Enterasys Networks has announced that its South African subsidiary has shown significant growth in the last three months, recording a 54% increase in revenue for the period.
Martin May, regional director of Enterasys Networks (sub-Saharan Africa) says the company has recorded an average of 32% growth quarter-on-quarter for the past year.
"We have opted for what we believe is a unique business model for SA," says May. "This has taken us to significant growth at a time when our competitors are caught in the turbulence of the global information technology downturn."
Gerhard Vivier, Enterasys` director (EMEA) says the South African operation is one of the fastest growing in the European, Middle East and African region, having outstripped traditional high-achieving subsidiaries in Germany, Italy and the UK.
He says Enterasys has arrived at the right recipe for success in Africa. "Despite the downturn in the tech stock market, Enterasys has grown its revenues by 40% in SA in the last 12 months. During this time major players in the networking market - including 3Com, Nortel Networks, Cisco, Lucent, Marconi and others - have reported significant losses." Vivier reveals that the South African subsidiary of Enterasys operates with a degree of autonomy from its global parent.
"Our South African business model has seen us form a strategic alliance with Duxbury Networking, our key distributor, in order to cut operational expenditure and broaden our foot print in the region," he says.
"As a result, we have been able to maintain - and increase - our staffing levels where necessary to meet local demand. Unlike some of our competitors, we have not decimated the sales, technical support and marketing operations, or restricted our geographical coverage."
May adds that Enterasys is looking to increase its role as a `good citizen` in SA in a bid to demonstrate its commitment to the country. "To this extent, we have donated more than $5 million in computer equipment to the Nelson Mandela Children`s Fund to equip underprivileged schools with local area networks."
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