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Cisco’s future revenues to come from services, says Jeff White

Venkatesh Ganesh
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Jeff White
Jeff White

Networking giant Cisco is undergoing a transition of sorts. The company that made the router, a device that forms the backbone of Internet, is now transforming itself into a company where the bulk of its future revenues would come from services. Jeff White, the newly appointed President for India and SAARC, spoke to Business Line on the company’s India strategy at Nasscom.

Excerpts:

With the new management, would the India strategy change?

We have always seen India from a long-term perspective. Right from the time we started out to a 10,000-strong team in India, over a decade, we have made investments that show our commitment. India would be looked at from a different prism from what we looked in the past. By that I mean, we are increasing our business process innovation-related work from the country. Products made in India that can be extended to other Asian countries and even be exported to developed markets. The first product (a Set Top Box) is already being used in the Indian market.

So, would more revenues come from services?

Yes, we are planning to double revenues in the next ten years from $6 billion to $12 billion in the next five years. In the overall scheme of things, it will contribute about 20-27 per cent of our revenues. We are doing this since our consumers are increasingly asking for software solutions rather than devices.

In which sectors will these solutions be used?

It can touch every aspect of day-to-day life. Right from smart cities, managing security, healthcare technologies, education to smart energy — technologies that will have a bearing on a large number of people is our key focus.

On the ground the most basic issue is broadband connectivity. What more needs to be done?

The Government’s plan of putting in broadband in villages is a good one, but it needs to be done fast. The ecosystem of a Public-Private Partnership (PPP) would help in expediting a lot of technology adoption. Also, the talent that is required in the technology sector needs an urgent relook. We see pockets of excellence in the country but to get it together and working with a single agenda, would help in driving the economic growth.

(This article was published on February 13, 2013)
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Economic Survey 2014-15 highlights

  • Following are the highlights of Economic Survey 2014-15 presented by Finance Minister Arun Jaitley in Parliament today
  • GDP growth seen at 8.1–8.5 per cent in 2015-16
  • Double digit growth trajectory; 8–10 per cent GDP in coming years
  • Inflation shows declining trend during April-December
  • Current Account Deficit (CAD) to decline to about 1 per cent in 2015-16
  • To adhere to fiscal deficit target of 4.1 per cent of GDP; to aim for 3 per cent
  • Committed to fiscal consolidation; to enhance revenue generation
  • More reforms on anvil; Goods and Services Tax, expanding direct benefit transfers to be game-changers
  • Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed last 5-year average by 8.5 million tonnes
  • NITI Aayog, 14th Finance Commission to enhance fiscal federalism
  • External Sector returning to strength, resilience
  • Need balance between ‘Make in India’ and ‘Skilling India’
  • Services sector negotiations at WTO crucial for India in removing many market access barriers
  • Revitalise PPP model to revive investment
  • Manufacturing and services equally important for growth
  • Consumer inflation in 2015-16 to be between 5-5.5%
  • Lower inflation opens up space for more monetary easing
  • There is scope for big bang reforms
  • Labour, capital, land, market reform and skills to be engines of growth
  • JAM Trinity — Jan Dhan Yojana, Aadhaar, Mobile — to help transfer of funds to poor without leakage
  • Shield domestic industry to promote ‘Make In India’
  • Borrowings to fund investment, not for meeting expenses
  • Food subsidy bill in April-Jan up 20% to Rs 1.08 lakh cr
  • Reform Railway’s structure, commercial practices, overhaul of technology
  • Public investment key growth engine in short-run for Railways, but not a substitute for private investment
  • More disinvestments on the anvil in current fiscal
  • Under-recoveries on petroleum products to come down to Rs 74,664 crore in 2014-15, from Rs 1.39 lakh crore in FY14
  • 4Ds — Deregulation, Differentiation, Diversification, Disinter (better bankruptcy laws) — to push financial sector growth
  • Implementation of GST to boost GDP, exports
  • Suggests medium to long term fiscal policy to target deficit, expenditure
  • Global commodity prices to remain weak in 2015
  • Ecommerce sector to witness 50% growth in 5 years
  • Urban land and labour costs are pushing garment units in South India to small towns »


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