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N Raj

T.E. Raja Simhan

Small and medium-size businesses (SMBs) find that differentiation is the key to business success, and creating efficiency is critical to their operational excellence. Hence, says US-based Cisco, a networking equipment and network management provider for the Internet, it has renewed its focus on SMBs.

It is offering them technology solutions that are business-led and solutions-driven rather than just product-focused. Its combination of mobile van marketing campaign along with easy financial aid has worked well for the company in reaching out to SMBs in tier-II and III cities, says Cisco.

Delivered largely through its partner network, this focus enables SMBs to stay abreast of technology, according to the company. (Cisco defines an SMB as a company with with 200 or less personal computers.)

N Raj, Vice-President, Sales-South, Cisco India, shares details with eWorld.

The SMB is the fastest growing segment for Cisco in India. SMBs are maturing to the point of seeing inherent value in IT investments.

Investments in the product segment have traditionally been present, and we are now seeing SMBs also buying services. SMBs spend from a few lakh rupees [when it comes to deploying core technologies] to a few crore rupees when they are deploying advanced technologies, or combinations thereof. The solutions could be interactive technology designed to enhance competitive advantage, maximise productivity and return on investment, enhance customer care and loyalty, increase user satisfaction and reduce operation costs — ultimately driving business growth.

Cisco’s growth has been significant in the Indian SMB segment over the last many quarters. We currently have around 7,000 SMB customers. Technology adoption among SMBs — be it core or advanced technology — is happening across various sectors such as manufacturing, education and healthcare. We plan to add 600 new partners specifically certified to cater to SMB customers in tier-2 and tier-3 markets. Cisco has around 133 SMB select partners [60 per cent are for tier 2 and tier 3 cities].

The expansion is an ongoing process based on demand. Our partners are taken through certification programmes to equip them with better capabilities to address market needs. A study by Access Markets International Partners Inc reveals that Indian SMBs are on track to spend $1.04 billion on networking products and services this year, up by 11 per cent over 2008. The SMB segment will definitely grow to become a sizeable contributor to Cisco’s revenues over the coming years [the company does not provide India specific numbers]. Their geographical diversity requires us to be present where they are.

Cisco Capital’s Easy Lease programme specifically addresses the needs of the SMBs. All technologies provided by Cisco can be leased with Easy Lease. The programme is aimed at assisting local commercial enterprises in making strategic IT investments through a long-term partnership with Cisco and Cisco’s channel partners. Cisco Capital will finance the complete requirement comprising both Cisco and supporting non-Cisco non-competing products and services.

The programme can provide financing for transactions ranging from Rs 10 lakh to Rs 80 lakh.

The various financial schemes that Cisco offers SMBs through Cisco Capital have attracted approximately 50 customers, though the number of transactions handled with the same set would be higher.

Cisco employs its ‘Network On Wheels’ (NOW) Van programme to reach out to SMBs all over India.

We showcase customised Cisco networking solutions, including advanced technologies such as security, wireless and unified Internet Protocol communications.

The NOW van programme is one of the largest marketing programmes driven by Cisco in India specifically for tier-2 and tier-3 markets.

Besides the US, Canada and China, India is the only market where the NOW programme has been launched and this reiterates Cisco’s commitment to India.

This programme was kicked off in May 2006 and has so far covered several strategic industrial locations across the country.

raja@thehindu.co.in

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