The
kind of growth that Cisco has been registering in India in the past few years is
significant in many ways. One, it signifies the growth Indian economy has
witnessed in the past few years. Second, it is also a reflection of the growing
adoption of advanced technologies among Indian companies with the objective of
taking on competition both at the domestic and global levels. For Cisco, the
growth is a result of not just its superior technology and products, but also
its strong commitment to the Indian market. While many of these could be true
for other technology vendors as well, Cisco's case is different. Though the
carrier equipment domain is crowded, Cisco has been peerless at the top. It has
succeeded hugely where most of the others have just about managed.
| President (India and SAARC): Rangnath Salgame |
 |
| Area of Operation:
Voice and data network, network security, storage, wireless |
| Address: Cisco Systems India, Birla House (East Tower), 7th, 8th, and 9th floor, 25, Barakhamba Road
New Delhi 110001, India |
| Tel: +91 11 55611000 |
| Fax: +91 11 23766126 |
| Website:
www.cisco.com/global/in |
|
|
|
| V&D
estimates |
CyberMedia
Research
|
|
| Highlights |
| • |
77 per cent of Cisco's total product revenues came from routing and switching |
| • |
Clinched India's biggest Metro Ethernet deal of the year worth. The Tata-VSNL deal was worth Rs
500 crore |
| • |
Significant growth in the SMB segment |
| • |
Driven by large deals in service provider segment, Cisco's services revenue grew 18 percent to Rs 326 crore |
|
Coming to specifics, FY 2004–05 was another year of mind-boggling growth
and phenomenal market share gain for Cisco. An idea of how dominant Cisco was in
the Indian market can be derived from the fact that the vendor accounted for
more than 47 percent of the total enterprise networking equipment sales in India
during FY 2004–05. Cisco registered a 51 percent growth, four percent more
that what it had done in the previous year. As per VOICE&DATA estimates,
Cisco's India sales revenue in FY 2004–05 was Rs 2456 crore.
Even though switching and routing continued to be its mainstay, the vendor
laid a strong foundation for its advanced technology business made up of
wireless, security, IP telephony, storage, and optics among others. Besides its
huge dominance in the switching and routing segments; it also led the wireless
LAN, network security, and IP telephony market. In FY 2003–04, Cisco also made
huge gains in the service provider segment bagging orders from all the leading
telcos. One of the major deals that Cisco managed past year was VSNL's Metro
Ethernet deployment. The deal was worth Rs 500 crore.
This unprecedented growth was largely aided by an aggressive investment by
both large enterprises and SMBs. The vendor, which has nine key network
integration partners in India, spent the past year consolidating its business
infrastructure in the country. The past year Cisco also reworked its business
strategy in India. Focusing more on training partners and getting them certified
and committed to Cisco, the vendor also drew a new plan to tap the country's
fast-growing small and medium businesses in the auto component manufacturing,
retail, textile, and garment sectors. The company whose go-to-market strategy is
broadly defined under IT services, enterprise and SMB, service provider
and the government-is looking to develop sub-vertical specializations to
penetrate the market. In September 2004, Cisco announced a strategic roadmap to
drive what it called the next wave of growth in the enterprise and telecom
markets in India. Towards that end, Cisco formed four separate vertical business
groups that will focus on IT services, enterprises, service providers and
government. Past year, Cisco also launched Cisco Capital, its leasing arm in
India.
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