Networking Beyond the Global 2000

Ubiquitous, cheap technology creates opportunities to tap demand from the world's small and medium sized businesses.

July 16, 2004

3 Min Read
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While most international networking technology marketing efforts have tended to focus on the largest multi-national clients (enterprises and carriers, for instance), there is increasing evidence that an extremely attractive opportunity is developing among the second, third, and fourth tier enterprises in many markets around the world.

The reason: technology prices are falling to the point where non-elites in emerging economies can afford it, and the standards-based interoperability in communications technology (especially IP networking) is boosting return-on investment for organizations large and small.

Indeed, as policy-makers in both developed and developing economies craft strategies for the rest of the decade, a growing percentage concentrates on making IT and telecommunications technology available to entrepreneurs of all sizes.

In the United States, for instance, access to broadband technology is considered critical to attracting new businesses to non-urban areas. In this hyper-competitive market, technology is seen as the equalizer that makes it possible for start-ups and established mom-and-pop shops to successfully compete against even the biggest companies.

Overseas, networking technology helps small businesses tap opportunities beyond their local and national boundaries. The fact that even traditional brick-and-mortar operations, such as retail suppliers, can now interact directly with the supply chains of foreign markets is democratizing economic opportunity.Smaller companies are investing accordingly. A recent report from AMI-Partners projects that small and medium businesses worldwide will spend $868 billion on IT and telecommunications technology in 2004. IT products and services are expected to drive approximately $528 billion of this figure, up 13% from the $467 billion spent last year. Telecommunications products and services, including VoIP services and on-premises equipment such as PBXs, will drive approximately $340 billion of the 2004 spending.

Shipments to SMBs in India will grow from 2.1 million units to 4.9 million during the same period, while shipments to Russian SMBs are expected to grow 20% annually from 1.7 million units in 2004 to 4.2 million in 2008. Strong growth in businesses adopting networking products for the first time is fueling growth in routing, switching, and wireless LAN gear, with annual spending growth rates in these categories topping 30%, and expected to grow to more than $3 billion by 2008.

Wireless Continues Gains In Latin America
Carriers extend telecommunications services to more rural areas and offer advanced services to consumers and businesses in metropolitan areas.

Indian Budget Boosts Telecom, Computer Industries
The finance ministry has announced higher ceilings for foreign direct investment in India's telecommunications companies and removed excise duties on computers.

Argentina To Launch First WiMAX Network In Latin America

Millicom Argentina has teamed up with Alvarion and Intel to launch what is being touted as the first WiMAX network in Latin America.Report: Broadband To Continue Rapid Worldwide Growth
Broadband-subscriber growth on a worldwide basis is expected to be driven heavily by DSL in Asia-Pacific markets and by cable in North America.

DEEP BACKGROUND

IT, Telecom Infrastructure Spending Creeping Up Worldwide - Networking Pipeline

Survey: More Than One-Third Of Software Is Pirated - Security Pipeline

The Far East Looks West - InformationWeekMicrosoft To Explore Cheap Software With Asian Governments - Information Week

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