Cisco Expands Investment in China

Cisco has revealed plans to increase its investment in China through local procurement, venture capital, and research and development to enhance its position in emerging markets. The company aims to invest $16 billion over the next three to five years towards parts procurement, education, joint ventures, and establishment of a green technology center.

Cisco also said that it plans to increase its presence in India. In November 2007, it partnered with Indian IT firm Wipro Ltd. to build new IT infrastructure service solutions. It also announced that it will triple its workforce in India from the current level of 3,000 to 10,000 by 2010. The company plans to use its new factory in Bangalore as an R&D hub for products aimed at emerging markets in Asia, Africa, Latin America and the Middle East.

Cisco’s multi-year investment program in China will include an increase in local procurement, and the signing of an agreement with the China Development Bank to pursue joint investments in businesses with ‘green technologies’. The company will also establish its first green technology center for encouraging sustainable development, energy efficiency and reduction of waste and emissions.

In addition, Cisco has increased its funding of up to $400 million for Cisco Systems Capital China for providing financing facilities to Cisco customers. It will also establish product and research teams to develop networking equipments for SMBs.

The new plan almost doubles the company’s investment in China since 2002. Cisco also plans to expand the Cisco Networking Academies program in cooperation with China’s Ministry of Education and add 300 additional academies in vocational colleges. It has partnered with Alibaba group to jointly offer collaboration and business management solutions to SMBs in China.

John Chambers, chief executive at Cisco said that China provides growth opportunities such as Internet’s development in collaboration with Web 2.0 technologies.

Source: ComputerWire daily updates