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Thursday, September 23, 2004

Cisco is saying that entrepreneurship is in India while research in China by OmMalik

Om Malik said earlier,"axis of technology has shifted to somewhere in the South China Sea."Couple of days ago, Cisco Systems announced that it was setting up a $32 million R&D labs in China. Today there is news that Cisco Systems is setting up a venture capital arm in India.Cisco is bullish on the Indian market, which it says is amongst the top three strategic markets worldwide and its fastest growing. New product launches and the recent establishment of separate vertical business groups there have buoyed hopes for Cisco in the country, whose own manufacturing and services industry has been maturing in recent years because of de-regulation and privatization. Businessworld, recently wrote How India became attractive to Cisco two of its top three deals last year in the Asia-Pacific market came from India.OmMalik, the most pereptive analyst about telecom and associated economic trends, had always been bullish about India. I personally beleive that while among the largest capital investments in recent times in India might have gone towards telecom investments, the country has a long way to go in terms of deploying leading edge telecom infrastructure like countrywide GPRS, 3G networks etc.Major asian cities today have “last mile fiber” in the range of – 9.2 GBPS Bandwidth . As India begins to invest in these definitely Cisco, the dominant player in the indian market and its spin-offs would stand to gain the most. This makes sense for Cisco to invest heavily in India and investment in china where the market is more developed could be to keep low cost emerging chinese competitors at bay. Anycase, the global telecom cauldron is seeing more action.

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