Worldwide Internet networking giant Cisco Systems (Cisco) yesterday announced the establishment of Cisco Systems (China) Information Technical Service Co Ltd in Beijing.

The new service entity, which is directly under the Cisco Asia-Pacific Customer Advocacy Department, will mainly focus on providing networking services to local customers, helping them create and integrate operational strategies, reduce operational costs and achieve optimal network performance.

"For Cisco, China is a key market, so the launch of the new service entity here is a major milestone," said Joe Pinto, senior vice-president of Cisco Technical Support Services.

"Through it, Cisco will bring the most advanced network technologies and services to customers who hope to get direct services from us," he said.

But business opportunities with Cisco's certified partners still exist, said James Kuo, the new service company's general manager, adding "we rely on them very much."
Cisco refused to disclose the original investment of the new company, "but we will double the figure in three years," said David Rubio, vice-president of Cisco Services Asia-Pacific.

The new entity is a demonstration of Cisco's commitment to China's information technology (IT) service market.

According to a forecast from IDC, an IT market research agency, China's IT services market will grow 18.5 per cent annually within three years.

Revenue from Cisco's services arm accounts for approximately 17 per cent of the total, said Pinto.

"Since 1994 when it entered China, Cisco has been targeting long-term investment here," said Rubio.

The company has invested about US$300 million in 30 start-ups in China's technology sector.

Since 1998, Cisco has established 216 networking academies here to develop Chinese knowledge and skills for networking and Internet technologies.

Last October, Cisco China's research and development (R&D) centre was set up in Shanghai, with an investment of US$32 million over five years.

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