Automobile firm Mahindra & Mahindra (M&M) on Tuesday signed a memorandum of understanding (MoU) with global networking equipment company Cisco to form a service company that would bring the Indian group's industrial experience and the US giant's technology expertise to jointly address various customer segments.
Mahindras also have a hold on software services through group firms Tech Mahindra and Mahindra Satyam.
The new venture will provide a host of services, including cloud computing, entertainment, 'smart city' initiatives and virtual dealerships. The joint venture intends to collaborate on a global platform and eyes a target market of $5 billion (R22,500 crore) in five years.
'Cloud services' is a broad reference to the use of shared resources such as software or storage over the Internet, while virtual dealerships involve electronic commerce.
"By collaborating with Cisco to build smarter, connected communities, virtual dealerships and other projects, we are empowering our stakeholders — dealers, customers, partners and others to use technology for the good, thereby enabling them to rise," said Anand Mahindra, vice-chairman and managing director, Mahindra Group.
"The collaboration with the Mahindra Group will be a game-changing one and I really look forward to working closely with M&M to transform cities and communities and to innovate new ways of offering services, using network as the platform," said Wim Elfrink, executive vice- president, emerging solutions and chief globalisation officer, Cisco.
Cisco and Mahindra will explore opportunities to develop cloud-based solutions and services and sports and entertainment as a service in a private-public-hybrid cloud in both build-operate-transfer and managed services models.