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 Nokia (Finland) and Huawei (China).
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 US telecommunications equipment manufacturing industry is highly concentrated: the 50 largest companies generate about 90% 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.
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