News Column

Allied Telesis beefs up Thai unit to boost revenue

August 26, 2014

By Srisamorn Phoosuphanusorn, Bangkok Post, Thailand

Aug. 26--The Japanese IT networking firm Allied Telesis is embarking upon a growth phase to bolster revenue in Thailand after setting up a representative office here.

The move is expected to boost revenue by 30% for the Thai operating unit next year.

It also complements the firm's policy of increasing its business footprint and revenue growth in the overlooked Asia-Pacific region.

Allied Telesis, one of the world's top five IT networking companies, reports global revenue of 29.9 billion yen (9.19 billion baht).

Of that, less than 5% is accounted for by Asia-Pacific excluding Japan, with half stemming from Japan and the rest from the US and Europe.

Teerayut Hongkananukraw, country manager at Allied Telesis (Thailand), said the company was expanding its product portfolio here with routers, IP surveillance solutions and digital signage in addition to existing ethernet switching products.

The Thai unit of the Tokyo-based company doubled its revenue last year to US$6 million, greatly outpacing the overall switching market.

"We expect our revenue to grow by 30% to $7.8 million next year, helped by our new product lines and more aggressive marketing strategies," Mr Teerayut said.

Thailand's switching market has grown by 10-15% a year in a market worth $15 million.

"We target our own annual revenue reaching $15 million by 2017," Mr Teerayut said.

The company has revised this year's revenue target simply to maintain last year's level, citing the prolonged political unrest and the economy's sluggish first-half performance.

The original plan called for ambitious growth of 30% this year.

Even though Allied Telesis (Thailand) saw a sharp decline in first-half sales, the company has noted a strong improvement in IT network spending among companies.

To boost revenue, the company is promoting its Allied Telesis Management Framework, a new technology said to reduce the time and expertise required to manage networks and lower the cost of network management by up to 60%.

Mr Teerayut said the company was targeting Japanese manufacturers with a production base in Thailand after previously focusing on state agencies and small and medium-sized enterprises.

He acknowledged that in the past, Allied Telesis saw slow revenue growth in Asia-Pacific due to a lack of brand awareness.

The company plans to double its marketing budget and increase market share through partnerships with local distributors and customers.

"Some 5% of revenue has been set aside for marketing next year, up from 2% this year," Mr Teerayut said.

A competitive pricing strategy will also be applied to compete with global network vendors such as Cisco and Alcatel.

Related search: IT NETWORKING, Japanese, Asia-Pacific


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Source: Bangkok Post (Thailand)

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