Inside Cisco’s $57 Million Australia Investment Plan



Expanding Webex capacity in Australia

Cisco Systems (CSCO) recently disclosed plans to invest as much as $57 million in Australia as it seeks to grow its business in the country. The investment plan includes about $14 million toward the building of a new data center facility in Sydney for the purposes of expanding the capacity of Webex in Australia, according to a report from ZDNet.

Webex is an enterprise collaboration suite that offers meeting and video conferencing support. Webex is Cisco’s vehicle in the race for dollars in the team collaboration software market. The global team collaboration software market was valued at $8.2 billion in 2017 and is forecast to grow to $16.6 billion by 2025, according to Grand View Research estimates. The other companies pursuing this attractive revenue opportunity include Microsoft (MSFT), which has a product called “Teams,” and LogMeIn (LOGM), which bought Citrix Systems’ (CTXS) online conferencing platform GoTo a few years ago to allow it to expand in this market. According to Cisco, Australia is one of the largest markets for its Webex service.

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Supporting Australia’s digital transformation

The other area of investment Cisco has identified in Australia is support for the country’s digital transformation. The company is allocating roughly $43 million for this program for the next three years as it seeks to support efforts to improve the competitiveness of Australia’s digital economy. Through its digital transformation program, Cisco will work closely with the Australian government and private sector organizations in the country.

Cisco appears to have a good relationship with Australian businesses and authorities at a time when its American corporate counterparts Google (GOOGL) and Facebook (FB) have come under intense scrutiny in the country. As Reuters has reported, Australia is exploring ways to curb what it views as the outsized influence of Internet giants like Google in the country’s digital advertising and online news sector.


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