Cisco plans big for SMBs

Internet networking major Cisco Systems plans to tap the small and medium businesses (SMBs) segment in a big way.

As part of this, the company has launched its Network On Wheels (NOW) campaign, a mobile showcase of customised Cisco networking solutions including advanced technologies such as security, wireless and unified IP communications.

It will also roll out finance options in the coming month and vertical-specific customised solutions for the sector.

As per a recent Access Market International Partners estimates, the IT spend of Indian SMBs will account for 16 per cent of the Internet and networking spend in the financial year 2006 at $1.2 billion.

Consisting of 7.6 million SMBs, the sector will spend $500 million on servers and networking technology, the report states.

Further, with personal computer penetration at a dismal 29 per cent, Internet access is just 20 per cent, and the local area network (LAN) 13 per cent.

"The scope for growth is immense," said Jagdish Mahapatra, business development manager, Commercial (ITS), Cisco Systems India and SAARC, who was in Pune for the NOW campaign.

In 2004, the company focussed on coverage as a key strategy to reach out to the SMB as a survey by Frost & Sullivan revealed that 35 per cent of its potential customers did not buy Cisco solutions as they were not offered the products.

The company has since put in place a wider geological footprint, a bigger sales force, customised products and an increased channel presence and is now focussing on its marketing campaign.

"The NOW campaign is our largest programme, which has come to India after the US and Canada where it was launched in the beginning of the year. We will cover 50 cities across India and will reach out to over 10,000 people.

These cities will be industrial locations across key tier I, II and III cities and we will host live demonstrations for over 100 customers per city," said Mahapatra.

With a product range that consists of routing, switching, wireless and security products specifically introduced to suit the needs of the SMBs, Cisco is launching sub-vertical products for manufacturing, information technology services (ITS) and IT-enabled services (ITeS), retail, financial services, education, healthcare and, state and local governments.

"The ITS/ ITeS product will be launched by November. The other products are in the pipeline," he said.

The company's capital arm, Cisco Capital, is also working out a programme specific to the needs of the SMB segment that will have offers like buyback and leasing.

"We are working on a package to suit the SMB sector's need and it will be introduced by the end of the month," said Mahapatra while refusing to give any other details.