Internet Expansion: Cisco Systems Announces Major Investment and Growth Strategy in India. Internet Leader to Invest US$ 20 MM, Dramatically Expands Employment and Opens Global Engineering Development/R&D Center - Company Business and Marketing

Cambridge Telcom Report, June 21, 1999

Cisco Systems, Inc., the worldwide leader in networking for the Internet, Thursday announced the first phase of a major market expansion plan in India.

The Internet leader's expansion plan, unveiled Thursday at a press conference in New Delhi, will include a major increase in the company's staff strength in India, expanding headcount by over 250% in the next 12 to 18 months; the opening of a Global Engineering Development Center; further R&D activity; and conversion of the company's representative office status to a wholly-owned subsidiary, Cisco Systems India Private Limited (CSIPL). The first phase of the expansion plan will involve investments of over $US 20 million.

"The Internet market in India is developing very rapidly and we have been extremely impressed with the rate of growth that the market has seen in the last several quarters. We are making these investments because Cisco believes that the market will continue to expand dramatically as the telecommunications and Internet Service Provider (ISP) markets in particular are further deregulated," said Todd Abbott, managing director for Asia, Cisco Systems.

The company also announced the opening of a Global Engineering Development/R&D Center in Bangalore. This center will complement extensive development agreements already in place with local partners. The center will conduct development and testing of Cisco IOS software, network management software, ASICs, and other technologies like ATM and VOIP (voice over Internet Protocol) in Bangalore.

Cisco IOS software is the common platform that transforms a network into a mission-critical resource and delivers best-of-breed functionality to build scalable networks that support new, leading-edge applications.

Under the investment initiative, Cisco announced plans to increase staff headcount in the country by over 250% in the next 12-18 months to support the Global Engineering Development/R&D Center and on-going sales and support activities within India. The company is actively recruiting staff and management to support its expansion.

"Cisco is very pleased to be increasing our employment and investments in India. It is a very positive sign for Cisco as well as the Internet market in general. We are seeing increased demand for Cisco hardware and software solutions in India as service providers, private companies and individuals start to take advantage of the power of the Internet," said Anil Batra, country manager for India, Cisco Systems.

Cisco currently has offices in India in New Delhi, Chennai, Mumbai, Bangalore, and Calcutta. The company established its operations in India in 1995 and is now the number one provider of data communications solutions to Internet service providers, banks, financial institutions, manufacturing companies and other large enterprise customers in the country. FMI: http://www.cisco.com.