Cisco Systems's local office might have seen a high management turnover during the last couple of years, but this did not affect its growth, says Bill Weber, GM of Cisco SA.
As proof, he highlights the company's 100% growth during the first half of this financial year compared to the same period in the previous financial year, adding that this would not have been possible if the earlier management team was not up to scratch.
"Companies need different types of managers for each phase. Alec Stevens did an excellent job in starting Cisco SA and building the brand. Rick Ferguson was an extension to that with the company growing 70% during his term. We also have an excellent team and without them none of the growth would have been possible. Brand awareness has been built in this country thanks to the Cisco team."
Future watch
Looking at the year ahead, Weber explains that the company will continue to focus on its three lines of business. "In the enterprise, we plan to maintain our existing market as well as adding new accounts. The small, medium enterprise (SME) market is where we will be building a presence. We also plan on further growing and developing the service provider market."
Cisco will be pushing three technology areas this year: voice over IP (VOIP), multiservice and virtual private network (VPN).
Private networking
According to Weber, Cisco has the leadership position in SA and aims to further expand this with the help of its partners, of which the two biggest ones are Dimension Data and Persetel. According to Cisco, there are five key components required to successfully deploy a VPN. They are scalable platforms, security, services, appliances and management. The company believes its E-VPN strategy and solution set features-open, standards-based architecture, scalable solutions and end-to-end networking capabilities.
Accelerating the transition
Weber says the acquisition of Selsius Systems in October last year was part of Cisco's strategy to develop VOIP and multiservice technologies. Selsius supplies network PBX systems for high-quality telephony over IP networks. Cisco plans to accelerate the transition from conventional, proprietary circuit-switched PBXs to multiservice, open LAN systems capable of enabling the next step in data/voice integration with Selsius' technology.
Weber adds that there will be an announcement by the end of this month regarding Cisco's switching strategy, which will tie in with the whole multiservice solution.
Commenting on statements that VOIP is not all it's claimed to be, Weber says: "As far as I'm concerned there is not much difference in quality. We believe it will only be a question of months before the quality issue will be resolved."
Channeling strategy
Weber sums up his approach to the channel: "We do not want to crowd the market with too many distributors and partners from Cisco."
Cisco has detailed plans for the channel this year as part of its strategy to grow the SME market. The company will launch its "Force '99 Reseller Account Manager" programme within the next couple of weeks. Cisco will also introduce further training and incentives to the channel. The company is also busy with a re-certification programme to ensure the partners are up to date with its services and technologies. Weber adds that Cisco will be introducing more black partners into the market.
Partnering up
Internationally, Cisco is breaking into the consumer market with its partnerships with the likes of AT&T and General Instrument Corporation. Weber highlights the three elements of the consumer strategy: "Firstly, we will help the service providers build high speed connections to the consumer. Secondly, we will license technology that will help develop network-enabled services and applications providing unique value to consumers. Thirdly, we will partner with companies in all sectors of the marketplace."
Locally, there are not yet any definite plans for this sector, according to Weber. "The announcement has just been made in the States. Who they partner with and how they implement it will be the lead for us to follow." He believes SA will see some of these developments within the next six months or so.
Going North
Cisco also has plans for further expansion into Africa this year. "We will open an office in July this year, but are still investigating which country is more suitable.'
Cisco is already doing business in countries like Nigeria, Senegal, Botswana and Zimbabwe. "I believe that the only way to be successful in Africa is to get local partners who know the market and the people." Weber is convinced that the Internet will allow Africa to make a quantum leap in terms of technology. The main challenge, however, is the infrastructure - or lack of it. He sees wireless technology being central to this.
Looking ahead
Weber says Cisco SA's strategy is clear and simple: "We will be aggressively going after new business and building on our existing base. Our headcount is also expanding; we have increased it by 25% to 30% over the past financial year. This reflects an increase in demand for products and support in SA.
"Finally, customer satisfaction is key to us. A happy customer will keep on buying from you." Weber adds that SA was rated the highest in customer satisfaction in an internal survey done for the Cisco Europe Middle East and Africa region. "We are very proud of that. We were also the fastest growing market in the first quarter of this financial year in the same region."
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