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We are using India to create disruptive business models, proclaimed Cisco
CEO John Chambers. He walked the talk decisively last year. As part of the
globalization center started in 2006 in Bangalore, Cisco announced two major
dealsone with Wipro to build IT infrastructure products for the Indian, the
Middle East and African markets, and another with Satyam to create a health
services network in India and build solutions for the global market.
Even as Ciscos globalizaton efforts out of India continued in full swing,
probably the most important challenges for the company will be that after a
series of top manager exits in 2006-07 (including the exit of Jangoo Dalal, the
then country head in June 08), there is some stability at the top.
In the market, it was the usual story. Traditional segments, switching and
routing grew by 27% and 26%, respectively, while newer areas like unified
communications and network storage grew at 60% and 100%, respectively. WebEx, a
Cisco subsidiary, also grew in triple digits, even as Cisco put an all out
effort to sell the Telepresence, its new passion globally.
On the sales operations, it did restructure based on market feedback by
moving to a regional approach from an earlier centralized one. It appointed
regional sales heads in North, South, East and West for the enterprise business,
though the service provider group continues as a national entity. What
necessitated the change of heart was Junipers foothold in the enterprise
switching market.
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Rank-11 |
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l Start-up Year:1995
l Products & Services: Networking
l Employees: 4,000
l Address: Birla House (East
Tower), 25 Barakhamba Road, New Delhi110001
l Tel: +91-11-42611000
l Fax: +91-11-2376 6126
l Website:
www.cisco.com/in |
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Highlights |
n New
globalization center east campus in Bangalore housing
the largest campus data center outside the US
n Planned
to employ 10,000 people in India by 2010
n Launched
Network On Wheels, a mobile showcase of its customized
networking solutions |
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Strengths |
p
Undisputed leader in networking
p
Strong expertise in unified communications by means of
Telepresence |
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Weaknesses |
q
Still learning the tricks
of the SMB market, which will drive the next phase of
growth in traditional product lines
q
Top management stability
in India has been an issue | |
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Naresh
Wadhwa, president & country manager |
Ajay
Goel, senior VP, Industry Business, Strategy &
Operations, India & SAARC
Rajesh Chainani, senior VP, Service Provider
Pramodh Menon, senior VP, South & Sri Lanka
R Dhamodaran, senior VP, Channels Operations &
Commercial Strategy
Ranajoy Punja, VP, Business Development, Advanced
Technologies, India & SAARC | |
In the government sector, a dampener was the loss of the Himachal
and Bihar SWAN projects to Juniper. Cisco did well, on the SMB side,
and launched an SMB financing scheme to effectively handle the
threat from competitors like D-Link and HP Procurve.
Cisco, which announced a $1.1 bn investment in India in 2005, reiterated that
the plan is on track. Cisco is using India to build innovative solutions for
local markets, which it plans to take to other emerging markets. It expects that
by 2010, 5% of its global revenue and 20% of its top talent will come from
India.
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