Corporate spending on IT networking products could reach double-digit growth in 2002 if the prediction by the research company Gartner materialises.
The prediction is based on a survey conducted by Gartner as recently as December 2001, which indicated that the focus on areas such as IP voice, Ethernet switching, wireless LAN and enterprise routers would sharpen in 2002.
The survey`s look into the vendor landscape reveals the increasing strength of networking companies Cisco and Enterasys.
Gartner`s predictions have been backed by recent media reports in the US, which generally indicate that, in 2002, spending on networking gear would grow at a rate of between 5% and 6%.
Commenting on the survey and reports, Martin May, Enterasys Networks regional director (sub-Saharan Africa), says that while many organisations are still suffering from the global macro slowdown, certain companies are finding it necessary to increase spending on IT infrastructures to remain competitive.
"In SA we are optimistic about the immediate future," he says. "All indications point to growth for data networking products sales. In this light, we are supportive of the Gartner survey and agree that IP voice, wireless LAN and switching/routing product sales will show appreciable growth in 2002."
May says that in terms of Ethernet switching, Enterasys has seen a constant shift toward Layer 3 switching to replace low-end and mid-range functionality.
"Enterasys was first to market with this technology as far back as 1999 (when the company was known as Cabletron Systems) and is now well established in this area of intelligent networking with three years of Layer 3 (and Layer 4) switching experience. We have experienced a steady growth in sales of these offerings over this time," he confirms.
Encouragingly for the two firms in the spotlight, the Gartner survey indicates that the network vendor landscape would shift in favour of Cisco and Enterasys in 2002.
According to the survey, companies are opting to purchase from larger vendors that have shown financial stability over the past six months and are turning away from smaller, niche players whose financial health may be suspect.
Based on this finding, Gartner highlights 3Com and Nortel as losers in the enterprise market, saying that it comes as little surprise since 3Com has de-emphasised the high-end enterprise market in favour of the small and medium-size enterprise SME market opportunity.
On the other hand, according to Gartner, Enterasys posted strong showings in areas such as Ethernet switching and wireless LAN and is a beneficiary of the trend towards larger vendors, along with Cisco.
May supports this thinking: "Enterasys has enough critical mass and should be able to solidify its position as the primary alternative in the enterprise after Cisco.
"We`re encouraged by the Gartner rating and trust that we will live up to its expectations by outperforming their own 2002 estimates for Enterasys," he adds.
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