Cisco's B2B Marketing Strategy

CISCO
Group - EVOLUTION
22-Jul-13

Submitted to :
Prof. Rangan Mohan

Submitted by :
AsadSaeed -12009
AyushiAgarwal- 12131
Priyamvada Maheshwari.-12034
Ritesh Jaiswal.-12153
Sriraksha Kashyap.-12050
Vaibhav Dewangan.-12043

Business Marketing Assignment

Contents
CISCO- Introduction ................................................................................................................................ 2
Understanding Market: Understanding Customer Groups: ............................................................... 6
Customer Intelligence: By Econometric Models: ................................................................................ 6
Understanding existing customers : ............................................................................................... 7
Buyer propensity analysis : ............................................................................................................. 7
Measuring the ROI of the intelligence activities - Key Success Factors : ....................................... 7
Understanding New Business Models ................................................................................................ 8
Cisco: Content Marketing Strategy ..................................................................................................... 9
Channel Management at Cisco : ......................................................................................................... 9
Juniper Networks .................................................................................................................................. 11
Routing .............................................................................................................................................. 12
Customers ......................................................................................................................................... 14
Innovation Technology at Juniper Network...................................................................................... 17
Macro level Bases of Segmentation.................................................................................................. 18
Micro level Bases of Segmentation................................................................................................... 19
JUNIPER NETWORKS INTRODUCES ITS VISION, STRATEGY & LICENSING MODEL FOR SOFTWAREDEFINED NETWORKS......................................................................................................................... 19
SIEMENS – COMPANY INTRODUCTION................................................................................................. 21
ROUTERS BY SIEMENS : ..................................................................................................................... 21
STRATEGY ADOPTED BY SIEMENS:.................................................................................................... 23
INNOVATION STRATEGY BY SIEMENS : ............................................................................................. 24
INNOVATION STRATEGY :.............................................................................................................. 25
NETWORK :........................................................................................................................................ 26
RECOMMENDATION & SUGGESSTION.................................................................................................. 27

1

INTRODUCTION :
The Telecommunications Equipment Manufacturer (aka TEM, sometimes "Network
Equipment Provider", or NEP) industry has undergone a rapid upheaval in the way they
develop and build their products since 2000. Previously an industry where products were
built in an entirely proprietary fashion, from the physical design of the equipment (including
boards and chassis), to the operating systems, the middleware, and the overlying applications,
manufacturers have changed their product building blocks to include standardized boards,
middleware interfaces, and operating systems.
There is currently a large ecosystem of telecommunications equipment "building block"
providers supplying the industry with commercial-off-the-shelf components. Additionally,
there are numerous industry standards bodies driving the definition of methodologies of how
these COTS components work together.

Telecommunications Equipment Manufacturers
Most of the notable TEMs/NEPs have been active in their participation with standards bodies,
specifications, and promotional organizations relating to carrier hardware, carrier-grade
Linux, and middleware. Notably absent from participation in most of these organizations has
been Cisco, one of the strong leaders in the telecom and networking product industry.
Nokia (NOK)
Siemens AG (SI)
Nokia Siemens Networks
LM Ericsson Telephone Company (ERIC)
Nortel Networks (NT)
Cisco Systems (CSCO)
Alcatel (ALU)

History
For many years, products made by TEMs and NEPs were completely proprietary, from the
board to the application. This was highly expensive for these companies; however, they were
able to absorb the engineering costs by virtue of the fact that their products, despite their
relatively low "parts" costs, were extremely expensive. Additionally, TEMs/NEPs generally
sold not a single product to a carrier, but a grouping of products for an end-to-end solution,
and were thus able to gain additional revenue from services not simply consisting of service
contracts (wherein they would agree to fix / replace a product or part within a certain amount
of time), but also from installation and deployment.

2

The Bubble
Capital Expenditures by carriers peaked in 2000; the burst of the so-called "internet bubble",
and later, the economic fallout from the September 11, 2001 terrorism attacks, led to
significant cutbacks in carrier spending. Increasing competition in the carrier market,
particularly in the mobile phone space, although leading to increasing numbers of
subscribers, led to significant decreases in subscription pricing for end users, and in the end, a
downward trend in ARPU (average revenue per user). At the same time, 3G was beginning to
gain significant traction, and new equipment deployments were still needed, particularly to
support the emerging, data-heavy applications demanded by mobile customers.
One thing was clear: Carriers were reducing capital expenditures, but the growing mobile
base demanded an increase in infrastructure. The obvious conclusion was that carriers needed
to be able to purchase equipment at lower costs.
We, as a group have chosen CISCO as our company to study the different B2B activities going on in
the market. In the study we are going to study about CISCO’s competitors and their strategy in the
market. The two competitors we identified are JUNIPER and SIEMENS. We’re going to identify
what strategies CISCO must use to win the race amongst its competitors .Throughout this
assignment we are going to explore our knowledge on the B2B marketing strategies.

3

CISCO- Introduction

Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose,
California, that designs, manufactures, and sells networking equipment.Cisco enables people
to make powerful connections-whether in business, education, philanthropy, or creativity.
Cisco hardware, software, and service offerings are used to create the Internet solutions that
make networks possible providing easy access to information anywhere, at any time.

Cisco's current portfolio of products and services is focused upon three market segments—
Enterprise and Service Provider, Small Business and the Home. The solutions for each
market are segmented into Architectures, which form the basis for how Cisco approaches
each market.(www.cisco.com)

Corporate market:Corporate market refers to enterprise networking and service
providers.
Borderless networks: For their range of routers, switches, wireless systems, security
systems, WAN acceleration, energy and building management systems and media
aware networks.
Collaboration: IP video and phones, TelePresence, Health Presence, Unified
Communications, Call Center systems, Enterprise social networks and Mobile
application
Datacenter and Virtualization: Unified Computing, Unified Fabric, Data Centre
Switching, Storage Networking and Cloud Computing services.
IP NGN (Next Generation Networks): High-end routing and switching for fixed and
mobile service provider networks, broadcast video contribution/distribution,
entitlement and content delivery systems.
Small businesses: Small businesses include home businesses and (usually
technology-based) startups.
Routers and switches: The machines that route and redirect packets across a
network, including those for networks of smart meters.
4

Security and surveillance: IP cameras, data and network security solutions, etc.
Voice and conferencing solutions:VOIP phones and gateway-systems, WebEx,
video conferencing
Wireless: Wi-Fi Access points
Network storage systems: Persistent storage on networks, either in the traditional
sense or in a cloud-like manner.
Home user:Home user refers to individuals or families who require these kinds of
services.
Broadband: Broadband refers to cable modems.
Market Capture:Cisco is the networking giant and is sitting pretty with 54 percent of
the market share in the networking categories.Cisco has the lion’s share of the market
in switches and routing, reaching roughly 65 percent and 70 percent respectively.
Cisco continues to grow market share. This is attributed Cisco’s unique & innovative
approach to providing an open, standards-based data center network architecture and
ecosystem that maintains customer choice. The organization is increasing business
value while substantially decreasing the total cost of ownership (TCO).
With Cisco Unified Computing System, they are truly evolving the way customers
approach the data center, focused on consolidating resources, accelerating server
deployment, and simplifying management – flexible and scalable for any workload.

Top 5 Network Service Providers by Revenue
Share
Others
ZTE

Cisco

Cisco

Juniper
Alcatel/ Lucent

Seimens

Seimens
ZTE
Others

Alcatel/ Lucent

Juniper

5

Understanding Market: Understanding Customer Groups:
To understand and tap the growing Indian Market Cisco has formed ―The Market intelligence
Organization‖ They have identified the ―five pillars‖ that Cisco’s sophisticated intelligence
operation rests on. The intelligence system serves the company’s different internal customer
groups.
1. Macro Intelligence (“Country Dynamics”): Monitoring and analysis of political and
macroeconomic issues, social trends, legislative issues and environmental topics and
understand the relevancy of these findings for Cisco’s business in Europe.
2. Verticals and segments: Monitoring of segments such as finance, retail, manufacturing
and the public sector in order to understand the industry growth drivers and the subsequent
needs for present and future solutions that Cisco can provide.
3. Customer Intelligence: Monitoring the (potential) customers in the market landscape that
consists of the total addressable and adjacent markets for Cisco’s products and services by
region, by vertical, by sizeband and by technology focus. Understanding the potential to
further develop existing accounts by using a set of econometric models as well as to identify
new opportunities.
4. Competitive Intelligence: Building on the several models like Porter’s 5 forces (industry
rivalry, the power of customers, the power of suppliers, new entrants, risk of substitutes).
Looking at the competitive landscape and into the competitors’ capabilities like position,
behavior, gtm model, strategy and sales offering. This is important for the business
development people to understand in order to be able to focus on those customers that are not
locked in with a competitor’s solution. Equally important is to identify Cisco’s unique selling
points vis-à-vis the competition.
5. Channel Intelligence: In Europe Cisco’s products are sold through Partners, which makes
Channel Intelligence a vital area in the intelligence framework. Cisco is monitoring their 1st
and 2nd tier resellers, system resellers, direct sales partners, integrators, distributors, as well
as emerging channels.

Customer Intelligence: By Econometric Models:
6

Understanding existing customers :

The Customer Intelligence unit at Cisco is responsible for maintaining a map of existing and
potential customer companies in each region where Cisco operates. In this context, existing
customers are evaluated from a risk perspective to their level of satisfaction and loyalty
towards Cisco.
For each level of satisfaction and each individual customer, opportunities exist for either upselling, cross-selling, or migration.
Cisco has developed a set of ―buyer rules‖, principles that seem to guide the customer’s
behavior in different scenarios. The result is an econometric model based on the long
experience Cisco has of the IT solutions market and of their customers. Variables in the
model include things such as number of employees, number of PCs installed, number of
telephones, distance between offices, IT profile, purchasing patterns, number of remote
locations, and the company’s growth pattern.

Buyer propensity analysis :
The intelligence operation directly supports sales in pointing out where the resources are
probably best spent at any given time

Measuring the ROI of the intelligence activities - Key Success Factors :
List out of the following Key Success Factors that Cisco has identified for its Customer
Intelligence operation.


Quality of input data – In its models Cisco uses a large number of sources for data

validation in order to avoid the ―garbage in, garbage out‖ effect.


Sophistication of the model – The smarter the model is, the better the result. The number

of data points for each analytical model is the key.


Usage (by marketing and account managers) – All marketers and account managers need

to understand the benefits of using the analysis in demonstrating the ROI of the
intelligence/sales activities.
Constant communication between management and sales people is needed. Cisco has
developed models to improve their understanding of the subject.
7

Additional success factors in supporting customer processes with high quality intelligence
input have been identified at Cisco as follows.

Listening to the customers

Customers are of course very different and should be approached accordingly. Cisco tries to
understand the following parameters.‖


Buying criteria – What, when and how the customer decides to purchase



Support needs – How important training and interaction are for the customer



Price and value – How the customer values the products and services that Cisco provides



Product feature perception – Whether the solution should ―just get the job done‖ or

whether higher level of sophistication will be required


Ease of use vs. complexity – What is the customer’s capability and willingness to handle

complexity in IT solutions


Decision maker – Who is the ultimate customer (CFO, IT Director or someone else)

Understanding New Business Models
This is important both because the organisation needs to understand the customers’ business,
and the company is very much dependent on the channel business today. Customers now use
the network for business.
8

Cisco: Content Marketing Strategy
Content marketing is the practice of online marketing that deliberately uses a combination
of search engine optimization (SEO), various social media channels, and blogging to publish
content that people will seek-out, find and engage with. But content marketing isn't just a
small business, or even B2C strategy. In fact, some surprising enterprise companies and
industry leaders have adopted the strategy of online content production, blogging and social
media distribution into their brand building. Cisco's content strategies included taking
control, having more influence, and replacing the old, outdated ways of marketing to
customers with an emphasis on providing value. Cisco’s content marketing team uses the
following nine steps to drive change and innovation through their content strategies.
1.

Be passionate and take risks

2.

Get your first followers

3.

Plan as a team

4.

Start with one small thing

5.

Make your story tell-able

6.

Pause and reflect

7.

Drive the change

8.

Make it happen

9.

Nurture the change

Channel Management at Cisco :
Cisco has been steadily revamping its channel strategy in India with more emphasis on
working jointly with partners with varied strengths rather than traditional system
integrators and channel partners. Cisco has felt the need to diversify in order to address
new and more specialized segments.

9

According to its new classification, channel partners will now be under one of the following
categories, each catering to a specific business objective and market segment:
• Managed services or service providers
• Transformational partnerships
• Distribution partners
• Architecture-led partnerships.
The company has changed from a channel-led business to a partner-led business. What this
means is that they now put more emphasis on how they can jointly work with not only system
integrators, but also managed service providers, as well as companies that are more focused
on niche technology areas.
The change in channel strategy is also consistent with Cisco’s evolved business ideology. The
company has moved away from a technology-oriented approach to a more architecture-based
one. Therefore, it focuses on areas like borderless networks, collaboration, smart societies,
etc.
To respond to the Globalisation of business Cisco has launched its Go-To-Market Strategy
for its channel partners. By this model they aim to meet the needs of multinational customers
by simplifying partner-to-partner collaboration. The key highlights of the model are:

To capitalize on the rapid globalization of business, Cisco today announced the launch of
a go-to-market program designed to help Cisco channel partners collaborate with each
other to better serve a rapidly developing and fast-growing multinational customer
segment.
Up until now, many multinational customers expanding internationally have engaged in
separate transactions with local Cisco resellers in each country of their operations.
To foster global coordination, Cisco's new go-to-market strategy is built around a
transaction-based partner collaboration model.
The Cisco® Global Resale Agent model provides each "host" partner with policies,
processes and tools that enable it to select another Cisco partner as an agent in a
different country. The agent can act on the host partner's behalf for the resale of Cisco
technologies to new multinational customers.
10

This model provides local partners with "global rights" to select another partner in a
different geography to deliver Cisco technology solutions on its behalf. After the host
and agent partner engage in and complete a business transaction, the local partner buys
the Cisco solution and invoices the customer locally.
This partner-to-partner collaboration reduces the complexity of deploying the customer's
information technology business solutions, streamlines service and support, and provides
a means to broaden market opportunities and create competitive differentiation.
Partners will use Cisco's Partner Exchange, a virtual environment that allows channel
partners to find, connect with and collaborate with other partners that offer a
complementary blend of technology, services and industry expertise.

Juniper Networks
Juniper Networks, Inc. is an American manufacturer of networking equipment founded in
1996. It is headquartered in Sunnyvale, California, USA. The company designs and sells
high-performance Internet Protocol network products and services. Juniper's main products
include T-series, M-series, E-series, MX-series,

and J-series families

of routers, EX-

11

series Ethernet switches and SRX-series security products. Junos, Juniper's ownnetwork
operating system, runs on most Juniper products.

Founded in 1996, Juniper Networks transforms the business of networking by converting a
commodity–bandwidth– into a dependable, secure, and highly valuable corporate asset. Our
customers benefit from network platforms that provide a lower capital and operational cost
model,

an

assured

user

experience,

and

the

intelligence

to

easily add

new

services.(www.juniper.net)

Routing
They provide comprehensive, scalable and secure routing solutions specially designed to
meet the needs of both enterprises and service provider. All of their routers like core,
multiservice edge and carrier Ethernet run on one common operating system known as Junos.
Their product line are as follows:

ACX Series Universal Access Routers
ACX Series Universal Access Routers are environmentally-hardened, compact access routers
that deliver industry-leading performance and simplified provisioning.

BX Series Multi-Access Gateways
The BX7000 Multi-Access Gateway is part of our backhaul network router solution, which
addresses a network operator's current OPEX and bandwidth challenges while paving the
way for a future migration to 4G technologies.

CTP Series Circuit to Packet Platforms
The CTP Series Circuit to Packet Platforms provide the advanced network router technology
and features required to reliably transport TDM and circuit-based applications across nextgeneration IP networks.

12

E Series Broadband Services Routers
The E Series Broadband Services Routers play a critical role in the networking control,
delivery, and accounting of services at the network edge.

J Series Services Routers
The J Series Services Routers offer service providers and enterprises a variety of flexible
network routers that deliver secure, reliable network routing solution to remote, branch, and
regional offices.

JCS1200 Control System
The JCS1200 Control System allows you to independently scale control and forwarding
planes to enable rapid service rollouts, lower costs, and enhance operational efficiencies.

LN Series Mobile Secure Router
The LN Series Mobile Secure Router is an edge access network router that provides highperformance network routing, firewall, and intrusion detection service (IDS) for harsh
environments, including terrestrial, air, and sea vehicles and remote data aggregation points.

M Series Multiservice Edge Network Routers
The M Series Multiservice Edge Network Routers combine IP/MPLS capabilities with
unmatched reliability, stability, security, and service richness. These secure network routers
allow enterprises and service providers to consolidate multiple networks into a single
IP/MPLS infrastructure.

MX Series 3D Universal Edge Routers
MX Series 3D Universal Edge Routers meet the rapidly growing routing needs for enterprise
and service provider networks of any size with scalability in bandwidth, subscribers, and
services.
13

PTX Series Packet Transport Routers
PTX Series Packet Transport Routers are supercore routers with powerful capabilities that
optimize MPLS and Ethernet. They provide critical core functionalities and capabilities that
make them perfect to help operators adapt to today's rapidly changing traffic patterns for
video, mobility, and cloud-based services.

SRX Series Services Gateways
SRX Series Services Gateways provide integrated routing, switching, and security, to
enterprise branch and field installations

T Series Core Network Routers:
T Series Core Network Routers are industry-leading IP/MPLS core network routing
platforms that scale from 320 Gbps up to 1.6 Tbps in a single chassis, and up to 25 Tbps in a
T Series Multichassis system

Customers
Followings are the customer that deals with Juniper Network:

Chelsio Communications
Working together, Juniper Networks and Chelsio Communications offer high-performance,
low latency products that deliver a complete end-to-end Ethernet solution for the most
demanding high-performance computing environments.

EMC2
EMC2 and Juniper Networks have worked together to establish formalized interoperability
between our high performance networking solutions and EMC's industry leading storage

14

portfolio. This technical foundation allows our joint customers to confidently build solutions
to enable true networking convergence in today's highly virtualized data centers

Emulex
Emulex partners with Juniper to develop comprehensive converged networking solutions.
Emulex's OneConnect family of single-chip, high-performance 10GbE multi-function
adapters are ideal for Juniper's customers looking for a flexible, standards-based, fully
optimized solution for enterprise, data center and low-latency data and storage networking
applications.

IBM
IBM is a key alliance partner for Juniper Networks across many technology areas. IBM
and Juniper Networks can help customers transform their current data centers or plan
new facilities that will help them take advantage of the QFabric architecture

Infineta:
Juniper Networks QFabric System and the Infineta Systems Data Mobility Switch
(DMS) optimize data center interconnects to deliver the highest performance for critical
applications such as high-speed replication, data backup, and live migrations.

Intel:
Juniper Networks QFX3500 Switch and Intel VN_Node to VN_Node (VN2VN) solution
provide a future-proof infrastructure for the growing demands of small to midsize
businesses. VN2VN enables administrators to consolidate storage and I/O at the
network’s edge without a complex FCF switch.

Panduit

15

Juniper Networks QFabric family of products and Panduit Unified Physical
Infrastructure-based solutions help enterprises design and build the optimal physical
infrastructure and take advantage of a switch fabric for the data center.

Puppet Labs
Puppet Labs’ technology integration with Juniper products enables IT organizations to
coordinate change management between their compute and networking resources. This
solution includes Puppet for Junos OS, which provides a native puppet agent for Junos
OS-based devices, as well as the netdev Puppet Forge module. The Puppet and Juniper
integration enables IT organizations to perform common network device configuration
changes directly rather than through traditional methods (such as change-request tickets)
which can be tedious and error-prone. By automating network resource management,
Puppet reduces risk, increases agility, lowers operational costs, and improves overall
service levels for IT infrastructure users.

QLogic
With wire-speed performance and its suite of highly versatile "Flex" technologies,
QLogic® 8200 Series adapters combine with Juniper QFX3500 switches to provide
organizations with end-to-end convergence. Deployed together, QLogic 8200 Series
adapters and Juniper QFX3500 switches provide a powerful solution for traditional and
virtualized data centers, network-attached storage, converged server I/O, and cloud
computing environments.

SolarFlare
Juniper Networks and Solarflare's 10GbE data center switches and server adapters
deliver an ultra-low latency, high-performance, low-power and highly scalable
interconnect solution for application-layer environments ranging from dozens to
thousands of compute nodes. Juniper Networks and Solarflare used in conjunction with
Solarflare'sOpenOnload® application acceleration middleware deliver a complete endto-end 10GbE solution for the most demanding applications. Two important use cases

16

are the high performance computing (HPC) and high-frequency trading (HFT)
environments.

Violin Memory
Juniper Networks Fabric family of products and Violin Memory's high performance
storage array offer a high-performance switch fabric and storage solution for the
demanding applications of next-generation data centres.

VMware
The combination of Junos and VMware's vCloud Director to manage all services
through a single pane of glass accelerates the journey to the cloud. Juniper's network
virtualization and VMware's server, storage, desktop and security virtualization
capabilities reduce data center network virtualization costs.

Innovation Technology at Juniper Network
 IPv6 : The IPv4 address space will be depleted soon while IPv6 is still in the early
stages of deployment. Juniper Networks provides toolkits to manage IPv4 depletion, to
build your IPv6 infrastructure, and to prepare for a long period of co-existence with both
IPv4 and IPv6 stacks.
 Junos : Simplicity and innovation—they're what make Junos® so unique. Junos is one
system, designed to completely rethink the way the network works. Junos is an open
software platform that extends from core to client. Junos is a line of purpose-built
silicon, specially designed and optimized to run the software. Junos is the unique
technology foundation that defines a new network that transforms the experience and
economics of networking.
 Junos Innovation Fund: We are a venture capital fund focused on the Junos ecosystem,
including networking technologies and applications of the future.

17

 Open Innovation : An increasingly diverse global marketplace calls for capabilities
beyond that of any single vendor. Juniper offers a revolutionary software platform that
allows customers to directly program their networks and run applications developed by
an ecosystem of partners for rich user experiences, smart economics, and fast time to
market. The Junos Platform gives developers unmatched flexibility to create dynamic
applications that interact with the network from the client to the cloud.
 OpenLab : The OpenLab, the JunosCenter for Innovation, serves as 'a collaborative and
creative hub' to ignite software innovation and unleash the ingenuity of the network to
deliver new capabilities and experiences. While engaging with the industry and
academia to generate new network integrated applications, OpenLab reinforces Juniper
Networks as the industry leader on network programmability and software defined
networking.
 Product and Solution Firsts: With more than 10 years of experience delivering
disruptive innovation and 500 patents, Juniper Networks understands what you need. We
continue to evolve our software, systems, and silicon to meet the demands of our
customers' most challenging and complex issues—from accelerating business growth to
reducing operational complexity and expense. As the new network advances, we
advance with it—and so does your business.

Macro level Bases of Segmentation

Variable

Illustrative Breakdown

Size of the Organization

Medium

Geographical location

America, Asia Pacific(APAC), Europe, Middle East
and Africa

Usage Rate

Moderate

Structure Of Procurement

Centralized

18

Type of Buying Situation

Mostly Straight Rebuy

Micro level Bases of Segmentation
Variable

Illustrative Breakdown

Key Criteria

Technical Support, Price, Quality

Purchasing Strategy

Multiple Sources

DMU

Operational Decision Manager

Importance of Purchase

High

JUNIPER NETWORKS INTRODUCES ITS VISION, STRATEGY & LICENSING
MODEL FOR SOFTWARE-DEFINED NETWORKS
Comprehensive Approach to Transition Enterprises and Service Providers to SDN Includes
Six Key Principles and Four-Step Roadmap

Juniper Networks, the industry leader in network innovation, today, at its annual Global
Partner Conference, introduced the most comprehensive vision in the industry to transition
enterprises and service providers from traditional network infrastructures to software-defined
networks (SDN) and outlined its strategy to lead the SDN market. Juniper's SDN strategy will
enable companies to accelerate the design and delivery of new services, lower the cost of
network operation, and provide a clear path to implementation.
Juniper's SDN strategy is rooted in six principles that directly address the most pressing
networking challenges facing the industry today:

1. Cleanly separate networking software into four layers (or planes) -- management,
services, control and forwarding -- providing the architectural underpinning to optimize each
plane within the network.
19

2. Centralize the appropriate aspects of the management, services and control software to
simplify network design and lower operating costs.

3. Use the cloud for elastic scale and flexible deployment, enabling usage-based pricing to
reduce time-to-service and correlate cost based on value.

4. Create a platform for network applications, services and integration into management
systems, enabling new business solutions.

5. Standardize protocols for interoperable, heterogeneous support across vendors, providing
choice and lowering cost.

6. Broadly apply SDN principles to all networking and network services including security
from the data centre and enterprise campus to the mobile and wireline networks used by
service providers.

20

SIEMENS – COMPANY INTRODUCTION
Germany is a leader in the electrical and electronic engineering sector. It offers products,
systems, solutions and services in power generation, power transmission and distribution,
automation and drives, industrial solutions and services, transportation systems, enterprise
communications, mobile phones and medical solutions. Siemens AG holds a 54.6% stake in
SIEMENS. The company was established in 1957.The company has a wide presence across
the country; its operations include 15Manufacturing plants and 16 sales offices. Siemens`s
World plant makes medical equipment. The three Kalwa units make motors, switchgear, and
switchboards. The Nasik unit makes industrial automation products, controllers, PLCs and
UPS. Joka works makes control boards and switchboards. Aurangabad makes switchgear and
photovoltaic modules. Goa makes medical equipment. SIEMENS derives 33% of its
revenues from the automation and drives division, followed by 24% from the power division,
18% each from Siemens Information Systems (SISL) and healthcare/other services divisions.
During fiscal2005, it acquired Siemens VDO Automotive, DemagDelaval Industrial Turbo
machinery, and 51% interest in Pimac Engineers and Services. SIEMENS has a vast global
network of 461,000 people, operating in over 190countries. In India, SIEMENS mirrors the
portfolio of Siemens AG, except that Siemens VDO Automotive, and Siemens Public
Communication Networks operate as separate companies. SISL, another group company, is
now a 100%subsidiary of SIEMENS, and Siemens Building Technologies (SBT) has
already been merged into Siemens.(www.siemens.com)

ROUTERS BY SIEMENS :

IWLAN/PB Link PN IO:
 Description:The IWLAN/PB Link PN IO can be used as a gateway between Industrial
Wireless LAN and PROFIBUS. The link is a wireless PROFINET IO Device at one end
and a PROFIBUS DP master at the other end. PROFIBUS DP slaves can therefore be
connected wirelessly to higher-level controllers.
Support of PROFINET means that the wide variety of PROFIBUS system services, such
as diagnostics over the bus, can still be utilized.
 Features:Suitable for mounting in the control cabinet
Suitable for installation in a control cabinet due to IP20 degree of protection (to fit 7.5 or
15 mm standard mounting rails).
 Benefits:Devices can be replaced without the need for a programming device
using the C-Plug swap media for backing up the configuration data, devices can be
replaced without the need for a programming device.

21

IE/PB Link PN IO :
 Description: As a stand-alone component, the IE/PB Link PN IO builds the seamless
transition between Industrial Ethernet and PROFIBUS by means of real-time
communication (RT) and thus enables existing PROFIBUS devices to be integrated into
a PROFINET application. From the viewpoint of the IO Controller, all DP slaves are
handled like IO Devices with an Ethernet interface, i.e. the IE/PB Link PN IO is their
proxy.
 Features :Cross-network PG/OP communication through S7 routing and data set routing
(PROFIBUS DP).You can remotely program all S7 stations from the programming
device via the IE/PB Link PN IO on Industrial Ethernet or PROFIBUS (S7 routing). You
can also access all data of the S7 stations on PROFIBUS from the PC on Industrial
Ethernet (e.g. for HMI applications with OPC Client interface) by means of the S7 OPC
server. It is possible, for example, to use SIMATIC PDM (on the PC) to set parameters
and perform diagnostics for a PROFIBUS field device over the IE/PB Link PN IO (data
set routing).
 Benefits: Investment protection for existing systems and no reliance on a specific
manufacturer.
You can continue to use legacy system and plant components that communicate over
PROFIBUS and expand them. Through seamless integration of PROFIBUS devices in
PROFINET over IE/PB Link PN IO, you can protect your previous investments. You
can therefore rely on the innovative PROFINET standard and also remain independent
of a specific manufacturer.

IE/AS-i LINK PN IO:
The IE/AS-i LINK PN IO facilitates the connection of subordinate AS-i networks to
PROFINET. The integrated display and the integrated web server support easy configuration
and diagnostics.. Single and double master versions are available. If required, rapid device
replacement by untrained staff and without reconfiguration can be supported by a C-plug for
the configuration data's backup and transfer.

PN/PN Coupler:
Overview:
Maximum data exchange of 256-byte input data and 256-byte output data between
two PROFINET networks
22

Maximum of 16 input/output ranges for the exchange of data
Electrical isolation between the two PROFINET IO subnets
Redundant power supply
Supported Ethernet services
o

Ping

o

Arp

o

Network diagnostics (SNMP/MIB-2)

Diagnostic interrupts
Return ofSubmodule interrupts
Application: The PN/PN coupler is used to link two Ethernet subnets with one
another and to exchange data. The maximum size of the data which can be transferred
is 256 byte input data and 256 byte output data.
As a device, the PN/PN coupler has two PROFINET interfaces, each of which has two
ports and each of which is linked to another subnet.
During configuring, two IO devices are produced from this one PN/PN coupler which
means that there is one IO device for each station with its own subnet. The other part of
the PN/PN coupler in each case is known as the bus node. Once configuring is complete,
the two parts are joined.
Design: The PN/PN Coupler is located within a 120 mm enclosure. It is installed with
a DIN rail (7.5 mm or 15 mm).The coupler is connected to the PROFINET PN IO
networks using RJ45 plug-in connectors.
Function: The PN/PN coupler continuously copies the output data of one network to
the input data of the other network (and vice versa)

STRATEGY ADOPTED BY SIEMENS:
Responsible, excellent and innovative – these are the values that define who the company is
and what they do. Sustainability in the broad sense – support for long term environmental,
economic and social progress is the guiding principle of all actions.

23

The company is providing the world with the solutions it needs to master the challenge of
demographic change, urbanization, climate change and globalization.

INNOVATION STRATEGY BY SIEMENS :
Innovation has always been the key to our success. Building on our strength of innovative
strength, we have 32,300 researchers working on new solutions for energy, industry and
healthcare and more than 1,000 research partnerships with universities, research institutes
and industrial companies around the world.

Innovations for the Environment - Protecting the world climate with a green
portfolio :

 Products and solutions: From power generation and distribution to the efficient use of
energy in industry, households and transportation to cutting-edge technologies for
water management and pollution control.

Innovations in the Energy sector - Solutions to ensure tomorrow’s energy
supplies.

 Products and solutions:
Grid connections for offshore wind farms
Gas insulated transmission lines
High-voltage direct-current transmission systems
Combined cycle power plants.

Innovations in the Industry sector - Integrated technologies for greater
productivity, energy efficiency and flexibility


24

Drive systems
Energy Management and consulting
Mobility solutions – Parking and Traffic management systems, Rail automation and
electrification, High-speed trains etc.
Building Technologies

– Energy-saving performance

contracting, Building

modernization, components for heating, ventilation and air-conditioning
Lighting – Energy saving lamps, Light emitting diodes, etc.

Innovations in the Healthcare sector - Advancing patient care with
affordability.

Refurbished systems
CT Scanners
Magnetic resonance imaging

INNOVATION STRATEGY :
Consistency :
Technology
Strategy

Patent Strategy

R & D resource
strategy

Processes

People/ Skills/
Culture

Consistent with respect to :
Standards
Strategy

 Building a pool of young R & D employwws is the key to Siemen’s innovative
strength
 The product requirements of emerging markets are different to those of the developed
world . They are :
Product must be robust, to work in a tough environment.
Product must be with just the basic features.
Product’s price must be in line with buying power of consumers.
25

Product must be of high quality as comparable with global standards.
Product must be repairable.
Product must be suitable for rural distribution conditions.
 The solution from Siemens management side for the product requirements of
emerging markets is SMART value product develoment in the region. Which means :
S imple
M aintainance-friendly
A ffordable
R eliable and robust
T imely to market.

NETWORK :
Networks are the breeding ground for innovation. The following figure shows the
networking of siemens :
Research
Institutes
Universities

Other
industries

.

Key
Customers

SIEMENS

Government
al Partners

Competitors

Start-up/VCs
“Think Tanks”

26

RECOMMENDATION & SUGGESSTION

Following are some ways through which CISCO can improve its position and performance in
the Industry:

Emerging Countries:
As given in Global Information Technology Report 2013 by the world economic forum,
Finland has toppled Sweden from the top spot in a ranking of economies that are best placed
to benefit from new information and communication technologies (ICTs). Singapore came in
second and Sweden third in the 2013 Networked Readiness Index, compiled by the World
Economic Forum for its Global Information Technology Report. Therefore, Cisco should try
to increase its presence in these countries.

Emerging Sectors
Healthcare:
Information and communication technologies (ICTs) could improve healthcare, reduce
medical errors, cut administrative costs and keep patients better informed. Adverse drug
reactions, for example, are among the leading causes of death in the United States. Electronic
drug prescription systems could check for adverse drug reactions and warn patients who have
allergies or take multiple drugs. ICTs could also improve coordination of care for ICTs could
also improve coordination of care for patients with complex chronic diseases and increase the
uptake of preventive screening services. Here, a great potential lies in this sector and as Cisco
already providing services; it should increase its no of services in this sector.

Competitive Edge for Cisco selling:
Cisco has a web documentary series called The Network Effect. It is not about self-serving,
brand promotion or sales driven creative videos. Instead, one can hear inspiring stories of
innovators and inventors who laid the path of Cisco’s network prowess in the industry. This
makes a big impact in client building and hence should be retained.
Cisco claims that Social media is just as important for their business-to-business groups as it
is for their business-to-consumer groups. From a business-to-business perspective, social
media has had an impact in three major areas:
Engaging with customers in new ways.
Extending the reach of our traditional marketing.
27

Reducing costs
They have maintained social-media networks such as twitter, Facebook-pages, you-tube
videos etc. which has helped them build relations with clientele.

Domains need to be addressed/ improved
Cisco customer service is ranked #392 out of the 647 companies that have a
CustomerServiceScoreboard.com rating with an overall score of 32.02 out of a possible 200
based upon 83 ratings. This score rates, Cisco customer service and customer support as
Disappointing. Some of the common potholes analysed are as follow:
Response time found to be very high
Little or no attention given to SME buyers
Customers very easily switch to competitor products due to carefree attitude from CISCO
employees
Customers find it difficult to use, or make minute changes in the products when required.
Cisco is found to run on its name, and is commonly found to have refused to provide support
and after sales service to its buyers. This in turn creates a trend of one time buyers specially
in case of SME’s ,while a contrast is being displayed by Siemens which is found to stand on
its brand value, delivering exactly what it promises to all its buyers irrespective of their size.
While, Current markets may be declining and operating in a well-worn pattern, the SME
sector can be much more open to change. So, Cisco should offer them a better product or idea
that can reach the SME decision maker to purchase their products.
Cisco should look at the culture and management within SMEs, the difference between
branding and positioning, as well as barriers to communicating with SMEs. Lead generation
and sales-force engagement and relationship building is also an essential element to be
considered for the same.

28

Bibliography
www.cisco.com. (n.d.). Retrieved from www.cisco.com: www.cisco.com
www.juniper.net. (n.d.). Retrieved from www.juniper.net: www.juniper.net
www.siemens.com. (n.d.). Retrieved from www.siemens.com: www.siemens.com

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