Thursday, December 13, 2012

Expanding Enterprise

Cisco Systems Inc. disclosed a deal this week with PT Telekomunikasi Indonesia Tbk. This deal will allow Cisco to deploy approximately 100,000 access points across Indonesia which can be used to offload mobile data and offer more efficient wireless broadband services. A spokesman for Cisco explained, "This will be the largest deployment of Wi-Fi access points by a single service provider in Asia." Cisco’s latest strategy is just one of many new ideas it is employing as it looks for a way to offer high speed data services to a broader customer base. The company is showing how serious it is in the world of carrier Wi-Fi as it is also planning to acquire Meraki Networks Inc. in an effort to further stake a claim in the wireless community.

Aside from expanding into Asian markets and the wireless field, Cisco is also in the process of transitioning into a full-fledged IT vendor as opposed to the communications vendor it is today. Cisco’s CEO, John Chambers, announced that most of their future sales would be greatly diversified with services. Chambers hopes that the company will see a 25% or higher increase in revenues from services within the coming years. While that number might not seem like the largest figure, it does indicate a significant shift in the company’s business model. Moreover, Chambers is banking on his company’s ability to think big as they move toward the future. In a constantly evolving market, companies with the foresight to look ahead stand a far greater chance for smoother and more profitable futures

-The Approved Optics Team

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