3Com to leverage on China's low cost

Bangalore



11 October 2007

Peter Chai, VP and GM-Asia Pacific, 3Com Corporation, said that the company

would leverage on its China advantage while focusing to increase its market

share in India. “China gives us the advantage of a low cost R&D location.

We scale our business through the low cost advantage. It also gives us a chance

to enhance our technology,” he said Chai to media persons at press conference

here.

3Com has a headcount of 4,700 in China out of which 2,400 are in R&D. The

company has invested close to $900 million in China.

3Com boosted its presence in China by completing the acquisition of H3C. Chai

said that the integration with H3C Technologies is fully complete.

Chai also stated that the company would capitalize on the prevalent network

convergence trend by pushing its open services network. He informed that while

the Chinese R&D would work on it, the company might also consider partnering

with Indian companies for its software part.

Speaking on the plans for the open services network, Orcun Tezel, Technical

Director, 3Com South Asia, said that the company would adopt a combination of

single vendor and multi-vendor approach. Chai also said the 3Com would also

focus on the SMB market. “We are uniquely positioned to serve the SMB market,”

added Chai.

In India, the company has identified healthcare, BFSI, Telco, government as

key verticals in India, said Mohit Rampal, Country Manager, 3Com- India. He

added that in India, 3Com would partner with solution specialists in different

verticals. Elaborating on the company's partners in India, he said, “We are

strengthening existing relationship. We are also creating new relationships with

SIs (system integrators) and partners who can sync with us.''

Rampal added that company is increasing its workforce in India. It is already

ramping up its pre-sales and post-sales team in the country, said Rampal, who

became the country manager last month.

Private equity firm Brain Capital Partners had last month acquired 3Com for

$2.2 billion. Huawei, with whom 3Com had a joint venture for H3C Technologies,

is holding a minority stake in the company. Huawei, however, is not involved in

3Com's day-to-day operations and is a commercial and strategic partner of the

company.