Cisco still circumspect on investment in Satyam unit

KOLKATA: A day before the Satyam board meets in Hyderabad , networking giantCisco indicated that it is still examining the implications of Tech Mahindra’s takeover of the former Ramalinga Raju company, while remaining noncommittal on its proposed investment in Satyam Global Lifenet. Presently, Cisco and Satyam share a relationship on multiple levels. Satyam provides technical and maintenance services to Cisco, as well as being a system integration and managed services partner. Conversely, Cisco provides Satyam with networking and communication technology. “As any prudent company, we are evaluating appropriate strategies to support business continuity. Cisco’s primary aim is to see the continued delivery of services from the Satyam team to enable us to meet our business requirements ,” a Cisco spokesman told TOI in an e-mailed statement on Monday. Expressing the US-based firm’s continuing circumspect stance on investing in the Satyam subsidiary, the Cisco spokesman said: “With regard to Satyam Global Lifenet, we have no specific comments at this point, since it would be premature.” In 2007, Cisco and Satyam had announced their intention to partner in a new venture for handling medical distress situations and health management solutions for global markets . Cisco had expressed a strategic intent to make a minority investment in the venture and was pursuing the project as part of the company’s extended $100 million venture program targeting Indian innovation. In January 2009, subsequent to the revelations by Raju, a Cisco spokesman had said: “While we had held discussions to explore the possibility of a potential minority investment in one of their subsidiaries (Satyam Global Lifenet), we have not reached any final agreement and are under no contractual obligation to make an investment towards the same.”