Cisco invests $100m in SME market

By Siyabonga Africa for Cisco
Johannesburg, 28 Jan 2009

Cisco has made a $100 million (R999 million) investment into the small to medium enterprise (SME) market, which it estimates to be worth $9.9 billion (R98.9 billion) globally. The networking company is offering a suite of new products and solutions geared towards companies with 100 or less employees.

“We have been accused in the past, quite correctly, that we have only been focusing on large enterprises,” says Cisco worldwide small business sales VP Andrew Sage. “At Cisco, we believe that no time is better than now to target SMEs with our products and solutions.”

Sage explains that, with economic downturns such as the current crisis, small businesses are the first ones to emerge from the recession with aggressive expansion plans. Cisco is adamant it can see a return on its investment despite the financial slowdown.

“Larger-sized businesses can delay purchases for better times. Yet, for smaller businesses, buying these technologies is must-do and cannot be delayed despite the financial crisis,” says Cisco communication sales director Kristine Stewart.

It's all about the channel

Cisco hopes to leverage its current channel partners in several countries around the world in pursuing the SME market. A statement from the networking company says the new Small Business Technology Group will develop technologies focused on six areas consistently highlighted as top priorities by small businesses for enabling business growth: connectivity, security, remote access, productivity, customer interaction and customer support.

The number of Cisco partners able to support small businesses has been increased to more than 60 000, after Cisco merged with Linksys' partner programs. Included in this number are more than 9 000 partners in the Cisco Select Certification Program for small-business specialists.

“Taking a 'one size fits all' approach, to servicing business needs, might work in other markets, but not with small business. This is why we increased our select certified sales partners to help create tailored solutions for small businesses worldwide and make it easier to find the right technology for your unique business needs,” adds Sage.

Stewart says Cisco has identified an opportunity in SA to grow its distribution partner base with the introduction of the new SME centric products. She explains that Cisco's independent market research showed a significant interest in its Web-X training platform, or the IDEA training platform, geared towards resellers.

“This shows us that small business in SA is actually big business.”