Zyxel

Zyxel Communications is one of the providers of Internet access solutions. Zyxel focuses on broadband, wired and wireless LAN solutions in the professional market segment. The range of Zyxel products shifts from modems and ISDN terminal adapters to routers, firewalls, IP DSLAM and network security devices for home users and small businesses, and further to infrastructure solutions for large corporate structures and telecom operators.

Zyxel (pronounced "Zaiksel," Russia in common pronunciation "Zuchel") was founded in 1989. It is based in Hsinchu, Taiwan, and is engaged in the production of equipment for connecting to. to the Internet The company has branches in other countries, Asia as well as in and. North America To Europe

Zyxel:

• 1500 + employees (2019)
• 100 million devices connecting to the Internet
• 700,000 enterprises that work more efficiently with solutions from Zyxel
• Product deliveries and customer service in 150 countries worldwide
• More than 20 years presence in the Russian Federation and the CIS.

As of August 2019, Zyxel, founded in 1989, has grown into a group of subsidiaries of Zyxel Communications, Zyxel Networks, MitraStar Technology, ZyFlex Technologies and Ardomus Networks, part of Unizyx Holding Corp. Unizyx's customers include small and medium-sized businesses and home users.

Zyxel business in Russia

Partner Program

Main article: ZyXEL Partner Program

2020: Sales growth of 19 %

The division of Zyxel Networks, which is responsible for business development in Russia, the CIS and Ukraine, summed up its activities in 2020. Total sales growth in all product categories was 19% (hereinafter in US dollars, 2020 by 2019). Such results were achieved thanks to effective work with project requests. Zyxel announced this on February 15, 2021.

The division's responsibility for February 2021 includes 12 countries. The leaders in sales growth were: Russia - plus 17%, Uzbekistan - plus 120% and Ukraine, where with the signing of the distributor DC-Link Zyxel Networks was able to sell products by 55% more than a year earlier.

Since 2017, Zyxel has taken a global course towards working more closely with medium and small organizations - public and private, universities, medium and small businesses (SMB), offering customers functional, reliable and affordable solutions for creating and modernizing network infrastructure. The company has turned towards VAR partners, system integrators working with both state and commercial customers. Partners were offered more favorable financial conditions, Russian-language technical support, extended warranty - lifetime for most of the products, prompt replacement of failed equipment. The results of this work are progressively affecting the growth of Zyxel sales since 2017. And 2020 is no exception, not easy in many ways.

At the same time, Zyxel Networks Russia, the CIS and Ukraine is a division of the EMEA region, which consistently brings profit to the global Zyxel. Thanks to the constant growth in sales, already 8% of Zyxel Networks turnover in EMEA falls on the countries of the post-Soviet space.

Network switches remain the leader category. Their share has grown even more in the structure of total sales in Russia, the CIS and Ukraine in 2020 and is 52% as of February 2021. A series of GS2220 with support for the Zyxel Nebula centralized network management system showed excellent results in 2020. These switches are increasingly being used in projects. For the second year in a row, switches for video surveillance of the GS1350 and GS1300 series have shown excellent dynamics. Every tenth switch sold by Zyxel Networks belongs to the GS13xx series. And finally, it is nice to note the growth in sales of more specialized, industrial switches of the Zyxel RGS series, operating in a wide range of ambient temperatures.

An additional and important factor in such growth of the Zyxel Networks business in this product segment was the availability of a lifetime warranty for all Zyxel switches.

For the self-employed and people working from home, the company's assortment always included inexpensive home switches, including multi-gigabit devices.

The niche of low-cost switches took 13% of the total sales of Zyxel Networks switches in 2020.

In second place in terms of sales of Zyxel Networks for 2020 is traditionally the category Network security: gateways and firewalls. Sales growth of this category in 2020 amounted to 12%.

pandemics The massive transfer of employees to remote work spurred sales of the series, the Zyxel VPN main function of which is to build secure channels communications between the company's central office, branches and remote employees. The line VPN showed good growth year-on-year - 222%.

In addition, the Zyxel ATP series with Sandbox functionality and Zero Day threat protection sold well: sales growth of Zyxel ATP heavy gateways amounted to 143%, and ATP models for small businesses even more - 225%!

In 2020, the Zyxel USG FLEX series of firewalls was released. One of the most interesting features of the series is its full support for the Zyxel Nebula centralized network management system. The series is designed to replace the obsolete USG and ZyWALL gateways. With the introduction of firewalls with powerful filling and wide functionality into the Nebula ecosystem, the company's partners have the opportunity to implement comprehensive distributed network projects faster and cheaper, and customers will now be able to manage their infrastructure more efficiently: from any device and from anywhere in the world.

The growth in the Security category is due, among other things, to such partner options as registration and protection of the transaction, a lifetime warranty and an operational Russian-language service.

In 2020, the company announced that it will move the functionality of the AP controller from individual NXC series devices to firewalls.

Zyxel Networks wireless solutions ranked third in sales for 2020. And again, design devices became the leader in growth: Wi-Fi access points of the Zyxel 6300 series - plus 443%.

At the same time, in the most competitive niche in the domestic market - budget access points - sales growth in 2020 amounted to 52%. We are talking about the Zyxel NWA1123 series. Taking into account the practically stagnating market volume in this segment in our region, Zyxel Networks has definitely increased its market share.

In 2020, all major network vendors announced and launched 802.11ax solutions on the market. For Zyxel Networks, the start was very good: Wi-Fi 6 access points immediately occupied 20% of the total sales of wireless solutions in Russia, the CIS and Ukraine. This is due to the large line of Wi-Fi 6 access points of the company, as well as the flexible conditions for working with VAR partners in projects.

The efforts of Zyxel Networks in Russia, the CIS and Ukraine, aimed at effective and mutually beneficial work with VAR partners, bear fruit and ensure business growth for the fourth year in a row. The number of VAR partners - the main target audience of the company, in 2020 increased by 14% and reached 2368 active partners for the year. In total, in 2020, Zyxel Networks partners won 847 projects against 551 in 2019.

Dmitry Tanyukhin, head of Zyxel Networks in Russia, the CIS and Ukraine, commented on the numbers and shared the company's plans for 2021: {{quote 'First of all, I thank the Zyxel Networks team for their excellent work for the benefit of our partners and customers. 2020 was an unusual and certainly challenging year. We were able to build remote work of the team and ensure serious sales growth, create the best conditions for our partners. Our partners are our strength. And I would definitely like to note their contribution to the growth of the Zyxel Networks business. Speaking about the coming 2021, I will confidently say that we are not going to stop. We grew by 19% in 2020, I am sure that we will grow in 2021, despite any headwinds and difficulties. This confidence gives me, in addition to the above-mentioned invaluable employees and partners in our large region, focus on the progress and innovation of Zyxel Networks solutions. The business of Wi-Fi 6 solutions is growing above all expectations, USG FLEX gateways, which supplemented Nebula solutions to All-in Nebula, started very well at the end of 2020, too. In 2021, we will have new Wi-Fi 6 access points, a series of even faster home devices. The continued focus of Zyxel Networks on technological innovations, coupled with the best conditions for the SMB sector, should provide us and our partners with strong sales growth in 2021. }}

2019: Sales growth in monetary terms by 35%

The total growth in sales of Zyxel in Russia and the CIS in monetary terms (in euros, 2019 to 2018) amounted to 35%. Against the background of preliminary data on the dynamics of the network equipment market in 2019, this result indicates a significant increase in the company's market share in the region, Zyxel reported on February 3, 2020.

The course taken by Zyxel in 2017 for the development of project work showed the result back in 2018, and in 2019 the trend grew to normal.

In first place at the end of the year are switches, which firmly hold a share close to 40% (in 2019 - 39%) in all Zyxel sales. In addition, sales of the company's switches in 2019 increased by 41% compared to 2018. Zyxel offers its customers a limited lifetime warranty, and these devices have become even more trusted by small and medium-sized enterprises in the region when building the core of the network. This is largely due to the successful fourth quarter, when specialized video surveillance switches appeared in the company's line.

The second place behind network funds safety is 10% of the company's sales. In this category, according to the company, the already proven gateways of the series were perfectly sold, ZyWall as well as new models of the series, ATP enhanced by the sandbox functionality to protect against "zero-day threats."

And in third place in terms of turnover in 2019 were Zyxel Wi-Fi solutions for business with a 9% share in all company sales in the region. The category is presented on the market in two clearly expressed segments: inexpensive WiFi access points with a price in the range of 6,000-10,000 rubles, implemented mainly through online stores, and more advanced, high-speed and flexible project access points for building a wireless hotel infrastructure, schools, shops, warehouses, etc. In 2020, Zyxel's WLAN portfolio was replenished with Wi-Fi 6 access points, allows you to achieve higher speeds, reduce traffic delays, and achieve a high density of wireless clients. 

In 2019, the number of projects implemented by the company's partners increased by more than 50%. One of the goals that was set for the past period is to increase the number of projects in the hospitality industry and education.

The Value-added reseller channel is traditionally the most important for Zyxel. In 2019, the channel's share in total sales of the company amounted to 55%, which is higher than the share of Zyxel sales through the online store channel, despite the high growth rate of the latter. The company actively supports, first of all, Value-added business: it conducts joint pre-project and post-project work with integrators and b2b customers, offering the latter innovative solutions with a limited-life warranty and Russian-language technical support. Zyxel offers project protection to partners even in small deals and at the same time reduces prices for a number of product categories.

In 2019, in quantitative terms, Zyxel's partner base in the region grew by 6%. At the same time, business growth in monetary terms significantly exceeded the growth in the number of partners, which means an increase in the volume of average annual sales in the current partner base. The total number of VAR partners who used Zyxel equipment and solutions in their business in 2019 is 2,077 companies.

2019 can definitely be considered a success. Few players in the telecom market can boast of this growth in sales. I am pleased with the growth both in the segment of online stores and in the segment of design, channel sales. Almost all Zyxel product lines showed growth. The partner base has also grown. I am grateful to our distributors and partners, the Russian Zyxel team. By strengthening our solutions with ATP series gateways, Wi-Fi6 access points, video surveillance switches and an updated version of Nebula network management and configuration system, the Zyxel team promises its partners to create all conditions for sales growth in 2020 by at least 30%. commented on the achieved results Dmitry Tanyukhin, head of the channel direction of Zyxel Russia and the CIS

2018

Total sales growth of 34%

The company's total sales growth in the post-Soviet space in 2018 compared to 2017 was 34%, TAdviser Zyxel Communications reported on February 14, 2019. According to the Dmitry Tanyukhin head of the Zyxel sales channel for Russia the CIS, the best for Zyxel was the fourth quarter of 2018, when 318% more devices were sold in unit terms compared to the same period in 2017. This period turned out to be a record in the entire recent history of the company in the region, the specialist noted. According to the results of a journal study for CRN/RE 2018, Zyxel entered the top 5 network equipment supplier in. Russia

In 2018, the company continued to develop its focus on project work. In addition to the first quarter, the company's results in the second, third and fourth were orders of magnitude higher than the same periods in 2017 in unit terms. This was due to the fact that the company's partner program was "fully operational," as well as by reducing prices for entire series of devices, which made the company's products more accessible to the entire range of consumers, Zyxel representatives explained.

The key commodity categories for the whole year were switches (37% share in total sales), network security tools (16%) and B2B Wi-Fi solutions (11%). The fastest growing category was switches, with an overall annual sales growth of 81%.

The most successful was the Value-add channel and sales through regional resellers. As Dmitry Tanyukhin noted, this is the most "healthy" and the most massive channel that allows us to talk about the balance of demand for Zyxel products in all corners of the region. In his opinion, such a strategy allows to reduce the company's dependence on large federal accounts, which is an important factor during the unstable economic situation in the country.

By the end of 2018, Zyxel has 1,004 active partners, and in total 2,275 companies were bought from Zyxel during the reporting period. The growth of the partner base as a whole amounted to 67%.

At the end of 2018, Zyxel significantly expanded the NebulaFlex line of hybrid devices. Such devices can be managed both autonomously and from the cloud, which greatly facilitates and reduces the cost of ownership of network infrastructure for small and medium enterprises. As of February 2019, the company's portfolio includes more than a dozen switches and access points with support for management from the cloud. The range of VPN routers, LTE routers is increasing - both for indoor and outdoor use.

In addition, Zyxel introduced the market ATP Series Firewall with a sandbox function and intelligent algorithms protection from zero-day threats.

In 2019, we plan to increase sales by 50%. This should be facilitated by new products in the field of network security, cloud solutions and LTE devices presented in recent weeks. In addition, Zyxel is increasing its staff in the region, new experienced regional employees are joining us against the background of staff reductions in some of our competitors. Of course, we cannot influence macroeconomics, but we would like to count on more or less stable economic conditions for our partners, "added Dmitry Tanyukhin.

The company plans to pay more attention to working with federal players, but the key focus remains the same: tight project work with integrators in Moscow, regions and neighboring countries, resumed in Zyxel.

Sales of $6 million

Under its own Zyxel brand, sales for the period from May 2017 to April 2018 in monetary terms amounted to $6 million. Approximately the same results were achieved in 2016. The company's management considers this a fairly good result against the background of restructuring, team changes, increased competitive pressure from Chinese manufacturers in both project and provider channels, ongoing crises in the country's economy. In connection with the restructuring, it was decided to reduce the number of partners of the first level, but the number of active partners of the second level significantly increased. If in the second quarter of 2017 there were 461 of them, then by the end of the first quarter of 2018 - 655.

In addition to the largest Russian market, the key countries are, Belarus,, and Kazakhstan. Uzbekistan Azerbaijan Sales intensified in, where Armenia Zyxel put its own firewalls in a large multinational corporation.

Major Commodity Groups

The main Zyxel market group in the region is network security tools: firewalls, routers, hardware firewalls of both industrial scale and for small and home offices. 19% of Zyxel sales in Russia and the CIS belong to the Zyxel ZyWALL and USG series. In monetary terms, their sales exceeded $1 million for the period. The company plans to develop this success in 2018 with the advent of new series of professional VPN routers VPN50, VPN100 and VPN300.

The second most important commodity group for the company was switches. And even if their sales during the reporting period exceeded $1 million, Zyxel's market share in this segment of network equipment is still small. If Zyxel is one of the leaders in the network security segment of the SMB sector, the switch market is extensive and extremely competitive. Here are presented eminent players known for their quality and rich functionality, and those whose strategy is based mainly on a low price. The company plans to strengthen its position in the switch segment, thanks to a significant price reduction for our market in April-May and the release of a new series of inexpensive Smart switches.

In third place are Zyxel WiFi solutions for business: access points with Wave2, Smart Antenna and Beacon technologies, controllers and other devices. Here, the company is competing more and more confidently with Chinese players in the lower price range. Again, the improvement in the market situation was influenced by the recent significant decrease in prices for low-cost access points for small offices, enterprises, branches. In light of the growing popularity of SD-WAN cloud solutions, the most promising solution in the WiFi business category is the affordable Zyxel Nebula system.

Impact of sanctions on Zyxel business

As a Taiwan company, Zyxel currently does not notice a negative impact on its business in our region. More and more integrators are considering Zyxel solutions in the switching, WiFi and network security segment instead of some traditional larger and more eminent manufacturers.

2017: Change of distribution structure in Russia

In April 2017, Zyxel Communications, specializing in Internet access solutions, announced a radical change in the distribution structure in Russia and the CIS, as well as the opening of a local office of the company to promote network equipment in Russia and the post-Soviet space.

The essence of the Zyxel business model is the concentration of efforts in small and medium-sized businesses, as well as the telecom operator market and the corresponding configuration of the sales channel. To this end, the company is recruiting a team focused on SMB, which will deploy at full capacity in June-July 2017.

Focus on integrators and VAR

"In the light of the commoditization of the lower segment of products, the only correct solution for us is the focus on integrators and VAR (Value-add resellers)," says the head of the Zyxel sales channel in Russia and the CIS. - "It is the right collaboration in projects and the protection of their profits that is the key to the success of the channel. The hotline of support in Russian, the exchange of marriage in dozens of cities, the maintenance of a replacement fund in the CIS countries are the most important components of the service and Value-add business. "

Key product lines

The key product lines of the company are named: network security (solutions with UTM functionality and traditional firewalls), switches (from unmanaged to PoE and third-level switches), V2V WiFi (single access points and solutions with controllers), secure switches (for outdoor installations), as well as Nebula - a solution with optimal cloud management and deployment that allows you to dramatically reduce the cost of ownership and management of network infrastructure.

The Keenetic line stands out as a separate business. Despite this, Zyxel plans to continue their service.

Customer Profile

Recently, the HoReCa segment (the service sector of the hospitality industry (catering and hospitality) and the distribution channel for goods with direct consumption of products at the place of sale) needs high-quality WiFi. Zyxel's Nebula cloud management solution significantly reduces the cost of administering wireless networks.

Branches, departments, remote offices of companies in various industries, in addition to WiFi and stable wired communication, also require a VPN connection to create a single working environment. In this case, Zyxel Zywall and USG solutions come in handy.

History

2023: Danish CII attack through vulnerability in company's devices

On November 12, 2023, the Danish cybersecurity organization SektorCERT revealed the details of the country's largest hacker attack in history. This cyber-intrusion has affected Denmark's critical information infrastructure (CII). Some affected companies and organizations had to completely isolate their IT systems by disconnecting them from the Internet. Read more here.

2020: Partnership with ATEN

On September 28, 2020, Zyxel Networks announced the conclusion of a partnership agreement with ATEN, a provider of solutions in the information technology sector for audio/video transmission. The partnership between the two companies will ensure close integration of the network architecture and full compatibility and reliability of the entire AV-over-IP solution. Read more here.

2019: Appointment as Executive Vice President, EMEA and North America Marketing and Sales, David Soares

On October 2, 2019, Zyxel Communications announced the appointment of David Soares as Executive Vice President for Channel Sales and Marketing for EMEA and North America. Read more here.

1989-1990: Formation of the company and development of the first modem

Unizyx Corporation was born in a small apartment in the Taiwanese city of Taoyuan. In the summer of 1989, when the Internet was still in its early stages of development, Dr. Shun-I Chu came to the conclusion that the network equipment market had huge opportunities for business growth, and decided to establish Zyxel.

As a technology innovator and entrepreneur, Dr. Chu developed a three-in-one modem in 1990 with integrated data, fax, and voice features.

Developed in just two years, this groundbreaking technology soon became popular around the world.