'Raritan is purely a channel driven concern'

Recognizing India as one of the 14 key markets in the world, Raritan is
all set to explore the market opportunities the country has to offer. The
biggest challenge for the company is the ignorance of the people about KVM
products. But Vsevolod 'Sev' Onyshkevych, VP - Marketing, Raritan Computer
hopes to arrest opportunities the country has to offer by educating people about
its products for customers and channel partners.

What is your experience of the Indian market?

We recently celebrated the first anniversary of our direct presence in the
Indian market. The proliferation of blade servers and other networking
technologies, combined with the growing server market in the corporate sector,
has opened superb market opportunities for Raritan here. 

Where does the Indian market stand when compared to the global market
place? What is the focus of Raritan's Indian operations and what kind of
distribution blueprint do you follow here?

Raritan recognizes 14 key markets across the world and India is one of them.
The Indian market has unparalleled potential and it is amongst top 10 revenue
generating markets for us. But India still has to come a long way to catch up
with developed markets. When adoption of KVM products by Indian customers is
compared with their western counterparts, the figure still lingers at 10
percent. Here the high-end products are much more concentrated.

VSEVOLOD 'SEV' ONYSHKEVYCH VP- Marketing Raritan Computer

We want to arrest the latent potential this market holds. The biggest
challenge this country throws for us is the sheer ignorance of its people about
KVM (keyboard, video, mouse) products. We have been spending huge amount on
educating people about our products for customers and channel partners.

Raritan is purely a channel driven concern. We reach out to our customers
through business partners. In India we follow a two-tier distribution set up
with distributors at level one of the hierarchy and resellers at second stratum.

How many channel partners does Raritan have in India, what significance do
the partners hold in your distribution model? How closely are you associated
with the solutions providing community?

In India we have two-distributor partners, Pune-based Cubix Microsystems and
Delhi-based Team Computers. As far as reseller partners are concerned, that
aspect is taken care of by these two distributors in their respective
territories. We have around 20 reseller partners in India. Partners are an
indispensable part of our business model. Our growth rate, indeed, is
proportionately related to our partner's success. As of now we don't
segregate partners in different categories as system integrators or box pushers,
but we definitely profile them. We will categorize partners keeping in mind
parameters like their level of engagement with us and their understanding of the
market pulse.

Which customers/vertical segments has Raritan been targeting initially?
What are the new customer segments on which Raritan will be more focused this
fiscal?  

The conventional growth drivers of KVM products are ITeS, telcos and
BFSI sectors but as businesses are growing beyond geographies, the growth is
emanating from all verticals. Almost all businesses require remote access and
they are managing multi location operations. The prominent vertical that holds a
lot of potential is the government sector. With the emergence of e-governance
and IT-based customer services adopted by government departments, KVM usage has
become popular. Hence, we will be focusing extensively on the government sector
this year.

Are you looking forward to increasing the strength of your partners?

We don't have any immediate plans to appoint partners. But certainly, with
new verticals we will engage new business associates. We will identify channel
partners who are abreast with the working culture of government sector. 

Recently Raritan's major competitor - Avocent acquired Cyclades
Corporation to strengthen its position. Is Raritan contemplating mergers or
acquisitions?

We believe in building up our strategies keeping in mind our customers
benefits. Going for an acquisition not only means accumulation of market shares,
but it brings a lot of changes for both the concerned. For us what matters most
is giving best products and services to our customers; for us acquiring a
competitor is just like killing the healthy competition. There are other
complementary areas through which we could serve our customers, rather than
going for an acquisition. We will utilize our energies in developing more
competitive products. Consequently, as of now we are not considering any
acquisition or merger. 

Does Raritan have any plans of establishing a manufacturing facility in
India?

Although India has done fairly well in terms of market opportunities but
setting up a manufacturing base here is not our immediate priority. Though labor
and other input costs are favorable in India, it not a very lucrative option for
us.

Anjali Choudhary

anjali@cybermedia.co.in