IT Scan

November 17, 2005
Billion Dollar Offer: John Chambers sets road map for Cisco

NEW DELHI -- As India moves to building convergent data, video and voice networks reaching out even to its villages, networking global firm Cisco Systems is pitching in with massive support.

This was the impression that the mid-October visit of Cisco president and chief executive officer John Chambers visit to the country and his announcement of a US $110 million investment proposal left. Chambers called on Prime Minister Dr. Manmohan Singh and had a long discussion with ICT Minister Dayanidhi Maran with whom he signed several agreements.

Announcing a path-breaking US $110 million investment in India for next three years, John Chambers laid a roadmap for his company's business here with focus on education, infrastructure and innovation. As much as US $750 million out of it would go for R&D alone. "Indian operations would be Cisco's largest investment outside US," Chambers said.

The highlight of the road map would be Cisco's support for this country's "first all IP based next generation network" in Asia. One consequence of this support would be the setting up of a US $10 million rural connectivity programme and a next generation network lab with BSNL at Chennai. Chambers presented it as skipping an entire generation of technology to the next.

The government plans to encourage all states to build state wide area data networks (SWAN) is what Cisco as the global leader in networking is targeting as a huge business opportunity. Chambers in fact added that his firm "has not done anything of this scale” outside US, emphasizing, "my intention is to develop more and more products in India.”

Appreciating Cisco's support to SWAN, Union Minister for ICT Dayanidhi Maran commented: "Our association with Cisco systems complements the Government's unique focus and vision for creating a broadband infrastructure and a network backbone enabling the us to connect with our citizens. We are confident that Cisco System's networking technologies will have a positive impact on the productivity, efficiency and the GDP of the country."

To support the National e-Governance Plan, Cisco will establish the SWAN advanced technology enabling programme. Under the programme, Cisco will provide networking equipment for establishing a SWAN advanced technology center of excellence in the state government headquarters. These centers will serve as pilots or proof of concept labs that will enable the demonstration of technologies such as LAN/WAN, IP communications, wireless and security. They will serve as test beds for state governments to test applications and services before they are rolled out on the SWAN network.

The Chennai lab will be an additional feature that would support BSNL's telecom network evolution by providing an environment to test services before rolling out on the actual network.

Cisco is also getting involved in the Government's ambitious rural roll out in which common service centers would be set up in villages. The company is to support this initiative by providing networking equipment necessary to build networking infrastructure for up to 100 villages. These villages can then serve as models for the entire CSC initiative.

"Affordable access to information infrastructure will play a critical role in India becoming a developed country," Chambers said. "The government has embarked on a massive e-governance exercise aimed at connecting the country and bridging the digital divide. Cisco is proud to collaborate with the Indian government in its endeavour to e-enable the country, which is an important step as India moves into the next phase of economic growth," he added.

"Cisco's collaboration with the Indian government strengthens the company's long-standing commitment to India," Chambers asserted.

"Four years ago during my first visit here I made a commitment to invest US $200 million. We have exceeded that. We have 1400 people here and 3500 partners," the Cisco chief recalled. Cisco set foot in India in 1995.

In promoting the next-gen networking, Cisco programmed a yearlong series of activities including senior-level workshops, research, reference visits and a national e-Government summit to be held on 2006. As a part of these activities it will bring best practices and expertise in e-governance from around the world to India. Chambers has also promised he would soon announce his company's decision on whether it would set up manufacturing facilities for its products in India that could be exporting Cisco products for the global market.

“As a demonstration of the continuing commitment, Chambers would be again in India in 2006,” Maran announced. Chambers chipped in: "I never take the first step unless I am sure of the second and the third also. India may become the largest market in whole of Asia," Chambers commented.