SAN JOSE, Calif. -- September 26, 1996 -- Cisco Systems, Inc., the world'sleading supplier of internetworking solutions, has selected Amsterdam, theNetherlands, as the site for its new centralized European fulfillmentcenter.
Scheduled to open early next year, the new operation will consolidate manyof Cisco's administrative, distribution and sales functions for markets inEurope, Africa and the Middle East. Initially, the Amsterdam office willemploy about 80 people and the number is expected to reach 200 employees bythe end of the decade.
Cisco's Amsterdam-based operations will include a distribution center, atelemarketing center and a supply management function for contractmanufacturers. It will also be the general administrative center for thegreater European region to handle accounting, transaction processing,management information systems and treasury functions.
The rapid growth in demand for Cisco products and services in internationalmarkets created the impetus for opening the new hub in Europe, and theNetherlands provided the solution to the challenges of supplying productsand expertise efficiently.
"We examined all the options and selected the Netherlands for three basicreasons," said James Richardson, Cisco's vice president for Europe, theMiddle East & Africa. "Logistically, we feel the Netherlands is thedistribution leader of Europe with its central location, excellentdistribution networks and state-of-the-art infrastructure. Secondly, thehighly educated Dutch workforce, with their strong multilingual skills anda multinational approach to business was an important factor. Finally, theeconomics of operating in the Netherlands were very attractive."
In discussing the planned investment, Cisco officials also cited theassistance they received from the Dutch government. "The NetherlandsForeign Investment Agency was very helpful in providing us with theinformation and contacts we needed to make our own due diligenceinvestigation during the selection process," said Alan Sankin,international tax manager at Cisco. "It was invaluable for us to havepeople in the Bay Area connected to the Dutch Ministry of Economic Affairswho could give us assistance both in our time zone and in Europe." TheMinistry's State-Secretary of Foreign Trade, Mrs. Dok van Weele,responsible for attracting foreign investments in the Netherlands, wasextremely pleased with Cisco's decision.
In choosing the Netherlands, Cisco becomes an important addition to theexpanding role Holland has come to play as a European center for the bigand medium-sized players in the information technology and communicationsindustries. It also underscores the attractiveness of Dutch-based Europeanand Eastern hemisphere call center operations.
Cisco Systems' hardware and software are the driving force behind theglobal Internet, as well as many corporate "intranets." More than 80percent of the routers that direct traffic on the Internet are from Cisco.Cisco's broad range of internetworking solutions includes multi-protocolrouters, local-area and wide-area network switches, remote access servers,Internet access and management software, and network management software.These products, integrated by Cisco IOS(tm) software technologies, are usedto build enterprise-wide information networks that enable companies andpeople to enjoy the full benefits of immediate access to a world ofinformation.
Founded in 1984 by a small group of computer scientists from StanfordUniversity, Cisco shipped its first product in 1986. The company'srevenues have gone from $1.5 million in 1987 to over $4 billion in thefiscal year ending July 1996. As the pioneer in the business ofinternetworking and one of the hottest computer companies of the 1990s,Cisco has maintained its competitive edge by expanding its product line,developing partnerships and engaging in a series of acquisitions. It hasalso emerged as a global corporation. Today, Cisco employs more than 8,400people and sells its products in approximately 75 countries. Company newsand product/service information are available at World Wide Web sitehttp://www.cisco.com.
Cisco IOS and Cisco Systems are trademarks, and Cisco and theCisco Systems logo are registered trademarks of Cisco Systems, Inc. Allother trademarks, service marks, registered trademarks or registeredservice marks mentioned in this document are the property of theirrespective owners.
Editor's note: The Netherlands Foreign Investment Agency(NFIA) is a division of the Dutch Ministry of Economic Affairs andfacilitates American companies' direct investments in the Netherlands. TheNFIA is particularly well equipped to assist companies engaged in theinformation technology, medical device and biotechnology, chemicals, foodprocessing and auto supplies industries. The NFIA has contributed tonearly $20 billion in cumulative U.S. direct investment, and over 1,700 ofthe more than 6,400 foreign companies in the Netherlands are from America.As a government agency, the NFIA provides information and practicalassistance free of charge.
