ABI: U.S. Schools a Golden Opportunity for Wi-Fi Vendors

February 1, 2008 // Published as a news service by IHS

As school administrators move to provide Wi-Fi coverage for their students and staff, it presents a major market opportunity and the leading Wi-Fi equipment vendors are pursuing it with vigor.

Analysts said while there are some obstacles to this market's growth, including educational funding constraints, inadequate infrastructure, lack of trained personnel and security concerns, a number of other factors are driving it.

The demographic breakdown of school districts is itself a plus. "The 100 largest U.S. school districts represent over 20% of the total available market," said ABI Research vice president Stan Schatt. "Wi-Fi vendors addressing this market will clearly get the most 'bang for their buck' by targeting those large school districts first."

Four of the top Wi-Fi vendors - Cisco Systems, Meru Networks, Aruba Networks and Trapeze Networks - are focused on this market, and are all helped by forces driving Wi-Fi into schools.

Analysts said these include heightened concerns for physical security (deployment of wireless surveillance cameras), the need for economical ways to extend schools' phone systems, the presence of purpose-designed Wi-Fi products, the birth of on-demand instruction and the One Laptop per Child initiative, which was designed for children in developing countries, but which also means a growing availability of low cost laptops for U.S. students.

Each of those vendors, however, brings its own strengths and weaknesses to the table. Analysts said some have developed powerful educational distribution channels and partnerships already, some offer unique network architectures and some are priced for tight school budgets. Others may be hampered by the high cost of their products, by their status as non-public companies or by lack of sales resources or technical support.

Source: ABI Research.