At this week’s opening ceremony of the Cisco Plus Brazil 2012 conference in Rio de Janeiro, we stood with local and national government officials and formally announced our strategic investment initiatives in Brazil. Through the use of information and communications technology, Cisco hopes to foster the level of innovation, transformation and socio-economic development necessary to sustain the country’s growth and competitiveness.
In Brazil, our R$1 billion investment will be distributed over the next four years around the pillars of innovation, venture capital funding, strategic local partnerships and expansion in local manufacturing. In the second half of 2012, Cisco will be inaugurating a center of innovation in Rio de Janeiro to develop customized technology solutions for the country. First round efforts will be focused on sports and entertainment technology, public safety and security, as well as improved access to education and healthcare. The center will also help support Cisco’s global Smart+Connected Communities initiatives through developing efficient urban infrastructures and fostering growth within new and existing cities in Brazil.
In an effort to capture the immense economic and innovation potential in the Brazilian ICT market, we are working with local partners and dedicating up to R$100 million of the investment to create the largest high-tech VC fund in the country. We are also continuing efforts in building local partnerships to properly address some key opportunities in Brazil. A recent intellectual property agreement with Intelbras – a leader in the Brazilian telephony market – is aimed at encouraging local SMBs to migrate towards IP telephony. In the area of R&D, Cisco will continue to support the Planetary Skin Institute (PSI), a global, independent nonprofit R&D organization. PSI has developed multiple agreements with leading R&D institutions in Brazil to co-develop high-priority platforms for the country, such as early warning systems.
Back in 2010, we officially began production of set top boxes in Brazil through a partnership with cable service provider NET Serviços. Since its inception in early 2011, the Manaus plant has already been through two expansion efforts. Local manufacturing initiatives continue to reinforce our commitment to technological development, entrepreneurship and job creation around the globe. Cisco will continue fostering local manufacturing efforts in Brazil to include production of our best-selling core routing and switching products.
We are continuing these efforts in other areas of the globe as well, with notable recent developments in Russia.
Coming off last week’s signing of an R&D strategy roadmap with the Skolkovo Foundation, we’re excited to announce the availability of our 2911R/K9 router, the third Cisco product made in Russia. These developments represent further commitment to Brazil and Russia as key global priorities and countries with immense growth potential.
Assembly of our one of our most popular Integrated Services Routers, the ISR 2911 / K9 bundle has been launched in the city of Tver in Russia, following a pilot project in early march. The 2911R/K9 Integrated Services Router will be available to the Russian market through a network of authorized Cisco partners. To date, this marks the third Cisco product made in Russia. In 2011, we announced the availability of both a VPN hardware solution and Cisco set top boxes, made possible through collaborative local partnerships.
Cisco 2911R/K9 Integrated Services Routers (ISR) are designed to power the next phase of branch-office evolution, providing rich media collaboration and virtualization to the branch while reducing operating costs. The Cisco 2911R/K9 reduces initial capital outlays by decoupling the delivery of software from hardware on optional service modules. In addition, customers receive a Universal IOS image capable of enabling all of Cisco’s rich IOS features and allowing quicker deployment of new services. Integrated anti-malware tools as well as voice, data and mobile access security features helps to support a high level of data security. The router also opens great opportunities for remote operations by flexibly supporting VPN, to provide remote employees with secure access to corporate resources via secure channels.
Through the expansion of local manufacturing efforts in Russia, Cisco is delivering on its vision to stimulate local entrepreneurship and sustainable innovation, bolster job creation in the region and introduce the most advanced technologies to the area. Coupled with the activities in Brazil, we are proud and excited of our further involvement in the growth and development of these key economies