Upfront

Cisco’s $1.1 billion plan for India

Cisco has announced an investment of $1.1 billion in India over the next three years. Along with it came the news that the company would work closely with the Indian government to support the country’s National e-Governance Plan. Cisco will also support BSNL’s telecom network evolution by establishing Asia Pacific's first IP Next Generation Network Lab for BSNL in Chennai. To support these two initiatives, Cisco will invest a combined $10 million.

The announcement was made by John Chambers, President and CEO, Cisco Systems, along with Dayanidhi Maran, Union Minister of Communications and Information Technology.

Almost $100 million of the investments would be spent in customer support operations.

The three-year expansion plan will involve investment of $750 million in R&D activities that include increasing the strength of the staff from the current 1,400, training and development. About $150 million will be dedicated by Cisco Systems Capital—a division of Cisco Systems, Inc—to provide leasing and other financial solutions to Cisco customers and partners. Another $100 million in venture capital will be earmarked by Cisco to invest in Indian start-up companies.

In order to better service the needs of Indian customers, 18 months ago Cisco India formed five separate vertical business groups: IT services, enterprises, service providers, government and defence, and SOHO/consumer.

To support the e-Governance Plan, Cisco will establish the SWAN Advanced Technology Enablement Program. Under this, the company will provide networking equipment for establishing a SWAN Advanced Technology Centre of Excellence in state government headquarters. These centres will serve as Pilots/Proof of Concept Labs.

Said Chambers, "Cisco believes that the Internet and related technologies will be a key enabler for India to achieve its goal of becoming a developed nation.”