Buddie Ceronie

'As a company we have not felt the impact of the US downturn as badly as some of our competitors,' says regional director Buddie Ceronie, an aimable South African. 'Our management took the tough decisions on product rationalisation about 12 months before any one else, so that has put us in a stronger position. But nobody is too happy about the business slowdown we have seen in the US and Europe'.

3Com is a 21-year old NASDAQ quoted company that produces the networking cards that allow you to plug your PC into the Internet, and is a specialist in many aspects of computer networking. Its rivals among the bigger companies include Cisco Systems, and it also competes with smaller niche players in certain areas. But why is the Middle East a good market for 3Com at such a bad time elsewhere?

'Our value proposition works well in these markets,' says Mr Ceronie. 'Our products are reliable, feature-rich and not overly expensive. And in this region spending on IT is still booming. The government's are spending on e-government and especially education, and are very keen to promote IT awareness among their people.

'This is all great news for us. This is still a market where some companies have just installed a 50-PC network for the first time. That is excellent for 3Com as a new network needs our products to function. And just look around at the amount of building going on in Dubai, for example. All those buildings need new networking systems and that is all business for us too.

'Our market is driven by applications that enhance speed and, or security and we have the products required to fulfil that need. So that puts in a powerful position to deliver what the customer wants'.

Mr Ceronie points out that across the region the theme of the moment is telecom deregulation and privatisation, and this also bodes well for the future. Competition and badly needed investment will follow, and that means more business for 3Com.

On the global scale Mr Ceronie supports the idea that the global economic slowdown will favour bigger IT companies over smaller rivals and start-ups, and he thinks consolidation in the industry is inevitable. And from 3Com's experience of downturns over the past 21 years, he believes his company will be one of the winners that comes out of the downturn with a stronger market position than when it started.