INTERVIEW-3Com to lock horns with Cisco outside China

Thu Jun 4, 2009 2:45pm EDT
 
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* COO: Sees faster-than-market growth outside China

* To grow with the economy -- in single digits -- in China

* Says battled Cisco to a tie in China

* Says wins H3C contract with French carmaker Peugeot

* Says most non-China H3C wins so far in Europe

By S. John Tilak

BANGALORE, June 4 (Reuters) - 3Com Corp (COMS.O) will take on market leaders such as Cisco outside China with a networking product line for large enterprises that will help it grow faster than the market in the rest of the world, a top executive said.

The network equipment maker -- a neck-and-neck rival with industry giant Cisco Systems Inc (CSCO.O) in China -- plans to use that success and expertise as platform to capture market share in other international markets.

China made up 57 percent of the revenue of 3Com, which has a partnership with Huawei Technologies Co Ltd [HWT.UL], in its latest reported quarter.

"Since we battled Cisco to a tie there, we believe we have a great opportunity to gain market share in a large market outside of China," said Ron Sege, president and chief operating officer, in an interview with Reuters.

"With that, we intend to go forward and compete against the industry leaders."

The company has decided to take its H3C brand -- which competes with Cisco in the Chinese enterprise networking market

-- to global markets. -- to global markets.

"The bottom line is we're going to continue to grow in China, but our goal is to grow at a faster pace in the rest of the world," Sege said. In China, Sege expects 3Com to grow with the Chinese economy -- in the mid single-digits.

3Com is trying to position itself as a second vendor, if not an alternative vendor. And it is making concerted push to win an increasing number of large contracts, Sege said.

The company has seen the fastest growth of its H3C product line so far in Europe. "We've been beta testing the H3C products most aggressively in Europe. And that's why we've had the most early wins there."   Continued...