Monday, October 13, 2008

'Eagle eye'

Cisco''s differentiating factor in becoming ''business relevant'' is that it has demonstrated its skills in the communications space and intends to continue on that path. For example, when telecom used to be a pure play analogue and voice and data travelled separately, Cisco proved that voice could travel on the IP backbone and successfully demonstrated it. Now even video and security applications are travelling on the network. The next step is virtualisation, where the user is not aware of whether he is accessing multiple sources or the same source.

And that’s exactly where Cisco is playing a big role by being the network itself. “We are saying that network is a platform and as applications start coming onto the network, Cisco will have more and more play in terms of how we become more business relevant... Earlier we were plumbers, but as the network is becoming intelligent, more and more applications are happening on the network rather than on the end points,” Wadhwa further adds. Once Cisco successfully established its stranglehold in the networking market, it gradually entered the service provider market as well and today it is counted as one of the leaders there.

Also, through its go-to-market strategy, in collaboration with its channel partners (which again includes names like IBM, HP, Wipro, TCS) Cisco can today boast of a presence in over 100 cities. According to Kaustubh Dhavse, Deputy Director, ICT Consulting, Frost & Sullivan, South Asia & Middle East, “This is mainly because Cisco is not into IT software developments, but has great expertise in the telecom sector. As each company has its own set of technologies, working together can prove quite beneficial for all in this growing market.”

Cisco entered the commercial market precisely 4 years back. That was when it decided to come out with products specific to the commercial market. “Until then, we used to have a product strategy basically for the enterprises and would resell that product in the commercial market by re-working on the strategies,” says Wadhwa. However, Cisco soon realised that to make it big in the commercial market, it had to address the issues of distribution model, cost structures, channel management, inventory controls, et al prevailing in the SMB segment. “To make our presence in the SMB segment specific to India, we are not only pushing our eco-system, but we are also going upcountry,” Wadhwa adds. Cisco has been aggressive in building relationships with customer and attracting more number of channel partners. Also, it''s pumping in big time investments in order to create awareness in the market. “Marketing, channel enablement, et al combined with the right kind of distribution engagement & supply chain model makes it relevant for our partners to do business with us in that area,” quips Wadhwa. The next strategy, as revealed by Wadhwa, is that of the service provider where Cisco engages with the service provider who, in turn, can engage with those who can sell Cisco’s products and services to SMBs.

Apart from the IT vertical, which is the main growth driver for Cisco, there are others like BPOs & call centres, retail, banking and complete infrastructure where there lies a huge opportunity. Tiwathia of CII says, “The pace at which connectivity is growing will prove to be a main driver for Cisco. More and more people are coming online today and the country is growing at a stupendous rate.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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