How does this expansion of the distribution partnership with Cisco align with Techdata's overall strategy in the Indian market?
This distribution partnership with Cisco has been on our wishlist for quite some time, and we are pleased to have successfully established this collaboration. Given that we are a major global distribution partner of Cisco, we have always aspired to work with them in India, and we are delighted to have secured this opportunity.
This partnership is highly strategic for us, as we have been growing our advanced solutions business in India. However, in terms of networking, we previously lacked a key technology player in this sector within the country. Cisco, being a leader in the networking space, fills this gap for us. The ongoing rapid transformation in the industry, especially in areas such as AI and data management, where Cisco plays a pivotal role, provides us with a significant strategic advantage. Cisco’s comprehensive portfolio, from servers to networking equipment, including switching, routing, and security solutions, complements our offerings perfectly.
Additionally, this partnership aligns with our global strategy. As a significant global partner of Cisco, having a presence in such a strategic market as India is of great importance to us. Cisco's innovative technologies, combined with our approach as a value-added distributor and our expertise in orchestration and aggregation, create a strong foundation for this partnership. We are genuinely appreciative of Cisco for this opportunity and look forward to the mutual benefits this collaboration will bring.
Elaborate on the specific benefits that resellers and partners will gain from this enhanced collaboration with Cisco.
The first significant advantage for our partners is our role as a value-added distributor. We are committed to delivering added value to our partners by providing comprehensive end-to-end technical expertise. This will enable them to expand their customer base for Cisco’s portfolio. That is the first key benefit we aim to offer.
Secondly, we are bringing increased capacity to support their growth. India’s economy is experiencing rapid growth, and with positive economic projections, there will be an increased demand for greater capacity to sustain that growth. We are positioned to provide this capacity, benefiting both Cisco and our partners who are ready to expand.
Additionally, as new technologies emerge—whether in areas such as Generative AI or cloud solutions—our status as a global leader allows us to leverage expertise from other markets. This enables us to introduce best practices and advanced technologies into the Indian market, giving our partners a competitive advantage.
How is Tech Data positioned to support the rapid digital transformation in cloud computing and the rise of AI, including generative AI, in India?
Cloud computing has been one of our key pillars over the past half-decade. We have developed a wide range of solutions in collaboration with major cloud leaders across infrastructure, SaaS, and PaaS. With Cisco now joining our portfolio, we are positioned to enhance our ability to build more collaborative cloud computing solutions.
In terms of AI, India has the potential to become a global leader in this field. Our involvement in generative AI in the country will enable us to deliver significant solutions for our partners. We offer unique services, including our cloud computing platform and what we call "click-to-run" solutions, which simplify the delivery of entry-level solutions. These solutions allow partners to start implementing them for their customers with just a single click.
Additionally, we have established a Center of Excellence for the APJ region, which we can leverage extensively. We plan to add more technical capabilities for Cisco within this Center of Excellence, providing end-to-end benefits for our partners. This includes building awareness, helping partners gain AI certifications, and supporting them in delivering solutions to their customers.
In both cloud computing and generative AI, we are committed to providing cutting-edge solutions to our partners and OEM collaborators.
What are the key challenges you foresee in expanding Cisco's technology solutions across the Indian market, and how is Tech Data going to address and support them?
In the area of generative AI, as I mentioned earlier, our journey begins with creating awareness and facilitating learning for our partners. One of the primary challenges is ensuring that every partner is equipped to embrace AI in its various forms, whether it be AI, generative AI, or AI-enhanced solutions. We are starting this journey with our partners from the very first step, gradually preparing them to adopt these technologies.
The challenges presented by the Indian market also offer significant opportunities for growth. While there are challenges, we see them as opportunities to build our business here. Cisco’s technology solutions are vast, particularly their security portfolio, which has expanded significantly over the last decade. Their technology stack has grown, and we plan to align our focus with Cisco’s priorities, working closely with our partners to deliver these solutions effectively.
We will leverage our centralized network platform and the diverse technologies we bring to the table to tap into the tremendous opportunities in the Indian market. A key focus will be on geographic expansion, ensuring we grow Cisco’s business across all regions of India.
While challenges exist, they are balanced by even greater opportunities. Cisco’s end-to-end technology solutions, catering to both SMBs and enterprise customers, present a unique growth potential. While enterprise adoption of Cisco’s technologies has been established over decades, the journey for SMBs is just beginning, and we aim to play a pivotal role in supporting that transition.
How do you think Tech Data will leverage its expertise to help organizations achieve high-speed, reliable connectivity through the partnership with Cisco?
India’s digitization journey has been ongoing for some time and is now gaining significant momentum across the country. Ensuring that customers have access to high-speed and reliable data has become a priority for all technology service providers, including the Government of India. Cisco, as a leader in this space, plays a critical role in driving this effort.
Our goal at Tech Data is to extend Cisco’s solutions to approximately 6,000 partners across more than 100 cities. By doing so, we aim to expand Cisco's presence and technology offerings to a wider audience, particularly in regions that are still developing their digital infrastructure.
A key focus for us is to support Cisco’s geo-expansion efforts, bringing their cutting-edge technologies to smaller cities. There is no question about the quality and reliability of Cisco’s technologies, as they are a leader in this space. These solutions will undoubtedly help customers in smaller cities establish more reliable and high-speed networks, enhancing overall connectivity.
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