarkable growth during the forecast period. The implementation of new models, such
as ERP and CRM in SMEs, is the primary contributing factor to the growth of servers in India. In
addition, the Server market in India is largely driven by IT and IT-enabled services and the BFSI
sector, with growing demand for rack and blade servers. Growing popularity of cloud
computing, big data, and virtualization is boosting the Server market in India, wherein micro
servers and blade servers are the major drivers.
Adoption of Co-location and Cloud Services

Organizations are focusing on spending on technology that can scale up according to business
requirements and save them the tiresome process of IT infrastructure procurement. Organizations
can end up spending six to nine months procuring, testing, and deploying solutions, while
adoption of cloud services helps them to significantly reduce time to market. By the end of 2014,
cloud services are expected to grow moderately fast and have a positive impact on the Data
Center market. Hybrid cloud is expected to see a healthy adoption rate by SMEs over the next
few years. Most IT infrastructure adoptions are largely driven by data center service providers.
More vendors are looking at providing managed, co-location, or cloud services that will
eventually contribute to the growth of the IT Infrastructure market in India.
Rising Number of Specific Service Providers

With the presence in the market of several players with similar offerings, there is an increasing
need for differentiation, resulting in the emergence of firms specializing in specific services. This is
likely to lead to a strategic partnership model in data center and solution providers. Some
examples include the Tulip-EMC partnership for on-demand cloud storage and backup services.

Along with this, DVS solutions on cloud is offered by Tulip-Mind Tree and Lomega Partnership. In
Providers are also focusing on introducing modular data centers and are aiming to design data
centers that are smaller but have greater density, allowing companies to expand their capacity
in line with demand.
Growing Usage of DID

The concept of DID is one of the emerging trends in the IT Infrastructure market in India. DID is
likely to host service providers such as IBM, Dell, and HP who in turn host the infrastructure for their
own customers. This technology helps service providers to focus on their core expertise, such as
application and SaaS hosted services, without making extensive investments in power and
cooling. Under partnership with Netmagic, Spectranet is expected to set up a multi-location
commercial DID across Netmagic's data centers in Bengaluru, Chennai, Mumbai, and Noida,
India. The partnership is intended to benefit Netmagic by using Spectranet's vast fiber and IP
network, enabling Netmagic to extend these services to its customers.

15. Trends and their Impact
Key
The impact of the trends is graded on the basis of the intensity and duration of their influence on
the current market landscape. The magnitude of the impact has been categorized as
described below:


16. Vendor Landscape

16.1 Competitive Scenario
India is expected to be a promising IT Infrastructure market through to 2018. After sluggish market
conditions in 2013, the IT Infrastructure market in India is expected to witness heavy investment,
primarily driven by key IT initiatives including cloud, mobility, and big data. Increased focus on
newer trends such as public cloud and integrated systems offers great potential for both users
and vendors to leverage some of the emerging technologies to develop the IT infrastructure in
India for the years to come. Indian companies are cost sensitive and many still consider IT
infrastructure as a cost center rather than a driver for added value and business growth. To
control costs, companies tend to resort to hard negotiations and prefer integrated deals, and as
a result tend to get outcome-based pricing models. Because of this mindset, companies might
eventually compromise on some key aspects of the implementation in order to be able to
accommodate costs within the allocated budget. For IT providers, this cost consciousness
translates into lower margins in India compared with the global market.
Key News
Cisco Systems
In July 2014, Cisco creates a partnership with ELCIA to develop Asia’s first end-to-end 'IoT
Innovation Hub’ in Bangalore.
Dell
In August 2014, Dell launches storage from the Dell Cloud Client-Computing, which improves
customer IT environments and VDI through performance, flexibility, security, and manageability
enhancements.
HP
In July 2015, HP engages CIBIL to enhance the IT operations of credit information providers to
meet the needs of the expanding customer base.
IBM
In August 2014, IBM partners with Narayana Health, one of the leading medical institutions in the
country, to implement an efficient email and collaboration tool that helps to keep all the
associated professionals, employees, and other stakeholders completely connected.

16.2 Market Share Analysis 2013
Exhibit 15: Segmentation of Server Market in India by Vendor 2013
The IT Infrastructure market in India consists of server, storage, and network equipment. Vendors
have been predominantly targeting specific segments to increase their market share and
revenue. Cisco Systems, Dell, HP, and IBM are the leading vendors in terms of revenue in the IT
Infrastructure market in India, although some other prominent vendors are leading in their
respective segments. The Server market in India is dominated by HP, with 35.8 percent of the
total market in 2013. It is followed by Dell, holding 22.1 percent. IBM has witnessed a decline in its
market share from 2012. It accounted for 17.1 percent of the market, with a major shipment in X-
86 servers. Acer Group and Cisco hold four percent and 3.9 percent, respectively.

Exhibit 16: Segmentation of Storage Market in India by Vendor 2013
EMC is the leading vendor in terms of revenue in the Storage market in India. It accounted for 32
percent of the market. With an upsurge in the Storage market, EMC is expected to increase its
market share in India, and government projects and contract renewals in the BFSI sector are
expected to maintain its market leadership. It is followed by IBM, which accounted for 21
percent of the market. IBM, with its new and innovative products, is likely to unveil new
opportunities in the Storage market. HP accounted for 14 percent of the market, followed by
another prominent vendor, NetApp, which accounted for 9 percent. NetApp was followed by
Hitachi, Dell, and Oracle with market shares of 8 percent, 7 percent, and 5 percent, respectively.

Exhibit 17: Enterprise Wireless LAN Market in India by Vendors 2013
The Enterprise LAN market is categorized into two segments: Enterprise WLAN and Ethernet
Switch and Router. D-Link is the leading vendor of WLAN services in India, with a market share of
28.1 percent in 2013. It is followed by Cisco Systems, holding 17.5 percent. TP-LINK, Netgear, and
Smartlink are other prominent vendors leading the Enterprise WLAN market, with market shares
of 9.1 percent, 7.5 percent, and 7.1 percent, respectively.

Exhibit 18: Ethernet Switch and Router Market in India by Vendor 2013
Enterprises made the largest contribution to the Ethernet Switch and Router market in India. This
trend is expected to continue as the Service Provider segment has been continuously innovating
products for enterprise IT infrastructure consolidation. Cisco Systems is the market leader in the
Ethernet Switch and Router market in India in 2013, with almost two-thirds of the market. It is
followed by Juniper Networks, one of the prominent vendors in the market, accounting for 9.7
percent. HP, Huawei, and Alcatel-Lucent follow with market shares of 6.2 percent, 2.7 percent,
and 2.2 percent, respectively.
16.3 Other Prominent Vendors

Some other prominent vendors are listed below:
D-Link
D-Link was founded in March 1986. It began as a network adapter vendor and has undergone
changes in its business segments to become a designer, developer, and manufacturer of
networking solutions for both the consumer and business markets. The company has 127 sales
offices in 64 countries and 10 global distribution centers serving 100 countries worldwide. D-Link
operates an indirect channel model, selling through distributors, resellers, retailers, VARs, and
telecom service providers. Its main competitors are Cisco, Netgear, and HP.

Its product portfolio includes:
 Enterprise Switches
 Chassis Switches
 Data Center Switches
 Wireless Products
 Routers
 Security Gateway
EMC
EMC is a global leader in enabling businesses and service providers to transform their operations
and deliver IT as a service. It aims to transform its cloud computing through innovative products
and services. EMC accelerates the journey to cloud computing, helping IT departments to store,
manage, protect, and analyze their most valuable assets such as information in a more trusted,
agile, and cost-efficient way.
In July 2014, EMC launched a product that helps organizations reduce the cost of running
application workloads through new application workloads. Its product portfolio includes:
 Storage
 Data Protection
 Cloud
 Big Data
 Security
 Content Management
 Infrastructure Management
Huawei
Huawei is a leading global Information and Communication solutions provider. Through its
dedication to customer-centric innovation and strong partnerships, it has established end-to-end
capabilities and strengths across the carrier networks, enterprise, consumer, and cloud
computing fields. Huawei is committed to creating maximum value for telecom carriers,
enterprises, and consumers by providing competitive ICT solutions and services. Its products and
solutions have been deployed in over 140 countries, serving more than one-third of the world's
population. Huawei was founded in 1987 and has a worldwide presence with an employee
base of 140,000 in 2012.

In June, 2014 Huawei received special awards in two categories at the Best of Show Awards, in
the Enterprise Networking category for its agile switch S12700 and the Data Center and Storage
category for its universal distributed storage. Its product portfolio includes:
 Routers
 Switches
 Transport Network
 WLAN Security Gateways
 Fiber Infrastructure
 Network Energy
 Agile Controller
 Telepresence/Video Communications
 Intelligent Video Surveillance
 Servers
 Storage
 Cloud OS
 Converged Infrastructure
 Data Center Facilities
 UPS
 Precision Air Conditioners
 eLTE Broadband Access
 eLTE Broadband Trunking
Juniper Networks
Juniper Networks is an American company that manufactures and sells networking equipment. It
was founded in 1996 and is headquartered in Sunnyvale, California, US. The company designs
and sells high-performance IP network products and services. As of 2013, it had an employee
base of 9,483 and revenue US$4.66 billion.
In June 2014, Juniper Networks introduced powerful new capabilities in its next-generation
firewall solutions for protecting enterprise edge, offering added security, control, and efficiency
while being easier to deploy and manage.
Its product portfolio includes:
 Data Centers
 Mobility

 Network Infrastructure
 Security
 Software-defined Networking
 MetaFabric Architecture
NetApp
NetApp is an American computer storage and data management company headquartered in
Sunnyvale, California, US. NetApp was founded in 1992. By 2013, it had generated revenue of
US$6.23 billion, and it had a strong employee base of 12,650 in 2014. In 2013 it acquired IonGrid,
a developer of technology that allows iPad and iPhone users to access corporate materials as
well as internal business applications through a secure container.
In August 2014, NetApp introduced new solutions that increase and simplify automation of
software-defined storage. Its product portfolio includes:
 Storage Systems
 Protocols
 Storage Security Systems
 OnCommand Management Software
 Storage Software
 Protection Software
Oracle
Oracle is a world leader in offering IT solutions to the Financial Services industry. Its mission is to
enable financial institutions to excel through the effective utilization of their IT resources. The
company provides the world's most comprehensive and contemporary banking applications
and technology solutions that address complex IT and business requirements. The company
operates in two major segments with five sub-segments. Oracle targets the BFSI sector in
Lebanon, and the country has witnessed significant growth in this sector because of the
improvement in regulatory norms.
In June 2010, Oracle introduced the Oracle Database In-memory, which powers real-time
enterprise. Its product portfolio includes:
 SPARC Server
 x86 Server
 Blade Server
 Netra Server

 SAN Storage
 NAS Storage
 Tape Storage
 Oracle Virtual Networking
 Ethernet Networking
 InfiniBand Networking
 Oracle Secure Global Desktop
 Oracle VM Server for x86
 Oracle VM Server for SPARC
Smartlink Network System

Smartlink Network Systems is one of India's leading networking companies. It was established in
1993 to underpin the Indian Network Infrastructure market. A pioneer in the field of active
networking, it offers an integrated value proposition from design and development to sales and
marketing, and service and support. The company has a robust product portfolio and a
nationwide reach through its network of national and regional distributors, resellers, and system
integrators.
In February 2013, Smartlink introduced its 300Mbps Wireless Green 3G Broadband Router DG-
BR4313NG, which enables communication between wireless and wired notebooks/desktop
computers in a network and offers internet connectivity to all LAN users under the DIGISOL
brand. Its product portfolio includes:
 Switching
 Broadband Routing
 Wireless LAN
 Converged Communication
 IP Surveillance
 VoIP
TP-LINK
TP-LINK was founded in 1996 and is headquartered in Shenzhen, China. It has a worldwide
presence with an employee base of 21,849 and revenue of US$1.9 billion as of 2013. TP-LINK was
among the leaders in global shipments of wireless LAN products as of the first quarter of 2013. It
sells through multiple sales channels globally, including traditional retailers, online retailers,
wholesale distributors, direct market resellers, value-added resellers, and broadband service

providers. Its main competition includes companies such as Asus, NETGEAR, Belkin, Linksys, and
D-Link.
In January 2014, TP-LINK received the prestigious IT award in the Nomination of Wireless
Networking Equipment from IXBT in Russia. Its product portfolio includes:
 Wireless Products and Modules

 3G/4G Routers
 VDSL/ADSL
 Switches
 Routers
 Print Servers
 Power Over Ethernet
 Adapters and 56K Modems
 3G Modems
Company Description
D-Link Leader in Enterprise WLAN market
EMC Leader in Server market
Huawei Prominent provider of Ethernet switches and

routers
Juniper Network Prominent provider of Ethernet switches and

routers
NetApp Prominent provider in Storage market
Oracle Prominent provider in Storage market
Smartlink Network Prominent vendors in WLAN market
TP-LINK Prominent vendors in WLAN market

17. Key Vendor Analysis

17.1 Cisco Systems
Key Facts

Key Information
Company Details Description
Product Portfolio  Cisco Ace WAF
Key Mergers and Acquisitions  October 7, 2014: Acquires Sourcefire, a leader in

intelligent cyber security solutions
 February 25, 2013: Acquires Cognitive Security, a
cyber-threat protection company
Business Overview
Cisco Systems designs, manufactures, and sells products and services related to the IT and
Communications industries worldwide. It offers a wide range of products and security solutions,
including fixed-configuration and modular switches, IP phones, workstations, access points, call
center and messaging products, telepresence systems, firewall, intrusion prevention, cloud
managed solutions, fabric interconnects, and data center products.
The company operates through two major segments: Product (Switching, NGN Routing, Service
Provider Video, Collaboration, Wireless, Data Center, Security, and others) and Services
(technical support services). It offers solutions to the Automotive, Energy, Government,
Healthcare, Manufacturing, and Entertainment sectors.
It has a wide geographical base that covers the Americas, the EMEA region, and the APJC
region. The company had around 75,049 employees in July 2013, with an established global
network of customers and channel partners in over 100 countries.
The company's consistent investments in R&D (US$5.8 billion in 2011, US$5.5 billion in 2012, and
US$5.9 billion in 2013) have led to the development of many technological innovations in the
Hospitality, Retail, and Transportation industries. In May 2014, it was ranked by Forbes Magazine
in the 12th and 59th positions in terms of brand value and profit margin, respectively, among
2000 global brands.

Business Segmentation by Revenue
Exhibit 19: Cisco Systems: Business Segmentation by Revenue 2013
Business Segmentation by Revenue

Exhibit 20: Cisco Systems: Business Segmentation by Revenue 2011-2013 (US$ billion)

Geographical Segmentation by Revenue
Exhibit 21: Cisco Systems: Geographical Segmentation by Revenue 2013
Business Strategy
Operational Strategy
The company focuses on the following strategic areas:
 To maintain leadership in core businesses such as routing, switching, security, and mobility
solutions
 To pursue strategic alliances and create new channel partners addressing new markets
(especially the Global Enterprise Data Center market)
 To simplify and expand the production and distribution of end-to-end video solutions
 To exploit the growing market potential of cloud services, internet, and network-related
technologies

Recent Developments
Key Highlights  June 2014: Launches “Cisco Small Cell Enterprise Select” program
that enables mobile network operators to provide cost-effective
mobility solutions
 June 2014: Becomes the leader in the x86 Blade Server markets in
North America and the US
 May 2014: Enters into a strategic partnership with three
municipalities in Copenhagen to develop digital infrastructure
 May 2014: Begins the production of UCS servers in Brazil
 May 2014: Signs a letter of intent with Kansas City to launch a
digital infrastructure development plan
 May 2014: Expands the offerings of malware protection and data
center security solutions to deliver intelligent cyber security
 May 2014: Partners with Dimension Data to streamline hybrid cloud
adoption globally
 May 2014: Announces new business offerings, cloud partners, and
customers as a part of Cisco Cloud Initiatives
 May 2014: Upgrades its ESP with WAN Automation Engine to
improve top-line business results of service providers
 May 2014: Expands business operations in Latin America through its
subsidiary Cisco Capital
 May 2014: Partners with Jive Software to deliver a complete
communication and collaboration suite for commercial entities
 May 2014: Partners with Citrix Synergy to deliver end-to-end
enterprise mobility infrastructure solutions

SWOT Analysis

17.2 Dell
Key Facts

Business Overview
Dell is a technology provider based in Texas, US. In 2013, it was the third largest PC vendor in the
world. The company caters to various industries with a range of IT products and solutions, and is
known for its direct distribution strategy. Dell sells PCs, servers, storage devices, networking
devices, software, and hardware peripherals. It also sells HDTVs, cameras, printers, music players,
and electronics built by other manufacturers.
Dell reported revenue of US$56.94 billion in FY2013 compared to US$62.071 billion in FY2012. It has
its own manufacturing facilities in Texas, Malaysia, China, Brazil, India, and Poland. In February
2013, the company was acquired by Denali Holding in a US$24.3 billion deal.
Business Segmentation by Revenue 2013

The company is broadly divided into four major segments: Large Enterprise (large global and
national corporate businesses), Public (educational institutions, government, healthcare, and
law enforcement agencies), SMB, and Consumer. The company is planning to replace the
current segment reporting structure with new business units: EUC Group, ES Group, Dell Services,
and Dell Software Group in 2014.
Exhibit 22: Dell: Business Segmentation by Revenue 2013

Business Segmentation by Revenue 2011-2013
Exhibit 23: Dell: Business Segmentation by Revenue 2011-2013 (US$ billion)
Sales by Geography 2013

Exhibit 24: Dell: Sales by Geography 2013

Business Strategy
Dell is pursuing the following strategies to become an end-to-end technology solutions provider:
 To replace the current segment reporting structure with new business units: EUC Group
(notebooks, desktop PCs, thin client products, tablets, third-party software, and client-related
peripherals), ES Group (servers, networking, storage, converged infrastructure offerings, and
ES Group-related peripherals), Dell Services (infrastructure, cloud, and security services), and
Dell Software Group (systems management, security, and information management)
 To initiate a broad transformation with the expansion of its business offerings including
enterprise solutions and software capabilities
Recent Developments
Product Portfolio  Racks

 Storage
 Peripherals
 Servers
 Others
Key Collaborations  May 2014: Enters into a strategic partnership with Apperian and
Kony to expand enterprise mobility offerings
Key Highlights  May 2014: Launches the latest Inspiron 14 3000 series laptops and
Inspiron 14 and 15 5000 series laptops
 May 2014: Launches two new products, NetVault Backup 10 and
DR6000
 September 2013: Plans to invest in the PC and Tablet markets
Product Portfolio  Data Security and Compliance

 Electronic Medical Records
 Accountable Care Solutions
 Medical Archiving
 Mobile Clinical Computing
 Point of Care Solutions
 Secure Healthcare Cloud
 Software
 Peripherals

SWOT Analysis

17.3 HP
Key Facts
Stock Listings NYSE
Ticker Symbol HPQ
Business Overview
HP was founded in 1939 and is headquartered at Palo Alto, California, US. It is a leading global
provider of IT products, software, technologies, services, and solutions. The company's customers
include SMBs, individual consumers, and large enterprises, including customers in the Healthcare,
Government, and Education sectors. HP is the world's second largest provider of PCs, after

Lenovo. The company spent US$3.1 billion on R&D in 2013 and has 38,000 registered patents to its
name as on October 31, 2013.
The major offerings of the company include PCs, imaging and printing devices, enterprise IT
infrastructure solutions, and related services. It also provides outsourcing services, technology
support and maintenance, and consulting services, among others. The company designs its
solutions to provide its customers with a strong foundation particularly in the areas of security,
cloud, mobility, and big data by leveraging the diversity of its offerings and the strength and
capabilities of its individual business units.
The company conducts its business operations through seven segments, namely Personal
Systems, Printings, the Enterprise Group, Enterprise Services, Software, HP Financial Services, and
Corporate Investments. For FY2013, the company reported revenue of around US$112,298
million.
Business Segmentation by Revenue 2013

Exhibit 25: HP: Business Segmentation by Revenue 2013

Business Segmentation by Revenue 2012 and 2013
Exhibit 26: HP: Business Segmentation by Revenue 2012 and 2013 (US$ million)
Geographical Segmentation by Revenue 2013

Exhibit 27: HP: Geographical Segmentation by Revenue 2013

Business Strategy
HP's long-term strategy is to remain focused on its portfolio of hardware, software, and services
as the company is moving toward a changed and hybrid model of IT delivery and consumption.
This is driven by the growing shift toward cloud computing and an increased demand for
integrated IT solutions.
In FY2014, the company is planning to return at least 50 percent of its free cash flow to
shareholders through dividend and share repurchases. HP announced plans to invest in
improving its product portfolio. For FY2014, the company announced plans to invest about
US$0.12 per share of saving from its restructuring program into the business.
Recent Developments
Recent Product Launches  May 2014: Launches HP Helion portfolio of cloud

products and services
 May 2014: Extends industry-leading Z workstation family
into virtualization realm
 April 2014: Unveils new dreamcolor displays offering
unmatched color accuracy and affordability
 February 2014: Unveils 360-degree convertible PC
Key Highlights  May 2014: Launches a new data center sourcing

approach to save customers millions in upfront capital
 April 2014: Introduces a new information security
service to help businesses reduce risk
 April 2014: Introduces a next-generation enterprise
array for mission-critical workloads
Key Partnerships  April 2014: HP and Foxconn announce a joint venture

agreement delivering a new class of servers for the
fast-growing Service Provider market

SWOT Analysis

17.4 IBM
Key Facts
Stock Listings  New York Stock Exchange
Ticker Symbol  IBM

Business Description
IBM is one of the largest vendors in the Global Big Data Services market. The company offers
various types of hardware, software, consulting, and infrastructure services. Its offerings find
applications in various sectors such as Aerospace and Defense, Banking, Consumer Products,
Electronics, Healthcare, Media and Entertainment, Retail, Education, and Government.
IBM's R&D operations differentiate it from its competitors. It annually invests about US$6 billion in
R&D activities. The company conducts its research works with clients and business units through
12 global labs. For the fiscal year ending December 2013, the company spent about US$6,226
million on R&D activities. IBM registered the highest number of US patents for the 21st
consecutive year in April 2013. Its range of patents represents a diverse range of inventions.
As of December 31, 2013, the company’s manufacturing and development facilities in the US
has about 18 million square feet of floor space, of which 16 million is owned and 2 million is
leased. Besides this, it has similar facilities in 15 other countries, wherein, of the total 6 million
square feet of floor space, 2 million is owned and 4 million is leased.
Business Segmentation
The company conducts its business operations through the following five segments: Global
Technology Services, Global Business Services, Software, Systems and Technology, and Global
Financing.
Exhibit 28: IBM: Business Segmentation

IBM's Global Technology Services segment offers IT infrastructure services and business process
services. This segment specializes in strategic outsourcing services, global process services,
integrated technology services, and technology support services. Its Global Business Services
segment offers professional and application outsourcing services, and specializes in consulting
and systems integration and application management. Through its Software segment, the
company offers middleware and operating systems software. Its Systems and Technology
segment provides computing and storage solutions, including servers, disk and tape storage
systems and software, semiconductor technology and products, packaging solutions,
engineering and technology services, and retail store solutions. IBM’s Global Financing segment
offers services such as commercial financing, client financing, and remanufacturing and
remarketing.
Revenue Segmentation by Business Segment

The company generated revenue of US$99,751 million in FY2013.
Exhibit 29: IBM: Revenue Segmentation by Business 2013
IBM's other segments, including corporate and other operations, accounted for 1 percent of the
total revenue.

Revenue Segmentation by Business Operation
Exhibit 30: IBM: Revenue Segmentation 2013
Revenue Comparison of Business Segments 2012 and 2013

Exhibit 31: IBM: Revenue Comparison of Business Segments 2012 and 2013 (US$
million)

Revenue Segmentation by Geography
The company operates its business through the following three major geographies: the Americas
(including North America and Latin America) and the EMEA and the APAC regions.
Exhibit 32: IBM: Revenue Segmentation by Geography 2013
Business Strategy
IBM continuously focuses on innovative solutions, software, and infrastructure to improve client
outcomes. Besides this, the company is expanding operational and geographical presence
through acquisitions and associations with market leaders worldwide. In line with this, since 2000,
the company has acquired over 150 companies.

Key Developments
Company Details
Key Highlights  January 2014: Announces plans to sell its x86 Server
business to Lenovo
 January 2014: Announces plans to establish IBM Watson
Group, a new business unit dedicated to the
commercialization and development of cloud-delivered
cognitive innovations
 August 2013: Adds nine new academic collaborations to
its more than 1,000 partnerships with universities across the
globe, focusing on big data and analytics
 June 2013: Enters into a definitive agreement to acquire
SoftLayer Technologies, the world's largest privately held
cloud computing infrastructure provider

Key Acquisitions  March 2014: Completes the acquisition of Cloudant, a

privately held database-as-a-service provider
 January 2014: Completes the acquisition of Aspera,
which undertakes the development of software transfer
technologies for business enterprises
 December 2013: Closes the acquisition of Fiberlink
Communications with new cloud-based capabilities
 September 2013: Acquires Daeja Image Systems, a
leading provider of software that makes it easier for
business and IT professionals to view large documents
and images

SWOT Analysis

18. Other Reports in this Series

Global Healthcare IT Market 2012-2016
Healthcare IT Market in South Africa 2012-2016
Global IT Management as a Service Market 2012-2016
Global Application Outsourcing Market in Banking Sector 2012-2016
Global Software Testing Services Market in BFSI Sector 2012-2016
Global Data Analytics Outsourcing Market 2012-2016
Global Outsourced Software Testing Services Market 2012-2016
Global Managed Print Services (MPS) Market 2012-2016
Global Desktop Outsourcing Market 2012-2016
Global System Integration Services Market 2012-2016
Global Disaster Recovery Services Market 2012-2016
Global Smart Classroom Market 2014-2018
Global Cloud-based ITSM Market 2014-2018
Global Healthcare IT Outsourcing Market 2014-2018
Global Managed IT Services Market 2014-2018
Global Document Outsourcing Market 2014-2018
Global Recruitment Software Market 2014-2018
IT Outsourcing Market in Belarus 2014-2018

DISCLAIMER
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entirely at the risk of the recipient. Opinions and information provided are made
as at the date of the report issue and are subject to change without notice.
All trademarks and copyrights remain the sole ownership of their rightful
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connection with this report, even if Infiniti Research has been advised of the
possibility of such damages.
Copyright ©2014 Infiniti Research Limited. All Rights Reserved.
Reproduction without written permission is completely forbidden.
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IT Infrastructure Market in India 2014-2018

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2014-2018 IT Infrastructure Market in India

01. Executive Summary ..............................................1

02. List of Abbreviations ..............................................2

03. Scope of the Report ..............................................4

03.2 Product Offerings................................................................. 4

04. Market Research Methodology ...........................7

04.2 Research Methodology ...................................................... 7

05. Introduction ...........................................................9

06.2 Market Size and Forecast ................................................. 13

06.3 Five Forces Analysis .......................................................... 15

07. Market Segmentation by Products ....................17

07.2 Server Market in India ....................................................... 19

07.3 Storage Market in India .................................................... 20

07.4 Network Equipment Market in India................................ 21

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07.4.1 Market Size and Forecast ....................................................................... 21

08. Market Segmentation by Technology...............22

08.2 Enterprise LAN Market in India ......................................... 24

08.3 Enterprise WAN Market in India ....................................... 25

09. Buying Criteria .....................................................26

10. Market Growth Drivers ........................................27

11. Drivers and their Impact .....................................29

13. Impact of Drivers and Challenges .....................32

14. Market Trends ......................................................33

15. Trends and their Impact .....................................35

16. Vendor Landscape .............................................36

16.2 Market Share Analysis 2013 ............................................. 37

16.3 Other Prominent Vendors ................................................. 40

16.3.2 EMC ............................................................................................................ 41

16.3.3 Huawei ....................................................................................................... 41

16.3.4 Juniper Networks ..................................................................................... 42

16.3.5 NetApp ...................................................................................................... 43

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16.3.6 Oracle ........................................................................................................ 43

16.3.7 Smartlink Network System ...................................................................... 44

16.3.8 TP-LINK ........................................................................................................ 44

17. Key Vendor Analysis ...........................................46

17.1.2 Key Information ........................................................................................ 47

17.1.3 Business Overview .................................................................................... 47

17.1.4 Business Segmentation by Revenue .................................................... 48

17.1.5 Business Segmentation by Revenue .................................................... 48

17.1.6 Geographical Segmentation by Revenue ........................................ 49

17.1.7 Business Strategy ...................................................................................... 49

17.1.8 Recent Developments ........................................................................... 50

17.1.9 SWOT Analysis ........................................................................................... 51

17.2 Dell ...................................................................................... 52

17.2.2 Business Overview .................................................................................... 53

17.2.3 Business Segmentation by Revenue 2013 ........................................... 53

17.2.4 Business Segmentation by Revenue 2011-2013 ................................. 54

17.2.5 Sales by Geography 2013 ...................................................................... 54

17.2.6 Business Strategy ...................................................................................... 55

17.2.7 Recent Developments ........................................................................... 55

17.2.8 SWOT Analysis ........................................................................................... 56

17.3.2 Business Overview .................................................................................... 57

17.3.3 Business Segmentation by Revenue 2013 ........................................... 58

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17.3.4 Business Segmentation by Revenue 2012 and 2013 ......................... 59

17.3.5 Geographical Segmentation by Revenue 2013 ............................... 59

17.3.6 Business Strategy ...................................................................................... 60

17.3.7 Recent Developments ........................................................................... 60

17.3.8 SWOT Analysis ........................................................................................... 61

17.4 IBM ...................................................................................... 62

17.4.2 Business Description................................................................................. 63

17.4.3 Business Segmentation ........................................................................... 63