Unim­pres­sive!

Look­ing at Cisco’s prod­uct port­fo­lio, the com­pany’s per­for­mance was a let down

Voice&Data - - CISCO INDIA -

Fis­cal 2012 saw the com­pany op­er­at­ing as the ‘Next Cisco’—less com­plex, more ag­ile. Cisco has main­tained its lead­er­ship po­si­tion in the in­dus­try, and con­tin­ued the suc­cess story in FY12 clock­ing a whop­ping R 7,096 crore, up R ` 7,010 in FY11; show­ing a growth of 1.2%.

In­dia has con­trib­uted to its rev­enues im­mensely—par­tic­u­larly in ser­vice provider, SMB, and ser­vices busi­ness. Cisco has supplied packet core so­lu­tions to 6 op­er­a­tors. Thanks to the process of cable TV dig­i­tiYa­tion in In­dia, Cisco im­me­di­ately plunged in and achieved 100% growth in this.

The re­cent cus­tomers of Cisco in­clude Ns­sar Group, Gu­jarat Telelinks (GTPL), Fast­way, United Bank of In­dia, etc. At present, Cisco is work­ing on $90 bn in­fra­struc­ture project along with Delhi Mum­bai In­dus­trial Cor­ri­dor De­vel­op­ment Com­pany (DMIC) to de­velop an ICT mas­ter plan for 2 pi­lot cities—Dholera in Gu­jarat and Shen­dra in Ma­ha­rash­tra. Cisco de­ployed next-gen­er­a­tion dig­i­tal set-top boxes for GTPL across Gu­jarat, West Ben­gal, Ma­ha­rash­tra, and Jhark­hand. The com­pany de­ployed more than 2 mn dig­i­tal set-top boxes across Pun­jab, Haryana, and Hi­machal Pradesh.

Cisco in­creased its chan­nel pres­ence in FY12, its part­ner base grew from 1,200 to 2,500 plus part­ners. Its part­ners in­clude Ac­cen­ture Ser­vices, Bri­tish Tele­com In­dia, Ve­locis (formerly In­te­grix), Proac­tive, LocuY, PC So­lu­tions, In­gram Mi­cro, Red­ing­ton, Com­puage, and Com­stor. The com­pany wit­nessed an ex­ten­sive growth from up­coun­try in SMB seg­ment. It has ex­panded into tier-2 and -3 cities to tap the SMB seg­ment fur­ther. To beat Chi­nese com­pe­ti­tion, Cisco in­tends to in­no­vate lo­cally on the net­work­ing front. It is ey­ing net­work as a strat­egy as­set for busi­ness.

Cisco In­dia has 7 sales of­fices in—New Delhi, Mum­bai, Ben­galuru, Chen­nai, Pune, Kolkata, and Hy­der­abad. Its head­count is 8,000+ in­clud­ing R&D, sales and busi­ness sup­port staff. The Global De­vel­op­ment Cen­ter in Ben­galuru, is the largest out­side the US. It pro­vides an ex­ten­sive sup­port sys­tem for cus­tomers with 18 lo­gis­tics cen­ters and of­fers a sup­port pro­gram called ARNBD ad­vance re­place­ment next busi­ness day (ARNBD) for its re­sellers. Cur­rently, there are 201 ac­tive Cisco net- work­ing academies across 23 states and union ter­ri­to­ries with 22,941 stu­dents, 26% of which are women stu­dents.

Its mar­ket share in In­dia in dif­fer­ent seg­ments in­clude—in core tech­nolo­gies like router it is 59.3%, switch 57.6%, to­tal LAN 58.2%. In ad­vanced tech­nolo­gies seg­ments—its mar­ket share in WLAN is 36.8%, se­cu­rity 31.7%, en­ter­prise tele­phony 26.6%, and IP PBX 48.8%.

Cisco’s key cus­tomers across In­dia com­prise Ford In­dia, Dr Reddy’s Lab­o­ra­to­ries, Tata Group, Mahin­dra & Mahin­dra, Larsen & Toubro, Gas Author­ity of In­dia, In­dian Oil Cor­po­ra­tion, Le Royal Meri­dien, Taj Group of Ho­tels, Hin­dus­tan Lever, Tata, Re­liance, Bharti, VSNL, BSNL, MTNL, SIFY, Idea Cel­lu­lar, HDFC Bank, State Bank of In­dia, Pun­jab Na­tional Bank, United In­dia In­surance Cor­po­ra­tion, New In­dia As­sur­ance, Na­tional In­surance Cor­po­ra­tion, Life In­surance Cor­po­ra­tion, Bank of Bar­oda, Bank of In­dia, IDBI Bank, ICICI, IDRBT, Vysya Bank, Yes Bank, State Gov­ern­ments of Gu­jarat, West Ben­gal, and Andhra Pradesh, Lok Sabha (Par­lia­ment) Li­brary, Supreme Court, Na­tional High­way Author­ity, Tesco, Unisys, US Tech­nolo­gies, Mahin­dra, First In­dia In­surance, Sym­phony Tech­nol­ogy, Thom­son Reuters, HCL, vCus­tomer, Phoenix, Nir­vana, Man­jushree, and Tran­sWorks

The con­sol­i­dated rev­enue of prod­ucts and ser­vices are $27,176 mn and $7,195 mn, re­spec­tively. Its net in­come in Q1 2012 was $1.8 bn, in Q2 $2.2 bn, and Q3 $2.2 bn. Cisco plans to ac­quire NDS Group, a provider of video soft­ware and con­tent se­cu­rity so­lu­tions. This fis­cal it com­pleted the ac­qui­si­tion of Lightwire which de­vel­ops ad­vanced op­ti­cal in­ter­con­nect tech­nol­ogy for net­work­ing ap­pli­ca­tions. To en­hance its net­work man­age­ment ca­pa­bil­i­ties, it ac­quired ClearAc­cess. It has made a few strate­gic in­vest­ments in BraYil. Its other ac­qui­si­tions in FY12 in­clude Ver­sly, Ax­ioss, and BNI Video.

It has en­tered into strate­gic part­ner­ships with Mi­crosoft to de­liver data cen­ter vir­tu­al­iYa­tion, Citrix Sys­tems to de­velop and de­liver desk­top vir­tu­al­iYa­tion, and HP to bridge its data cen­ter server and net­work­ing ar­chi­tec­tures.

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