CHANNEL LEADERSHIP SURVEY 2016
CHANNEL LEADERSHIP SURVEY 2016 It has been a tradition every year for VARINDIA to conduct its Annual Channel Leadership Survey that is based on the feedback from the vendor and partners in the Indian IT and Telecom Industry. This year the report comes at a time when the government is moving with the implementation of the biggest Tax reforms - GST, which is anticipated to be a game changer for the Indian economy. This will eventually create new economic opportunities and highlight the market potentials. The Editorial team along with the research team studied the voting mechanism and re-aligned the segments by cross-validation with the key vendors and partners to understand the growth and opportunity in the respective segments. To summarize it, the industry is categorized into three segments - hardware, software and services. These three segments are further classified into several product segments. For each product segments, three to four main players have been identified. With the rapid development of ICT technology, traditional IT infrastructure that centred on physical resources — where software and hardware from different vendors and standards coexisted — can no longer satisfy the requirement of enterprises . More and more enterprises are introducing virtualization and cloud computing into their IT infrastructures. The Technology sector in India has seen massive transformation happening in the last couple of years and the IT spending is forecast to reach $71.0 billion in 2016, a 6.0 percent increase from 2015, as per Gartner. To top it all, the incremental support from the Government to bring digital transformation through various flagship programs have been quite laudable. The Channel cannot be overlooked when we are talking of the transformational phase that the Indian ICT industry is going through. The Channel has played an incredible role in this growth story and this is further going to be accentuated with the changes that are sweeping the channel landscape. There is indeed a good time ahead for everyone.
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CHANNEL LEADERSHIP SURVEY 2016
Anti-Virus The Enterprise security segment is preferably going to make signiicant contribution in the next couple of years in not just anti-virus solutions but complete security solutions also. India is the third largest country globally in terms of Internet users. The current scenario in AV market in India among home users / Retail is on a growth path at an approx. rate of 20% plus as the awareness for use of licensed and paid AV is increasing day by day and this coupled with the reduction in cost of Antivirus software. However, statistics show that only 15 per cent are using valid license of antivirus software and 33 per cent tend to re-install trial versions of same or other antivirus software. Analysts forecast that the Global Focussed Key Partners Focussed Key Partners Antivirus Software Package Focussed Key Partners market is to grow at a CAGR of System Integrators Distributors 10.88 percent over the period of Resellers VARs Solution Partners Others s 2013-2018. %
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Key Takeaways - The Indian market is crowded with several vendors dealing in the antivirus space. A recent survey says that 65% of online adults have been victims of cybercrime and this has ampliied the need for India’s connected population to deploy effective antivirus solutions that make security simpler. Key Vendors – eScan, ESET, Intel Security, Kaspersky, K7 Computing, Norton, Quick Heal, Trend Micro
Application Delivery Network The global Application Delivery Network (ADN) market is expected to grow from $3.23 billion in 2013 to $5.82 billion in 2018. This represents a Compound Annual Growth Rate (CAGR) of 12.5%. The global market for ADN is projected to surpass US$6.2 billion by 2020 driven by the growing importance of enterprise mobility, datacenter consolidation & virtualization, and increase in cloud IT deployments. Demand for ADN is gaining traction among small and medium sized businesses (SMBs). Migration of SMBs from manual load balancing techniques to advanced ADN technology is poised to spur growth in the market. Asia-Paciic ranks as the fastest growing market with a projected CAGR of 16.5% over the analysis period. China along with other developing nations Focussed Key Partners Focussed Key Partners Focussed Key Partners in Asia-Paciic, including India, South Korea, Taiwan, Thailand, Singapore, System Integrators Distributors Resellers VARs Vietnam, the Philippines and Malaysia, will spur future growth in the region. SolutionsPartners Others s
Key takeaways - The major drivers responsible for the growth of this market include increasing business mobility since the companies are providing its employees with freedom to work from anywhere and on any device and network virtualization as the increased adoption of virtualization will create a market for ADN for business applications.
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Key Vendors – A10 Networks, Akamai, Array Networks, Blue Coat, Brocade, Cisco, Citrix, F5 Networks, Palo Alto, Radware, RSA
Back-up/ Recovery Software The global cloud backup and recovery software market is poised to grow at a CAGR of 13% during the period of 2016 – 2020. High priority on back-up and disaster recovery solutions across organizations due to reasons like compliance/regulations is also expected to generate demand for disk storage solutions. Almost every segments including BFSI, Telco, Manufacturing, Communications & Media are trying to adopt this approach. The cost per gigabyte has become attractive due to the use of higher capacity lower cost HDDs.
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Key Takeaways – Data protection is seen as a key strategy in protecting information for disaster recovery and business continuity (DRBC). As data volumes continue to grow, today’s disk-based backup solutions are proving to be more affordable and capable of tackling ile and disk management problems. For years to come, both disk-to-disk and tape solutions would happily co-exist. However, there is a growing consideration for adoption of D2D2T (disk-to-disk-to-tape) model rather than simply a D2D (disk-to-disk) model for faster restoration of data and faster backup speeds, as also added beneit of deduplication. Key Vendors – Actiio, Arcserve, Commvault, EMC, HPE, IBM, NetApp, Veeam, Veritas
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CHANNEL LEADERSHIP SURVEY 2016
Business Intelligence Indian Business Intelligence (BI) software revenue reached at Rs 1780 crore in FY 16 over Rs 1548 crore in FY 15 with 15% growth. In India, there are several BI and analytics players. However, the market is led by SAP with 26% market share followed by IBM (23%), SAS (16%), Oracle (10%), Qlik Tech (3%) and Tibco (1%), among others. The BI market also reserves a great opportunity for vendors as this is largely a fragmented space where several players are active and trying to innovate with their applications. The market is projected to reach $213.8 million in 2016, an increase of 18.6 percent over the 2015 revenue of $180.2Focussed million. Key Partners Focussed Key Partners Focussed Key Partners
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Key Takeaways Big data and analytics are becoming a topic of serious discussion in Indian organizations as they want to be able to predict, prevent something and take informed decisions. The BI and analytics market has majorly been inluenced by the development of mobile, information, cloud and social media technologies which are disrupting the market. Players such as Tableau and Qlik are offering customers freedom to choose and deploy analytics quite easily. Tailored solutions for verticals are proving to be another advantage as mid-size players are able to use them and take insights into their business. Key Vendors – IBM, Oracle, Qlik, SAP, SAS, Tableau, Tibco
CRM
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Customer Relationship Management (CRM) is growing rapidly across organizations. It is evident from the fact that several SMEs, SMBs and startups invested in SaaS-based CRM solutions % % in the last few quarters. Large enterprises continued to invest in CRM technologies so that they can offer better services to their customers. Ecommerce has been one of the frontrunners % % to invest in CRM. Even BFSI organizations continued their CRM investments. The CRM % market grew to Rs 2690 crore with 14% growth rate, which is an encouraging growth. Even small organizations want to be ahead of the curve to serve customers in the best possible way. Microsoft and Google tried to reap on the opportunities in the mid-segment. Overall, the top ive CRM software vendors accounted for more than 45 percent of the total market in 2015. Key Takeaways - FY16 is expected to witness interesting implementations in the mid market by all players such as Oracle, Microsoft and others. Oracle and SAP seemed to have broken the premium tag which used to shoo customers away. Key Vendors – Adobe, Microsoft, Newgen, Oracle, Ramco, SAP, Salesforce
Digital Camera The demand for (DSLR) Cameras remains strong whereas, the demand for Compact/Point and Shoot Digital Cameras has witnessed a declining trend. This shift is primarily as a result of reducing cost of DSLRs as well as rising income levels, more young people getting interested in photography and technological advancements. On the other hand, DSLR segment is growing steadily because of their superior image quality. According to a study, Indian camera market is anticipated to grow at the compounded annual growth rate (CAGR) of around 27% for next ive years to reach USD 3 Billion (Rs. 1675 Crores) by 2017. On the other side, grey market & substitute products like mobile cameras are acting as restraints to the camera market. Focussed Key Partners Nikon continued its market Focussed Key Partners Focussed Key Partners leadership in the overall India Digital System Integrators Distributors Camera market followed by Canon in Resellers VARs SolutionsPartners Others the DSLR and Sony in the Point and Shoot Camera segment. s %
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Key Takeaways -Fortunately, for digital camera vendors, there is one thing that smartphones can’t do (yet) that digital cameras can: interchange lens. This is why there is always a surge in demand for Digital cameras.
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Key Vendors –Canon, Fujiilm, Nikon, Samsung, Sony
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Dot-Matrix Printer The market for Dot Matrix Printers (DMP) continued to decline given the preference for end users for new technology laser printers. However, Companies have been focusing into POS (Point-of-Sale) business, with the retail segment adopting it for their billing and taxation purpose. The market for POS products is growing at a CAGR of 12%, riding on the demand from retail, transportation and hospitality sector in the country. Increased investment in line busting technology is also expected to play a key role in industry growth. The recent automation of Department of Post (DOP) in India further boosts the requirement of hand handled devices for billing and projects Focussed Key Partners for Smart city projects. There is high Focussed Key Partners Focussed Key Partners hope for this segment to see growth System Integrators Distributors coming from the Indian BFSI and the Resellers VARs SolutionsPartners s
retail segment in the country.
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Key Takeaways –Printing vendors are looking forward to the opening up of the banking and inance sector to the Dot-Matrix segment. Indian Railways still use the dot-matrix printer for printing reservation charts, train tickets etc. Expansion of organised retail and statutory requirements such as preserving document copies over a length of time can provide another window of opportunity for the DMP market to grow.
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Enterprise Digital Rights Management (EDRM) Enterprise Digital Rights Management (EDRM) solutions allow organisations to share information, without worrying about where it might end up, or who might get their hands on it. Enterprises today are rightly concerned about what would happen if an intruder breaks through their cyber defences, and millions are invested in trying to ensure that the bad guys can’t get in. But how much thought is given to the integrity of information that enterprise users willingly share with others, both within and outside the enterprise? Organisations want and need to share information with partners, advisors and contractors, but they don’t want sensitive information to be leaked, nor their intellectual property stolen. Striking the right balance between security and eficiency is, therefore, critical, as data integrity must be preserved both inside and outside the organisation without compromising the resources and processes that make the business work. Today’s market-leading EDRM solutions support two-factor authentication using encryption keys that are enterprise controlled to lock down server-to-server communication. Client-server communication is made more secure through the incorporation of SSL tunnelling features. Extended watermarking features allow for every document to be given a dynamic, user-speciic watermark. These advances ensure high levels of security and drastically reduce the risk of data leakage, even from mobile devices and cameras.Implementation of EDRM is highly helpful for these sectors includes BFSI,Manufacturing,Government,Pharma and Telecom . Key Take-aways: The market for Enterprise Digital Rights Management (EDRM) solutions is booming. EDRM solutions have more value when they integrate seamlessly with installed enterprise solutions, including data loss prevention, enterprise content management, , ERP and enterprise ile synch and share solutions. By connecting with existing systems, iles are automatically protected as they are discovered, downloaded, or shared to dramatically increase adoption and close security gaps Key Vendors: Seclore, Secure Islands, Fasoo, Giga Trust
Electronic Surveillance The security & surveillance sector in India can broadly be divided into four main categories - Access Control, Detectors & Scanners, CCTV and Alarm Systems. The largest amongst these is the CCTV segment, accounting for more than 50% of the entire electronic security equipment market in India. In overall, India IP video surveillance is projected to reach $1.4 billion by 2021, with IP surveillance cameras accounting for a key share of the market revenues.
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Key Takeaways – The electronic surveillance market is witnessing immense growth from sectors such as city surveillance, hospitality, airport security, BFSI, retail, BPO, manufacturing, college campuses, infrastructure companies and education. The government, in general, is the biggest segment in terms of volume demand. Over the next six years, the market for IP surveillance is expected to increase due to increasing IP infrastructure, declining prices and demand for remote access. Video surveillance software market is also another growing segment, where video management software leads the market share; however, higher growth of video analytics software is anticipated in the next few years. Key Vendors – Axis Communications, Bosch, Canon, CP Plus, Dahua, Hikvision, Honeywell, LG, Panasonic, Samsung, Sparsh, Tyco, Zicom
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Electronic Security/ Control Systems/ Biometrics The Indian market for access control was worth $76 million in 2015 and is projected to nearly double to $140 million by 2019. However, Indian market grew by only 9 percent in 2015, compared with previous estimates of 12 percent. Despite this, the country still outperformed Malaysia, Australia and other countries in the region. It is expected to grow globally at an estimated CAGR of 10.6% between 2014 and 2020. The APAC market accounted for a market share of 27.4% in 2013 and is estimated to grow at a CAGR of 11.3% between 2014 and 2020.
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Key Takeaways - The Indian access control market looks bright and is set to further beneit from the boost in the business environment in India. Primary factors driving growth include increasing concerns over safety and security among individuals and organizations, post recession resurgence in key end-use markets and technology developments. Robust growth in demand from developing markets, particularly Asia-Paciic also augurs well for the market. However, China market is eating away a major share of this market. Key Vendors – Gallagher, HID, Honeywell, Ideniv, Matrix, Solus, Smart Eye, Spectra
Enterprise Mobility The India enterprise mobility market is expected to grow from $1.7 billion in 2015 to $2.3 billion in 2017. This radical growth is due to the explosion of smartphone users in India and the time they spend on the internet. The total addressable enterprise mobility solutions industry in Asia Paciic, which includes applications, devices, security, middleware, and professional services, is expected to grow from US$22B in 2015 to US$26.7B by 2017.
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Key Takeaways - Enterprise Mobility is an emerging discipline within the enterprise over the past few years and it also help to increase the top-line and improves bottom-line by extending its reach, reduce information islands and improve Business performance. The radical growth in enterprise mobility is due to the explosion of smartphone users in India and the time they spend on the internet. The new generation of smartphone-powered workers has easier access to end-user devices and network connectivity, which is eventually leading businesses to prioritize and reorient themselves around mobile innovation, apps and services. Key Vendors – Airwatch, Blackberry, Dell, EMC, HPE, Huawei, RSA, SAP, VMware
ERP The overall ERP market in India is expected to grow at a CAGR of 25.4% during the period of 2015–2020. One of the key factors contributing to this market growth is the growing demand of ERP in SMBs. The ERP Software market in India has also been witnessing the growing adoption of SaaS-based ERP. The future market is however driven by cloud ERP adoption among enterprises of all sizes. The SME segment is expected to drive cloud ERP market more than that of large enterprises, which is expected to grow at a CAGR of 23.9% during 2015–2020. Nonetheless, the ERP market in India is steadily Focussed Key Partners Focussed Key Partners Focussed Key Partners growing for the last few years and the main reason for this enormous System Integrators Distributors Resellers VARs s growth can be attributed to factors Solution Partners Others s like best practices, easy and faster 9% % implementation. %
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Key Takeaways - With the increasing number of SMBs, they are now looking at adopting ERP solutions on the software as a services (SaaS) model for faster deployment, though it has not yet widely been adopted for mission-critical operations. It seems a promising opportunity in the Indian SMB sector. Customers are also actively looking for open source ERP solutions. Key Vendors –Deskera, Infor, Microsoft, Oracle, Ramco Systems, SAP, Tally
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Ethernet Switches The Ethernet Switch market witnessed a year-on-year growth of 12.3 percent (in vendor Revenue) and stood at $ 112.6 million. ADC and L3 switches saw a signiicant year on year growth due to increased spending from service provider segment for technology refresh and 4G rollouts. Adoption for SMAC technologies drove demand for L3 switches across organizations in Q1 2016. Telecom, Banking, and Education sectors witnessed signiicant year on year growth of 20 percent and contributed close to 60 percent of the overall market. Cisco continued its dominance with 67 percent market share followed by Huawei and Juniper. Huawei witnessed a signiicant year on year growth from 1.8 percent to 6.6 percent in Q1 2016 due Focussed Key Partners to uptake from Telecom players. Focussed Key Partners Focussed Key Partners Citrix, Brocade, Array Networks, System Integrators Distributors and Alcatel-Lucent showed a strong Resellers VARs s Solution Partners s
year on year growth in Q1 2016.
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Key takeaways - Tech-savvy campuses, wi-i enabled stations, broadband highways, wi-i hotspots are the prospective segments in the direction of the digital infrastructure development and rollouts that will further push the demand for network infrastructure investment.
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Key Vendors – Cisco, HPE, Digisol, D-Link, Juniper, Huawei, Netgear, Schneider Electric
Graphic Cards Over the past few years, India has not only seen an increase in the gaming population but also in the use of graphics card. Graphics cards continue to get faster and more powerful, and the options can seem overwhelming. With more and more common applications requiring GPU for better performance, the end user is expected to move towards adopting graphics cards. Ideally, the three major players in the graphics card world are AMD, NVIDIA and Gigabyte, but there are other players too in this space with equally convincing products. However, compared to the emerging markets such as Russia, China and Brazil, India is lagging behind when it comes to graphics penetration. Globally, 2015 in general saw total of 50 million AIBs (Add Focussed Key Partners Focussed Key Partners in boards) being sold compared to 44 Focussed Key Partners million in 2014. Out of the total 50 System Integrators Distributors million AIBs sold, 5.9 million AIBs Resellers VARs SolutionsPartners Others s are reported to be enthusiast level products which represent $299 US+ graphics cards. 9%
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Key Takeaways - Indian GPU market will grow much faster than the PC market, so much so that it has propelled computer graphics from a feature into an ever-expanding industry — encompassing video games, movie production, product design, medical diagnosis and scientiic research, among many other categories. Key Vendors – AMD, Broadcom, Gigabyte, NVIDIA, Qualcomm
HDD The HDD industry will experience a signiicant segment shift from 2014 to 2018. More than 40% of HDD industry revenue and 45% of HDD petabyte demand will be derived from the enterprise segment by 2018. Shipments of PC components naturally dropped alongside weak PC sales, but hard drive sales in particular have made for an interesting observation - for 2015, declines of HDD sales greatly outpaced the drop of the PC market. The total available market of hard drives contracted by nearly 100 million units year-over-year in 2015, according to estimates provided by Seagate and Western Digital. Focussed Key Partners Focussed Key Partners Focussed Key Partners System Integrators Resellers SolutionsPartners s
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However, External hard disk drive market is growing rapidly because of growing demand for portable storage backup and extra data storage at relatively lesser price. New slim and ultra slim external hard disk drives further encourage the external hard disk drive market growth because of consumer demand of appeal and style in system. Key Takeaways - There is shift in the market from traditional HDD to portable wireless storage solution designed especially for consumers, owing to which there is a steady decline in its shipments for 2014-2019 period. With the increased usage of CCTV and DVR for the security purposes the growth of both Internal and external drive seems very much promising. Key Vendors –Seagate, Toshiba, WD
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CHANNEL LEADERSHIP SURVEY 2016
InkJet /Ink Tank Printer The end of festive season did not pull up the demand as expected from the channel community, which was one of the major factors for decline in the Inkjet market last year. Aggressive branding by the Multinational companies to address the consumer segments and needs of students drove the inkjet printer segment in terms of unit shipments to some extent.
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Looking ahead, Inkjet market is expected to grow at a higher pace than Laser market because of the Ink Tank printers. The commercial segment that was earlier completely dominated by the Laser printers is now being penetrated by the Ink tank printers. Overall, HP stands as the leader in the InkJet category, while in the Ink Tank space, Epson enjoys the maximum share.
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Key takeaways - The InkJet printing domain is evolving with Continuous Ink Supply System (CISS) acting as a catalyst to a niche market. This change is expected to bring transformational shifts in the print industry. In case of InkJet printers, while the printer is not expensive, cartridge cost is quite high. However, for Ink Tank printers, the printer cost is quite high as compared to the reilling of the tanks. This is where the difference lies between both the categories of printers in terms of cost. Key Vendors – Brother, Canon, Epson, HP Inc, Ricoh
LaserJet Printer In the Laser segment, printer-based Laser HCP market declined by 15.4 percent in terms of unit shipments in Q4 2015 when compared to total shipments in Q4 2015. All the major vendors HP, Canon, Ricoh and Samsung declined sequentially in Q4 2015. In the copierbased Laser HCP, the market declined by 11.9 percent in Q4 2015. The impact however was less than the printer based Laser HCP market. The printing market is expected to transition slowly from entry level Focussed Key Partners Focussed Key Partners Laser to Inkjet because of the Ink tank printers that provide the colour option at sub INR 10K Focussed Key Partners price band making their total cost of ownership low as well. Overall, the customers who need System Integrators Distributors speed and have high page volume printing are still expected to go for Laser Printers. Resellers VARs Solution Partners s
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Key takeaways - A decrease in number of large government deals affected the Laser Market complemented by the low pull from the enterprise segment in the A4 printer base segment. There is a demand for the Laser printer and is growing phenomenally. There is a big opportunity for all vendors to expand. Laser printers have emerged as revenue generators for both vendors and partners as they can position them as a must-have product for corporate buyers. Key Vendors – HP Inc, Canon, Konica Minolta, Kyocera, Ricoh, Samsung, Xerox
MFPs/ MFDs Hardcopy Peripherals (HCP) market in India dropped by 17.3 percent sequentially in Q4 2015 and reached 813,643 units in terms of overall shipments. Overall, the Government purchasing was slow, complemented by weak consumer sentiments that prompted this decline. Low per page cost and price differential are the key factors inluencing a shift in the preference of both the consumers as well as the enterprise segment towards the Inkjet multi-function printers over Laser printers. The global multi-function printer (MFP) market however is slated to grow steadily at a CAGR of over 2% during the period from 2016 – 2020. Just like in India, the inkjet segment dominates the MFP market in terms of unit shipment because of its wide usage and effective cost of ownership. Focussed Key Partners Focussed Key Partners Focussed Key Partners
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Key Takeaways - With the increase in business demands and an ever growing market in India, the demand for MFPs is increasing as they deliver enhanced functionality and productivity for an organization, thus redeining ofice life, helping organizations to consolidate their investment, maximizing the use of space and simplifying worklow processes. The MFP segment is clearly growing much faster and has been undergoing many changes in its functionalities. In the current quarter, Indian consumers have shifted their preference towards MFP printers over the normal document printers. This trend can be well observed in the rising market share of MFP printers. Key Vendors – Brother, Canon, HP Inc, Epson, Kyocera, Ricoh, Samsung, Xerox
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CHANNEL LEADERSHIP SURVEY 2016 Data Center Special Focussed Key Partners Focussed Key Partners Focussed Key Partners
MPS
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MPS (Managed Print Services) is the next frontier of business transformation that will help enterprises lower their costs, increase productivity, optimize worklows, and help 7% % them focus on what matters most to them – their real business. Channel partner/core MPS providers accounted for the largest share of the total MPS market in 2015. In order to cater % % to the ever increasing demand for MPS in the discrete SMEs sector, lead MPS vendors have turned to channel partners in order to expand their % customer base by targeting untapped opportunities. Furthermore, cloud-based deployment was the largest segment of the MPS market in 2015 and is likely to dominate over the forecast period. The government and public end-use segment was the largest in 2015 and is likely to hold its top position in terms of revenue share the forecast period. Key Takeaways - The Managed Print Services Market is expected to reach US$ 94.97 Bn in revenue by 2024, rising from US$ 26.18 Bn in 2015. The market is estimated to expand at a CAGR of 14.8% during the forecast period from 2016 to 2024. Since it is in the early stage of adoption, there is a vast untapped opportunity for the market to expand with many Indian enterprises yet to embrace these technologies. Key Vendors - HP Inc, Canon, Konica Minolta, Kyocera, Ricoh, Xerox Focussed Key Partners Focussed Key Partners Focussed Key Partners
Open source Open source technology plays a crucial role in the cloud business. Open source technology has a crucial role to play, particularly in the cloud and data center business. Customers are looking for cost-effective solutions, and open source is able to provide these. Open source technologies have evolved and matured so much that any type of critical workload that demands huge resources in terms of compute, storage and networks can be migrated to the cloud. In general, anything which runs on windows or any lavour of Linux can easily be migrated to the cloud. Linux plays a pivotal role when it comes to adding something extra to the production environment.
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By 2020, the market for Linux is poised to touch 56 Billion USD. Key Takeaways: The Linux Foundation has partnered with non-proit online learning platform edX to launch OpenStack course by the name Introduction to OpenStack. The massive open online course (MOOC) is aimed at providing students a detailed understanding of OpenStack cloud technology. As most of the businesses are undergoing digital transformation, it makes imperative to include Linux into virtual appliances and varied web servers. Key Vendors: Black duck, Redish, Red Hat, Suse
PBX Systems Globally, the enterprise telephony market continues to struggle as businesses hold off new PBX purchases. Companies are evaluating cloud alternatives and investing in uniied communications (UC) applications instead of PBXs, and purchase cycles are getting longer. In India, the Enterprise Telephony and Enterprise Telephony market in India recovered slightly by a single digit number. The market marginally recovered due to the uptake of Pure IP Telephony (Pure IP PBX, IP Phones and Voice Gateways). However, shortfall continued in traditional systems such as PBX/Key systems and AD phones as enterprises prefer IP-based products rather than traditional PBX systems. Cisco, Avaya, NEC and Mitel lead the combined PBX and uniied communications market by global revenue.
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Key Takeaways - The revenue generating industry segments for this market, including inance, telecom and manufacturing, restricted growth as they curtailed spend due to their own lackluster performance. Increased adoption of bring your own device (BYOD) policies resulted in the growth of mobility and conferencing speciically to improve productivity and break down communication barriers. Globally, hosted PBX and UC services are a growth market that has moved well beyond early stages and expected to take off in India too. Key Vendors – Alcatel Lucent, Avaya, Cisco, Matrix, Panasonic, Polycom, Siemens
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PC Market In line with the slump in global PC market, the Indian PC market too witnessed a fall in shipments during the irst quarter of the year 2016. The overall PC shipment for Q1 2016 stood at 1.99 million units i.e. a quarter-on-quarter decline of 20.8 percent over Q4 2015 and year-on-year decline of 7.8 percent over Q1 2015. The overall PC shipment for Q2 2016 however stood at 2.14 million units, implying a quarter-on-quarter growth of 7.2 percent over Q1 2016 and year-on-year decline of 2.2 percent over Q2 2015. HP reclaimed the irst spot with overall PC market share of 28.4 percent in the India PC Market, followed by Dell and Lenovo with 22.2 percent and 16.1 percent respectively. Focussed Key Partners Focussed Key Partners Focussed Key Partners System Integrators Resellers SolutionsPartners s
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Key Takeaways - While the 1st quarter of 2016 started with a positive sentiment, the actual buying did not keep up. However, this is quite normal during the budget announcement period and vendors are now hoping for a seasonal turnaround in the coming quarters. With forthcoming beneits from the 7th Pay commission and increased budget allocation for rural India, coupled with a good monsoon the rural demand is anticipated to improve, while urban demand is steadily picking-up. The biggest growth for India will come from Tier 2 and Tier 3 cities, an encouraging sign for the entire industry. Key Vendors – Acer, Apple, Asus, Dell, HP Inc, Lenovo
Projectors Rising demand across the Education, Corporate and Entertainment sectors along with increasing government spending towards Digital India initiatives have fueled the growth of Projectors in India. Further, recent technological advancements and inluxation of features such as 3D, Wi-Fi and HD have created new segments including Gaming and Home Entertainment. The Indian Projector market is highly fragmented with more than 20 MNC brands currently operating. India Projector Market shipments value reached over $100 million in CY 2015. In terms of unit shipments, Epson led the overall market followed by BenQ. Other major players in the India Projector Market are Hitachi, Sony, Optoma, Panasonic, Ricoh and Dell. Focussed Key Partners Focussed Key Partners Epson and BenQ together captured Focussed Key Partners around 41% share of the market. System Integrators Distributors Resellers VARs More than 30 vendors shipped Solution Partners Others s projectors in India.
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Key Takeaways - In India the digital projector market was traditionally dominated by large businesses, but now the home/small ofice home ofice (SOHO) segment has shown tremendous potential with the launch of new models that support features like HD, shortthrow, 3D, Wi-Fi etc. actors such as increasing spending on Electronics, declining ownership cost and rapidly changing urban lifestyle have contributed to the growth of Projector market in the country. Key Vendors –BenQ, Canon, Casio, Epson, LG, Panasonic, NEC
Routers The Router market witnessed a signiicant year-on-year growth of 32% and stood at USD 72.4 Million in terms of vendor revenue. It saw a de-growth of 6 percent in the market year-on-year and a growth of 5.3 percent quarter-on-quarter in terms of end user revenue. The worldwide total enterprise and service provider (SP) router market also improved in 4Q15, growing 4.0% on a year-over-year basis and was up 9.9% quarter over quarter. For the full year 2015, the router market was up 5.6% Focussed Key Partners over 2014. Focussed Key Partners Focussed Key Partners
System Integrators Resellers SolutionsPartners s
Distributors VARs Others
%
%
%
% %
Key takeaways - Organizations are increasingly taking interest in the third platform technologies (SMAC) to leverage its beneits in workforce optimization, supply chain, customer experience and eficient resource utilization. Telecom 4G roll outs and government projects comprising of various e-governance, surveillance and digital initiatives are expected to further contribute in the coming quarters. Key Vendors – Cisco, Dell, Digisol, D-Link, HPE, Huawei, Netgear, TP-Link, ZyXEL
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CHANNEL LEADERSHIP SURVEY 2016
Server The overall server market in India surged by 19.2 percent in CY 2015, with 157,061 units shipped in 2015 as against 131,695 units in CY 2014. Q4 2015 witnessed 32,853 server units shipped, down by 16.2 percent over the previous quarter. The non x86 server market grew by 42 percent year-on-year in terms of unit shipments and 59 percent in terms of revenue in Q4 2015. Bank expansions and increasing number of migrations to HANA (High Performance Analytical Appliance) primarily contributed to this bolstering growth. In India x86 market, HPE maintained its lead position in Q4 2015 with 36 percent market share in terms of unit shipment, followed by Dell with a market Focussed Key Partners Focussed Key Partners share of 24 percent. Focussed Key Partners System Integrators Resellers SolutionsPartners
Distributors VARs Others
%
Segment
2015
2016
2017
2018
2019
2020
Enterprise Networking
812
848
903
942
959
965
Storage
275
253
262
269
275
281
Servers
822
834
862
863
874
891
1,909
1,935
2,028
2,073
2,109
2,138
Total Source: Gartner (April 2016)
Key Takeaways – CY 2016-17 is sure to bring back growth prospects owing to positive business sentiments. The next few quarters are expected to see favourable compute demand as cloud service providers continue to expand their local data centers across the country.
% %
5%
Table 1: Indian IT Infrastructure Revenue By Technology (Millions of U.S. Dollars)
Key Vendors –Cisco, Dell, HPE, Huawei, Fujitsu, Lenovo, Oracle
%
Smartphones
Focussed Key Partners Focussed Key Partners Focussed Key Partners System Integrators Resellers SolutionsPartners s
Distributors VARs Others
The year 2015 was quite a dynamic one for the Indian mobile phone industry. More than the mobile phones, it was the smartphone segment that is driving the change in the Indian % % industry. India has now overtaken the U.S. to become the second largest smartphone market % % in the world. Though the market is being fed by domestic phone makers like Micromax, Lava, Intex and MNC players like LG, Sony and Samsung, the year 2015 saw the inlux of Chinese % smartphone makers in to the market. Companies like Xiaomi, Coolpad, OnePlus, Oppo, Vivo and LeEco are the companies that dominated the market in terms of bringing new products. Samsung dominated the Indian smartphone market in 2015 with a share of 25.7 percent. Indian handset makers Micromax and Intex are at the second and third positions with market shares of 16.1 percent and 10.4 percent. Lenovo and Lava occupied the fourth and the ifth spots. Over the last quarters, LG has also evolved as one of the top performing brands as a result of its aggressive strategy and change in leadership. Key Takeaways – The overall smartphone shipment in 2015 grew by 23 percent yearover-year. Though India is a huge market, smartphone penetration is still quite low. Key Vendors – Apple, Intex, Lava, Lenovo, LG, Oppo, Micromax, Microsoft, Samsung
Solid State Drives In India’s data storage device market, Solid State Drive (SSD) is currently at its growing stage, which accounts for marginal share in the overall market; however the segment is registering exponential growth. Amongst all end user market, consumer end user segment acquired largest revenue share of the market pie in the country. Until 2015, data storage device market is dominated by Hard Disk Drive (HDD) segment acquiring nearly 90% of the share, though is witnessing year-overyear decline. Entry-level SSDs accounted for majority of SSD unit shipments in 2015, wherein 64-120GB capacity based SSDs were mostly shipped, followed by 256-500GB, 512GB and above. Focussed Key Partners Focussed Key Partners Key Takeaways - India solid state Focussed Key Partners drive market is forecast to reach System Integrators Distributors Resellers VARs $128 million by 2022. The rapid rise SolutionsPartners Others s in next generation connected devices, growing premium & high-end PC market, need for higher performance & capacity storage devices, coupled with increasing IT spending would % % proliferate SSD market in India.
%
% %
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Key Vendors –Kingston, Samsung, SanDisk, Seagate, WD
CHANNEL LEADERSHIP SURVEY 2016
Storage Investments from telecom, banking and government have helped the external data storage market in India to cross the $100 million mark in the fourth quarter of 2015. Spending from telecom vertical, complimented by banking, IT/ITeS, manufacturing and government drove these storage numbers. Technology refresh, ERP upgrades, surveillance, digital transformation and 4G rollouts were the key workloads/use cases for storage deployments. EMC continued to lead the market and increased its market share signiicantly from 29 per cent to 52 per cent in the fourth quarter of 2015. Except EMC, all other vendors including IBM, HP, NetApp and Hitachi witnessed a decline in market share. Focussed Key Partners Focussed Key Partners Focussed Key Partners
System Integrators Resellers SolutionsPartners s
Key Takeaways - The external enterprise storage systems market is expected to grow in single digit in terms of compound annual growth rate (CAGR) for 20152020. Cloud based back-up/ disaster recovery solutions and utilization of technologies like software deined storage, virtualization, compression, de-duplication are also gaining traction across organizations, which are expected to cannibalize some portion of traditional storage revenues but will open up a new class of storage buyers.
Distributors VARs Others
%
%
9%
%
%
Key Vendors – AMI, Cisco, EMC, Dell, Hitachi Data Systems, HPE, Huawei, NetApp, Netgear, Oracle, QNAP, Quantum
Tablets India’s tablet market grew at 8.2 per cent in 2015 with shipments standing at 3.8 million with budget tablet maker DataWind on top. While for Q4 2015, the market declined by 18.7 per cent with 0.86 million units getting shipped in the time period, the segment managed to avoid an overall dip for 2015. Majority of detachables shipped in CY 2015 were in US$200-$300 price band, primarily driven by local vendors such as Micromax and iBall. On the premium end, Samsung currently dominates but competition is slightly expected to be effected with Apple’s new entry in the market, iPad Pro and Microsoft Surface Pro in 2016 Q1. Windows and Intel have gained share in 2015, mainly through local vendors and Windowsbased tablet shipment tripled in Focussed Key Partners Focussed Key Partners Focussed Key Partners 2015 over last year. Intel saw a 49.3 percentage annual growth. The System Integrators Distributors Resellers VARs 7-inch tablets are struggling due to the rise of Phablet smartphones, and instead the 8-9.9-inch SolutionsPartners Others s screen tablet market grew at 39.2 per cent.
%
%
%
% %
Key Takeaways - 4G tablets are further expected to pick up as 4G LTE services from service providers like Airtel and Vodafone continue to penetrate in the country. Consumers will continue to drive the wave of adoption of low-cost tablets as a preferred mobility solution. Key Vendors –Apple, DataWind, Dell, HPE, iBall, Lenovo, Micromax, Samsung
Thin Client Good news is that the sale of Thin client devices in Asia has gone up to ten per cent in the year. The bad news is that the global Thin client sales have shown a downward dip of 6.9 per cent in a year, going down to 5.08 million devices, whereas the total number of devices shipped in 2014 was 5.454m. This dip is attributable to economic factors, rather than a loss of interest in thin clients or desktop virtualization (VDI). In India, NComputing continues to dominate 67% of the thin client market; with the total number of units sold are 31,730 and 17,035 in 2016Q1 and 2016Q2 respectively. Following next to it are Dell and HPFocussed Inc. Key Partners Focussed Key Partners Focussed Key Partners
System Integrators Resellers SolutionsPartners s
6% % 9%
Distributors VARs Others
% %
Key Takeaways – Today’s CIOs are increasingly embracing thin clients and mobility. Besides, Thin Clients are attractive options for businesses across diverse verticals, such as healthcare, banking, education and retail. Going forward, an improved outlook for thin client market is expected, especially as companies begin to think about moving beyond Windows 7. Key Vendors - Dell Wyse, Fujitsu, HP Inc, Igel, INP, NComputing, RDP, VXL Instruments
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Focussed Key Partners Focussed Key Partners Focussed Key Partners
UPS The market for UPS systems in India is projected to surpass USD1.2 billion by 2020. Up to 50 kVA UPS have been dominating the country’s UPS market, both in value as well as volume terms. However, the share of high-end (above 50 kVA) UPS systems is also expected to increase by 2020 on accounting of anticipated industrial and manufacturing growth over the next ive years. The global industrial UPS market is expected to grow at a CAGR of around 11% during the forecast period. High power luctuations, power outages and the growing demand for industrial power backup are the main drivers for the growth of the market.
System Integrators Resellers Solution Partners s
Distributors VARs Others
%
%
% %
%
Key takeaways - The demand for uninterrupted services and power backup in data centers as also the trend towards cloud computing, virtualization and the need for easy data availability are resulting in the growth of the UPS market. Growing demand from diverse sectors such as IT and IT enabled services (ITeS); banking, inancial services and insurance (BFSI); government, manufacturing, telecom and energy sectors continues to drive the UPS market in India. Government’s initiative to computerize its various departments coupled with ‘The National e-Governance Plan’ is expected to boost the demand for low-end UPS systems through 2020. Key Vendors –APC by Schneider, BPE, Delta, Emerson, Luminous, Microtek, Numeric, Socomec
UTM Like in 2014, the biggest growth takeaways for UTM have been the rapid internet adaption and increase in security awareness among SMBs. Globally, for the full year 2015, worldwide security appliance revenue increased 9.9% to $10.6 billion when compared to 2014, while worldwide unit shipments increased 8.1% to 2.33 million units, a record high. Asia/Paciic (excluding Japan) (APeJ) is the second largest region representing 23% of total worldwide revenues and showing the strongest growth for 2015 with year-over-year revenue growth of 16.5% in the worldwide security appliances market. Among the sub-segments, Uniied Threat Management (UTM) has doubled in size over the last ive years reaching record high revenues of $4.85 billion for Focussed Key Partners Focussed Key Partners Focussed Key Partners 2015 and year-over-year growth of System Integrators Distributors 18.5%, the highest growth among Resellers VARs all sub-segments. SolutionsPartners Others s Key Takeaways - The shrinking number of UTM companies is making it extremely % 6% challenging for channel partners to retain their vendor alliances and grow the security business. The Indian UTM market has been growing consistently and is looking poised to grow further 4% at a faster pace, in view of the increasing security consciousness among SMBs, compliance % based buying from large enterprises, and vendor’s strategy to reinvent their products by adding 8% more features. As a matter of fact, the demand and growth rate in India will continue to be larger than any other country. Key Vendors – Cisco, Check Point, Dell SonicWall, Fortinet, Gateprotect, Juniper, Palo Alto, Sophos, Trustwave
Video Conferencing The global Enterprise Video Conferencing equipment market showed mixed results in the irst quarter of 2016 (1Q16), with overall videoconferencing equipment revenue decreasing 21.1% quarter over quarter, but increasing 2.3% year over year. Total worldwide enterprise video equipment revenue in 1Q16 was over $495 million, down from about $628 million in 4Q15. Asia/Paciic revenue decreased 19.2% quarter-over-quarter, but increased 6.3% year-over-year. Overall, talking about the India market, video Conferencing is now widely accepted by Indian organizations as it is helping business organizations to have a better communication with their connected business groups and business experts from different locations. Focussed Key Partners Today most companies are adopting Focussed Key Partners Focussed Key Partners VCS to make it available to all their System Integrators Distributors employees, with an easy guest access Resellers VARs SolutionsPartners Others model for customers and partners to enrich collaboration and enhance business outcomes. s
%
%
%
% %
Key Takeaways– Like in 2014, demand for cloud-based video conferencing and collaboration solutions is going to further fuel the growth of VC solutions in India. With a growing mobile workforce, enterprises across verticals in India are looking for better visual and content collaboration solutions that would help them increase productivity. And this eventually is leading to the growth of the video conferencing equipment market. Key Vendors –Avaya, Business Octane, Cisco, Lifesize, PeopleLink, Polycom, Vidyo
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