Netgear 2008 Annual Report Download - page 8

Table of Contents
We design our products to meet the specific needs of both the small business and home markets, tailoring various elements of the product
design, including component specification, physical characteristics such as casing, 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 small business market are 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 small business user. For example, we offer data transfer
rates up to ten Gigabit 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 small 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 small 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 small businesses to store and protect critical data easily, efficiently and intelligently.
Our products for the home user are designed with pleasing visual and physical aesthetics that are more desirable in a home environment.
For example, our RangeMax™ series of routers have distinctive blue antenna-indicator LEDs in a circular dome atop a sleek black or white
plastic casing. Our connectivity offerings for use in the home are generally at a lower price than higher security and configurability wireless
offerings for the small business market. Our products for facilitating broadband access in the home are available with features such as parental
control capabilities and firewall security, to allow for safer, more controlled Internet usage in families with children. Our broadband products
designed for the home market also contain installation software that guides a less sophisticated data networking user through the installation
process with their broadband service provider, using a graphical user interface and simple point and click operations. Our connectivity product
offerings for the home include powerline data transmission modes which allow home users to take advantage of their existing electrical wiring
infrastructure for transmitting data among network components.
Competition
The small business and home networking markets are intensely competitive and subject to rapid technological change. We expect
competition to continue to intensify. Our principal competitors include:
Other current competitors include numerous local vendors such as Siemens Corporation, Devolo and AVM in Europe, Corega International
SA and Melco, Inc. in Japan and TP-Link in China, and broadband equipment suppliers such as Actiontec Electronics, Inc., ARRIS Group, Inc.,
Comtrend Corporation, Huawei Technologies Co. Ltd., Motorola, Inc., Sagem Corporation, Scientific Atlanta—a Cisco company, Thomson
Corporation and
6
•
wi
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fi phones, which enable users to make voice calls over the Internet;
•
network attached storage, which enables file sharing among multiple PCs and media adapters over a local area network; and
•
powerline adapters and bridges, which enable devices to be connected to the network over existing electrical wiring.
•
within the small business networking market, companies such as 3Com Corporation, Allied Telesyn International, Buffalo, Inc., Dell
Computer Corporation, D-Link, Hewlett-Packard Company, the Linksys division of Cisco Systems, Baracuda Networks, Inc. and
SonicWALL, Inc.; and
• within the home networking market, companies such as Apple Inc., Belkin Corporation, D-Link, and the Linksys division of Cisco
Systems.