Netgear 2013 Annual Report Download - page 7

Table of Contents
design and coloration, and specific user interface features to meet the needs of these markets. We also leverage many of our technological developments,
high volume manufacturing, technical support and engineering infrastructure across our markets to maximize business efficiencies.
Our products that target the business market are generally designed with an industrial appearance, including metal cases and, for some product
categories, the ability to mount the product within standard data networking racks. These products typically include higher port counts, higher data
transfer rates and other performance characteristics designed to meet the needs of a commercial business user. For example, we offer data transfer rates
up to ten gigabits per second for our business products to meet the higher capacity requirements of business users. Some of these products are also
designed to support transmission modes such as fiber optic cabling, which is common in more sophisticated business environments. Security
requirements within our products for commercial business broadband access include firewall, virtual private network and content threat management
capabilities that allow for secure interactions between remote offices and business headquarter locations over the Internet. Our connectivity product
offerings for the commercial business market include enhanced security and remote configurability often required in a business setting. Our ReadyNAS
®
family of network attached storage products implements redundant array of independent disks data protection, enabling businesses to store and protect
critical data easily, efficiently and intelligently.
Our vision for the home network is about intelligently controlling and monitoring all devices connected to the home network at all times, thus
creating a Smart Home. Our focus is to continue to introduce new products into growth areas that form the basis of Smart Homes, such as: the fastest
WiFi standards with broadest coverage via latest technology (802.11ac) WiFi routers and repeaters; video streaming players such Push2TV and NeoTV;
home network storage products with an easy to use user interface and remote cloud access, higher capacity and resilience; high speed DOCSIS 3.0,
xDSL and fiber gateways with more integrated functions; 4G LTE gateways and Air Card hotspots; and home monitoring and automation devices such
as our VueZone home monitoring camera system. We continue to announce and introduce new products in these significant growth markets.
Our vision for the commercial network is about increased effectiveness and efficiency of the hybrid cloud access network. We believe small and
medium enterprises will continue to move into cloud-
based applications, such as: Salesforce.com, Ring Central, LifeSize video conferencing,
SuccessFactors, Workday, and others. In addition, we believe these enterprises will move into utility-
like on demand computing power supplied by third
party data centers. Also, increasingly more enterprises are enabling the BYOD (bring your own device) environment allowing smart phones, tablets, and
netbooks to be the business computing devices of choice. These trends will place a greater demand on commercial networks. To meet this demand we
are introducing next generation commercial products in rapid pace, such as: Power over Ethernet (PoE) switches, 10 gigabit Ethernet switches, high
capacity local and remote unified storage, small to medium capacity campus wireless LAN, and security appliances.
Competition
The consumer, business and service provider markets are intensely competitive and subject to rapid technological change. We expect competition
to continue to intensify. Our principal competitors include:
Other current and potential competitors include numerous local vendors such as Devolo, LEA and AVM in Europe, and Corega and Melco in
Japan. Our potential competitors also include other consumer electronics vendors, including LG Electronics, Microsoft, Panasonic, Samsung, Sony,
Toshiba and Vizio, who could integrate networking and streaming capabilities into their line of products, such as televisions, set top boxes and gaming
consoles, and our channel customers who may decide to offer self-
branded networking products. We also face competition from service providers who
may bundle a free networking device with their broadband service offering, which would reduce our sales if we are not the supplier of choice to those
service providers. In the service provider space, we are also facing significant and increased competition from original design manufacturers, or ODMs,
and contract manufacturers ("CMs") who are selling and attempting to sell their products directly to service providers around the world.
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• within the consumer markets, companies such as Apple, Asus, Belkin/Linksys, D-
Link, Dropcam, Foscam, Logitech, Roku, TP Link, Synology
and Western Digital; and
• within the business markets, companies such as Allied Telesys, Barracuda, Buffalo, Data Robotics, Dell, D-Link, Fortinet, Hewlett-
Packard,
Huawei, Cisco Systems, QNAP Systems, Seagate Technology, SonicWALL, Synology, WatchGuard and Western Digital; and
• within the service provider markets, companies such as Actiontec, Arcadyan, ARRIS, AVM, Comtrend, D-
Link, Hitron, Huawei, Novatel
Wireless, Pace, Sagem, Scientific Atlanta (a Cisco Systems company), Sercomm, SMC Networks, TechniColor, TP-
Link, Ubee, Compal
Broadband, ZTE and ZyXEL.