Computer Networking Equipment Manufacturing

Computer Networking Equipment Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry primarily manufacture equipment used to transmit data across communications networks. Major companies include Cisco Systems, Dell, Hewlett Packard Enterprise, and Juniper Networks (all based in the US), as well as Huawei (China) and Nokia (Finland).

COMPETITIVE LANDSCAPE

Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is highly concentrated: the 50 largest firms account for about 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products of networking equipment manufacturers include switches, routers, and network control equipment. Major services of equipment suppliers include system and network design, software development, installation, monitoring, and maintenance. Other hardware and software products include intrusion prevention devices, remote termination equipment, firewalls, and network appliances.