Yet Again!

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Voice&Data Bureau
New Update

In keeping with its growth story, Cisco recorded a 25% growth in revenue in
the last financial year to reach total revenues of Rs 5,046 crore from Rs 4,037
crore in 2006-07. The company recorded a turnover of Rs 240 crore from its
broadband operations, and its router business grew by 24.1% over last year's Rs
1,164 crore. The networking giant recorded a 42% increase in revenue from its
voice solutions and a 16% increase in revenue from the switches business.
Cisco's WLAN business also recorded an increase of 39.1%.

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The company has set up globalization center in the country. That will focus
on driving the company's globalization strategy for emerging high-growth markets
such as India, Mid-East, Africa, Eastern Europe, and China. The global
networking giant is also restructuring its sales organizational structure with
dedicated regional focus in an attempt to reach customers in tier-2 and 3
cities.

Cisco has significantly increased services penetration in the country and has
had some big wins in this business. The company is engaged with two large indian
corporate houses to set up their campuses and SEZs by providing them advisory
services, and with its Connected Real Estate solution. Cisco is mainly focusing
on manufacturing, retail, and infrastructure.

Cisco 6

The company's new go-to-market strategy is a dual approach to the market.
First, the focus is coverage in order to expand its geographic reach, and then
to strengthen existing customer relationships.

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The company is moving away from the current 'vertical-centered' structure
toward a new structure with a strong regional focus complemented strongly with a
solution focus through business councils. The business will now be structured
geographically-North, South, East, and West. Cisco has also adopted high-growth
verticals such as banking and financial services, government and defense,
manufacturing, retail, tourism, real estate, and construction.

Cisco continued with its focus on innovation in research and development in
the country. Many platforms, components, and technologies are completely owned
by its India operations. The entire optical product line and Cisco 7600 are some
examples of that. Additionally, platforms such as its flagship gigabit switch
router (GSR), Catalyst 10000 are in the process of moving to India. There is
also a focus on local innovation to tap the needs of the emerging markets. The
India Development Center is innovating to focus on ICT in improving
productivity, rural connectivity, tapping the mass market potential, and
enabling inclusive economic development.

The company believes that the next phase of growth come by being a trusted,
strategic advisor to Indian businesses, offering relevant solutions for business
transformation. Cisco plans to continue to create new products and drive
innovation in the Indian market.

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We have increased services penetration
in the country, and have had some big wins for this business

What were the highlights of FY 2007-08?

Some of the key achievements of the year gone by include growing our
business consistently across all segments. In the commercial space, we have
consolidated our presence and have launched a series of products
specifically targeted at this segment of the market. In areas such as UC,
security, wireless, and DC, we have either retained our leadership or grown
our market share significantly. In IP telephony, we have crossed the
landmark figure of having shipped over 300,000 IP phones in the country and
have grown this at a steady rate of over 60% CAGR.

Cisco Capital, the leasing and financing arm
of Cisco, has also been witnessing significant penetration over the last
year. Cisco Capital has completed deployment of the Rs 600 crore corpus.


President & country manager,

Cisco, India and Saarc


Naresh Wadhwa


Address: Cisco Systems India

IL&FS Financial Center

6th Floor, C22, G Block, Bandra-Kurla Complex Bandra East, Mumbai-400051

Tel: +91-22-40434028 Fax: +91-22- 26533703

Website:

www.cisco.com/global/in

Highlights
  • Crossed the landmark
    figure of shipping over 300,000 IP phones
  • Focus on local
    innovation to tap the needs of emerging markets
  • New go-to-market
    strategy to tap the market
  • New business unit to
    focus on developing products for emerging markets

What is your new go-to-market strategy all
about?

Our new go-to-market strategy is a dual approach to tap the market.
First, the focus is coverage based, where our effort is on expanding our
geographical reach. Second, our focus is to ensure that we deepen and
strengthen our existing customer relationships. We are also moving away from
the current `vertical-centered' structure towards a new structure with
strong regional focus complemented with a solution focus through business
councils.

How would you rate your performance on the
services front?

We have also significantly increased services penetration in the country
and have had some big wins for this business. Besides others, we're engaged
with two large corporate houses in the country to set up their campus and
SEZ by providing them with advisory services and with our Connected Real
Estate Solution.

What are the new products and services in
the pipeline from Cisco's R&D center?

The primary focus of R&D in India is product development across nearly
all of Cisco's offerings. Over the last ten years, our India development
facility has grown from a team extension mode to an ownership of component
model to becoming a center of excellence in several technology areas. Many
platforms, components, and technologies are owned completely out of India.
The entire optical product line and Cisco 7600 are some examples.
Additionally, platforms such as flagship gigabit switch router (GSR),
Catalyst 10000 are in the process of moving to India.

On the software side, we have several
component ownerships in voice, security, and the IOS space. Recently, we
have also started a new business unit out of India to focus on developing
products for emerging markets targeting the mega-city deals in Saudi Arabia,
Azerbaijan, Dubai, and Singapore.

Cisco was planning to manufacture products
in India. What's the progress on that front?

Like our operations in other parts of the world, we engage in a
contract-manufacturing model. We are jointly engaged in rolling out IP
phones from our pilot manufacturing facility in Chennai with Foxconn, one of
our key partners globally. Cisco and Foxconn will ramp this engagement based
on the demand for products and learning from the Indian market.