皇冠体育app

The US firm's services business is already seeing robust growth in 皇冠体育app according to Cisco's 皇冠体育app president, Thomas Lam.

This includes consulting and networking services to help customers create and integrate operational strategies, reduce operational costs and achieve optimal network performance.

For the 2006 fiscal year ended on July 29, Cisco's services business in 皇冠体育app grew 38 per cent year-on-year, said Lam.

Cisco in May established a wholly owned services entity, Cisco Systems (皇冠体育app) Information Technical Service Co Ltd, as part of its bid to tap into 皇冠体育app's services market.

"The establishment of the entity has improved our flexibility in providing services to customers," said Lam.

Prior to the launch of the new subsidiary, Cisco provided services to its customers in 皇冠体育app via its local partners.

Network equipment such as routers and switches remains Cisco's core business.

A push into the services business could help the US technology giant diversify its portfolio and better ward off rivals focusing on low-price strategies in the network equipment market.

According to research firm IDC, 皇冠体育app's information technology services market will grow 18.5 per cent annually within three years.

Cisco is also gaining momentum in the so-called advanced technology market, according to James Kuo, general manager of Cisco Systems (皇冠体育app) Information Technology Services Ltd.

Cisco lists wireless, optical, home networking, storage area networks, unified communications and security as advanced technologies that promise huge potential.

Globally, in the fourth quarter of the 2006 fiscal year, Cisco's revenue from sales of routers and switches grew 12 per cent and 8 per cent year-on-year respectively.

Revenue from advanced technologies grew 23 per cent during the period. In 皇冠体育app, the figure stood at 48 per cent for the full fiscal year 2006.

Lam noted that sales of advanced technologies still account for a small portion of Cisco's total revenue in 皇冠体育app, an indication that this emerging market promises much untapped potential.

Cisco's total sales in the 2006 fiscal year recorded the fastest growth rate since 2002, with much growth coming from operators and the enterprise market, Lam said, without giving a specific figure.

But Cisco President and Chief Executive Officer John Chambers said on Wednesday, while announcing the financial results for 2006, that orders in 皇冠体育app saw robust growth.

"Asia-Pacific and 皇冠体育app again had solid quarters with year-over-year order growth of approximately 20 per cent and 40 per cent respectively," said Chambers.

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