Date:27/04/2005 URL: http://www.thehindubusinessline.com/2005/04/27/stories/2005042702091000.htm

Back Cisco sees 30 pc revenue growth from SMB biz

Our Bureau

Mr Jangoo Dalal

Chennai , April 26

CISCO Systems (India) Pvt Ltd expects 25-30 per cent growth in revenue from small and medium businesses (SMB) in the next two-three years, according to Mr Jangoo Dalal, senior Vice-President (Enterprise), Cisco Systems (India and SAARC).

Quoting a third party source, Mr Dalal said SMBs contributed to 20 per cent of Cisco Systems (India) revenue of Rs 1,630 crore last year. Cisco provides networking products for the Internet.

The company has developed a sub-vertical specialisation to penetrate the Indian SMB market. It will extend its cluster-based approach to tap different segments, including auto component manufacturing, retail, textile and garment. This follows a pilot project in Tamil Nadu in the auto component sector.

The company would now take the concept to places such as Pune, Ghaziabad and Faridabad, he told newspersons.

In Tamil Nadu, there are four distinct clusters - Chennai for auto component manufacturing and leather products, Tiruchi for engineering equipment, Coimbatore for hosiery and Madurai for readymade garments.

Cisco will develop domain-specific solutions to help SMB clients. Cisco is looking to tailor solutions to suit the business needs in each of the verticals, he said. Quoting Nasscom, Mr Dalal said SMBs in India spent $17.5 billion on IT and telecom in 2003-04, with expectations to touch $34 billion in 2008. Quoting AMI Partners, a consultancy firm, Mr Dalal said in 2004 over 20,500 medium businesses in India invested $596 million in various kinds of telecom-related technologies.