CISCO to set up new service entity
(China Daily)
Updated: 2006-05-11 08:48
Worldwide Internet networking giant Cisco Systems (Cisco) yesterday announced
the establishment of Cisco Systems (China) Information Technical Service Co Ltd
in Beijing.
The new service entity, which is directly under the Cisco
Asia-Pacific Customer Advocacy Department, will mainly focus on providing
networking services to local customers, helping them create and integrate
operational strategies, reduce operational costs and achieve optimal network
performance.
"For Cisco, China is a key market, so the launch of the new
service entity here is a major milestone," said Joe Pinto, senior vice-president
of Cisco Technical Support Services.
"Through it, Cisco will bring the
most advanced network technologies and services to customers who hope to get
direct services from us," he said.
But business opportunities with
Cisco's certified partners still exist, said James Kuo, the new service
company's general manager, adding "we rely on them very much."
Cisco refused
to disclose the original investment of the new company, "but we will double the
figure in three years," said David Rubio, vice-president of Cisco Services
Asia-Pacific.
The new entity is a demonstration of Cisco's commitment to
China's information technology (IT) service market.
According to a
forecast from IDC, an IT market research agency, China's IT services market will
grow 18.5 per cent annually within three years.
Revenue from Cisco's
services arm accounts for approximately 17 per cent of the total, said
Pinto.
"Since 1994 when it entered China, Cisco has been targeting
long-term investment here," said Rubio.
The company has invested about
US$300 million in 30 start-ups in China's technology sector.
Since 1998,
Cisco has established 216 networking academies here to develop Chinese knowledge
and skills for networking and Internet technologies.
Last October, Cisco
China's research and development (R&D) centre was set up in Shanghai, with
an investment of US$32 million over five years.
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