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Quantenna Communications, Inc. |
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May 25, 2015 Issue |
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The Most Powerful Name In Corporate News and Information |
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Semiconductor Solutions for Reliable Wi-Fi Networks |
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CEO
Quantenna Communications, Inc.
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFO Magazine, Published – May 25, 2015
CEOCFO: Dr. Heidari, what is the focus of Quantenna Communications today? Dr. Heidari: The focus of our company, in a very basic form, is to perfect Wi-Fi. Our vision, when the company started nine years ago, was that Wi-Fi would become very important in people’s lives. You can see that the number of Wi-Fi devices sold in the last couple of years supports that. Also anywhere from 2 to 3 billion new Wi-Fi devices will be out in the market this year. Therefore, it is becoming more and more important to push the edge on Wi-Fi performance. Whether our Wi-Fi chipsets, or our cloud-based software, or combination of the two, our focus is to make the best Wi-Fi. Quantenna is Wi-Fi perfected.
CEOCFO: You recently demonstrated your 10G Wi-Fi™ platform at the CES 2015. What is this advance? Dr. Heidari: The 10G Wi-Fi™ is our next generation Wi-Fi, which will be available in the second half of this year. We need this because there are so many different clients out there in need of better Wi-Fi network, given the agility and importance of the services, with the advent of smartphones, cloud services and video. All is pushing the envelope for having better and better Wi-Fi, with higher and higher throughput. In addition, what is happening is that with the increased number of Wi-Fi utilization, you are having more interference, between you and your neighbors. It will require better equipment, just to maintain the same level of service that you have today. Therefore, the demand is getting higher for a better product. With higher interference, all we can do is getting better equipment to make up for it. That is what we do: we provide the chips for devices with better Wi-Fi technology.
CEOCFO: What do you understand that allows you to have the latest and greatest? Dr. Heidari: We are very much in touch with our customers and constantly track the technology, the consumer needs and the applications that we are talking about. We see that Wi-Fi is going to be overly important. What we have done is to segment the market and we picked what we thought was in the greatest need of our technology. We started with the service provider market and we have understood that market very well. We are now expanding it to different markets as a function of time. Therefore, it is being in touch with the customers and having a good vision around that makes all of the difference.
CEOCFO: What is the competitive landscape? Dr. Heidari: There are many companies in this space today. However, Quantenna has the claim to the best product in the market. Going back three years ago, if you look at the 30,000 feet of Wi-Fi landscape, 90% of the market was about commodity Wi-Fi or Wi-Fi check mark. About 10% or less of that was for the higher performance Wi-Fi. Fortunately, our competitors made products for the commodity market and tried to sell the same commodity products into the high-end market. They did not pay attention to the true demands of the market. So we took that niche market, which was that 10% of the market. Even back then, it was worth hundreds of millions of dollars, close to a billion dollars, and it was growing very fast and continuing to grow. We focused on that niche, on the promise that it would be a huge part of our Wi-Fi market going forward, which we do see that as a fact today. While our competitors have been focusing on the commodity side, we have taken that niche market to heart and focused on that.
CEOCFO: Do people come to you and ask you to develop something or do you develop and product and present it to your clients? Dr. Heidari: It is the latter. By the time our clients come to us and ask us to develop something, it would usually be too late, as they are talking with our competitors as well. You have to foresee where the market is going to and develop for it on your own initiatives. Otherwise, you are going to be one of the many. With our vision, we push the envelope and we qualify that with our customers as a functional sign. With some of our closer customers, we can have that qualification faster. However, the vision has to come from the technology company itself.
CEOCFO: How do you reach out to new customers? Dr. Heidari: There are different market segments and different companies of the who’s who in the different markets. The who’s who in the service provider market for Wi-Fi is different from the who’s who driving the enterprise market or retail market for Wi-Fi. At a high level, you decide which market you want to enter and then you study to see who the pioneering players are. You want to work with someone who is not only big, but also cares about being a leader in technology. Sometimes, it is the opposite as it is the small guy who wants to be the leader. Because they want to have a differentiation in order to compete against the larger companies. However, you balance all of those factors and identify those accounts, then go forward and have a conversation about the goodness of the product with the customers. Usually, the product itself wins once they know about it. The vision is not very difficult. The problem is that nobody has been able to deliver it.
CEOCFO: Would you tell us about your manufacturing? Dr. Heidari: We have two different types of products. We have a hardware chip product, which is a fabless semiconductor model, like many other giant companies, such as Qualcomm. We also have a software product. For the software, the manufacturing is very simple, where you just copy the files.
CEOCFO: What might be different a year from now? Dr. Heidari: The vision of Wi-Fi being more important going forward has not changed and we still subscribe to that vision. What is important for us is to be able to expand our footprints into new markets and diversify not only customer base, but also different markets. We have a strong presence in the service provider market today, and we have just started selling in retail. It is important for us to be in enterprise and eventually in consumer electronics. Therefore, we are going to have more product diversification, which is going to serve those critical markets and have more interactions with those critical customers.
CEOCFO: Put it all together for our readers. Why pay attention to Quantenna Communications? Dr. Heidari: What sets us apart is our focus. We have an incredible team, which is not only the best, but probably the largest in the world focused on high-end Wi-Fi, with many years of expertise and the whole blueprint around that. All we care about is to perfect Wi-Fi performance, coverage, reliability and reach. That is what is differentiating us from our competitors. Our customers appreciate us because we bring that value to them. |
“Quantenna is Wi-Fi perfected.” – Dr. Sam Heidari
Quantenna Communications, Inc.
Sally Chan 510-897-2711
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