3Com to focus on Middle East and North Africa

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Targeting the small and medium enterprises struggling to cut costs, US-based voice and data networking solutions provider 3Com is expanding its footprint in northern Africa and strengthening operations in the Middle East, an executive said.

The firm sees an emerging demand for cost-effective converged networking solutions as SMEs are taking the cost-cutting route to mitigate the impact of the global economic crisis.

"The economic slowdown has affected 3Com - in a positive way. We are seeing a definite swing in customer preference away from larger vendors - who expect them to pay a premium. Enterprises are now looking carefully at their IT budgets and realising they can get more performance for less spend," Hemayun Bazaz, channel and distribution manager (Middle East), 3Com, told Emirates Business.

"For instance, alternative value chains leveraging lower cost models - such as 3Com with H3C in China - and localised service and support offer faster, more efficient return on investment, which is increasingly important to customers," he said.

Eyeing more room for business growth, IT companies are keen on studying market dynamics following the global meltdown.

"The crisis we are seeing now is the worst since 2001, but it has opened up opportunities for 3Com and we are winning customers steadily. It's always during difficult periods that the competitive environment changes the fastest. Given our value proposition and our strong presence in China, in contrast to many other vendors, 3Com is facing the financial uncertainty with confidence," Bazaz said.

SMEs are keen to adopt cost-effective networking solutions as they reduce up to 40 per cent of networking costs, he said. Being into end-to-end networking solutions to enterprise customers, the global networking company eyes growth potential in the banking sector.

Elaborating on the company's plans for the Middle East, Bazaz said: "We will focus on winning more customers and expand our business into northern Africa."

The investment strategy of the company entirely depends upon the organisation size, infrastructure, business requirements and the design of the network. The firm provides the customised and focused end-to-end solutions to SMEs which are cost-effective and therefore "offer excellent return on investment", Bazaz said.

"Increasingly we see 3Com winning enterprise deals. 3Com is number two in the global network switching market with a 10 per cent market share," Bazaz said.

3Com is focusing on energy-efficient technologies that reduce carbon footprint, reducing energy costs, he said.

By Sreenivasa Rao

© Emirates Business 24/7 2008