CISCO Master Of The Net

Like in 1998-99, this year too, Cisco

grew by three digits.Also, its turnover was more than the combined turnover of

players in the number two and three spots in the networking segment.

The boom in the internet service

provider (ISP) market helped Cisco extend its lead over rivals in the industry.

While the company grew by over 100%, its ISP business grew by over 300%. Another

key factor for the quantum jump was demand from banks and the services industry

where a continued drive for higher levels of customer service saw lot of

investments. High mind share with leading integrators like Compaq, Datacraft

RPG, Wipro and Tata Infotech gave it the units and values.

The

router king continued to rout its competition in the segment. It held a virtual

monopoly, with an estimated marketshare of about 75%. Cisco also continued its

lead in the remote access server segment, cornering a huge 43-45% of the market.

However, in the switches segment, it saw heavy competition from the likes of

Cabletron and 3Com.

\Cisco

could face tough competition in fiscal 2000-01 from the likes of Juniper

networks, which is not only as passionate of internet protocol (IP) as Cisco but

also boasts of best-of-the-breed products. Juniper’s products are expected to

hit the Indian market anytime, and with an established

brand internationally, it could pose a threat to Cisco’s dominance. Also,

carrier companies like Lucent, Nortel and Alcatel, after picking up the datacom

companies, are ready to snap at Cisco’s turf. They will be leveraging their

carrier contacts to sell IP products, directly hitting Cisco. However, with the

expected opening up of the national long-distance policy, Cisco’s products

will continue to see assured demand. Also, the demand for networking products

from existing ISPs and new players will continue. Fact

Sheet

Factsheet

START-UP YEAR: 1995 PRODUCTS AND SERVICES: Networking

products ADDRESS: 2nd Floor, The Great Eastern Center, New Delhi 100 019 TEL:

623 3201-6 FAX: 623 3207 l WEBSITE: www.cisco.com