Cisco Systems Inc. (NASDAQ:CSCO), in its 10th annual visual networking index report, forecasted that India’s Internet protocol traffic is all set to skyrocket at four times the pace for the period covering from 2014 to 2019, at an astounding rate of more than 30% per year. Factors driving this growth range from increased mobile data internet usage to increased broadband speed and more ordinary Indians expected to possess low cost yet high quality featured smartphones.
The networking solutions company has bullish assessments about the world’s second largest populated country, pointing to the IP traffic expected to reach around 4 exabytes by 2019, an increase from the current traffic speed of 967 petabytes per month in 2014. In comparison, global IP traffic growth is expected to reach 2 zettabytes, largely driven by an increased number of users and enhanced broadband speeds.
Another reason for strong growth is the mobile data traffic. Cisco Systems Inc. expects the mobile data traffic in the South Asian nation to grow by more than 14%, with an annual compounded growth rate at 67%. Currently 9% of the IP traffic is credited in the mobile data, and that is expected to rise to less than 30% five years later.
On top of this, each household in India, once getting a hold of a smartphone, will generate 41 gigabytes of monthly internet traffic in the same year by 2019 and an astounding 75 billion minutes of video content is expected to be downloaded through the Internet every month.
Meanwhile, Cisco has announced that its CTO and Strategy Officer, Padmasree Warrior, is set to leave the company by the end of July, on top of two other executives, who have also called to quit – COO Gary Moore and President Rob Lloyd – both who were considered as strong front runners to run for the post of CEO once Chambers resigned.
Ms. Warrior’s success in the company has been mixed. On one hand, she is considered smart and had a good relationship with the customers, and has been an adviser to many startups. On the downside though, she has not garnered a lot of respect when she was first selected as an engineering leader.
Her rumor of quitting came early this year, only for the company to deny it, but the management is silent about her impending exit, which they will not mind since they are in the process of reshuffling the leadership positions anyway, bringing in fresh new faces.
Cisco stock price ended the day at $29.18, a loss of 0.45%.
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