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December 21, 2010

Cisco Faces Competitive Threats as U.S. Businesses Expand WiFi Network

By Kunal Vahalia, TMCnet Contributor

According to a report of ABI Research (News - Alert), majority of the U.S. commercial organizations are experiencing excellent WiFi (News - Alert) penetration and by the end of the year 2010, the penetration will grow to 45 percent. The penetration is the highest in large businesses, but over the last two years significant penetration is also seen in the smaller business segment.




In a press release, Dan Shey (News - Alert), practice director, said, “Healthcare systems and education are the front runners for WiFi equipment vendors. Every vertical today is making use of WiFi for its customers and the employees. The U.S. population is now spending on WiFi enabled netbooks, media tablets, smartphones and laptops.”

Today, Cisco WiFi equipment is more preferred by U.S. commercial organizations than any other WiFi supplier. However, the company’s market share varies according to the size of business. The competitive threats for Cisco (News - Alert) will increase on two fronts in the future.

This is because the smaller WiFi vendors are targeting the underpenetrated small business segment with cost effective and high quality products having features that meet all requirements. Once they establish their brand recognition in the smaller business segments, they will then move on to expand their market share in the larger business segments.  

Shey continued, “Constrained capital investment and the technological conditions are driving many companies to consider all the options before they start investing in WiFi equipment. Today businesses have far lesser capital than before and hence they won’t mind going with cheaper vendors as long as they provide the services.”

In the long term, 4G cellular technologies will prove to be a better alternative than WiFi for on campus and off campus connectivity. The WiFi market provides comprehensive reviews of Wi-Fi deployments around six sizes of business in the U.S. and 19 industry verticals. It also offers market share analysis, market trends and challenges as well as opportunities for WiFi technologies in the U.S. business segment.


Kunal Vahalia is a TMCnet freelancer. He has several years of freelance writing experience, including a stint working for drugdelivery.ca as an SEO content writer. To read more of his articles, please visit his columnist page.

Edited by Jaclyn Allard


 







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