Cisco and Diyixian.com Partner on Innovative Equipment Financing Deal

Strategic Insights -

Cisco Systems Capital Corporation (CSC) and Diyixian.com, a leading corporate ISP in Greater China, have entered an innovative equipment financing agreement to support Diyixian.com's ambitious network infrastructure build-up in the region. Under the agreement, CSC will enable Diyixian.com to deploy the latest Cisco equipment to expand, upgrade, and maintain its networking infrastructure. The deal is significant, as Diyixian.com plans to spend over HK$1 billion (US$129 million) to build next-generation IP broadband networks across Greater China over the next three years.

Key Takeaways:

  • The agreement will enable Diyixian.com to deploy the latest Cisco equipment to expand, upgrade, and maintain its networking infrastructure.
  • DIYIXIAN.com plans to spend over HK$1 billion (US$129 million) to build next-generation IP broadband networks across Greater China over the next three years.
  • Once completed, Diyixian.com's network will be the first IP broadband network across Greater China for Internet Content Providers (ICPs), online traders, multimedia Web content users, as well as corporate Intranet/Extranet users.
  • Cisco will also provide professional consulting and network integration services.
  • The agreement provides a structured financing arrangement similar to venture capital arrangements, where Cisco will provide a loan with a right to purchase equity in the company at a later stage.
  • Lap Man, CEO of Diyixian.com, mentioned that partnering with Cisco will help relieve Internet congestion and bandwidth limitation in Greater China.
  • The network rollout plan will include 30 POPs in the whole Greater China region, with the first phase build-out including major cities such as Beijing, Shanghai, Guangzhou, and Taipei.
  • The network will deploy a full array of Cisco GSR 12000 series backbone routers, Cisco IGX WAN switches, and Catalyst 6500 series LAN switches.
  • The connection of hundreds of T1/T3/OC-3 lines to Cisco IGX WAN Switches and the adoption of numerous Cisco 5300 remote access routers will enable Diyixian.com to handle over 10,000 corporate customers and tens of thousands of modem dial-up/ISDN ports simultaneously.

Statistics:

  • HK$1 billion (US$129 million) - planned investment by DIYIXIAN.com to build next-generation IP broadband networks across Greater China over the next three years.
  • HK$1 billion - planned investment by Cisco as part of the equipment financing agreement.
  • 30 POPs - planned by DIYIXIAN.com in the whole Greater China region as part of the network rollout plan.
  • 6 - major cities included in the first phase build-out of the network.
  • 10,000 - number of corporate customers that the network will be able to handle simultaneously.
  • 100,000 - number of modem dial-up/ISDN ports that the network will be able to handle simultaneously.

Sources:

  • Cisco Systems, Inc. (NASDAQ: CSCO)
  • Diyixian.com Limited
  • Cisco Systems Capital Corporation (CSC)
  • PRNewswire-AsiaNet