2015 will confirm WLAN as one of the fastest growing areas of the communications industry, according to Richard Carter, Group Sales and Business Development Director at Nimans, who expects WLAN industry sales to far outstrip PBX shipments this year. Here's why...
Carter is abuzz with excitement about the possibilities that surround the burgeoning WLAN market, and he's not alone. Citing research stats, he pointed to the upbeat calculations and predictions of industry pundits, all of whom tout the WLAN space as one to watch. The combined consumer and enterprise worldwide WLAN market segments grew 9.2 per cent year-on-year in Q2 2014, reckons IDC in a Tracker report. Notable increases included France (up 33.4 per cent), UK (up 24.9 per cent), Spain (up 22.9 per cent) and Italy (up 12.1 per cent). Global sales of WLAN solutions generated almost $2.2 billion during the Q4 2013 with year-on-year growth at 9 per cent. For the whole of 2013, the value of the WLAN market reached $8.5 billion.
"WLAN is already bigger than the PBX market and the gap between the two is set to widen throughout 2015," said Carter. "Wireless communication is now firmly established as the preferred means of personal and business interaction in an increasingly mobile-centric world. In an office environment this extends beyond simple email and web browsing to include applications such as VoIP, video conferencing and video streaming. It's one of the most exciting areas of the Nimans business, and a sector that's relatively easy for resellers to address. The days of trailing cables throughout buildings for broadband will soon become a thing of the past. One day wireless could become the universal choice for businesses big and small up and down the country."
To say that Carter is fired up by the prospects for WLAN would be understate the nature of his verve, especially following his conversations with a manufacturer which calculates that the UK market grew 25 per cent last year. "Demand will only increase over the coming years. It's too big an area for resellers to ignore," added Carter. "The UK WLAN market is estimated to be worth over £250 million in 2015, an arena ripe for dealers to explore."
Nimans has teamed up with Samsung and EnGenius to address the growing WLAN opportunity. Although LAN knowledge is useful, any comms dealer can successfully sell wireless solutions, noted Carter, who pointed out that sectors such as hospitality and education are particularly receptive to WLAN deployments. "Many hotels have problems with old broadband systems so WLAN can be an easy win," he said. "According to a survey, a hotel room with free Wi-Fi is just as desirable as a room with a view. Likewise, schools do not want cables everywhere so they are demanding WLAN solutions. In essence, WLAN opportunities run throughout all areas of a reseller's customer base. Nobody wants wires any more."
Not surprisingly, Carter would 'bet the farm' on WLAN growing significantly this year, outstripping PBX industry sales. "Over the next five years 20 per cent of offices are likely to change their phone systems as part of a natural cycle, but they are all going to buy WLAN," he said. "There's going to be a massive spike in demand. The good news is that it's surprisingly easy for resellers to embrace, much easier than phone systems, so there are no real barriers to entry."
Nimans has invested in the software and staff to support resellers in the early stages of WLAN delivery. This software enables resellers to conduct effective sites surveys and build heat maps. "WLAN is a relatively simple area to get into because there's few components involved other than controllers and access points," explained Carter. "It's about delivering the right amount of coverage and joining all the pieces together. We are holding a number of educational events designed to help resellers get to grips with the potential of this market. There's tremendous margin potential and resellers stand a great chance of taking ownership of the connectivity which will further drive their revenue."
To quantify one particular opportunity, Carter cited hotels suffering from low capacity and poor broadband, which can sometimes be worse than what the hotel owner is using at home. "Resellers could make 50 per cent margin on the WLAN installation and a further £2,500 on the connectivity on a two-year contract," said Carter. "Clearly, WLAN is here and now and set to take-off in 2015."