Cisco bets on high growth in India

By : |October 29, 2004 0

BANGALORE: Hogging a whopping 72.2 percent of networking market share in India, Cisco is betting high on the Indian market. Addressing participants at its annual technology conference and exhibition, Showcase 2004, Cisco APAC region president Gordon Astles said, “We are witnessing a growth rate of 100 percent year on year in India largely due to factors like the growth of the IT services market, deregulation and privatization and the domestic market.”

According to IDC estimates, Cisco’s worldwide market share in Q2 ’04 stands at 61.4 percent while the rest of the market consists of players like Huawei, 3Com, etc. which show single digit percentage shares. Astles said that most enterprises tend to prefer a single vendor for networking solutions, which was why Cisco managed to maintain its market leadership.



“Our research has shown that enterprises make 25 percent savings on the networking total cost of ownership with a primary vendor networking company compared to a multiple vendor scenario,” he added.

“Most of Cisco’s growth is coming from countries like India, China, and Malaysia,” informed Astles. He said that Cisco’s strategy was to increase advanced technologies connected to the network. “We are identifying technologies that can be added on to the network and also work together with advanced services, outsourcing, managed network services to create an integrated system,” he added.

Astles said that IP telephony had crossed the inflection point and that its growing maturity can be assessed from the fact that it has moved from the enterprise to the home front in some countries. “India has around 50,000 IP phones now while in Australia, IP telephony has caught up in a big way and now dominates the overall telephony market, with a 20 percent market share,” he added.

He said that Cisco is focusing on meeting the specific needs of SMBs, service providers and large enterprises. “In the past, the customer looked at networking that was simple, reliable and integrated, while today, the focus is on how to use the network as a business enabler and increase revenue growth,” he opined.

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