"We have expanded our portfolio from core networking products to advanced technologies such as IP telephony, wireless, network security, storage, optical, and home networking"

Cisco recently underwent a vertical fragmentation of its business, to have
four separate divisions concentrating on distinct customer segments. Rangnath
Salgame, popularly known as Rangu, is confident that this move will help the
company address the growing India market in a more effective manner.

Cisco has started focusing on niche verticals like telecom and opened an
exclusive division for this. What is the strategy and potential for this sector?

India has benefited greatly by being a late-adopter of telecommunications
technology, and therefore has leap- frogged to the third generation of
telecommunications — the IP era. The Indian Service Provider (SP) market is
today driven by converged services-while voice traffic continues to boom, and
rates crash-it is the data services (SMS, MMS) that is driving up the Average
Revenue Per User. Cisco's converged networks offering will enable SPs to
deploy value-added revenue generating services and enhance the efficiency of the
bandwidth usage in the network also.

What developments are made with respect to the emerging service provider
market?

Rangnath Salgame

Cisco has been working with service providers in India to enable them
develop and market intelligent revenue generating services on their networks. It
has been delivering global telco's IP-based solutions to deliver new solutions
such as Metro Ethernet, VoIP and multi-service switching solutions to help
service providers deliver scalable, profitable and differentiated services to
their customers. Cisco has also been at the fore of offering solutions to
service providers to offer managed network services to their enterprise
customers.

IT majors in India are repositioning their management for the Indian
market. What kind of repositioning is expected at Cisco?

Cisco believes that the Indian market is prime for growth. India is
increasingly becoming the preferred hub for outsourcing development and
services. We have formed four separate vertical business groups that will focus
on IT services, enterprises, service providers and government. We also announced
the launch of Cisco Capital, our leasing arm, expansion of our Networking
Academy and enhanced advanced customer services offerings.

What new strategies has Cisco framed to maintain its leadership position
in the Indian market?

2004 has been a breakaway year for Cisco. It has been at the fore of driving
the growth in the networking market—with 100% growth Y-O-Y for Q4'04. The
investments made, coupled with continued innovation in our core business and
advanced technologies are generating record results.

Cisco has expanded its portfolio of solutions from core networking
technologies such as routers and switches to advanced technologies such as IP
telephony, wireless, network security, storage, optical, and home networking.

What is the number of channel partners you have in India? Are you planning
to expand it further?

Cisco's go-to-market strategy is driven entirely through our partners.
Today, we have more than 1,500 reseller partners in 100 cities across India. Our
focus for the coming year is to increase the quantum of business that these
partners drive for us. We intend to do this by investing in upgrading the skills
and competencies of our partners.

Cisco's Advanced Technology Partner Program enables premier partners to
specialize in multiple solutions, and deliver a more compelling solution to
customers.

In terms of upgradation and updating of knowledge of skilled manpower,
what steps are taken up by Cisco to maintain the lead? How important are channel
partners in this?

Cisco has, over the last year, launched some innovative channel focused
programs which have helped us connect better with our partners across the board.
Cisco not only has quarterly training modules — on specific and emerging
technologies, but also daily updates on the Cisco website, that keep the
partners informed about our roadmap.

The SmbConnect initiative, for instance, is an online portal for all our
partners where they can order Cisco collaterals, technical papers.

Cisco has a special focus on partner reseller training and specialization in
latest networking technologies such as wireless LAN, IP telephony and security
among others. This is where 'Cisco Channel Partner Program' comes in. It has
an extensive pre and post sales support program for partners. Our Warranty
Insured Network (WIN) support program supports advanced replacement of spare
parts, within the next business day itself to partner locations.

FAIZ ASKARI