VARs Power 802.11 Startups

Wireless LAN resellers and integrators look set to play a critical role in the future success of startups battling to overcome the might of market leader Cisco Systems Inc. (Nasdaq: CSCO), according to the latest edition of Unstrung Insider.

The report -- "Channel Conundrums: Wireless LAN Resellers and Integrators" -- claims that a first-rate sales channel is the foundation of Cisco’s dominance in the enterprise wireless LAN market.

The networking titan boasts a 44 percent market share of the enterprise wireless LAN equipment market, deriving 90 percent of sales from the channel.

“The VARs themselves -- despite all their talk of market neutrality and cutting-edge technology -- are innately conservative in outlook and understandably focus on the tried-and-true products that put money in the bank,” notes report author Gabriel Brown.

Not that all is lost for startups attempting to usurp Cisco’s dominance. Brown believes that as enterprises start to deploy the extra functionalities provided by the likes of Airespace Inc., Aruba Wireless Networks, Bluesocket Inc., and Trapeze Networks Inc., major resellers and integrators will be forced to adopt and support alternative vendors.

“Increasingly we see forward-thinking, large enterprises that understand they can profit from the startups’ innovation and focus,” adds Brown. “This thinking will inevitably feed through to the channel.

“Look at it this way. If just one or two major customers decide it makes sense to deploy equipment from an emerging vendor, integrators and VARs will soon sit up, take notice, and quickly adopt and support that vendor's product. In this way, smaller vendors tell us, they are starting to crack the big channel partners.”

— Justin Springham, Senior Editor, Europe, Unstrung

For more on deploying, managing and securing wireless LAN networks and applications, check out the forthcoming Light Reading Live! event:
— Wireless LANs: Business Plans

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Channel Conundrums: Wireless LAN Resellers and Integrators is available as part of an annual subscription (12 monthly issues) to Unstrung Insider, priced at $1,350. Individual reports are available for $900.

For more on deploying, managing and securing wireless LAN networks and applications, check out the forthcoming Light Reading Live! event:
— Wireless LANs: Business Plans