"We have revised our prices for Indian market”

Working closely with its Indian distributor Cubix Microsystems, Aten has
reworked its pricing to make its brand more popular in the Indian market. Jerry
Liu is confident that armed with a competitive pricing and a wider product
range, the channel will be able to position Aten strategically here

Since India is a price-sensitive market, how are you trying to gain more
traction with the partner on the price front?

Our exclusive distributor in India, Cubix Microsystems, had suggested that
we should have a localized pricing structure for India. They too mentioned that
since India is a price-sensitive market, price could be used to gain more market
and mind share. We, therefore have revised our prices for India and will be
introducing the new price list shortly.

This new pricing will also help our channel as they can then position our
products more effectively with their customers. It will also help us compete
with other vendors in the KVM switches market.

(Speaks to Nitin)

The KVM switches business has been growing in India. What according to you
is the reason behind this?

In India, a lot of companies are now adopting for a well-structured IT
infrastructure. This includes putting up servers in different locations for
better management of their network. Traditionally, a boost in the server
business results into a corresponding growth in the KVM switch market as well.
This is one reason why KVM switches are sold as a default.

Also, customers are increasingly realizing the benefits of deploying KVM
switches for better returns on investments and easy management of servers,
especially if this management has to be done remotely. India is a huge country
and while a customer may put servers in different offices all over the country,
it is difficult to have an IT manager at each office. Remote server management
means fewer technical people onsite, which is a huge cost saving.

How has Aten been growing in India?

We have already registered a growth of 45 percent in the past quarters of
2007 as compared to last year in India. In 2006, we grew by almost 47 percent in
India over the previous fiscal. This shows that we are well on the growth track
in this country.

It is reported that IP-based KVM switches will drive business in India.
What is Aten doing to capture this market?

IP-based KVM switches will definitely see an increased adoption, as most IT
appliances and applications are increasingly getting online. Selling an IP-based
KVM switch is very different from selling a low-end one. Here, the products have
to be tested rigorously. This is precisely what we are doing.

We are also trying to increase our brand awareness with joint marketing
efforts undertaken by Cubix Microsystems. Our distributor is arranging for
customer roadshows in A- and B-class cities in India.

How are you working on empowering your channel?

We are conducting training programs for our partners. The first will be held
in Chennai shortly. Top officials from Aten will interact with the channel.
Recently, we also took some of Cubix's technical people to our headquarters in
Taiwan and gave them indepth information about our technology. They can pass
this on to the channel now.

We will also be launching a channel loyalty program to ensure that our
channel stays loyal to selling our brand and is awarded for their efforts in
doing so.

The latest market research shows that the KVM market in India is estimated
to be around $5million, of which the bigger players like Avocent and Raritan
control more than 60 percent. The other players are Belkin, Rose, Aten, Hanut,
D-Link and Minicom. Do you agree with this figure?

According to third party reports, the high-end KVM switch business accounts
for 45 percent of the total business. Of this, Aten commands around 25 percent
in the high-end segment, which amounts to around $2 million. We have a
marketshare of 60 percent in the low and mid-end segments.

Yes, it is true that in the high-end segment, it is Avocent and Raritan which
are the leaders. We are trying to grow our business in this space by 20 percent
this year and project a growth of 40 percent in the next two years. We are well
on our path to achieve this. Unlike Raritan and Avocent, we have a product range
which can cater to entry, mid and high-end market segments.

Aten as a brand is not very visible in the country. What are you doing to
improve your brand visibility?

Presently, we are present in India through Cubix and they are present in six
cities directly. We will be proactively working with Cubix to come up with
branding strategies and have local promotions. We will also work on expanding
our channel so that we have more people talking about our offerings.

You are highly dependent on Cubix for your business in India. Is this a
prudent move?

Cubix has done a very good job for Aten in the past two years. They understand
our strategies and we understand their go-to-market plans. We share a very good
and strong relationship and will continue growing our Indian business through
them.

VINITA BHATIA

vinitavs@cybermedia.co.in

Aten International unveiled its Cat 5 KVM switches, LCD KVM switches, IP-based server- management solutions, KVM extenders and HDMI switch at Computex in Taiwan recently. Among the remote server-management solutions shown to the public for the first time was the economic Cat 5 KVM switch with over-IP functionality. The 8 or 16-port Cat 5 KVM switch provides remote access to the connected KVM switches or servers via LAN, WAN, or the Internet. The various CPU modules are designed for automatic conversions that allowed flexible control of any server-interface combinations (PS/2, USB, Sun and Serial). Furthermore, the Cat 5 cable (or higher) connection extends the distance between the KVM switch and server up to 40 meters. Aten also unveiled a new KVM on the NET device that enables network administrators to remotely access KVM switches and servers via LAN, WAN or the Internet. This product has enhanced functionalities such as dual interface for PS/2 and USB keyboards and mice in the computer or KVM ports, remote storage support with USB ports that allows virtual storage devices to be sent up on the host and accessed from the client, and a local USB console to support additional access to the rack. The KVM on the NET is a value-added product providing remote access and an enhancement of the existing KVM infrastructure Participants Attending the computex held recently in taiwan REMOTE SERVER MANGEMENT SOLUTION, THE ECONOMIC CAT 5 KVM SWITCH WITH OVER-IP FUNCTIONALITY DISPLAYED AT THE EVENT